History of the North Carolina Retirement Systems

The North Carolina Retirement Systems Division was established in 1941, with parts of the division under the management of the State Auditor and State Treasurer.  Before the establishment of the North Carolina Retirement Systems Division, the only pension system that was established in the state was for Confederate soldiers.  

The first pension law went into effect in 1885 and granted a pension of $30 annually to Confederate veterans who were unable to work due to the loss of an eye, leg, or arm.  These benefits were also available to soldiers’ widows as long as they did not remarry.  The system expanded later in 1885 to include widows or soldiers who had died of disease while in active service.  

In 1866, the pension system began to include those who had obtained a prosthetic limb out of their own funds or those who had limbs that were no longer functional, but still attached.  By 1901 the pension became available to all widows, soldiers, and sailors who were unable to perform manual labor due to injuries sustained while serving on behalf of the State of North Carolina or the Confederate States of America.  The 1901 pension system was designated as follows: 

• first class: totally disabled and entitled to $72 annually; 
• second class: lost leg or arm and entitled to $60 annually; 
• third class: lost a hand or foot and entitled to $48 per year; 
• fourth class: widows, those who had lost an eye, and those who were disabled due to other wounds not classified in the prior categories. This group was entitled to $30 annually.   

In 1927, pensioners were again reclassified to include slaves who had been servants to soldiers or slaves who had served in a role of soldier support.   Today, public pensions have expanded to include many more North Carolinians under the management of the Office of State Treasurer. 

The North Carolina State Treasurer is a position that is speculated to have been created during the colonial period, more specifically within the years of 1711-1713 at the time of the Tuscarora War.  During this early period, the duties of the Treasurer are presumed to have been to collect taxes and cover military expenses.  Over the centuries, the state treasurer's job expanded to include collecting all public monies, keeping track of all deposits and withdrawals made to the state’s bank accounts, and borrowing funds in a time of emergency, among other things.  In 1943 the state treasurer’s ex officio duties expanded to include working with state agencies dealing with taxes, banking, housing, the financing of hospitals, as well as agencies involved with employee benefit plans, specifically the North Carolina Teachers’ and State Employees’ Retirement System that was established on July 1, 1941.