The Connecticut Retirement Plans and Trust Funds generated a preliminary investment return of 11.49 percent for the fiscal year ending in June.
State Treasurer Denise Nappier called the double digit positive returns goods news, and she noted that it surpassed the actuarial investment assumptions of 8 percent and 8.5 percent.
The Connecticut Retirement Plans and Trust Funds includes six state pension plans and nine trust funds—the majority of which is comprised of the State Employees’ Retirement Fund, the Teachers’ Retirement Fund, and the Municipal Employees’ Retirement Fund.
The high rate of return is attributed to the strong equity gains with domestic and international developed markets returning a preliminary 21.2 and 22.6 percent. Those investments helped add $2.8 billion of market value to the pension assets. The fund ended on June 30, 2013 at $25.9 billion, up from $24 billion as of June 30, 2012—an increase of $1.9 billion.
“The value of the pension funds grew during the 2013 fiscal year, even after taking into account the net payment of benefits totaling $800 million,” Nappier said in a press release. “This speaks to the soundness of the funds’ overall portfolio composition.”
Last year, the pension plans took a dive ending with a negative 0.9 percent return. During fiscal year 2010 Connecticut Retirement Plans and Trust Fund assets declined from $25.5 billion to $24 billion. This year the fund rebounded back up to $25.9 billion.
Nappier noted that the governor and the legislature fully funded the annual required contribution in 2013, which helped improve the pension plans. In the past, Connecticut had a reputation for underfunding its pension account.
The fund provides pension benefits to approximately 190,000 state and municipal workers and retirees.