Raleigh, N.C.
Jul 9, 2025
The North Carolina Retirement Systems ("NCRS") produced landmark earnings during the first six months of 2025. This week at Council of State, Treasurer Brad Briner reported the plan yielded $8 billion in investment returns since he took office on Jan. 1. This is approximately $3.5 billion more than our assumed return. The NCRS outperformed the U.S. stock market and was able to significantly cut down the inherited $16 billion deficit.
Treasurer Briner statement on pension earnings:
https://www.youtube.com/watch?v=DH1OQ5EWWnI
Breaking down the numbers:
- Increase in the first six months: The North Carolina Retirement Systems' ("NCRS") investments had an estimated total percentage return of 6.11% calendar year to date as of June 30. This equates to roughly $7.7 billion gain in those six months (adjusting for $388 million of net benefit payments made from the investments over the period).
- What it would have been without portfolio adjustments: At the end of 2024, the value of the NCRS investments was $126.5 billion and the estimate for June 30 is $133.8 billion which is impacted by investment earnings and $388 million of net benefit payments made. A portion of the estimated investment earnings resulted from repositioning the portfolio over the period (approximately $276 million).
- How much does this chip away at our deficit: The actuarial required rate of return is 6.50% on an annual basis, 3.25% over six months. If the plan earned only the 3.25% for the period, the gain would have been roughly $4.1 billion rather than $7.7 billion. The plan therefore added roughly $3.6 billion in value over the first six months of the year relative to the actuarial required rate of return.