Connecticut’s two largest pension funds, the Teachers’ Retirement Fund and the State Employees’ Retirement Fund, both of Hartford, returned 14.23% and 14.11%, respectively, on investments in 2013, confirmed David Barrett, a spokesman for Treasurer Denise Nappier, the pension systems’ principal fiduciary.
The returns exceeded their respective actuarial investment assumptions of 8.5% and 8%, respectively, but trailed their benchmarks. The benchmarks for TRF and SERF are customized blends of the individual benchmarks for the underlying combined investment funds. The one-year benchmark for TRF was 14.51%; the one-year benchmark for SERF was 14.45%.
TRF and SERF are part of Connecticut Retirement Plans & Trust Funds, which in total include six pension plans and nine trust funds. After net withdrawals of $636 million, which consisted of benefit payments, fees and expenses, CRPTF had assets of $28.23 billion as of Dec. 31, a $2.94 billion net increase from the previous year.
CRPTF’s performance results were led primarily by the domestic and international developed equity markets, which returned 33.85% and 26.1%, respectively, for 2013. The real estate portfolio posted an investment return of 11.52%.