North Carolina Pension Fund Sure Misses Harlan Boyles

Last week North Carolina State Treasurer Janet Cowell posted the Government Investment Operations Report for the North Carolina Retirement System Pension Fund for the fiscal year ending June 30, 2016.  The report says the treasurer spent $595 Million managing the $87 Billion pension fund investment portfolio.  That's up from just $57 Million when the pension was $59 Billion when Harlan Boyles retired in 2000.

	NC Retirement System Pension Fund
			2000	2008	2016
			Harlan	Richard	Janet
			Boyles	Moore	Cowell
	Expense Ratio		0.1%	0.3%	0.7%
	Funding Ratio		113%	105%	96%
	S&P 500 Return*		21%	2%	15%
	Sources:	State Treasurer's Annual Reports
		Government Investment Operation Reports
		Investment Performance Reports
		Retirement Systems Valuation Report (10/15)
	*	7-year Annualized Return

While the pension fund assets have increased 47% since Harlan Boyles retired, the expenses incurred managing the investments have increased an astonishing 1,044% while the funding ratio has fallen 17 points.  This irresponsible explosion of investment expenses is a boon for Wall Street, but a silent fiscal catastrophe for North Carolina, the burden of which will be borne by the pensioners and taxpayers for years to come.