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Pension Funds

Connecticut treasurer proposes steps to strengthen Teachers’ Retirement Fund

Denise L. Nappier, Connecticut state treasurer and principal fiduciary of the $34 billion Connecticut Retirement Plans & Trust Funds, Hartford, has proposed steps to strengthen the $18.7 billion state Teachers' Retirement Fund.

Steps include infusing the fund with $3 billion through lottery revenues and transferring state assets, and lowering the long-term investment return assumption to 7.5% from 8% in fiscal year 2020, then to 7% beginning in FY 2026. Ms. Nappier also proposed paying off pension obligation bonds in FY 2026.

"Through these steps, the Treasury will be able to invest TRF assets in a risk-adjusted manner that will help the state meet its pension benefit obligations and ensure TRF's solvency while moderating the impact to its taxpayers," Ms. Nappier said in a news release issued by her office.

Ms. Nappier presented these proposals to the state's Pension Sustainability Commission. She did not run for re-election. Shawn Wooden won the election for state treasurer in November and will assume the role in January 2019.