Key Takeaways
- • Republican treasurer challenger Fred Wilms argues Connecticut should replace its sole-trustee model, under which the state treasurer has discretion over investment decisions, with a board model for the $73.7 billion Connecticut Retirement Plans & Trust Funds as of June 30, 2026.
- • The fund reported a 15.1% return for the fiscal year ended June 30, beating its 6.9% benchmark, and an annualized net 8.8% over 10 years versus an 8.7% benchmark.
- • Wilms cited a 2023 Yale University study ranking Connecticut 46th of 50 state pension funds on 10-year annualized return, at 7.3%.
- • Incumbent Democratic Treasurer Erick Russell says a governance change during a period of stability and strong performance would introduce "risk and chaos."
- • Connecticut and New York are the only states still using a sole-trustee model after North Carolina converted to a board model on Jan. 1, 2026.
Summary
Republican challenger Fred Wilms, who is running to unseat Democratic Connecticut Treasurer Erick Russell in the Nov. 3 election, argues that the state should move its pension governance away from a sole-trustee model. Under the current structure, the treasurer has discretion over investment decisions for the Connecticut Retirement Plans & Trust Funds, which held $73.7 billion as of June 30, according to the publisher's summary. Wilms, a banker and former member of the Connecticut House of Representatives, said one person, even if elected, should not hold sole authority over the portfolio. "If we transfer authority away from a person to a formal board, you're going to get better outcomes," he said.
Connecticut is an outlier among state pension funds. Aside from Connecticut, only New York uses a sole-trustee model, with Comptroller Tom DiNapoli holding sole authority over the $309.7 billion New York State Common Retirement Fund. North Carolina was also a holdout until it converted to a board model on Jan. 1, 2026. Connecticut currently has an investment advisory council of up to 12 members, including a representative of the treasurer's office, a representative of the Secretary of the Office of Policy and Management, five public members with investing experience appointed by the governor and legislative leadership, and five union representatives. The council advises rather than holds fiduciary authority.
The fund's recent results are strong. It reported a 15.1% return for the fiscal year ended June 30, surpassing its 6.9% benchmark, and an annualized net 8.8% over the 10 years ended June 30, slightly above its 8.7% benchmark. Wilms acknowledged these figures but said they do not resolve the governance concerns. He cited a 2023 Yale University study of state pension investment performance over 10 years that ranked Connecticut 46th of 50, with a 7.3% annualized 10-year return.
Wilms proposes legislation to create a board of directors that would share fiduciary responsibility, with the state treasurer remaining chair and CEO. A similar bill, S.B. 1557, was introduced in 2025 but failed to advance. A spokesperson for Russell's office referred election questions to the campaign, which did not respond to requests for comment. In response to questions from the Hartford Business Journal, Russell said reshaping governance would be a mistake. "We've been able to implement reforms, rebuild the investment team and completely turn around performance within the current system," he said. "Making an organization-wide change at this moment would introduce risk and chaos, which will hurt Connecticut taxpayers."
Connecticut is an outlier among state pension funds. Aside from Connecticut, only New York uses a sole-trustee model, with Comptroller Tom DiNapoli holding sole authority over the $309.7 billion New York State Common Retirement Fund. North Carolina was also a holdout until it converted to a board model on Jan. 1, 2026. Connecticut currently has an investment advisory council of up to 12 members, including a representative of the treasurer's office, a representative of the Secretary of the Office of Policy and Management, five public members with investing experience appointed by the governor and legislative leadership, and five union representatives. The council advises rather than holds fiduciary authority.
The fund's recent results are strong. It reported a 15.1% return for the fiscal year ended June 30, surpassing its 6.9% benchmark, and an annualized net 8.8% over the 10 years ended June 30, slightly above its 8.7% benchmark. Wilms acknowledged these figures but said they do not resolve the governance concerns. He cited a 2023 Yale University study of state pension investment performance over 10 years that ranked Connecticut 46th of 50, with a 7.3% annualized 10-year return.
Wilms proposes legislation to create a board of directors that would share fiduciary responsibility, with the state treasurer remaining chair and CEO. A similar bill, S.B. 1557, was introduced in 2025 but failed to advance. A spokesperson for Russell's office referred election questions to the campaign, which did not respond to requests for comment. In response to questions from the Hartford Business Journal, Russell said reshaping governance would be a mistake. "We've been able to implement reforms, rebuild the investment team and completely turn around performance within the current system," he said. "Making an organization-wide change at this moment would introduce risk and chaos, which will hurt Connecticut taxpayers."
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