NC retirement boards approve contribution-stabilization policies
Dek: The policies apply to pension funds for firefighters, rescue squad workers and National Guard members and are intended to support more predictable funding.
RALEIGH — Two North Carolina retirement boards have approved contribution-stabilization policies and operational measures affecting state and local public retirement systems.
The Teachers’ and State Employees’ Retirement System and Local Governmental Employees’ Retirement System boards approved several measures July 30, according to the Department of State Treasurer.
The boards adopted contribution-rate stabilization policies for the Firefighters’ and Rescue Squad Workers’ Pension Fund and the N.C. National Guard Pension Fund. The policies will remain in effect for five fiscal years, ending after June 2032, and are designed to fund the plans gradually through fixed annual contribution increases, according to the department.
The department said the approach is intended to support long-term sustainability and help avoid unpredictable budget fluctuations for participating employers.
State Treasurer Brad Briner said the board actions support the long-term administration of the retirement systems while maintaining service to public employees, retirees and employers.
The boards also received the annual report from the Firefighters’ and Rescue Squad Workers’ Pension Fund Advisory Panel. Staff, at the direction of the Local Governmental Employees’ Retirement System board, will study the possibility of a tiered benefit structure that would allow increased pension benefits for firefighters and rescue squad workers who continue serving beyond 20 years.
The boards also voted to create new positions in certain understaffed sections after an independent benchmarking report found several North Carolina Retirement Systems operational areas were performing at higher productivity and lower cost than national peers. The department said the positions are targeted to operational areas where understaffing directly affects service delivery for more than 1 million public employees, retirees and their employers.
Staff also briefed the boards on future modernization planning for ORBIT, the system used to manage records, workflow and web-based services for members and employers.
The department said staff will present information in October about board-structure changes included in the state budget bill. Those changes will not take effect until July 1, 2027, and no appointed members with unexpired terms will lose their seats.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
