Governor  Dannel P. Malloy
 

Pension Funds

IPS Amendment Procedure

The Investment Policy Statement (“IPS”) sets forth the general standards that govern the investments of the State of Connecticut Retirement Plans and Trust Funds (“CRPTF”) as established by the Treasurer of the State of Connecticut (“the Treasurer”), and as approved by the Investment Advisory Council (“IAC”), in accordance with the provisions of subsection (c) of Section 3-13b of the Connecticut General Statutes.

Pursuant to the Connecticut General Statutes, the Treasurer is the principal fiduciary of the CRPTF, responsible for the investment and custody of all CRPTF assets. The Treasurer will on a regular basis report to the IAC regarding investment policy, strategies and opportunities, within the parameters of the IPS, and on an annual basis, will review with the IAC the status of the asset allocation plan for the CRPTF. In fulfilling these obligations, the Treasurer will seek recommendations from the Chief Investment Officer and other service providers, and will seek approval from the IAC for amendments to this IPS such as:

  1. Changes in investment policies, asset allocation, and asset allocation ranges;
  2. Inclusion of new asset classes in the investment policy;
  3. Development and implementation of new investment strategies; and
  4. Development of investment guidelines for each asset class.

With regard to any proposed amendment, inclusion of, or development of, the items listed above, the following process shall be followed:

  1. Public notice of the proposed amendment to the IPS shall be given at least two weeks prior to the IAC meeting.
  2. The Treasurer will present her recommended IPS amendments to the IAC and make such recommendation available to the public.
  3. The IAC shall review the Treasurer’s recommended IPS amendments.
  4. The IAC will give public notice of its proposed changes, if any.
  5. The Treasurer shall thereafter adopt the IPS, including any changes the Treasurer deems appropriate.
  6. The Treasurer’s adopted IPS will be presented for a vote to the appointed IAC members at the next regularly scheduled IAC meeting.
  7. If a majority of the members appointed to said council fails to approve the adopted IPS, said majority shall provide the reasons for its failure to approve to the Treasurer who may submit an amended proposal at the next regularly scheduled meeting of the IAC.
  8. If the IPS, as amended, is approved, the changes shall be posted on the Treasurer’s website.
  9. In the event the Treasurer’s adopted IPS is not approved, there will be no changes to the existing IPS.

With regard to subsequent amendments to the appendix section of the IPS, the following process shall be followed.

  1. The Treasurer’s recommendations to amend the IPS appendix will be presented to the IAC at a regularly scheduled IAC meeting.
  2. The IAC will review the Treasurer’s recommendation and provide feedback for her consideration.
  3. The Treasurer will adopt the IPS appendix, including any recommendations that she deems appropriate.
  4. The Treasurer’s adopted IPS appendix shall be presented for a vote to the appointed IAC members. If a majority of the members appointed to said council fails to approve the adopted IPS appendix, said majority shall provide the reasons for its failure to approve to the Treasurer who may submit an amended proposal at the next regularly scheduled meeting of the IAC.
  5. If a majority of the IAC approves the adopted IPS, it shall be posted on the Treasurer’s website, and a revised appendix shall be made part of this IPS.
  6. In the event the Treasurer’s adopted IPS appendix is not approved, there will be no changes to the existing IPS appendix.