North Carolina’s retirement system has hit a milestone with its investment portfolio surpassing $139 billion, driven by strategic diversification and a newly formed investment authority aimed at securing long-term benefits for over one million public servants.
The state of North Carolina’s retirement system has witnessed remarkable growth in its investment portfolio, surpassing $139 billion as of September 30, 2025, marking an increase of over $12 billion in just one year. This surge, highlighted by first-term Republican State Treasurer Brad Briner, stems from a combination of strong market performance and strategic investment decisions, resulting in an impressive 11% return, nearly double the system’s 6.5% target.
Briner, who chairs the newly formed North Carolina Investment Authority (NCIA), described this milestone as a significant moment in the state’s financial history. The NCIA, created through legislation passed in 2025, is set to assume full investment management responsibilities from January 1, 2026. The authority’s board approved its first budget, which includes competitive salaries recommended by consultants to attract and retain top investment talent, a move reflecting the state’s commitment to strengthening pension management.
The North Carolina Retirement System (NCRS) manages eight pension plans that cover over one million participants and distribute $640 million in monthly benefits. Despite its current successes, the system has a historically mixed performance, often ranking near the bottom nationally for investment returns. Briner has emphasised that previous underperformance was partly due to an overly conservative approach, which resulted in excessive cash holdings that lagged behind inflation, which has averaged around 5.4% annually over the last 15 years.
Since August 2025, the pension fund has diversified its portfolio by increasing allocations to private equity, real estate, and energy sectors, including investments in a private medical services company. This strategic pivot aligns with efforts to enhance returns while managing risk, an approach that has already yielded substantial gains. Earlier in 2025, the retirement system reported $8 billion in investment earnings in the first half of the year alone, outperforming the US stock market and significantly reducing a previously inherited $16 billion deficit.
This robust financial performance builds on a strong foundation laid during previous years. At the start of 2025, the fund was valued at approximately $127 billion, a 43% increase since 2017, when former State Treasurer Dale Folwell took office. Folwell’s tenure saw the fund consistently exceed its assumed return targets, delivering nearly 8% returns in 2024 despite significant payout costs, which totalled nearly $52 billion over eight years. Under his leadership, the plan became one of the best-funded pension systems in the United States, serving more than 1 million beneficiaries.
The retirement system’s resilience and growth have been particularly notable given the economic disruptions caused by the COVID-19 pandemic. Entering 2021, the fund reached a then-record value of $114.9 billion, generating 11% returns despite market volatility. This level of performance helped demonstrate the system’s ability to meet and exceed actuarial return expectations while maintaining a conservative risk profile.
Looking ahead, the establishment of the North Carolina Investment Authority represents a structural shift in how the state manages its pension investments. Briner has stressed that while the gains achieved are substantial, “we have much more to do” to ensure the system’s long-term sustainability and adequacy for retirees. With the NCIA’s new governance structure and a focus on strategic, diversified investments, North Carolina aims to continue enhancing returns, closing funding gaps, and improving retirement security for its public servants.
This progress story underscores the importance of adaptive financial management practices in public pension funds, reflecting a broader trend across states to balance risk, inflation protection, and steady growth for beneficiaries. North Carolina’s experience may serve as a model for other states seeking to revive and secure their pension systems amid evolving economic conditions.
- https://blackchronicle.com/southeast/north-carolina/state-investments-growth-exceeds-12b/ – Please view link – unable to able to access data
- https://www.nctreasurer.gov/news/press-releases/2025/11/19/nc-investment-authority-approves-budget-adopts-charter-january-transition-nears – On November 19, 2025, the North Carolina Investment Authority (NCIA) approved a Board of Directors charter, policy manual, and budget, marking a significant step in transferring investment powers from the Department of State Treasurer to the authority, effective January 1, 2026. The NCIA’s first meeting included reporting that assets under management in the North Carolina Retirement Systems (NCRS) grew to a record $139.1 billion as of September 30, a substantial increase from the 2024 year-end market value of $126.5 billion. This performance was attributed to a robust market and strategic decisions, with an estimated 11% return outperforming the 6.5% assumed rate of return. State Treasurer Brad Briner, who chairs the NCIA, highlighted the progress made since January and emphasized the ongoing work ahead.
- https://www.nctreasurer.gov/news/press-releases/2025/07/09/record-returns-nc-pension-plan-first-half-2025 – In July 2025, North Carolina State Treasurer Brad Briner reported that the North Carolina Retirement Systems (NCRS) achieved landmark earnings during the first half of 2025. The plan yielded $8 billion in investment returns since January 1, surpassing the assumed return by approximately $3.5 billion. The NCRS outperformed the U.S. stock market and significantly reduced the inherited $16 billion deficit. The estimated total percentage return for the first six months was 6.11%, equating to roughly $7.7 billion gain, even after accounting for net benefit payments. This performance was attributed to strategic portfolio adjustments and a strong market environment.
- https://nsjonline.com/article/2025/01/nc-pension-fund-hits-127b/ – As of January 2025, the North Carolina state pension fund reached an estimated value of $127 billion, marking a 43% increase from 2017 when former State Treasurer Dale Folwell took office. The fund was projected to deliver nearly 8% returns for 2024, surpassing its 6.5% target rate. Despite paying out almost $52 billion in benefits over the past eight years, the fund continued to grow, distributing approximately $748 million monthly to more than 371,000 beneficiaries. Folwell emphasized the importance of conservative investment strategies to benefit state employees and retirees.
- https://www.nctreasurer.com/news/press-releases/2024/12/31/state-pension-plan-ends-year-valued-127-billion – On December 31, 2024, State Treasurer Dale R. Folwell announced that the North Carolina Retirement Systems (NCRS) had an estimated market value of $127 billion as of December 27, representing a 43% increase from when he first took office in 2017. This market value was achieved even after paying out almost $52 billion in gross benefits since 2017. The 2024 figures indicated an estimated return of almost 8%, exceeding the assumed rate of return of 6.5%. Folwell highlighted the NCRS as one of the best-funded pension plans in the country, serving over 1 million North Carolinians.
- https://www.theblueridgetimes.com/news/nc-pension-plan-sees-record-returns-in-first-half-of-2025 – In July 2025, North Carolina State Treasurer Brad Briner reported that the North Carolina Retirement System (NCRS) achieved record returns in the first half of 2025. The plan yielded $8 billion in investment returns since January 1, surpassing the assumed return by approximately $3.5 billion. The NCRS outperformed the U.S. stock market and significantly reduced the inherited $16 billion deficit. The estimated total percentage return for the first six months was 6.11%, equating to roughly $7.7 billion gain, even after accounting for net benefit payments. This performance was attributed to strategic portfolio adjustments and a strong market environment.
- https://www.nctreasurer.gov/news/press-releases/2021/01/13/state-pension-plan-hits-record-1149-billion-despite-pandemics-market-disruption – Despite economic upheaval due to the COVID-19 pandemic, the North Carolina state pension plan achieved a record $114.9 billion valuation entering 2021. The $114.9 billion estimated market value on December 31, 2020, showed a $9.3 billion gain over the December 31, 2019, value of $105.6 billion. The earnings were $20.7 billion above the 2018 year-end figure of $94.2 billion. For the 2020 calendar year, the estimated return on investment was 11%, exceeding the 7% actuarial rate of return target. The pension plan, formally known as the North Carolina Retirement Systems, has now exceeded the actuarial rate of return for three of the past four years while maintaining a conservative risk profile.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative presents recent developments, including the North Carolina Investment Authority’s inaugural meeting on August 27, 2025, and the approval of its budget on November 19, 2025. The reported asset growth to $139.1 billion as of September 30, 2025, aligns with official statements from the North Carolina Treasurer’s Office. ([nctreasurer.gov](https://www.nctreasurer.gov/news/press-releases/2025/11/19/nc-investment-authority-approves-budget-adopts-charter-january-transition-nears?utm_source=openai))
Quotes check
Score:
10
Notes:
Direct quotes from State Treasurer Brad Briner, such as “Today is a big day in North Carolina’s financial history,” are consistent with statements made during the November 19, 2025, NCIA Board of Directors meeting. ([nctreasurer.gov](https://www.nctreasurer.gov/news/press-releases/2025/11/19/nc-investment-authority-approves-budget-adopts-charter-january-transition-nears?utm_source=openai))
Source reliability
Score:
10
Notes:
The narrative originates from the North Carolina Treasurer’s Office, a reputable government entity. The information is corroborated by multiple reputable sources, including the North Carolina Treasurer’s official website and news outlets like Axios. ([axios.com](https://www.axios.com/local/raleigh/2025/06/13/north-carolina-treasurer-investment-committee-pension?utm_source=openai))
Plausability check
Score:
10
Notes:
The reported asset growth and governance changes are plausible and supported by official records. The establishment of the North Carolina Investment Authority and the reported asset growth are consistent with recent legislative actions and official statements. ([nctreasurer.gov](https://www.nctreasurer.gov/news/press-releases/2025/11/19/nc-investment-authority-approves-budget-adopts-charter-january-transition-nears?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is recent, with official statements and recent developments supporting its claims. Direct quotes are consistent with public records, and the source is a reputable government entity. All claims are plausible and corroborated by multiple trusted sources.