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The 2015 Pension 40: Denise Nappier

No. 34 Denise Nappier, Treasurer / Connecticut

By Tyler Davies

December 22, 2015

< The 2015 Pension 40: The Long Climb

Denise Nappier

Treasurer / Connecticut

Last year’s rank: Not ranked

Since beginning her tenure as Connecticut’s treasurer in 1999, Denise Nappier has not been shy about voicing her opinion on how the state’s pension benefits are managed. But unlike some other state treasurers, she’s not allowed at the table when benefits with public employees are negotiated; she’s only in charge of investing the state’s nearly $30 billion retirement plan and trust fund. Nappier, 64, acknowledges the state has had challenges generating returns that meet expectations. She’s spent much of her time this year conducting an asset allocation and liability study, and reviewing the system’s preferred vendors. In the meantime, Connecticut Governor Dannel Malloy put forth a complex proposal in October that would split the pension system, putting off some funding for ten years to avoid payments that could cut into other areas of the budget. This year Connecticut is on the hook for $1.51 billion for its state employees’ pension fund. “When you extend the amortization schedule, you can lower payments, but it also lowers improvements on the funding ratio,” says Nappier, a Hartford native who first ran for treasurer on a platform promising not to “kick the can down the road.” In 2008, Connecticut became one of the first states to use a bond covenant to lock the plan sponsor — the state of Connecticut — into meeting its annual pension obligations. Nappier believes this “ironclad” rule will keep the governor from reducing the state’s contributions and triggering a massive balloon payment in the future. She’s also focused on ensuring greater gender and racial equality on the boards of companies the state has invested in. Her office submitted a request in April to the Securities and Exchange Commission for a rule that would bolster board diversity disclosure on proxy ballots.

The 2015 Pension 40