Connecticut Retirement Plans & Trust Funds, Hartford, negotiated reductions in fees with investment managers that will produce savings of about $1.64 million in 2013, confirmed David Barrett, communications director for the state treasurer's office.
State Treasurer Denise Nappier is the principal fiduciary of the $26.1 billion Connecticut Retirement Plans & Trust Funds, which comprises six state pension funds and nine state trust funds.
Eight managers reduced their fees, according to a recent report by the treasurer's office. The report didn't identify the managers, and neither did Mr. Barrett.
“As part of the ongoing monitoring of managers and their contracts, the Connecticut Treasury re-examines fees and other terms, wherever possible, in order to achieve the most competitive and/or favorable terms on behalf of the Connecticut Retirement Plans and Trust Funds and beneficiaries,” Mr. Barrett wrote in an e-mail.
“In 2012, the Treasury secured fee reductions expected to generate savings of roughly $1.6 million in 2013 and, over the remaining lives of these contracts, an additional estimated $5.6 million,” Mr. Barrett wrote. “The eight contracts had remaining lives that ranged from a minimum of 1.6 years to a maximum of 6.6 years.”
The state pension system paid $52.78 million in fees for liquid funds last year, Mr. Barrett confirmed.