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.