A proposal to fix South Carolina’s financially-troubled pension system now goes to the full state Senate.
The Senate Finance Committee advanced a measure that tries to shore up South Carolina’s retirement fund, which faces a $24 billion gap between what it has promised future retirees vs. what it has on hand.
Both the House and Senate are simultaneously working on separate bills based on recommendations made by the Pension Review Committee.
“(The pension funds) were overly cumbersome, not streamlined enough,” State Sen. Vincent Sheheen, D-Kershaw, said. “And somewhat archaic in the structure unlike many other states. So this is an attempt to try and remedy that.”
The proposal makes some changes to the way things are calculated. “Conservative projections will be on the return on the investment. We are bringing down the outstanding liability, which is what needs to happen,” Sheheen said. “If we do not do this it will balloon completely out of control.”
The House version of the bill passed out of the Ways and Means Committee last week and will soon be taken up on the floor.