pension

Cowell: Give treasurer more tools

ryanteaguebeckwith — Thu, 04 Dec 2008 09:06:23 -0500

Janet Cowell thinks the treasurer should have more tools.

The treasurer-elect told Dome that she thinks financial planners taking care of the state's pension fund should have more options to invest in order to hedge against bad markets like this one.

Cowell was not ready to talk specifics about her proposal, but she said as an example that if the pension had invested heavily in German securities, it might look for another investment to hedge against the euro rising against the dollar.

"You could use that tool to control risk," she said. "Some people might be afraid that if you give (the treasurer's planners) that authority, they might use it to increase risk. So the question is can we give them tools so they can make good investment decisions, but put some contraints on them?"

She said any changes to investing strategy should be "appropriate, prudent and conservative."

Cowell said after her January swearing-in she'll talk more with legislators about expanding the statutory authority of the state treasurer's office, perhaps with a bill as early as next session.

Fed can borrow from us, Moore says

DavidIngram — Thu, 25 Sep 2008 13:45:20 -0400

Richard Moore says the Federal Reserve is welcome to borrow from North Carolina.

In an appearance on CNBC, the Democratic state treasurer said Wednesday that the state's public pension fund would be willing to lend money — at the right price — to try to boost liquidity in the banking industry.

"I'd like to think that Hank Paulson has been as creative as possible. I've got a solution for you this morning, Becky," Moore told the channel's Becky Quick.

If the Congress is not willing to loan this money, if the Fed will give me a guaranteed rate of return — 7, 8 percent — I'll loan them the money, and I think there are a lot of pension plans across the country that would loan money to the federal government at that kind of rate. And I'll give him the fire power he needs to settle this out.

Moore described the heart of the problem as banks being unwilling to loan to each other.

"We really do have a real problem if banks can't trust each other, particularly with short-term trading, so we do need a solution to this and we need it quickly," he said. "But boy, that's easier said than done in our society, isn't it?"

Moore spokeswoman Sara Lang told Dome Thursday that the idea of lending to the Federal Reserve is still only a hypothetical.

Judge: Don't divert pension money

ryanteaguebeckwith — Wed, 06 Aug 2008 08:36:34 -0400

Gov. Mike Easley should not have diverted $225 million headed to the state pension fund, a judge said.

An Appeals Court ruled Tuesday that Easley should not have intercepted $225 million for the state employee pension to cover a budget shortfall in 2001.

Though the state repaid the money and pension benefits were not affected, the 14 former and current state workers who first sued in 2002 wanted to ensure that it didn't happen again.

Republican Gov. Jim Martin also withheld pension money in 1991.

"It's a great ruling for the teachers and the state employees," said Hardy Lewis, an attorney representing the plaintiffs. "It essentially says the government can't use the pension fund as a rainy-day fund." (AP)

Most Read: On spending, more or less

ryanteaguebeckwith — Fri, 27 Jun 2008 12:37:41 -0400

State spending was in the news this week.

The most-read posts on Under the Dome from last Sunday to noon today included gatherings with the contradictory goals of cutting spending and boosting state worker pay. Also, both state budget writers and an imprisoned legislator have less to spend.

1. Take Back Our State: More than 1,000 activists rally in front of the legislature to hear Bob Dole tell jokes and Pat McCrory keep the beat. But no rim shots.

2. Give Back Our Raises: More than 200 state workers rally at — wait for it — the legislature to ask for a 3 percent raise in the state budget. Talk about the beat of a different drummer.

3. Hands Off Our Pension: Meanwhile, a group representing state workers spends some of their money on a full-page ad in the N&O. Dome stays employed for another week.

4. Cut Back Our Spending: The taxman tells lawmakers they'll have $70 million less to spend. Good news for those at No. 1 above, bad news for those at No. 2?

5. Cut Back My Spending: Disgraced former House speaker Jim Black pays a $1 million fine for taking cash in bathrooms. He'll have to cut back at the prison commissary.

SEANC ad pushes pension bill

ryanteaguebeckwith — Tue, 24 Jun 2008 14:57:05 -0400

The State Employees Association of North Carolina has taken its case to the newspapers, again.

In a full-page color ad in the front section of today's N&O, the state workers group promotes a House bill that would transfer control of the state pension away from the state treasurer to a board appointed by the governor and legislative leaders.

"Q: Why does the North Carolina retirement system need reform?" the ad says, above a photo of a mournful-looking couple. "A: $4 billion lost in 4 months."

The ad cites a May 30 story in the Triangle Business Journal that noted the value of the pension fund for state workers and teachers dropped from $43 to $38 billion in the first quarter of 2008 due to the drop in the stock market.

In an interview, SEANC spokeswoman Toni Davis would not say whether the pension fund lost value because of mismanagement by Moore or just a poor economy.

"All that we are saying with that ad is that we woud like for the General Assembly to consider legislation that would have an investment board rather than a state treasurer," she said.

State Treasurer Richard Moore's office said that the ad was "irresponsible scare tactics."

"It is unfortunate that SEANC continues to scare retirees and public workers about their pension fund," said spokeswoman Sara Lang in a statement. "North Carolina's pension fund is one of the best in the country, and our conservative investment strategy means that members can count on their benefits to be there for them."

It cost around $9,500 to run the ad.

Document(s):
seanc-treasurer.pdf

SEANC: Request was related to bill

ryanteaguebeckwith — Thu, 12 Jun 2008 14:01:54 -0400

The head of a state workers' group said claims of bribery are "crazy allegations."

Dana Cope, president of the State Employees Association of North Carolina, told Dome after a hearing today that he was involved in an offer by attorney Tom Harris to drop a public records lawsuit if state Treasurer Richard Moore would back a bill.

He said that the records request was directly related to the bill, which would transfer the treasurer's role in managing the state pension fund to a board of trustees.

"The only reason why we sought the public information request is to make an independent determination is there a pay-for-play going on," he said. "If that is true, that would help us obtain a statutory change that we filed last legislative session in order to reform the system like every other state in the country."

He said Moore's attorney, Kieran Shanahan, was trying to "take the public's eye off the ball."

"Shanahan shenanigans are in play here," he said.

Judge Jim Hardin did not make a ruling on the allegation or the motion to dismiss the case today.

Hagan's 2008 legislative agenda

ryanteaguebeckwith — Mon, 02 Jun 2008 09:58:40 -0400

Immigration, energy efficiency, and soccer.

These are just a few of the topics taken up by state Sen. Kay Hagan in the current legislative short session. The Democratic nominee for U.S. Senate sponsored one and cosponsored 10 non-budget bills so far in 2008.

Two bills seem most likely to come up in her race against U.S. Sen. Elizabeth Dole. The first, which she cosponsored, would require employers use the federal E-Verify program to check that employees can legally work in the United States.

That program, you may recall, was touted by former Republican gubernatorial candidate Fred Smith, who used it at his road- and home-building businesses.

Another bill she cosponsored would create a state sales tax holiday for a week each April on energy-efficient light bulbs, home appliances, electronics and insulation. It would be similar to the popular back-to-school holiday already in effect.

On a lighter note, the bill she sponsored could also be used to remind political commentators of a popular swing vote constituency: Soccer moms. The bill would create a special "Support Soccer" license plate.

Other bills she cosponsored: Change the local requirements for recall petitions in the city of Greensboro. Increase the monthly pension for retired firefighters and paramedics. Limit or exempt baked goods from the state sales tax. Increase benefits from the State Health Plan. Allow the legislature to meet in Greensboro one day for its centennial. Honor Korean War Veterans. Commemorate Israel's 60th anniversary.

Moore's 'Management' ad

ryanteaguebeckwith — Mon, 14 Apr 2008 12:28:11 -0400

Democratic gubernatorial candidate Richard Moore's latest TV ad contrasts his management of the state pension fund with Beverly Perdue's business record.

Claims Dept: Moore on pension fund

ryanteaguebeckwith — Wed, 09 Apr 2008 10:05:21 -0400

Democratic gubernatorial candidate Richard Moore's latest ad boasts about his work on the state's pension fund and on the minimum wage, Ben Niolet reports.

What the ad says: "Eight hundred thousand workers and seniors know the truth about Democrat Richard Moore. He built the nation's second strongest retirement fund. A bulldog pushing for corporate accountability. Moore's protected consumers and increased North Carolina retirement funds by billions. And he'll do the same as governor. Cut property taxes for seniors. Tuition-free community college, and raise the minimum wage again. Richard Moore. A Democrat who will always stand up for you."

The background: As state treasurer, Moore oversees the state's pension fund, which holds retirement money for about 820,000 employees of state and local government. Under Moore, the pension fund was ranked second by Standard & Poor's among public pension funds on its ability to pay its obligations.

A September 2003 story in The News & Observer ran under a headline that described Moore as a 'bulldog.' The story focused on how Moore, then in his first term as treasurer, had gained national notoriety for pushing for investment firms to disclose conflicts of interest. He has also called for better corporate governance.

Moore's office estimates that money management decisions made under his tenure have generated $6.9 billion for the pension fund.

Moore has plans to cut property taxes for seniors and offer free community college tuition for high school graduates who go directly into community college. He supports raising the minimum wage. The ad's text could be interpreted to mean that Moore had previously raised the minimum wage. In 2006, he pushed business leaders and others to support a $1 an hour increase. But ultimately, it was the legislature that approved an increase.

Is the ad accurate? Yes, although the ad could leave viewers with the impression that Moore personally raised the minimum wage. He supported the increase, but it was the legislature that raised the minimum wage.

Moore's 'Bulldog' ad

ryanteaguebeckwith — Mon, 07 Apr 2008 11:24:26 -0400

Democratic gubernatorial candidate Richard Moore's latest ad casts him as a "bulldog" who will fight for voters and defends his record of handling the state pension.