Reply #6: Pew Center State Pension Report: SC Fact Sheet [View All]

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South Carolina’s pension systems are funded below the 50-state average—but the state has been making a yeoman’s effort to improve its status. It is one of 16 states that has consistently paid 100% (or close to 100%) of its annual required contribution during the past 10 years. On the non-pensions side, the state faces a $10 billion bill coming due for retiree health care and other benefits, $4.2 billion of which is for state employees. The state had not set aside any funds toward this long-term obligation as of the end of fiscal year 2006. But in fiscal year 2007-2008 legislation, the General Assembly appropriated $113 million, awaiting an established formal trust fund. If South Carolina consistently funds its annual required contribution, the state’s total unfunded liability will drop to $2.9 billion for state employees and to $6.4 billion total. This is because the interest the state is likely to earn when it invests more money over the long term can be applied to paying down the bill.

Pew Pension Report SC (PDF)