RALEIGH - North Carolina's public pension fund has taken its lumps because of the plunging stock market, but it remains fiscally solid and is doing better than most of its peers, State Treasurer Richard Moore said today.

The pension fund now stands at about $66 billion after falling about 12 percent for the one-year period that ended Sept. 30 -- including a $6 billion drop over the last three months.

Nevertheless, Moore said, "the pension fund of the state of North Carolina, and the cities and counties across North Carolina, is sound. And the retirees out there can rest assured that we've got plenty of money we can lay our hands on to make their retirement checks come every month just like they're supposed to."

The state pension system provides benefits for 820,000 current and retired state employees, including teachers, police officers and firefighters.

"We have short-term losses, but those losses are smaller than most funds of our size because of our conservative asset allocation," Moore said.

Over the same period that the state pension fund fell 12 percent, the Standard & Poor's 500 declined 24 percent, Moore said. The California pension fund, he pointed out, has fallen 17 percent since June 30.

The state pension fund has 47 percent of its assets invested in stocks, compared with an average of 60 percent for all state pension funds. North Carolina has 41 percent invested in fixed-income assets such as bonds, versus an average of 30 percent. The state also invests in real estate and alternative investments, such as hedge funds.

"We have a conservative asset allocation that protects our members over the long haul," Moore said. "This is something that my predecessor and I have been criticized for. ... But we have stayed conservative, and I must tell it is with some satisfaction now that I look back on some of the attacks that we should be taking more chances with the state's money."

Moore said he decided to hold a press conference today because he was getting a lot of questions about the state's ability to meet its pension and payroll obligations.

"As for active state workers, you're going to get your pay checks on time," Moore said. "While the growth of government may slow, there is no reason to believe that anybody is facing an imminent layoff."

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