11/18/2025
Treasurer Russell Deposits $1.487 Billion into State Pension Funds Total Extra Deposits Reach $10 Billion
Hartford, CT – Connecticut Treasurer Erick Russell announced that on November 17, 2025, following the certification of Fiscal Year 2025 data, $1.487 billion in revenues generated through the state’s volatility cap and Fiscal Year 2025 budget surplus have been deposited into the pension funds for retired teachers and state workers.
The $1.487 billion transfer was made after the General Assembly took bipartisan action in last week’s Special Session to direct an additional $500 million of volatility funds to the Budget Reserve Fund (BRF) over and above the statutorily required threshold of 18% of general fund expenditures. The additional transfer is set aside to address federal funding cuts as needed.
At the Treasurer’s direction, $894.7 million has been deposited into the State Employees Retirement Fund (SERF) and $592.7 million has been deposited into the Teachers Retirement Fund (TRF).
"Recent actions taken by the Governor, legislature and Office of the Treasurer have enabled a nearly $1.5 billion contribution to grow assets and reduce debt in our pension funds, protecting the retirement security of Connecticut teachers and state employees and reducing the burden on state taxpayers,” said Treasurer Russell. “At the same time, we are building reserves to help guard against the unpredictability of our federal government and ensure the continuation of essential services and programs for Connecticut families and children most in need. This is what fiscal responsibility looks like. Washington could learn something from Connecticut.”
The deposits were divided between the two funds proportionally according to outstanding unfunded liability, resulting in a roughly 55%-45% split, after adjusting for an additional prior deposit of $150 million to the TRF earlier this fiscal year to pay down long-term liabilities as part of the budget.
Summary:
|
|
SERF |
TRF |
TOTAL |
|
Volatility Transfer ($ millions) |
$834.5 |
$542.7 |
$1,377.2 |
|
Operating Surplus ($ millions) |
$ 60.2 |
$ 50.0 |
$ 110.2 |
|
TOTAL ($ millions) |
$894.7 |
$592.7 |
$1,487.4 |
Budgetary controls implemented in 2017, known as the fiscal guardrails, require excess revenues in particularly volatile categories be captured and deposited into the state’s BRF. That fund has currently reached its legal cap of 18% of net General Fund appropriations, triggering a provision that directs the remainder of the volatility transfers and remaining operating budget surplus to pay down debt, including in the pension funds. The net amount available to pay down pension debt also reflects the action taken by the General Assembly in last week’s Special Session, which provided that $500 million of the volatility fund be transferred to the BRF.
Additional contributions have been made into the state’s pension funds in each of the past five fiscal years. When combined with this year’s deposits, the total now exceeds $10 billion.
- $61.6 million in Fiscal Year 2020
- $1.6 billion in Fiscal Year 2021
- $4.1 billion in Fiscal Year 2022
- $1.9 billion in Fiscal Year 2023
- $933.2 million in Fiscal Year 2024
- $1.487 billion in Fiscal Year 2025
Earlier this month, Treasurer Russell announced that the state’s pension funds added $5.9 billion in assets in Fiscal Year 2025 due to additional contributions in the prior year and a 10.14% investment performance. Updated funded ratios for SERF and TRF will be included in new actuarial valuations to be published later this fall.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit: Connecticut Office of the Treasurer Erick Russell.
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Contact: Brett Cody
brett.cody@ct.gov | (959) 529-2468