COLUMBIA, SC (WIS) - South Carolina Gov. Henry McMaster has signed a bill designed to help begin the process of shoring up the state's pension fund.
The legislation specifies workers' rates won't rise again. But their taxpayer-supported employers will pay increasingly more through 2022. Employers' contribution rates will rise by 7 percentage points over the next six years, requiring them to cumulatively put an additional $3.2 billion into the system.
However, as of 2016, the state's pension fund was $21 billion in the red.
"Unfortunately, the only means available today to immediately begin reducing the State's unfunded liability is to increase employee and employer contributions for the South Carolina Retirement System and Police Officers Retirement System," McMaster said in a statement.
McMaster also said he's looking for further fixes in the pension system, noting that the bill does not have "a date certain transition from the State's defined benefit pension plans to a defined contribution retirement plan for new state employees."