Stodgy state pension fund looks better these days

But some want more specifics on earnings

These are designed to be the good times for North Carolina's public pension fund.

The roughly $70 billion fund for retired state government workers -- among the largest in the country -- is also more averse to risk than many of its peers. When the stock market soared in recent years, it lagged, with a heavy tilt toward bonds and other conservative holdings.

Now that turmoil has overtaken Wall Street, officials with the State Treasurer's Office say they expect to see the benefits. They say pensioners shouldn't worry about their savings.

"This is actually what we manage for -- downside protection," State Treasurer Richard Moore said this week on CNBC. "And we've done well. Our Treasuries, our other long bond positions, have appreciated in value roughly as much as the S&P 500 has gone down."

That doesn't mean, though, that there won't be losses. The fund faces the potential for hundreds of millions in losses associated with stocks such as insurer AIG, which agreed to a federal rescue package this month, and investment bank Lehman Brothers, which filed for bankruptcy. The pension fund also invests in hedge funds and real estate funds, which are considered riskier and more difficult to value.

Moore's office has given few details about recent losses. He says the numbers change daily, can be difficult to measure and might cause undue concern among pensioners.

"I don't want to get into a spot where people are trying to take their money out of the pension system because they're scared," spokeswoman Sara Lang said.

Lang said the pension fund's staff is talking more often with money managers to keep abreast of changes.

The pension system provides benefits to 820,000 current and retired employees of state and local government, including teachers and firefighters.

The State Employees Association of North Carolina says it is not satisfied with the information coming from Moore's office. The 55,000-member group sued Moore for access to public records this year. A judge dismissed the lawsuit, and SEANC was required to reimburse Moore's office for legal fees.

"We really, to this day, don't know where everything is and how much it's making," SEANC lobbyist Ardis Watkins said. "I think [retirees] have reason to be concerned."

Ed Regan, executive director of the 54,000-member N.C. Retired Governmental Employees' Association, said he trusts Moore's numbers.

"Of course our members are concerned, and they're going to continue to watch knowing that a declining market can't help the pension fund," Regan said. "We've been trying the best we can to allay those fears by pointing out that we're not investing in a lot of dangerous things."

The pension fund lost 2.1 percent for the year ending June 30, Moore's office said. The national average was a loss of 4.4 percent for public pension funds with assets of at least $5 billion, according to Wilshire Associates.

During the past five years, the fund's average return has been 8.2 percent, compared to the national average of 10.2 percent.

State Rep. Larry Bell, co-chairman of the House Pensions and Retirement Committee, said he is reassured by the fund's conservative strategy.

"We need to make sure that we reassure those who invest in our retirement system that things are going to be OK," said Bell, a Sampson County Democrat.