Stratford, Conn., town officials might merge Stratford's $95 million pension obligation trust with its $28 million pension plan, said Dean Moore, director-finance and pension plan treasurer. The trust, started after a 1998 pension obligation bond sale, has 69% of total assets in fixed income and 31% in equity, in compliance with an old state statute, Mr. Moore said. Town officials, feeling that fixed income is now "not earning a great deal for us," want to merge the trust assets with the pension plan, which is entirely invested in equity, he said. The asset allocation for the combined assets would likely be 55% equity and 45% fixed income, he said. Town officials might decide in June or July whether to proceed with the merger, after which they might search for managers; the process could be complete by next spring, Mr. Moore said.
Actuary Milliman USA and consultants Dahab Associates and Independent Bond and Investment Consultants will assist.
