There are plenty of things wrong with South Carolina’s government-run pension fund. For starters, our state pays the highest investment fees in the entire nation – yet the fund consistently ranks among the worst-performing pension funds in America.
Typical Palmetto State performance, huh? “Less for more.” Might as well be our state’s motto …
On top of that, the individuals who manage this $25 billion account are notoriously corrupt – especially Reynolds Williams, the ringleader of the S.C. Retirement System Investment Commission (SCRSIC). But again … rampant corruption is nothing new in South Carolina, either.
We’ve outlined numerous reforms that ought to be made to this fund – none of which have been adopted by the S.C. General Assembly or endorsed by S.C. Gov. Nikki Haley (whose appointee to this commission is a major part of the problem).
Another reform we’d humbly submit? Not letting private sector lobbyists have access to the government’s retirement system.
According to the Associated Press, South Carolina is one of twenty states in which “private lobbying groups” are allowed to participate in public employee pension funds.
Wait … private lobbyists? In a public employee fund? Huh?
Indeed … in fact one entity which avails itself of this benefit is the uber-liberal S.C. Association of School Administrators (SCASA), one of the Palmetto State’s most reform-resistant unions.
Crazy, isn’t it?
There is no universe in which this is appropriate, people. When there is a shortfall in the state’s pension fund, taxpayers are forced to make up the difference. That means any group which avails itself of this “benefit” is stealing from the taxpayers.
It is disheartening to see South Carolina’s “Republican” governor and “GOP-controlled” General Assembly continue to ignore long-overdue reforms to this fund. At the very least, though, can they agree to stop forcing taxpayers to subsidize retirement payments for private sector lobbyists?
Doesn’t seem like too much to ask …
11 comments
I was wondering when you would pick up on the cozy deals with the “private sector lobbyists.”
Hey Shifty, Have you heard of the new Obama phone?
Oh, so now you’re saying these are private groups? Usually, you’re yammering about how they’re publically funded and therefore subject to FOIA. Make up your mind.
How about retired people being appointed to the highest paying State Jobs, and then retiring AGAIN after only 3 years (at 65) with full benefits at their high State salary?
So how does that work? You have to be vested in the state retirement system and the retirement benefits are calculated on the number of years worked. If you come in and work 5 years, you aren’t going to get the same retirement as someone who earns the same as you do and worked for 28-30 years… you’ll receive 1/6th of what that other person does.
THAT’S what we need to know…as I asked once again last week.
What IS the retirement & benefits deal for appointed agency heads who then turn around and appoint political hacks – such as Mick Zais appointing Jay Ragley; Catherine Templeton & Jamie Shuster; Haley and her campaigners put on the SC employment dole; what others?
Are there different vesting rules for these appointed people? Like ‘stuff’ legislators get from ALEC is not considered lobbying
Do they accrue sick and annual leave or do they come and go as they chose like Zais and Templeton?
If they accrue leave, do they get paid for the unused or have it applied to retirement when they leave?
Do they accrue leave and never have to use it, just let it accumulate?
This is an easy FOIA with the SCRS or the agency head commission or searching the SC Code (Am I the only one who finds that the most user-unfriendly site, with hot it works changing periodically) It’s so easy even Will Folks could do it. Unless, he doesn’t want anyone to know what benefits he had and/or has from his brief time with the stat.
Dead on Mr. Folks. Dead on!
Some of these people make salaries of much over $100,000 per year. So retirements would have been about $50,000. Not a bad retirement to get from the state when you never worked for the state!
This is one corrupt state.
This is simply incredible.
My well connected friend said there are scores of these groups. Will, get a list and publish it!!
The good old boys are going to bleed us dry.
Outrageous. Simply outrageous for privileged insiders to make market based pay in a non-state entity then retire with an expensive defined benefit plan as if they had been working for the state at state wages!
I have a friend at one of the Associations and he has always bragged about his pay and retirement . Now I know why!
This state government long time “insider” says you have stumbled on something that is like a “ball of yarn.” If you keep pulling the string it will take you places you cannot imagine. For many years I have heard the rumors about the amounts on money and the people and groups involved.
Keep digging. Just keep digging.
There is close to zero probability that a pension fund manager can beat the market averages over multiple decades, which should be the relevant time period for investing state government pension dollars. Furthermore, the manager who tries to beat market averages is likely to incur volatility that can make cash unavailable when the periodic Wall Street crashes occur.
If the state were to, instead, place pension dollars in index mutual funds:
– we would always match the market rates of return:
– fees would equal less than one tenth of one percent of the portfolio each year; and
– we could fire every last one of the money managers currently on board.