North Carolina Retirement Systems Enhance Stability with New Measures
The North Carolina Retirement Systems (NCRS) have taken significant steps to ensure the smooth functioning and sustainability of its operations. The Boards of Trustees for the Teachers’ and State Employees’ Retirement System (TSERS) and Local Governmental Employees’ Retirement System (LGERS) recently approved several initiatives aimed at enhancing the stability and effectiveness of the retirement systems across the state.
One of the key actions taken by the Boards includes the adoption of contribution rate stabilization policies for the Firefighters’ and Rescue Squad Workers’ Pension Fund (FRSWPF) and the N.C. National Guard Pension Fund. These policies, effective for the next five fiscal years until June 2032, aim to fund the plans through fixed annual increases, promoting long-term sustainability and reducing budgeting unpredictability for employers.
“Strong retirement systems require both sound financial policies and effective operations,” stated State Treasurer Brad Briner. “The Board’s actions today reinforce our commitment to long-term sustainability while ensuring we have the people, processes, and planning necessary to serve North Carolina’s public employees, retirees, and employers efficiently today and well into the future.”
The Boards were also presented with the annual report from the FRSWPF Advisory Panel. The LGERS Board directed staff to explore a tiered benefit structure to enhance pension benefits for firefighters and rescue squad workers serving beyond 20 years.
In personnel changes, Dr. Holly W. Lee, a family medicine physician, was appointed to the Medical Board overseeing the TSERS Disability Income Plan of North Carolina and LGERS Disability Retirement, succeeding Dr. Nathaniel Sparrow, who passed away in May.
An independent CEM Benchmarking report highlighted that several operational areas within NCRS are more productive and cost-effective than their national peers. To ensure stable administration, new positions will be created in understaffed sections, a move supported by recent legislation. These adjustments target critical operational areas, ensuring essential functions are maintained for the over one million public employees, retirees, and employers served.
Frank Karpinski of Linea Solutions provided an update on fiduciary responsibilities and modernization strategies for NCRS’s core pension administration systems. The ORBIT system, which handles records and services, is facing increased workloads due to evolving requirements. This update is foundational for future modernization efforts.
Upcoming changes to the Board structure, included in the budget bill enacted by the General Assembly and effective July 1, 2027, were also discussed. Current appointed members will retain their seats until their terms expire.
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