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Advisors: Torrington pension and OPEB funds broadly in line; no action taken
Summary
Torrington trustees heard Fiduciant Advisors report on pension and OPEB performance Nov. 5; consultants said funded ratios and return assumptions are in line with peers, noted operational changes at Principal custodian, and offered to perform transfer activity for the city at no extra fee.
Torrington officials heard a briefing Nov. 5 from Fiduciant Advisors on the city’s pension plans and its newly formed OPEB trust, but took no action pending a later meeting with a quorum. The consultant said the plans’ actuarial assumptions and funded positions were generally consistent with peer municipalities.
Consultant Chris Kasmier said the firm recently completed a merger with affiliates of its former parent company but emphasized the change will not affect day-to-day service: “Most importantly, there’s actually absolutely no change to the way we interact with the city,” he said. Kasmier also told commissioners that Principal, the plans’ custodian, will move away from paper instructions and toward online portal transactions; Fiduciant offered to perform those transfer and trade operations on the city’s behalf without an additional fee.
Why it matters: Pension and OPEB assumptions, custodial processes and manager oversight determine future contribution needs and the city’s budget exposure. The presentation confirmed the city’s assumptions align with a statewide peer survey and flagged only routine operational shifts that staff can accommodate.
The presentation summarized funded-status and performance figures: the employee pension plan was presented at about 82% funded and the police-and-fire plan at roughly 66% funded, both using a mid-6% return assumption. Kasmier said the plans’ return assumptions were “representative” compared with similar-sized plans in the state. Calendar-year-to-date performance through September showed strong market returns, and Fiduciant reported both pension plans were up roughly 13% year-to-date on the slides. The OPEB trust—described as a smaller asset pool—was shown at about $3.0 million with a roughly 6% third-quarter return and a little more than 12% over the last year.
No formal vote was taken. The mayor asked that trustees who missed the meeting watch the recorded presentation and submit questions by email; staff will schedule any necessary action items when a quorum is available.
