Pensions, baby bonds did well in 2024, Treasurer’s Office reports

The Annual Report of the Office of the Treasurer is in, and pension funds and baby bonds are looking good. 

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“In Fiscal Year 2024, the Treasurer’s Office made significant investments on behalf of Connecticut taxpayers, grew the pension funds for retired teachers and state and municipal workers, reunited residents with millions of dollars in lost or abandoned property, and helped thousands of families save for college,” Treasurer Erick Russell said in a press release. “This report details the important work done by the dedicated staff at the agency, and its impact on residents of our state now and for generations to come.”

There were 11.5% returns on the full portfolio of funds and trusts administered by the office, including ones for returned teachers and state workers. This translates to around $7.5 billion in plan assets during the fiscal year, according to the press release. 

“Reforms put in place in recent years to reallocate plan assets, mitigate risks, lower fees, and recruit and retain investment talent all contributed to the positive performance,” the press release stated.  

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The state sold more than $2.2 billion worth of bonds to fund critical investments like the construction of schools and transportation infrastructure. It also refunded some existing bonds, which saved taxpayers $61.6 billion.

Last fiscal year, the state returned $82 million in unclaimed property to 44,000 people. Officials also took steps to make the process of returning unclaimed property more efficient and protect people against fraud.  

The Short-Term Investment Fund built up $37 million in additional interest earnings for accountholders beyond its investment benchmark. This fund holds and invests cash for state and municipal governments. 

“I’m exceptionally proud of our role in shaping Connecticut’s future, and grateful to work with colleagues so dedicated to public service and professional excellence,” Russell said.

Then there were existing programs that expanded: the Connecticut Higher Education Trust (CHET) added more than 17,000 new accounts. 

In a press release from December, Russell said, “Saving with a CHET account can make college and other education expenses easier to navigate… Helping families prepare and save for the future is a fundamental responsibility and a tremendous point of pride for my office.”

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The 2024 annual report also covered the first year of the CT Baby Bonds program. 

The Baby Bonds program invests $3,200 for each baby born after July 1, 2023, and whose birth was covered by HUSKY. The children will be able to claim this fund once they reach adulthood and use the money to buy a home in Connecticut, start or invest in a Connecticut business, pay for higher education or job training, or save for retirement. The state expects that investments will grow by $11,000 to $24,000 over its lifetime.

The Treasurer’s Office reports that more than 16,000 babies were enrolled in the program.