State retirement board told supplemental plans pay lower fees than peers
RALEIGH — North Carolina’s supplemental retirement plans pay lower administrative and investment management fees than comparable public defined contribution plans, consultants told the plans’ Board of Trustees last week.
The Department of State Treasurer said representatives from Callan, an institutional investment and research consulting firm, presented the results of a periodic review of fees paid by the North Carolina Supplemental Retirement Plans. The plans include the NC 401(k) and NC 457 plans, which are available to state and local public workers as additional retirement savings options beyond the state pension system.
According to the treasurer’s office, the review found that the plans’ fees are competitive and lower than median fees paid by similar plans.
The plans have more than $21.5 billion in combined market value and nearly 328,000 combined participants, according to information presented to trustees by Empower, the retirement services company that works with the plans.
State Treasurer Brad Briner said lower fees leave more money in plan participants’ accounts. The treasurer’s office oversees public retirement systems and related financial operations, making fee levels a public fiscal oversight issue for state and local government workers who use the plans.
Trustees also swore in new board members Matt Leatherman, Dayatra Matthews and David Daggett. Outgoing board members Steve Beam, Lorraine Johnson and Robert Hillman were recognized for their service.
The board also voted to renew the final year of a contract with UHY for 2027 audit services for the NC 401(k) and NC 457 plans. Trustees reviewed year-end financial statement audit results, the plans’ annual proxy-voting report and second-quarter compliance information.
The fee review comes as public retirement and health benefit costs remain a recurring issue in state budget and fiscal policy debates. While the supplemental plans are separate from the pension system, their administration affects hundreds of thousands of public-sector workers and retirees planning for retirement income.
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.
