Issue Position: Pension Reform

Issue Position

South Carolina's unfunded pension liability threatens to place unprecedented strain on state government if steps are not taken to address this crisis. We must maintain our commitment to the 11.5% of South Carolina's population that relies on state retirement systems while protecting taxpayers from bearing any additional financial burden caused by inaction or indecision. We should:

Close the defined benefit pension plan and create 401(k)-style defined contribution retirement plans for NEW public employees.
Create "contribution enhancements" to new 401(k)-style plans as recognition for employees' years of service, promotions, or other criteria.
Prohibit unfunded cost of living adjustments.
Explore raising the age of retirement eligibility.

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