Governor again asks legislators to move new workers to 401K - - Columbia, South Carolina

Governor again asks legislators to move new workers to 401K

(Source: WIS) (Source: WIS)

Associated Press

COLUMBIA, S.C. (AP) - Legislators working to come up with the next round of changes to South Carolina's pension system for public workers will hear from employee advocacy groups Tuesday.

Gov. Henry McMaster sent the House-Senate panel a letter before the meeting asking members to consider setting a date for moving newly hired employees to a defined contribution plan, such as 401K retirement accounts.

The letter repeats what the governor said in April when he signed a law designed to shore up the current system, saying he was disappointed it didn't go further.

Legislators made clear then more changes are coming. They have been working on a plan to improve the state's pension fund after it posted a $21 billion deficit in 2016.

The law increased contributions for both employers and their workers starting July 1. While that's supposed to be the last rate hikes for workers, employers' rates will rise yearly through 2022.

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