(The Center Square) – Legislation designed to produce higher investment returns on North Carolina’s $127 billion in pension funds was signed by Gov. Josh Stein on Friday.
The 2025 State Investment Modernization Act.-AB, known also as House Bill 506, creates a five-member investment authority to assist the state treasurer manage return retirement fund investments. North Carolina has 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.
It’s the first bill not related to Hurricane Helene recovery signed by the first-term Democrat. Rep. Brenden Jones, R-Columbus, authored the legislation. The law is effective immediately except where structural changes begin July 1 and all parts will be fully implemented on Jan 1.
The North Carolina Retirement Systems manages eight pension plans for more than 1 million people and distributes $640 million each month in benefit checks.
According to the state Treasurer Brad Briner, the North Carolina pension funds have “underperformed for years.
“This process will be stronger when more voices are involved,” Briner, a first-term Republican, said in a statement Friday. “The reforms signed into law today will put us on a path to maximizing returns and I am honored this was not only a top priority of mine – but that leaders on both sides of the aisle share our vision of strengthening the pension fund.”
In addition to Briner, the new Investment Authority Board of Directors will include the governor, legislative leaders and financial professionals appointed by Briner.
The board will “rebalance” the fund’s asset allocation and find ways to increase performance and returns, Briner said.
“This bill puts North Carolina in line with the rest of the nation and allows us to make responsible decisions investing our state employees’ hard-earned pensions.,” Stein said in a statement. “I applaud Treasurer Briner for his leadership in modernizing our state’s investment system.”
