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SB 325

AN ACT CONCERNING INDEPENDENT REVIEW OF THE INVESTMENT PERFORMANCE OF THE STATE'S PENSION FUNDS.

2025 Regular Session Introduced by Ryan Fazio

Connecticut would mandate independent external reviews of state pension fund investment performance to improve accountability and transparency in public retirement system management.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · SB 325

Legislative bill overview

SB 325 would require Connecticut to conduct independent reviews of its state pension fund investment performance. The bill establishes a mechanism for external evaluation of how well the state's pension investments are being managed and performing against benchmarks. This oversight would apply to the Connecticut State Employees' Retirement System and other state pension programs.

Why is this important

State pension funds represent billions in assets that fund retirement benefits for public employees. Investment performance directly affects pension solvency, contribution requirements, and the state's long-term fiscal health. Independent reviews create accountability and transparency around whether pension managers are meeting fiduciary obligations and achieving competitive returns.

Potential points of contention

  • Cost of compliance: Independent reviews require funding for external auditors and consultants, adding administrative expenses to pension operations
  • Management autonomy vs. oversight: Pension fund managers may resist external reviews as unnecessary scrutiny that could second-guess investment decisions or create political pressure on portfolio choices
  • Frequency and scope questions: Unclear whether reviews would be annual, biennial, or ad-hoc; whether they'd cover performance metrics only or governance and fee structures; and which external entities would conduct them

Compiled from official sources — confirm details with the bill’s official record.

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