Local government entities in South Carolina will have to shell out more money under a new state pension funding plan.
According to The State newspaper the plan includes sending the money to cover half of the increased pension costs for employers that are not state agencies like cities, towns, counties and school districts directly to the retirement system,
Under the plan over six years those local government bodies will have to pay more into the state retirement system. In that time frame the cost for them will rise to$18.56 for every $100 an employee earns. They now pay $11.56.
Once the plan is fully phased in the higher cost in pension contributions will cost state and local governments $827 million a year. A bill that will be picked up by the taxpayer.
After weeks of meetings between House and Senate budget negotiators the deal was reached on the new pension plan.