Connecticut’s state pension funds posted double-digit investment gains in Fiscal 2025, though they lagged behind the broader stock market’s strongest benchmarks during the same period, according to the 2025 Annual Report of the state treasurer that was released Monday.
The Connecticut Retirement Plans and Trust Funds, which manage pensions for retired teachers and state and municipal employees, earned a 10.14% return for fiscal 2025, state Treasurer Erick Russell said.
Over the same period — from July 1, 2024, to June 30, 2025 — the S&P 500 rose 13.4%, while the Nasdaq composite index surged 14.6%, reflecting particularly strong performance among large technology stocks.
Despite trailing those indexes, the pension system saw significant growth, boosted by nearly $1.5 billion in excess contributions from the state’s volatility cap and surplus transfers. Total assets grew by about $6 billion year over year, and the system’s three-year annualized return stood at 10.05%, the report said.
Brett Cody, communications director for the Treasurer’s office, said that broad equity indexes like the S&P 500 and the Nasdaq are not benchmarks typically used to evaluate public pension funds. Instead, the Treasurer’s office uses InvestmentMetrics peer comparison of public pension funds with assets of $10 billion or more.
“On that basis, the CRPTF’s 10.14% return for the fiscal year ending June 30, 2025, exceeded the 9.9% peer average,” Cody said. “In addition, the fund’s two year and three-year returns now rank in the top 19% and 16% of peers, respectively.”
The annual report, which state law requires the treasurer to file, covers activity from July 1, 2024, through June 30, 2025, across all divisions of the office.
In addition to pensions, the state’s Short-Term Investment Fund, which manages cash for state and municipal governments, outperformed its benchmark by 20 basis points, the report states. That translated into $865 million in net income for investors, including $37 million in interest income above the fund’s benchmark.
The treasurer’s office also reported $3.9 billion in bond sales during the fiscal year. That included $2.6 billion in new bonds for projects such as school construction, transportation infrastructure and economic development, as well as $1.3 billion in refinancing bonds that are expected to save taxpayers $92 million over time, the report states.
The Unclaimed Property Division returned a record $121 million to more than 59,000 residents, aided by technology upgrades designed to speed payments and reduce fraud.
Savings and education programs also expanded. Nearly 33,000 children have been automatically enrolled in CT Baby Bonds since the program launched in mid-2023, with assets growing to $487.9 million, the report states. The CHET college savings program added more than 17,000 accounts, while a new $300 million endowment was established to support early childhood care and education.
Note: This article was updated with a comment from the Treasurer’s office on the pension fund’s performance.