Title
State Ancillary Governmental Participants Investment Program
Action
Action:
Adopt a resolution to invest assets in the Ancillary Governmental Participants Investment Program established by the Treasurer of the State of North Carolina.
Body
Staff Resource(s):
Teresa Smith, Finance
Matt Hastedt, Finance
Explanation
§ In December 2008, the city established the Long-Term Investment Program (LTIP) comprised of the city’s Employee Benefit Trust (EBT) to fund Other Post-Employment Benefits. The city invests pursuant to NC General Statute 159-30 and received expanded investment authority by the General Assembly of North Carolina Session Law 2007-255 Senate Bill 221 to invest its LTIP funds as outlined in NC General Statue 147-69.2(b)(1)-(6) and (8).
§ The expanded legislation allows the city to diversify employee benefits funds held in trust to provide a funding source for future obligations. Since establishment of the trust, the EBT Trustees and Committee have managed these investments with the help of an investment consultant.
§ Historically, the LTIP achieved higher returns than the Ancillary Governmental Participants Investment Program (AGPIP), net of fees, so the city chose to continue managing the program separately from the AGPIP.
§ In recent years, the costs associated with management of the program have increased and yields on different investment options have converged. The AGPIP returns have been similar to those of the LTIP in recent years with the AGPIP maintaining lower fees, resulting in program savings and an opportunity for higher net of fee returns.
§ The EBT Trustees voted in August 2024 to request Council action to transition LTIP funds to the AGPIP program starting in fiscal year 2026.
Fiscal Note
Funding: Fees will be paid from the investment funds
Attachments
Attachment(s)
Resolution