North Carolina’s State Pension Plan Rated One of Top Five in the U.S.
Raleigh, N.C. – North Carolina’s Retirement Systems, a division of the Department of State Treasurer (DST), are among the five highest-funded pension plans in the country. A new report from S&P Global says proactive management and funding discipline have kept the state’s liabilities manageable.
“We are proud to see North Carolina’s pension plans receive another national accolade, but there is still work to be done in sustaining them,” said State Treasurer Dale R. Folwell, CPA. “We are committed to ensuring that our teachers, first responders and state and local government employees have financial stability that can be counted on in their retirement. This ranking is a credit to the monies contributed by state and local employees, taxpayers, through the North Carolina General Assembly and to the investment gains made by the Investment Management Division of the Office of State Treasurer.”
DST recently announced that the Teachers’ and State Employees’ Retirement Systems are funded at 90.4 percent and the Local Governmental Employees’ Retirement System is funded at 95.2 percent.
S&P Global gave the North Carolina Retirement Systems a AAA/Stable rating, citing the state’s ability to effectively manage pension liabilities over the long term.
“While the long-term outlook for most U.S. state pensions remains sluggish, we believe that these five states’ exposure to weak market returns and growing pension costs are significantly limited and manageable, improving our view of their overall credit quality,” said the ratings report.
Other states rounding out the top five are New York, Tennessee, South Dakota and Wisconsin. You can read S&P Global’s pension plan ratings report here.