Nappier Not Expected To Seek Reelection

Paul Bass PhotoAnother top elected office is opening up in state government, as State Treasurer Denise Nappier has reportedly decided not to seek a sixth four-year term.

Nappier is expected to announce her decision on Wednesday, according to someone familiar with her plans.

Nappier was first elected to the job in 1998, becoming the nation’s first African-American female state treasurer. She has easily won reelection since as the state’s chief financial officer, who oversees the management of $63 billion in state funds. She served five terms as treasurer of the National Association of State Treasurers and advocated nationally for corporate governance reforms. In 2017 she announced significant gains in the state’s retirement plans and trust funds despite market instability.

Nappier’s expected announcement follows a similar decision by another popular Democratic constitutional officer, Attorney General George Jepsen, not to seek reelection in 2018.

Nappier’s decision will also increase pressure on Democrats to include one or more candidates of color on the 2018 ticket in what promises to be a tough election year for the party.

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posted by: 1644 on January 2, 2018  8:44am

Yes, it is good that the pension funds increased 14%.  However, this past year was hardly remarkable for “market instability”.  Plus, equities markets were nearly all up, with the S & P 500 index was up about 25% for the year Bonds didn’t do too badly, either, (except for Puerto Rico), in spite of rising interest rates.

posted by: THREEFIFTHS on January 2, 2018  11:22am

@ 1644.Again Check out the New York State New York State Common Retirement Fund.
The New York State Common Retirement Fund (NYSCRF) is the third largest public pension plan in the nation with an audited value of $192.4 billion in assets held in trust for the retirement security of the more than one million members of the New York State and Local Retirement Systems (NYSLRS). As a long-term investor, NYSCRF has an investment approach which capitalizes on market opportunities and weathers market ups and downs. NYSCRF is widely regarded as one of the nation’s best-managed and best-funded pension plans.

$192.4 Billion
in audited value as of
March 31, 2017

https://www.osc.state.ny.us/pension/snapshot.htm

10.17% average five-year return 7.12% average 10-year return 8.69% average 20-year return


$10.9 Billion
in benefits paid out
in the last year

Notice this.
75% of
paid benefits comes
from investment
earnings

Like I told you My pension comes from New York State.So I will ask you again.What is stoping this state from doing the same type of investments?

posted by: 1644 on January 2, 2018  1:07pm

3/5’s: 
1.  CT lacks the scale of NYS.  Many investments available to a large fund would not be available to CT.
2.  CT’s funding ratio is far below that of NYS, making CT more risk adverse.  CT cannot afford large losses, so doesn’t make high risk/high potential reward investments.

The state of CT’s pension funds is due to the historic and continuing unwillingness of nearly all parties, including state worker and teacher unions, to forgo present spending to fund future benefits, both pension and health care.  This unwillingness may also be seen in New Haven’s finances, including the absence of any meaningful fund reserves.  So, now we have a storm coming. At best we shall get wet and uncomfortable from a leaky roof. At worst our house will be swept off its rotted foundations.

posted by: THREEFIFTHS on January 2, 2018  6:06pm

posted by: 1644 on January 2, 2018 1:07pm
3/5’s: 
1.  CT lacks the scale of NYS.  Many investments available to a large fund would not be available to CT.

Not true.There are other states that follow the same system as New York.
Also the pew group did a study on Ct state pension system and told the state of ct to look at some the of the other states and study how they fund there pension system.

2.  CT’s funding ratio is far below that of NYS, making CT more risk adverse.  CT cannot afford large losses, so doesn’t make high risk/high potential reward investments

The state of ct can also invest in the same compnies NYS invest in,In fact other states do it.  Pension one of the things that NYS and other States do is let state workers take loans out on there pensions In New York the Current Interest Rate 6% and that goes back into the fund.Also they have a In-State Private Equity Investment Program invests in private equity funds that target technology-based startups and established businesses in the State seeking expansion capital. The program generates solid returns for the state pension fund and the one million members, retirees and beneficiaries who depend on it. As an added bonus, it spurs private sector investments and jobs—upstate and downstate—by investing in businesses that want to expand here. Since 2007, Comptroller DiNapoli has doubled the capital committed to this program.

  20 percent internal rate of return on fully exited investments.
  $293 million returned to the Fund on $179 million exited investments in 71 companies.
  More than $800 million has already been invested in over 300 New York State companies.
  $6.7 billion has been invested between the Fund and partner private equity firms, including $2.4 billion in upstate New York companies.

http://www.osc.state.ny.us/pension/instate/
Other states are starting to use this model.Bottom line is this state can do it.All they hace to do is stop underfunding the pension system on there part.

posted by: 1644 on January 2, 2018  7:38pm

3/5’s. I don’t have to click on your link to see how NYS or any other entity funds its pensions:  they do it through a combination of employer and employee contributions, which are then invested.  As I said, in CT and New Haven, neither the employer nor the employees have wanted to contribute to pension and OPEB, with the result being that pensions and OPEB are woefully underfunded.  For example, if Malloy really cared about funding the pensions and OPEB the way he pretends to now, he would not have supported a state earned income tax credit, or expansion of pre-school, MedicAid expansion, or increased funding for UConn, etc.  He could have said, what, before we start any new spending programs, let’s shore up are pitiful pension and non-existent OPEB funds.  He did not, because most voters don’t vote for fiscal responsibility, they vote for a hand-out now.  Similarly, when explicitly given the choice between cutting present benefits and employment levels and cutting pension contributions, SEABAC modified its contract to allow lower pension contributions.  CEA and AFL CT have mentioned the pathetic level of their pension fund, but never argued that ECS and other programs should be held to zero increase or cut to fund their pensions.  So,  because no party wants to delay gratification, we are where we are.

posted by: THREEFIFTHS on January 2, 2018  10:44pm

posted by: 1644 on January 2, 2018 7:38pm

3/5’s. I don’t have to click on your link to see how NYS or any other entity funds its pensions:  they do it through a combination of employer and employee contributions, which are then invested.  As I said, in CT and New Haven, neither the employer nor the employees have wanted to contribute to pension and OPEB, with the result being that pensions and OPEB are woefully underfunded.

Wroug.The employees do make there contributions as agreed upon.Again the Blame is that the state is not putting what is agreed.Again the blame is on the state not the workers.

SEABAC modified its contract to allow lower pension contributions.  CEA and AFL CT have mentioned the pathetic level of their pension fund, but never argued that ECS and other programs should be held to zero increase or cut to fund their pensions.  So,  because no party wants to delay gratification, we are where we are.

All the state of CT has to do is follow the same model.Case closed.

posted by: Rippowam on January 3, 2018  7:07am

Two part problem:  the long-term underfunding and the reliance of the State on firms that are properly “introduced” rather than a true search for performance and quality

posted by: THREEFIFTHS on January 3, 2018  8:01am

posted by: Rippowam on January 3, 2018 7:07am

Two part problem:  the long-term underfunding and the reliance of the State on firms that are properly “introduced” rather than a true search for performance and quality

Home Run.On Point.

New York State Comptroller Thomas P. DiNapoli today announced that the New York State Common Retirement Fund (Fund) earned an estimated 11.42 percent return on investments in the state fiscal year that ended on March 31, 2017. The Fund has an estimated value of $192 billion.

“Strong returns over the fiscal year, particularly in the fourth quarter, were driven by rising public equity markets,” DiNapoli said. “New York state’s pension fund is at a record value based on prudent long term asset allocation. We continue to manage one of best funded, best performing pension plans in the nation and that’s great news for the more than one million men and women who participate in it, as well as for New York taxpayers.”

Over state fiscal year 2017, domestic and non-U.S. equities enjoyed overall returns of 17.01 percent. The Fund’s broader approach to fixed income markets over the last year returned 2.91 percent. The Fund’s diversification strategy performed well, with private equity and real estate delivering returns of 7.02 percent and 10.68 percent.

The Fund is the third-largest public pension fund in the country and remains one of the nation’s best-managed and best-funded pension plans. The New York State and Local Retirement System provides retirement security to more than one million active state and local government employees, retirees and their beneficiaries. Employer contribution rates are determined by investment results over a multi-year period along with numerous other actuarial assumptions, including wage growth, Check out the list of returns

https://www.osc.state.ny.us/press/releases/may17/052317.htm

How Well Funded Are Pension Plans in Your State?

https://files.taxfoundation.org/20170406115247/pensions-01.png

posted by: JCFremont on January 3, 2018  12:01pm

I remember seeing the PSA ad’s that ran on Connecticut Television Stations featuring Denise where she proudly proclaimed “College has never been more expensive, yet never been more affordable.” Well that kind of sums up Connecticut Economics. If you don’t understand that one try that other oldie but goodie “Spend More, Save More!” About NYS Pensions while yes they are fiscally strong the state is paying many wages with borrowed funds, take a look at the MTA.

posted by: THREEFIFTHS on January 3, 2018  6:03pm

posted by: JCFremont on January 3, 2018 12:01pm

About NYS Pensions while yes they are fiscally strong the state is paying many wages with borrowed funds, take a look at the MTA.


With a pension fund estimated value of $192 billion.They can afford to.In fact New York State Comptroller Thomas DiNapoli said that employer contribution rates for the New York State and Local Retirement System (NYSLRS) will decrease in fiscal year 2018-19 due to recent strong investment returns.The Comptroller’s Office said the estimated average contribution rate for the Employees’ Retirement System (ERS) will decrease to 14.9% of payroll from 15.3% of payroll. Meanwhile, the estimated average contribution rate for the Police and Fire Retirement System (PFRS) will decrease to 23.5% of payroll from 24.4%.

Again. I ask the question.What is stoping the state of Ct from following the same model like New York and other states who have a sound pension system?