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-Press Release, NC Department of State Treasurer
The state pension plan is weathering the COVID-19-induced economic downturn better than many public pension plans while outperforming the stock market, and State Treasurer Dale R. Folwell, CPA, will explain why during his “Ask Me Anything” conference call for the media on Wednesday, April 15.
The monthly calls are an opportunity for reporters to ask the Treasurer anything about N.C. Department of State Treasurer (DST) initiatives, including the Retirement Systems Division, the State Health Plan, the State and Local Government Finance Division and the Unclaimed Property Division.
As of Monday, the state pension plan was down about 4.2% for the calendar year, while the S&P 500 had tumbled about 14%. For the fiscal year, the plan is actually up .6% while the S&P is down almost 5%.
A stress test conducted by The Pew Charitable Trusts last year determined North Carolina’s pension plan is better positioned to remain solvent in tough economic times than most public pension plans. Research by Moody’s Investor Services determined, based on unfunded liabilities, that North Carolina’s pension plan was the best-funded among the 50 states, meaning it placed the lowest burden on taxpayers and members who pay into the system.
Meanwhile, emergency powers and other changes to the State Health Plan were implemented to help members respond to the coronavirus pandemic. The State and Local Government Commission is monitoring developments to determine whether cities and counties with bond debt and utility infrastructure needs might require assistance in dealing with declining taxes and fee revenue due to mandated business shutdowns.
Treasurer Folwell, who was hospitalized for five days due to complications from COVID-19, continued to engage in daily operations and decisions with DST staff throughout his illness. He has received the necessary medical clearances from his personal doctor and the Forsyth County Department of Health to return to work.
Among COVID-19 actions taken by DST were State Health Plan waivers for the costs of testing and treatment. Click here and here for more details of those steps.
Audio of previous “Ask Me Anything” calls is available here.