(The Center Square) – Rising nearly 24% since June 2022, North Carolina’s pension assets are poised for greater growth with 71% expansion of the operational budget in the second year of the North Carolina Investment Authority, says the state treasurer.
“Price is what you pay, and value is what you get,” said first-term Republican Brad Briner. “Right now, folks across the state are pretty positive about our outcomes and what it means for our state employees and retirees. People like the idea that if we can spend $40 million and get $25 billion over a year and a half it’s a good thing.”
The 2025 State Investment Modernization Act.-AB, known also as House Bill 506, was signed into law June 13 of last year by first-term Democratic Gov. Josh Stein – his first signature on a law not tied to Hurricane Helene. The government accountability law protecting taxpayer money creates a five-member investment authority to assist the state treasurer manage return retirement fund investments.
North Carolina had been one of only three states in the U.S. that had a “sole fiduciary” governance model for the pension funds that gave authority for investments to the treasurer alone. The North Carolina Retirement Systems manages eight pension plans for more than 1 million people and distributes $640 million each month in benefit checks.
The internal investment will increase staff from 44 to 64 over 18 months, provide salary adjustments and offer performance-related incentive income. Legal expenses are also included.
The authority, governed by a Board of Directors and chaired by the elected state treasurer, recorded $206.84 billion of assets under management through March. In June 2022, it was $167 billion.
Within that, the North Carolina Retirement Systems asset allocation on May 14 was $147.4 billion. That’s up from $139.5 billion just 44 days earlier on March 31.
Also in Wednesday’s meeting, the board received for consideration a five-year strategic plan with major initiatives. It said in part, “NCIA should compete as a market-leading investor and partner in public and private markets, through cycles and across decades. We will do that by being selective about where we invest, building the team and tools to invest well, and earning a reputation as the partner top investment managers seek out.”
