Controversy persists in the Tar Heel State over the way information is disclosed — or not disclosed — about how state pension funds are invested and the deals behind those investments.
Both houses of the state legislatures are considering bills that would affect such disclosures. Senate Bill 878, introduced May 28 by Sen. Ralph Hise (R-Spruce Pine), is now before the committee on Pensions & Retirement and Aging. The House of Representatives version, House Bill 1209, was introduced May 27 by Rep. Nelson Dollar (R-Cary). The Committee on State Personnel reported it favorably on June 18; it is now before the Appropriations Committee. These bills seek to enhance the accountability and transparency of the North Carolina teachers’ and state employees’ retirement systems by providing for:
- audited financial statements;
- performance reviews;
- expanded and modernized reporting;
- a sunset on the confidentiality of proprietary information; and
- greater flexibility for the Investment Management Division.
The State Employees Association of North Carolina (SEANC) opposes the legislation. It argues that the Senate version would allow pension contracts to remain undisclosed for 10 years after they expire, and the House bill five years; at the same time, the statute of limitations on securities fraud is two years, most often beginning when the contract is signed. In February, Forbes reported that SEANC had called on State Treasurer Janet Cowell (D) to release information on investments the state pension fund made in alternatives and payments made to intermediaries regarding those investments.
John Iekel is Senior Writer and Editor for the NTSA Net portal.
- Log in to post comments