RALEIGH — An agency bill that will modernize and alter the authority structure for state investments has been signed by Gov. Josh Stein after unanimous passage by both chambers of the General Assembly.
“Proud to announce that my Bill HB 506 is the first non-hurricane relief bill to be signed by the Governor,” said Rep. Brenden Jones (R-Columbus) in a post on X. “HB 506 is a bipartisan bill which, amongst many great things, creates a five person board to oversee NC’s 127 billion dollar pension fund.”
Jones added, “Many states have enacted similar boards and have seen millions of dollars in increased funds!”
The 2025 State Investment Modernization Act (House Bill 506/Senate Bill 707) passed the House unanimously 115-0 on June 3 and passed the Senate 40-0 on May 22. Given the overwhelming support from both legislative chambers, Stein is expected to sign the bill.
“This change could have a dramatic impact on our state’s investment strategy going forward,” state Treasurer Brad Briner said in a statement to North State Journal. “For too long, it has been based on the political preferences of the person in office.
“North Carolina has the ninth-largest public pension and ranks as one of the worst performing. I look forward to this being signed into law and the transition happening as quickly as possible for the taxpayers across our state.”
The act would create the North Carolina Investment Authority (NCIA) to manage investments and carry out statutory duties from the state treasurer beginning Jan. 1, 2026.
The NCIA’s oversight includes establishing investment programs, setting investment policy statements, approving asset allocations, monitoring liquidity (especially for retirement systems) and ensuring compliance with fiduciary duties.
The authority is also responsible for managing state investments either internally or through third-party investment management arrangements, subject to specific conditions and limitations outlined in the bill.
The General Fund and Highway Funds, systems and investments under the purview of the state treasurer, along with various other investment funds, would fall under the NCIA’s oversight.
The board of directors governing NCIA would include the state treasurer as an ex officio member. The house speaker, the senate leader pro tem, the governor and the state treasurer would get one appointment each.
A chief investment officer would be appointed by NCIA and must be an individual who has a positive track record of at least 15 years of relevant experience. The NCIA will also be added as an adviser to the Council of State and governor when it comes to investments.
