Report: NC retirement plan is sound, isn’t cushy


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Submitted: Mon, 09/26/2011 - 3:18pm
Updated: Mon, 09/26/2011 - 3:20pm By:

RALEIGH, NC (AP) — The Legislature’s watchdog agency says North Carolina’s pension plan for teachers and state employees is well funded and is not considered lavish when compared with similar retirement systems in other states.

The Program Evaluation Division presented a study Monday to an oversight committee about the pension fund, which covers more than 500,000 participants and has at least $50 billion in value. Employees and government agencies pay into the plan.

The report says North Carolina’s pension plan benefits are average or less generous compared to other states.

The study also says it’s unclear whether it would make financial sense to move from a defined benefit plan to a defined contribution plan because the switch could make it more difficult for the state to recruit and retain workers.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

4 Comments

  • SurfCityTom says:

    and while they don’t mention it, the pension plan is not fully funded.

    Thankfully I am not nor ever have been a state employee. Guatamala is looking better every day.

  • SurfCityTom says:

    one point not mentioned in this report.

    What is the state of the health care plan for retirees which is seperate from that for current employees?

    Can one guess how underfunded it is? And the state budgets that past 6 years have made no provision for curing the underfunding.

  • Commonsensenotcommontoday says:

    The cat is out of the bag on Obamacare, and unless we stop it, we are heading to a single payer (i.e., the federal goverment)system. The states will simply transfer all outstanding requirements and obligations to Washington. That’s the beginning of the end, when it all collapses.

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