Treasurer Russell Deposits $1.3 Billion Volatility Transfer into State Pension Funds

09/08/2026

More than $11 billion in excess revenues deposited into state pension funds over last seven fiscal years

Hartford, CT - Connecticut Treasurer Erick Russell today announced that $1.304 billion in excess revenues generated through the state's volatility cap have been deposited into the pension funds for retired teachers and state workers following the certification of Fiscal Year 2026 data. At the Treasurer's direction, $685.1 million has been deposited into the State Employees Retirement System (SERS) and $618.9 million has been deposited into the Teachers Retirement System (TRS).

"This year's $1.3 billion volatility deposit strengthens our pension funds, reduces long-term debt, and lowers annual costs for taxpayers, all while honoring Connecticut's commitments to retired teachers and state employees," said Treasurer Russell. "These deposits show what disciplined budgeting and smart financial management can achieve. For seven consecutive years, Connecticut has made excess contributions to its pension systems, steadily improving our financial position and protecting the retirement security earned by public servants. My office will invest these funds strategically to maximize long-term returns and support the continued stability of our pension systems."

The deposits were divided between the two funds proportionally according to outstanding unfunded liability, resulting approximately in a 53%-47% split.

Later this year, another transfer will occur when the Fiscal Year 2026 operating surplus is certified. At that time, an estimated $114.0 million will also be deposited using the same proportional formula.

Budgetary controls implemented in 2017, known as the fiscal guardrails, capture excess revenues in particularly volatile categories and automatically deposit them into the state's Budget Reserve Fund (commonly referred to as the "Rainy Day Fund"). That fund has currently reached its legal cap of 18% of net General Fund appropriations, triggering a provision that directs the remainder of the volatility transfers be used to pay down debt, including in the pension funds. Any budget surplus certified at the close of the fiscal year also gets deposited following the same process.

Additional contributions have been made into the state's pension funds in each of the past seven fiscal years, totaling over $11 billion:

• $61.6 million in Fiscal Year 2020;
• $1.6 billion in Fiscal Year 2021;
• $4.1 billion in Fiscal Year 2022;
• $1.8 billion in Fiscal Year 2023;
• $933.2 million in Fiscal Year 2024;
• $1.5 billion in Fiscal Year 2025; and
• an estimated $1.4 billion in Fiscal Year 2026.

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.

Contact: Brett Cody
[email protected] | (959) 529-2468