North Carolina's strategy for managing its sizeable pension fund is set for a significant overhaul with the signing of the 2025 Investment Modernization Act into law. State Treasurer Brad Briner, whose campaign to modernize the state's investment strategy has been a hallmark of his tenure, now sees his efforts come to fruition. Gov. Josh Stein put pen to paper this morning at the executive mansion, enshrining House Bill 506 and its landmark reforms into law, as reported by the North Carolina Department of State Treasurer's official press release.
Under the new legislation, the decision-making power for state pension plan investments is being transitioned from Briner alone to a more collaborative, multi-member Investment Authority. This move is aimed at enhancing returns, for a pension fund that has notably lagged in performance. "The reforms signed into law today will put us on a path to maximizing returns and I am honored this was not only a top priority of mine – but that leaders on both sides of the aisle share our vision of strengthening the pension fund," Treasurer Briner stated.
Key legislative figures were acknowledged by Treasurer Briner for their indispensable roles in navigating the bill through to success. Among them were Sens. Ralph Hise, David Craven, and Michael Lee, as well as Reps. Brenden Jones, Kyle Hall, Stephen Ross, and Steve Tyson. Present at the signing were these primary sponsors along with members of the Investment Advisory Committee and Department of State Treasurer staff who contributed to the bill's development.
Prior to these changes, North Carolina’s investment model uniquely bestowed full fiduciary authority on its treasurer, a setup Brad Briner opted to reform despite it diminishing his own power. However, Gov. Stein praised the treasurer's decision-making as sole fiduciary. He was confident in Briner's capability, yet Stein considered the move towards a multi-voice process a step in the right direction. He mentioned that, "This process will be stronger when more voices are involved."
The newly established Investment Authority Board is set to play a pivotal role. With Treasurer Briner at the helm, the five-member board is composed of experts in finance specifically chosen by the treasurer, legislative leaders, and the governor. Together, they will re-evaluate asset distribution and spearhead strategies aimed at revitalizing the performance of the $127 billion North Carolina Retirement Systems (NCRS), which serves over one million members and disburses roughly $640 million in benefits each month.
