December 6, 2016
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 2016 Standards Award in the categories of funding and administration to six different pension funds administered by the department: the North Carolina Teachers’ & State Employees’ Retirement System, the Local Governmental Employees’ Retirement System, the Firefighters’ and Rescue Squad Workers’ Pension Fund, the North Carolina National Guard Supplemental Pension Fund, the Legislative Retirement System, and the Consolidated Judicial Retirement System. This is the first time that all six eligible N.C. pension funds have received the award.
“The North Carolina Legislature and the Boards of Trustees for the Retirement Systems have shown outstanding leadership to meet such high standards,” said Treasurer Cowell. “The Department’s administrators and managers should be applauded for demonstrating adherence to the best practices observed by the public pension community. We take a great deal of pride in knowing that the ultimate beneficiary of this award is the membership in terms of service and security of their retirement.”
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 Actuarially Determined Employer Contributions (ADEC). North Carolina legislators — who have granted full ADEC funding for all but one of the 75 years of the systems’ existence — have fully funded the 2015 ADECs for all six systems.
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.
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, the other four pension plans receiving the award, four death benefit plans, three disability plans, and the North Carolina Supplemental Retirement Plans (voluntary, defined contribution plans), all created under North Carolina state law.