CT State Pensions have lost over $6 billion in the first half of this year. Please read my letter below to learn how I intend to strengthen our pensions as your next State Treasurer.
I am running to be your next State Treasurer this November. The Treasurer is the sole fiduciary of the pension assets. In recent years, our state has been able to catch up and contribute more to the pension fund, but unfortunately, the fund has lost billions in the market in the last six months. I am committed to making our pensions more robust. I am committed to our teachers and our retired state employees to protect and grow their pension assets. Here are things you need to know:
Our pensions are underfunded and underperforming:
As of June 2022, they have 40% of the funds they need to pay off all promised benefits. While the state is catching up on the contributions, that is only one part of the problem. The primary concern is that our pensions returns have lagged behind market returns..
Our pension funds have underperformed the market by billions of dollars:
Our pensions have lagged US stock and bond market returns over time. For the five years ending June 2022, our pension has returned less than 6%, while the S&P has returned 11.3%. This underperformance amounts to $8 billion. In the last six months, the market sell-off has exposed underperformance. Quoting legendary investor Warren Buffett "It's only when the tide goes out that you learn who has been swimming naked."
Pension fund returns have not been a priority for past Treasurers:
The returns on pension assets are the fiduciary responsibility of the Treasurer, but unfortunately, it has never been a priority. Treasurers have used pension funds to advance their political and social agenda. They neither have had the financial background nor the ability to address the pension fund's solvency and poor returns. We need a Treasurer who will prioritize returns on pension assets and has the experience and capacity to do so.
Our pensioner's interests will be my priority:
I bring decades of investment experience and will define an investment strategy to prioritize returns. I will ensure our pensions meet and exceed market returns and that we do not pay excessive investment fees. I have studied our portfolio in detail and have a plan to put our pension fund on a firm footing. Please email me at email@example.com or text me at (203) 635-3926 to learn more about your pensions and my plan to strengthen them. I look forward to hearing from you.