NC House Approves Pension Management Reforms and Crypto Investments
RALEIGH, NC — April 30, 2025 — The North Carolina House of Representatives has passed two significant pieces of legislation aimed at reforming the management of the state’s pension fund and permitting investments in cryptocurrency, such as Bitcoin. This legislative move represents a pivotal shift in how the state approaches its pension assets, which have faced challenges in recent years.
Overview of the Legislation
The legislation includes House Bill 506, which proposes the establishment of a five-member North Carolina Investment Authority tasked with managing the state’s approximately $127 billion pension fund. Under this bill, the authority will consist of the state treasurer and four additional appointees, each selected by key state officials: the Speaker of the House, President Pro Tem of the Senate, and the governor. Importantly, appointees must possess at least 10 years of successful management experience in investments, pensions, or endowments.
Accompanying this measure is House Bill 92, which permits the newly formed authority to allocate up to 5% of the state pension portfolio to investments in cryptocurrencies. This bill was backed primarily by House Speaker Destin Hall and calls for limits on crypto investments, specifying that they can only be in mutual fund equivalents, rather than direct investments in individual cryptocurrency currencies.
Concerns and Support
Both bills were introduced as part of a strategy to address North Carolina’s pension system, which is currently facing a deficit of $16 billion and has shown underperformance relative to other states’ investment portfolios. The state’s new treasurer, Brad Briner, who assumed office in November, has expressed support for these measures. Briner argues that a renewed investment strategy is essential for improving returns and managing the fund effectively. His approach marks a departure from the more conservative strategies of his predecessor, Dale Folwell.
The measures received widespread attention and were largely supported by Republican lawmakers, passing House Bill 506 with a vote of 110-3. However, some concerns were raised, particularly by Democratic legislators. Representative Maria Cervania (D-Wake) highlighted potential risks associated with cryptocurrency volatility, emphasizing the need for further consideration before committing state workers’ pensions to such investments.
“We need to examine the level of commitment we are making to this investment strategy,” she asserted, questioning the prudence of integrating these high-risk assets.
Next Steps
With the House’s approval, the legislation now moves to the Senate for consideration. As discussions continue, opinions remain mixed among stakeholders both within and outside the General Assembly. Governor Josh Stein has indicated his support for the reforms, particularly regarding allowing Treasurer Briner greater autonomy in managing the state’s investments. However, representatives from the State Employees Association of North Carolina have voiced opposition, citing concerns over the accountability and safety of pension investments.
As the state navigates through these proposed changes, the outcomes could significantly reshape North Carolina’s financial landscape and investment strategies. If adopted, these bills may set a precedent for how state pension funds across the nation incorporate emerging assets such as cryptocurrencies into their portfolios.
This legislative initiative reflects an ongoing evolution in investment practices and underscores the state’s necessity to adapt to modern financial trends while balancing the needs and expectations of its public workforce.
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