Connecticut Retirement Plans & Trust Funds to invest assets of retiree health trust fund

The Connecticut State Treasurer's office has moved the investment responsibility of a state retiree health benefits trust fund to the state pension system — Connecticut Retirement Plans & Trust Funds — in order to increase assets of the fund, according to a news release by state Treasurer Denise Nappier.

Connecticut Retirement Plans & Trust Funds, Hartford, had assets of $26.2 billion as of Jan. 23. Ms. Nappier is principal fiduciary of the CRPTF.

The retiree health fund — called the Other Post-Employment Benefits Trust Fund — had an actuarial value of assets of $49.65 million as of June 30, 2011, according to the latest available information.

The state has set aside $87 million for the OPEB Trust Fund, the news release said.

“The bulk of the (OPEB) trust fund assets, currently employee contributions, were initially invested in the Treasury Department's Short-Term Investment Fund,” the news release said.

These assets have been transferred to the pension system's short-duration bond fund “consisting of securities with global diversification and maturities longer than money market securities like those held by the Short-Term Investment Fund,” according to the release.

For the 2012 calendar year, the Short-Term Investment Fund had a return of 0.16%, while the short-duration bond fund had a return of 1.92%, the news release said.

“Pending final arrangements for a longer investment horizon, the treasurer's office plans to employ a long-term diversified investment strategy, including domestic and international stocks and bonds and alternative investments,” the news release said.