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NC Lifetime Income

Stock Market Risk

After significant drops in most stock market indices in 2008 and early 2009, many retirees and employees are aware of the risk involved with stock market investing. The payments resulting from any transferred balances will not vary with decreases (or increases) in stock market indices. However, these transfers are not the only way to remove stock market exposure. If your only concern is reducing your stock market risk, this transfer may not be your best choice.

Here is a summary of the investment options available in the NC 401(k) and 457 plans and their exposure to the stock market:

Not Invested in StocksInvested in Stocks
  • Balances transferred to Retirement System
  • NC Stable Value Fund*
  • North Carolina Fixed Income Fund**
  • North Carolina Fixed Income Index Fund**
  • North Carolina Large Cap Value Fund
  • North Carolina Large Cap Growth Fund
  • North Carolina Large Cap Index Fund
  • North Carolina Small/Mid Cap Value Fund
  • North Carolina Small/Mid Cap Growth Fund
  • North Carolina Small/Mid Cap Index Fund
  • North Carolina Global Equity Fund
  • North Carolina International Fund
  • North Carolina International Index Fund

* The principal and accumulated interest of the NC Stable Value Fund are backed by several wrap providers and the minimum interest rate is 0.00%.

** These two funds can decline in value, but generally have lower risk than most stock funds.

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