State and local North Carolina governments will need to raise their pension contribution, Global Pensions reports. They will have to increase it to 6.71% from the current 3.57% to make up for an underfunded status, according to the state treasurer.

The funded status of the North Carolina Retirement Systems dropped to 99.3% at the end of 2008, down from 104.7% the previous year. The normal contribution rate to the system is 6.3%, but the General Assembly had lowered the rate due to strong investment returns.

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