The North Carolina Local Governmental Employees’ Retirement System (LGERS) is a defined benefit pension plan serving employees of North Carolina’s counties, cities, towns, and other local government entities. With approximately $5 billion in dedicated assets, LGERS is administered by the North Carolina Department of State Treasurer and is part of the broader North Carolina Retirement Systems.
Investment Strategy
LGERS assets are pooled with other North Carolina Retirement Systems funds for investment purposes, benefiting from the scale and institutional expertise of the State Treasurer’s investment division. The combined investment pool allocates across global equities, fixed income, real estate, private equity, credit, and inflation-sensitive assets. The overall investment approach is long-term and diversified, designed to meet actuarial return targets while managing downside risk and maintaining liquidity. North Carolina’s investment team manages a portion of public market assets internally and engages external managers for specialized and private market strategies.
Private Markets Approach
Through the pooled investment structure, LGERS participates in North Carolina’s private equity, real estate, and credit programs. The private equity program includes commitments to buyout, growth equity, venture capital, and special situations funds managed by established institutional general partners. The real estate allocation encompasses core, value-add, and opportunistic strategies through commingled funds and co-investment vehicles. North Carolina’s alternatives program has grown steadily, with the investment team expanding relationships across private markets strategies. The pooled approach allows LGERS participants to access a diversified private markets portfolio that would be difficult to construct at the system’s standalone scale, while benefiting from the due diligence and manager selection capabilities of the State Treasurer’s investment staff.
Frequently Asked Questions
What is the North Carolina Local Governmental Employees' Retirement System?
NC LGERS is a defined benefit pension system that provides retirement benefits to employees of North Carolina's cities, counties, towns, and special districts. It manages approximately $5 billion in assets and is administered by the North Carolina Department of State Treasurer.
How are NC LGERS assets invested?
NC LGERS assets are invested as part of the broader North Carolina Retirement Systems portfolio managed by the Department of State Treasurer. The combined portfolio allocates across public equities, fixed income, real estate, private equity, and other alternatives.
What is the relationship between NC LGERS and the broader North Carolina pension system?
NC LGERS operates alongside the Teachers' and State Employees' Retirement System under the umbrella of the North Carolina Retirement Systems. Assets are pooled for investment purposes and managed by the State Treasurer's investment team.
