Raleigh, N.C. – On Friday, the board of trustees for the state employees’ pension delayed voting on whether to encourage the general assembly to create a defined contribution alternative to the pension.
A defined contribution plan would be similar to the 401k most private sector employers offer employees.
The State Employees Association of North Carolina and the North Carolina Association of Educators spoke out against creating a defined contribution alternative.
Supporters of such a move say it would be easier to account for how much the state must contribute to the plan every year. With the current system the contribution rate varies depending on several factors like how much money is in the pension fund.
Republican leaders in the General Assembly expressed interest in studying whether to create a defined contribution alternative. State Treasurer Janet Cowell pledged to provide all the information she can to help inform the legislature.