NC H506

Creates the North Carolina Investment Authority as an independent state agency within the Department of State Treasurer, governed by a 5-member Board of Directors (State Treasurer plus 4 appointees with 10+ years investment management experience), effective July 1, 2025

Transfers investment management responsibilities for state retirement systems, the Escheat Fund, and other special funds from the State Treasurer to the Investment Authority, with the Authority beginning investment operations January 1, 2026

Establishes a Chief Investment Officer position appointed by the Board, requiring 15+ years of investment management experience and serving terms of up to 5 years, with authority to hire staff and negotiate contracts

Removes several investment allocation caps for Retirement Systems assets, increasing the aggregate limit on alternative investments from 35% to 80% of total invested assets and adding a new 40% cap on illiquid investments

Requires the Board to approve investment policy statements, risk budgets, compensation plans, and operating budgets capped at 3 basis points of rolling three-year average assets, with enhanced monthly and annual reporting requirements to the legislature