NC S709

Creates the North Carolina Investment Authority as an independent State agency within the Department of State Treasurer to manage investments for public retirement systems, the Escheat Fund, and other special funds currently managed by the State Treasurer

Establishes a 5-member Board of Directors (State Treasurer as chair, plus appointees from the Governor, Speaker of the House, Senate Pro Tempore, and State Treasurer) with 6-year staggered terms; members must have 10+ years of investment management experience

Removes statutory percentage caps on most alternative asset classes for Retirement Systems, replacing them with an aggregate 80% limit on alternative investments and a new 40% cap on illiquid investments, while adding authorization for up to 5% investment in digital assets

Requires the Board to approve investment policy statements, risk budgets, and an annual operating budget capped at 3 basis points of a rolling 3-year average of total assets; the Chief Investment Officer must have 15+ years of investment experience and serves 5-year terms

Investment Authority becomes effective July 1, 2025, with investment management responsibilities transferring January 1, 2026; existing rules and policies remain in effect until amended or repealed by the new Authority