Office of Connecticut State Treasurer Denise L. Nappier

Office of State Treasurer
Denise L. Nappier

Pension Fund Management Division

As principal fiduciary for Connecticut Retirement Plans and Trust Funds (CRPTF), which consists of six State pension and nine State trust funds, the Treasurer is responsible for prudently managing the retirement funds for approximately 190,000 teachers, state, and municipal employees who are pension plan participants and beneficiaries as well as academic programs, grants, and initiatives throughout the State.

The Pension Fund Management division assists the Treasurer in the development of investment policy in a diversity of asset classes and maintains communication and monitors the performance of the CRPTF’s investment managers and consultants. The Division also serves as staff to the Investment Advisory Council (IAC), the body that provides oversight in accordance with the Treasury Reform Law of 2000, which greatly expanded the Council’s authority and responsibility. Click to view the schedule of regular meetings.

Investment Policy Statement

A guiding policy document, the Investment Policy Statement (IPS) is required for the CRPTF by the Treasury Reform Law of 2000, enacted based on Treasurer Nappier’s comprehensive Treasury reform plan. It is an outline of the CRPTF’s long-term strategic plan based on the analysis of the capital markets and the CRPTF’s financial condition. In formulating this policy document, which can be reviewed by the public in its entirety, the Treasurer has sought to allow for sufficient flexibility to capture investment opportunities as they occur, while maintaining reasonable parameters to ensure that prudence and care are exercised in the execution of the CRPTF investment program. In the final analysis, the Treasurer must exercise her authority consistent within the principles of fiduciary law.

Funds of the Connecticut Retirement Plans and Trust Funds (CRPTF)

Specifically, this document addresses the following issues with respect to each trust fund:

Investment objectives;
Asset allocation policy and risk tolerance; Asset class definitions, including specific types of permissible investments within each asset class and any specific limitations or other considerations governing the investment of any funds;
Investment manager guidelines;
Investment performance evaluation guidelines;
Guidelines for the selection and termination of providers of investment-related services;
and Guidelines for corporate citizenship and proxy voting.

The Treasurer will review this policy statement on an annual basis with the Investment Advisory Council. Proposed changes to the statement will be submitted to the Investment Advisory Council for review.

Connecticut Retirement Plans and Trust Funds

The CRPTF holds assets on behalf of the State Employees’ Retirement Fund, Teachers’ Retirement Fund, Municipal Employees’ Retirement Fund, Probate Court Retirement Fund, State Judges’ Retirement Fund, State’s Attorneys’ Retirement Fund, Soldiers’ Sailors’ & Marines’ Fund, Endowment for the Arts, Agricultural College Fund, Ida Eaton Cotton Fund, Andrew Clark Fund, School Fund, Hopemead Fund, Police and Fireman’s Survivors’ Benefit Fund and State of Connecticut Other Post-Employment Benefits Trust Fund.

Organization

Under the supervision of a Chief Investment Officer, the Division executes and manages the investment programs of the pension and trust funds. The sixteen-member professional staff are responsible for: analyzing plan liabilities; recommending asset allocation policy; recommending, monitoring, and reporting on the investment advisors retained to invest the State’s pension and trust assets. In addition, PFM reviews the custodian accounting of plan assets to ensure that earnings are properly determined and properly distributed to each plan and trust in accordance with their pre-determined share. Through reports, analysis, and presentations to the Treasurer and the Investment Advisory Council, PFM staff detail investment performance of the pension funds and trust assets.

The Division’s operations are conducted through three units: Investment Oversight, Accounting and Control, and Performance and Analysis. State Street Bank and Trust, as the custodian of record for the CRPTF retains physical custody of, safeguards, and provides record keeping services for plan assets under the supervision of PFM staff.

The Treasurer employs external advisors to invest each Fund. Advisors are selected based on asset class expertise, investment performance and style and are expected to comply with the parameters, guidelines, and restrictions set forth in the Investment Policy Statement.

Additional Information

For additional information about the Connecticut Retirement Plans and Trust Funds, please review:

Fund Performance,
Investment Objectives.

You may also wish to consult the Investment Policy Statement.

Retired state employees and teachers may also use these links: