From the Department of the State Treasurer

On his final day in office, State Treasurer Dale R. Folwell, CPA, announced that the North Carolina Retirement Systems (NCRS) has an estimated market value of $127 billion as of Dec. 27, representing a 43% increase from when he first took the reins of the Investment Management Division. When Treasurer Folwell first took office in 2017, the NCRS was valued at $89 billion.   

This incredible market value was achieved even after paying out almost $52 billion in gross benefits since 2017. It is estimated that for CY2024, the plans will return almost 8%; significantly exceeding their assumed rate of return of 6.5%. The 2024 figures could change slightly, depending on official results from the monthly auditing process that should be concluded by the end of January 2025.

“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. I pledged to conservatively invest the North Carolina Retirement Systems’ funds for the benefit of those that teach, protect and serve – not Wall Street. I partnered with our Investment Management Division team to cut $500 million in excessive fees over eight years, putting that money back to work for state employees.” 

The NCRS is one of the best funded pension plans in the country. But Treasurer Folwell notes that headwinds for the pension system persist to this day. The plans have experienced a 30% increase in monthly payroll since January 2017. Just this month, NCRS paid $748,027,944 to 371,288 beneficiaries who rely on this benefit to pay their bills.  

These massive expenditures are occurring while the system is operating at a deficit much like Social Security, meaning, that there are currently fewer people paying into the state’s pension plans than are eligible for benefits. But unlike the federal government, the state does not have the ability to print money.  

While the NCRS made great financial progress over the last eight years, it also made great strides in improving customer service, all while having the lowest cost per member in the country, according to CEM Benchmarking. In 2017, average wait time when contacting a NCRS representative was 60 minutes. Today, it is five to seven minutes. Treasurer Folwell credited the remarkable people that work in the retirement systems for this incredible improvement. He noted that they introduced enhanced phone features, including call back assist, and streamlined self-service options through the phone menu. They also developed a very popular chat option and have increased opportunities for education. 

“The credit for this great performance lies with the leaders of the divisions including Tom Causey in Retirement and Christopher Morris and Jeff Smith, the co-CIOs of our Investment Management Division, and their oversight of one of the most seasoned teams in the nation,” Treasurer Folwell said. “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.”  

Treasurer Folwell added that bond rating from all three national rating agencies enables the state and local governments to obtain low interest rates when taking on debt to fund capital projects, thus saving taxpayers’ money. 

“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,” Treasurer 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 North Carolina Retirement Systems is the ninth-largest public pension fund in the country. It provides retirement benefits and savings for more than 1 million North Carolinians, including teachers, state employees, local governments, firefighters, police officers and other public workers.