Despite the solid funding of state employee pensions (unlike the massive unfunded liability for future health benefits), SEANC and others continue to question State Treasurer Richard Moore’s investment team and decisions. The Charlotte Observer found that many employees at the private equity Blackstone Group have contributed to Moore’s campaign, but “employees of seven of the 10 firms that received the most fees gave no contributions at all.”

There are two ways to eliminate the appearance of impropriety in the state treasurer’s handling of pensions. First is to make the position appointed, instead of elected. That removes some of the potential for political influence peddling. Second is to move to a defined-contribution pension system, similar to a 401(k) or IRA. The same defined-contribution potential exists in health care.