The state Senate voted unanimously Thursday to create a new board of directors to manage the state's pension and other investments.
Currently, the state treasurer decides how to invest the retirement fund for state employees. But new State Treasurer Brad Briner wants to shift that power to a group of experts, who would also make decisions about other state government funds.
Senate leader Phil Berger says the change could improve how much the pension fund brings in to pay state retirees. State retirees haven't gotten a permanent cost-of-living increase to their pension benefits in many years, and some say that's because former state treasurers used an investment strategy that was too conservative.
"I do think that having professionals and a board of professionals making those kinds of decisions gives the state the best opportunity to maximize returns, but within the confines of acceptable risk," he said after the vote.
The new Investment Authority board would be appointed by the governor, treasurer and legislative leaders. The appointees would
need to be people with "expert knowledge of investments and a minimum 10-year track record of successful management in pension, endowment, or other relevant investment experience," the bill says.
Sen. Terence Everitt, D-Wake, said he supports the change but does have concerns about giving appointment power to the legislature.
"It is again the legislature consolidating more power into itself, which is always a concern I've had," he said, noting that the treasurer is elected statewide.
"As a general rule, having more eyes is a good thing," added Sen. Julie Mayfield, D-Buncombe.
The bill now goes back to the House for a final vote. The Senate also included the proposal in its budget bill.
