09/09/2026
Treasurer Russell Announces Connecticut Pension Funds Generated Returns of 15.1% in Fiscal Year 2026
$750 million in investment commitments announced at the September IAC meeting
HARTFORD, Connecticut – On Wednesday morning, Treasurer Erick Russell announced investment performance data for the state’s pension funds. The Connecticut Retirement Plans and Trust Funds (CRPTF) reported returns of 15.1% for Fiscal Year 2026, once again substantially outpacing the assumed rate of return of 6.9%.
“Another year of strong investment performance is an important result for Connecticut’s pension funds and the people who rely on them,” said Treasurer Russell. “A 15.1% return in Fiscal Year 2026, and four consecutive years of returns above our assumed rate, demonstrates the value of maintaining a disciplined, diversified, long-term investment strategy. These results strengthen the retirement security of Connecticut’s teachers and state employees, while reducing pressure on future state budgets and helping us continue the progress we have made in strengthening the financial foundation of our state.”
“Connecticut has made tremendous progress in strengthening our pension system and putting the state on a more sustainable financial path,” said Governor Ned Lamont. “Strong investment performance, combined with the additional contributions we have made in recent years, is helping us reduce pension debt and lower costs for taxpayers over the long term. This progress is the result of disciplined fiscal management, and it gives us greater flexibility to make investments in education, housing, and other priorities that strengthen our economy and improve quality of life for people across our state.”
The returns were announced during the September meeting of the Investment Advisory Council (IAC), which shares responsibility for Connecticut’s investment strategy and performance. The funds have outpaced the assumed rate of return of 6.9% in each of the last four fiscal years (10.14% in Fiscal Year 2025, 11.5% in Fiscal Year 2024, and 8.5% in Fiscal Year 2023).
The funds benefited from $1.487 billion in excess contributions made in Fiscal Year 2025 as part of the state’s fiscal guardrails. When combined with investment earnings, total assets within the pension funds increased by $11.0 billion in Fiscal Year 2026.
The most significant driver of investment performance is asset allocation. In recent years, reforms have been put in place by the Office of the Treasurer and the IAC to index funds in low-fee, passive arrangements where possible and scale up investments in other areas with high-performing external managers. Other efforts, including bipartisan legislation passed in 2023, have given the Treasurer and Chief Investment Officer more tools to attract, develop, and retain investment talent.
Investment Commitments Announced at September IAC Meeting
Also on Wednesday morning, Treasurer Russell announced $750 million in investment commitment decisions, based on feedback received at July’s IAC meeting.
- In private credit, the Treasurer committed up to $250 million each to Fortress Lending Fund V (A) L.P. and Fortress Lending Fund V Co-Invest L.P.
- In infrastructure and natural resources, the Treasurer committed up to $250 million to IFM Global Value Add Infrastructure Fund SCSp.
The Treasurer also selected Hamilton Lane Advisors, LLC to provide Private Equity & Private Credit Investment Consulting Services after completion of the RFP process and receiving the Selection Committee’s finalist recommendation.
Minutes, agendas, and meeting materials for the IAC can be found on the Office of the Treasurer’s website. Investment performance data is published regularly here, with detailed holdings and financial statements included in the agency’s Annual Report released each December.
The IAC shares responsibility for Connecticut’s investment strategy and performance. Its members are appointed by unions representing teachers and state workers, legislative leaders, and the Governor. The IAC plays a key role in setting the pension funds’ investment policy and asset allocation, and in the hiring of key investment personnel. All IAC meetings are open to the public. Meeting materials, including agendas, minutes and investment presentations, are available on the Office of the Treasurer’s website: Investment Advisory Council.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and thirteen 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, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell. To learn more, visit portal.ct.gov/ott.
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Contact: Brett Cody
brett.cody@ct.gov | (959) 529-2468