November 24, 2015
NC Total Retirement Plans Receive Administration and Funding Excellence Awards
National organization lauds North Carolina for full funding of pensions
RALEIGH, N.C. – State Treasurer Janet Cowell announced today that the Public Pensions Coordinating Council (PPCC) presented its 2015 Standards Award in the categories of funding and administration to the North Carolina Teachers’ & State Employees’ Retirement System and the Local Governmental Employees’ Retirement System.
“The North Carolina Legislature and the Boards of Trustees for TSERS and LGERS have shown outstanding leadership to meet such high standards,” said Janet Cowell, Treasurer of North Carolina. “I am extremely proud of our Department’s administrators and managers for demonstrating adherence to the best practices observed by the public pension community.”
The PPCC awards only recognize those public plans meeting strict criteria in each category. In the funding category, the plan must either have a funded ratio of 100 percent, or the state’s legislature must fully fund the plan’s Annual Required Contributions (ARC). North Carolina legislators — who have granted full ARC funding for all but one of the 74 years of the systems’ existence — have fully funded the 2015 ARC for TSERS, which is 95.6 percent funded, and for LGERS, which is 99.8% funded.
In the administration category, plans must have mandatory annual audits, annual actuarial valuations, issue annual statements to its membership, and have independent evaluation of investment performance among other things.
North Carolina’s pension fund is valued at $90 billion. It is the 12th largest pension fund in the United States and the 26th largest in the world.
About the PPCC
The Public Pensions Coordinating Council is a coalition of three national associations that represent public retirement systems and administrators: the National Council on Teacher Retirement (NCTR), the National Conference on Public Employee Retirement Systems (NCPERS), and the National Association of State Retirement Administrators (NASRA). Together, these organizations represent more than 500 of the largest pension plans in the United States serving most of the nation’s 16 million employees of state and local government.
About the North Carolina Total Retirement Plans
The North Carolina Total Retirement Plans offer retirement resources, plans and benefits to nearly 950,000 public employees and their benefit recipients. The Retirement Systems Division of the Department of State Treasurer administers the North Carolina Teachers’ & State Employees’ Retirement System and the Local Governmental Employees’ Retirement System, death benefit plans, disability plans, and the North Carolina Supplemental Retirement Plans (voluntary, defined contribution plans) created under North Carolina state law.