Keep pension funds safe - Vote NO on HB 506

I am writing as a recipient of the Local Governmental Employees’ Retirement System (LGERS) pension to express my strong opposition to HB 506. This bill would transfer the management of our retirement funds from the State Treasurer-an elected official directly accountable to the public-to a politically appointed board. As someone who relies on the stability and security of my pension, I am deeply concerned about the risks this change poses to my retirement and to the thousands of local government retirees across North Carolina. Currently, the LGERS is overseen by a Board of Trustees with broad representation from local governments, and the State Treasurer serves as the sole fiduciary for investment decisions. This structure ensures that those responsible for managing our retirement funds are both knowledgeable and directly accountable to the people they serve. The Treasurer’s office has a clear track record of prudent, transparent management, guided by the best interests of retirees like myself. Just because Brad Briner doesn't want to do his job is no reason to change one of the most secure and responsibly managed defined benefit plans in the nation, providing guaranteed monthly benefits to over 900 participating employers, including all 100 counties and hundreds of municipalities. There is no compelling reason to disrupt a system that works well for the sake of political restructuring. HB 506 would undermine this accountability by shifting investment authority to a new board whose members would be appointed through political processes. This reduces transparency and puts our retirement security at risk of political influence and conflicts of interest, rather than focusing solely on what is best for retirees and public employees. The proposed changes would also allow for riskier investment strategies, increasing the proportion of assets in illiquid and alternative investments. While these may offer the potential for higher returns, they also expose our pension fund to greater volatility and risk-jeopardizing the stable, defined benefit we have earned through years of public service. Raising the cap on illiquid investments*fro 20% to 40%) and alternative assets (from 35% to 80% !!) exposes state funds to potentially higher risk and volatility. Illiquid assets can be harder to value and sell, especially in downturns, which could endanger the stability of retirement systems if not carefully managed. And alternative assets like hedge funds and private equity funds are notorious for both volatility and scams. I urge you to oppose HB 506 and ask you to protect the integrity and accountability of our retirement system. Please keep the management of our hard-earned pensions in the hands of those who are directly accountable to the people of North Carolina-not a politically appointed board. Keep the State Treasurer as sole fiduciary. Thank you for your attention to this critical issue.