In a remarkable achievement, the North Carolina state pension fund closed 2024 with a total value of $127 billion. This is a significant 43% increase since 2017, the year when former State Treasurer Dale Folwell took office. The fund’s performance in 2024 exceeded expectations, delivering nearly 8% returns, surpassing its target of 6.5%.
This growth is even more impressive when you consider that over the past eight years, the pension fund has paid out almost $52 billion in benefits to retirees. The fund currently pays about $748 million every month to over 371,000 beneficiaries. It ranks as the ninth-largest public pension fund in the United States.
Achievements Under Former Treasurer Dale Folwell
When Dale Folwell took office as State Treasurer in 2017, he made a promise to North Carolina citizens to protect and preserve the pension system for current and future public service workers. He made sure the pension fund was managed with caution and focused on the benefit of the state’s teachers, police officers, and other public servants—not Wall Street.
During Folwell’s tenure, the Investment Management Division of the pension fund saved $500 million in fees over the span of eight years. These savings were redirected to improve the services and benefits for state employees.
Challenges Ahead for the Pension Fund
Despite these successes, the North Carolina pension fund still faces ongoing challenges. The monthly payroll for the pension fund has risen by 30% since 2017. Additionally, the fund now has more people receiving benefits than active contributors, much like the struggles seen with Social Security. These issues could make it more difficult to keep up with the growing demands of the pension system in the future.
Improved Customer Service and Efficiency
One of the most significant improvements under Folwell’s leadership has been the pension system’s customer service. In 2017, it could take up to 60 minutes to reach a representative. Today, however, the wait time has decreased dramatically to just 5-7 minutes, thanks to better phone systems, more self-service options, and the addition of a chat system for quick support.
Impact on North Carolina’s Economy
The performance of the pension fund has also helped North Carolina maintain its top Triple-A bond rating from all three major credit agencies. This rating is crucial for the state and local governments as it allows them to borrow money at lower interest rates for important capital projects, like building infrastructure and improving public services.
Folwell credited the success of the pension system to his leadership team, which includes Tom Causey, who oversees retirement services, and Christopher Morris and Jeff Smith, the co-chief investment officers. Together, they’ve helped manage one of the most experienced investment teams in the country.
Looking to the Future
Although Folwell is leaving office, he remains confident in the future of North Carolina’s pension fund. He believes that the solid foundation laid during his time as treasurer will help the state navigate future challenges. The new treasurer will face many obstacles, but with strong leadership and careful management, North Carolina’s pension system is expected to continue to serve its retirees well in the years to come.
(Source : nsjonline.com)
