NC pension fund hits $127B

Returns exceeded expectations despite $52 billion in benefit payouts since 2017

(Elise Amendola / AP Photo)

RALEIGH—The North Carolina state pension fund closed 2024 with an estimated value of $127 billion, a 43% increase from 2017 when the now-former State Treasurer Dale Folwell took office. The fund is projected to deliver nearly 8% returns for 2024, surpassing its 6.5% target rate.

The growth comes despite paying out almost $52 billion in benefits over the past eight years. Currently, the fund distributes approximately $748 million monthly to more than 371,000 beneficiaries and ranks as the ninth-largest public pension fund in the United States.

“When I raised my hand to be the 28th treasurer of North Carolina, I promised to preserve and protect the pension plans for current and future public service workers,” said Folwell in his final press release as state treasurer. “I pledged to conservatively invest the North Carolina Retirement Systems’ funds for the benefit of those that teach, protect and serve – not Wall Street.”

Under Folwell, his agency’s Investment Management Division cut $500 million in fees over eight years and redirected the savings to ways that would benefit state employees.

However, the system faces ongoing challenges. Monthly payroll has increased by 30% since January 2017, and the fund operates with a deficit similar to Social Security, with fewer active contributors than benefit recipients.

The pension system has also made significant strides in customer service efficiency. Average wait times for contacting representatives have dropped from 60 minutes in 2017 to just 5-7 minutes today, achieved through enhanced phone features, streamlined self-service options and the introduction of a chat system.

“We’re in the check delivery business, sending out almost $755 million every month to more than 371,000 retirees who can count on us to keep the money coming,” Folwell said. “It’s been my honor to serve the people of North Carolina. There are many challenges that face the new treasurer. But I have every confidence that he will succeed due, in part, to the solid foundation laid during my and previous administrations.”

The fund’s robust performance has helped maintain North Carolina’s Triple-A bond rating from all three major rating agencies, enabling state and local governments to secure lower interest rates for capital projects.

Folwell credited the retirement system’s success to its division leaders including Tom Causey in retirement and co-chief investment officers Christopher Morris and Jeff Smith, who oversee one of the most experienced teams in the nation.

“Our ability to grow an already secure pension plan that is the 26th-largest pool of public money in the world not only puts current and future retirees at ease but ensures that North Carolina’s coveted Triple-A bond rating is not jeopardized,” Folwell said.

About A.P. Dillon 1537 Articles
A.P. Dillon is a North State Journal reporter located near Raleigh, North Carolina. Find her on Twitter: @APDillon_