The Pension Funds Management Division (PFM) executes the investment programs of the Connecticut Retirement Plans and Trust Funds (CRPTF), which consists of six State Pension Funds and nine State Trust Funds.* As principal fiduciary of the CRPTF, State Treasurer Denise L. Nappier is responsible for managing the invested assets for approximately
212,000 state and municipal employees, teachers, retirees and survivorships who are pension plan participants and beneficiaries as well as for trust funds that support academic programs, grants, and initiatives throughout the State.
Prudent investment management requires the proper safeguarding of the CRPTF assets to ensure the retirement security of the beneficiaries and the spending policies of the pension and trust funds. The Division’s professional operations are conducted through three units: Risk Management; Investment Oversight, Accounting and Control; and Performance and Analysis.
The professional staff of PFM constructs separate investment portfolios for each of the state pension and trust funds, collectively referred to as the Combined Investment Funds. Working with the State Treasurer and as staff to the Investment Advisory Council (IAC) - the body charged by state law with the responsibility for providing oversight - the division analyzes plan liabilities - recommending asset allocation policy and recommending, monitoring, and reporting on the investment advisors retained to invest the State’s pension and trust assets.
PFM investment professionals assist Treasurer Nappier in the development of investment policy and monitor the performance of the CRPTF’s external money and investment managers, who are responsible for managing the portfolio underlying each Combined Investment Fund, and external consultants.
The Treasurer is directed by the Connecticut General Statutes, with the advice and consent of the IAC, to appoint a Chief Investment Officer and also may appoint a Deputy Chief Investment Officer
and Principal Investment Officers. The division’s investment officers and other internal division resources, are augmented by several outside consulting firms that provide specific research and analytical expertise. Bank of New York, 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 Office of the Treasurer invests and safeguards the 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.
2015 Profile of the Connecticut Retirement Plans and Trust Funds (Market