GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015

H                                                                                                                                                    1

HOUSE BILL 404

Short Title:        Treasurer Modernization Act.		(Public)
Sponsors:	Representative Ross (Primary Sponsor). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site.
Referred to:	Pensions and Retirement.

April 1, 2015

A BILL TO BE ENTITLED

AN ACT to enhance the accountability of the state retirement system's investment programs by providing for audited financial statements and other measures.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 6 of Chapter 147 of the General Statutes is amended by adding a new section to read:

"§ 147‑69.9.  Third‑party audit of Retirement Systems' investment programs.

(a) In addition to all other audits and reports required by law, the State Treasurer shall prepare and issue as of the end of each fiscal year, a set of financial statements regarding the investment programs for the Retirement Systems enumerated in G.S. 147‑69.2(b)(8). The financial statements prepared by the State Treasurer shall be audited by a commercial, independent third‑party audit firm selected and engaged by the State Auditor based upon selection criteria developed by the State Auditor in consultation with the State Treasurer. The audit firm's report and the financial statements prepared by the State Treasurer shall be provided to the General Assembly no later than six months after the close of the reporting period.

(b) Supplementary information accompanying the financial statements required by subsection (a) of this section shall include a discussion of the Retirement Systems' risk and returns compared to benchmarks, total management fees and incentives paid, and comparisons to peer cost benchmarks.

(c) All associated costs of the audit required by this section shall be subject to the provisions of G.S. 147‑69.3(f) and shall not require additional appropriations to the State Auditor or the State Treasurer in the Current Operations Appropriations Act."

SECTION 2.  This act is effective when it becomes law.