RALEIGH, N.C.  – North Carolina’s treasurer is close to getting the freedom she wants to invest the state pension fund in nontraditional ways including timberland and commodities.

The House voted 64-50 on Thursday to expand the kinds of investments allowed for the retirement funds covering 820,000 state and local government employees, teachers, emergency responders and retirees.

State Treasurer Janet Cowell said she needs the authority to move into new vehicles like mortgage-backed securities and exchange-traded funds or else miss her target of returning annual investment profits of 7.25 percent. Failing to hit that target could force lawmakers to pump more than $1 billion into the pension funds in the next five years to keep them fully funded.

NEW YORK – An investment company founded by a presidential adviser has been accused of paying more than $1 million to a New York official’s political aide in a bid to win a lucrative deal with the state pension fund.

The Securities and Exchange Commission says in court papers that the Quadrangle Group was one of several companies that paid huge fees to Hank Morris. Morris was a political aide to former state comptroller Alan Hevesi (HEV’-uh-see).

Wall Street financier Steven Rattner was a Quadrangle executive until he left to lead President Barack Obama’s auto task force. Morris was indicted last month on corruption and bribery charges.

The New York attorney general and the SEC are examining millions of dollars in payments that several hedge funds and equity firms paid to people connected to Hevesi.

RALEIGH, N.C.  – North Carolina’s state employee pension funds need an additional $359 million from the Legislature during the next two years to keep them financially sound, State Treasurer Janet Cowell said Thursday.

The news from Cowell, who became treasurer just last month, further burdens lawmakers drawing up a state government spending plan for the next two years by quantifying the retirement system’s needs.

The plan, which covers 820,000 state and local government employees, teachers, emergency responders and retirees, is cited regularly among the healthiest in the country. But the funds lost $17 billion in value in 2008 as the nation entered a recession, falling to $60 billion.

Cowell said recently she would ask the General Assembly for $29 million more in the next fiscal year than the roughly $400 million the pension funds already receive annually from the state. But she said a steeper increase probably would be necessary for the year that begins in July 2010 because of the recent losses.

With Thursday’s announcement, she is setting the need for additional funding for the 2010-11 fiscal year to about $329 million. The estimate follows an actuarial review of the plan by an outside consultant.

The Legislature will have to agree to make this contribution level.

“I understand that this news comes at a time when families, local and state governments and the private sector are tightening their belts,” Cowell said in a news release. “However, it is important for budget-writers to take these costs into consideration as they craft their respective budgets.”

The request doesn’t change how much money the 535,000 public employees covered by the plans must contribute to the pension. They are required by law to put 6 percent of their pay into the retirement system.

RALEIGH, N.C. – State Treasurer Janet Cowell has new information on what the state’s public employee pension funds need to stay financially sound.

Cowell scheduled a news conference Thursday to discuss the latest study of the $60 billion retirement system and how much lawmakers should contribute to it in 2010.
 
The new treasurer said last month she’ll ask the General Assembly for $29 million above the roughly $400 million it currently gives for the coming year. But she said a steeper increase probably would be needed the following year.

That’s because the pension funds performed poorly in 2008, their value falling $17 billion during the economic crisis.

The system covers 820,000 employees and retirees. It’s been cited among the healthiest in the country.

RALEIGH, N.C. – State Treasurer Janet Cowell will hold a press conference at 11 a.m. Friday to give an update on the North Carolina pension fund.