Treasurer Curtis Loftis Weighs in on Problems Facing Pension System
Monday, October 24, 2016
WMBF reports on the problems facing South Carolina's pension system
Columbia, SC - State Treasurer Curtis Loftis has been telling legislators and taxpayers about the problems facing the state's pension system for years.
Now, with the formation of the joint House and Senate committee to study the problem, Treasurer Loftis thinks the topic is getting some of the attention it needs.
According to The Rock Hill Herald, some lawmakers are saying transitioning to a 401k-like plan is a possibility. But experts caution such a move won't erase existing debt.
Treasurer Curtis Loftis spoke about the problem after a State Fiscal Accountability Authority meeting. "Within the next five years, the state will have to close its pension plan to new entrants," he said, noted by the Associated Press. "The numbers are so large now, I don't think it can be turned around," Treasurer Loftis finished.
The Herald says some legislators are looking at a hybrid plan that maintains pensions for existing employees but puts new hires into a "defined contribution" system, such as 401k retirement accounts. Currently, public employees in South Carolina can choose that path over a pension, but few do so.
The Herald also noted that Treasurer Loftis says such a hybrid is inevitable, as he believes the existing system is beyond repair.
Read the full coverage of the article on the problems facing the state's pension system.
From The Herald: Lawmakers say closing pension to new hires an option
Additional coverage about the South Carolina pension:
Aiken Standard: "S.C. lawmakers say closing pension to new hires an option"
Spartanburg Herald Journal: "SC lawmakers eye pension fix"