Gov. Josh Stein signs bill creating NC board to oversee billions in pension funds
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- Gov. Josh Stein signed HB 506, creating a board to oversee over $129B in state funds.
- New investment authority replaces sole fiduciary model that empowered state treasurer.
- Five-member board will set policy, approve plans and appoint investment officer.
North Carolina Gov. Josh Stein signed into law Friday a bill establishing a new investment authority to manage the state’s $129 billion pension plan and other public funds — including those for retirement, education, transportation and other uses.
Currently, the state treasurer alone holds final authority over investment decisions.
This is known as a sole fiduciary model. State Treasurer Brad Briner has championed the change to a shared governance structure, saying it will allow qualified investment professionals to help deliver better investment results for the state, whose pension plan performs below the national average.
“He and I share a belief that this process will be stronger when more voices are involved,” Stein said during a bill signing ceremony Friday at the Executive Mansion. The Democratic governor was joined by Republican Briner, bill sponsors and Raleigh Mayor Janet Cowell, a former state treasurer and a Democrat, for the signing.
Briner said he and Stein met for breakfast about the bill months ago and talked about the bill.
“As I launched into my explanation of what this bill does, it took you almost five seconds to figure out how important this is for our state. We have fallen short on the investment side that is coming across to our taxpayers and retirees, and this legislation allows us to fix that problem,” Briner said.
The treasurer also thanked lawmakers and recognized Cowell, saying this law builds on the work she started 13 years ago as treasurer.
This change comes as the lawmakers are looking into allowing investments using state funds into cryptocurrencies and other digital assets.
That cryptocurrency proposal is included in both the House and Senate budgets being debated at the state legislature, as well as in legislation that has already passed the House.
More details on the bill
House Bill 506 creates the North Carolina Investment Authority, an independent entity within the Department of State Treasurer, overseen by a five-member board of directors: the state treasurer and four members appointed by the governor, the House speaker, the Senate leader and the treasurer.
Appointed members would serve staggered six-year terms and be barred from holding other state public offices, except for seats on the boards of trustees for the state employees’ retirement system and the local government employees’ retirement system. They are required to have at least 10 years of successful experience in pension, endowment or similar investment management.
The board would approve investment plans, set risk levels, monitor performance and appoint a chief investment officer by majority vote. The officer would manage daily operations and must have at least 15 years of similar successful experience.
HB 506 is sponsored by House Majority Leader Brenden Jones and Republican Reps. Kyle Hall, Stephen Ross and Steve Tyson.
Stein signs two more bills
Stein has yet to veto any legislation from the GOP-led legislature — but he has a bill on his desk that would eliminate the requirement for a permit to carry a concealed handgun, as well as two that would require closer cooperation with federal immigration officials.
He has 10 days to take action once the General Assembly sends him a bill. HB 506, the investment bill, was sent to him to sign a week ago. The gun and immigration bills were sent to him earlier this week, so he has another week to take action.
Stein signed two other bills on Friday morning in the same ceremony — House Bill 50, about law enforcement officers benefits, and House Bill 231, about social work licenses.
House Bill 50 allows law enforcement officers, including police chiefs, sheriffs and top command staff, to stay in their jobs longer without forfeiting a retirement benefit known as the “special separation allowance.” Law enforcement leaders across the state asked for the change, hoping to hold onto experienced leaders amid staffing shortages across the state and nation.
This story was originally published June 13, 2025 at 9:29 AM.
