Growth in Pension Funds, Record Returns Announced by State Treasurer's Office for 2025

Connecticut Treasurer Erick Russell has released the 2025 Annual Report of the Treasurer, detailing the agency’s results over the past fiscal year. The report details continued growth in pension funds for retired teachers and state and municipal employees, the return of a record $121 million dollars in unclaimed property, and meaningful progress on initiatives that are helping families save for college and build long-term financial security.

Through disciplined investment and borrowing decisions and public policy leadership, officials explain, the Office of the Treasurer promotes financial literacy and security, education, job creation, economic growth, and equal opportunity for everyone who lives, works, and invests in Connecticut.

“Over the past fiscal year, the Office of the Treasurer delivered results that truly matter for the people of Connecticut,” said Treasurer Russell. “We achieved strong investment returns for the state’s pension funds, generated savings for taxpayers, reunited residents with millions of dollars in unclaimed property, and helped tens of thousands of families plan for their future. These results were driven by the talented and dedicated public servants who make up our agency and their commitment to strengthening financial security and expanding economic opportunities for Connecticut residents.”

The filing of the Annual Report, which is required by state law, includes details from each division within the Office of the Treasurer as well as programs and funds maintained by the agency from July 1, 2024, through June 30, 2025. Highlights of the report, as described by the Treasurer’s Office, include:

•        Pension Fund Investments Generate Strong Returns

Connecticut Retirement Plans and Trust Funds (CRPTF), which includes the pension plans for retired teachers and state workers, delivered an investment return of 10.14% for the fiscal year, while benefiting from nearly $1.5 billion in excess contributions made through the state’s volatility cap and surplus transfers, resulting in year-over-year asset growth of $6 billion. The CRPTF’s three-year rate of return is 10.05%. Reforms implemented in recent years to reallocate plan assets, mitigate risk, lower fees, and recruit and retain investment talent all continue to contribute to strong performance.

•        Short-Term Investment Fund (STIF) Outperforms Benchmark, Delivers $865M to Investors

STIF, which holds and invests cash for state and municipal governments, outperformed its benchmark by 20 basis points. As a result, investors earned $865 million in net income, including $37 million in interest income above the fund’s benchmark.

•        $3.9 Billion in Successful Bond Sales to Power Connecticut’s Future

The agency issued $2.6 billion in new money bonds to fund capital projects, including school construction, economic development initiatives, municipal aid, and transportation infrastructure—all of which help bolster local economies throughout the state. An additional $1.3 billion in bonds were issued to refinance higher-interest-rate debt, resulting in $92 million in savings for taxpayers over the life of the bonds.

•        Unclaimed Property Returns Reach All-Time High

The Unclaimed Property Division returned a record $121 million to more than 59,000 rightful owners during the fiscal year, the result of process and technology improvements that are accelerating the return of property and enhancing fraud protection.

•        CT Baby Bonds Turns Two!

Since its launch on July 1, 2023, through June 30, 2025, nearly 33,000 children have been automatically enrolled in CT Baby Bonds, and the program’s total assets under management grew from an initial investment of $398 million to $487.9 million.

•        Connecticut Higher Education Trust (CHET) Adds Nearly 18,000 New Accounts

CHET Direct program accounts grew from 191,280 to 208,896 during the fiscal year, and the CHET Dream Big! competition awarded more than $350,000 in prizes, including scholarships for students and technology prizes for schools.

 •        Connecticut Funds First-in-the-Nation Early Childhood Education Endowment

The new state budget provides for a first-in-the-nation, permanent, independent investment vehicle for early childhood care and education managed by the State Treasurer. An initial investment of $300 million from the Fiscal Year 2025 unappropriated general fund surplus has been transferred to the newly created endowment and fully invested in a long-term, diversified portfolio to maximize growth.

Each year, the Annual Report of the Office of the Treasurer is submitted to the Governor. An archive dating back to 2000 can be found on the agency’s website.