Governor Henry McMaster just signed a law that will require higher payments from workers and employers, starting in July. According to McMaster this is step 1 in stabilizing South Carolina’s pension system for public employees.
By the numbers:
- $20 billion - That’s the projected pension debt accumulated by South Carolina (since 1999)
- 7% - The increase in employers’ contribution rates over the next six years.
- $3 billion - Additional funds that will feed into the system.
- 9% - The percentage of salary, workers in the state’s main retirement plan will contribute starting July 1 (currently at 8.66 percent).
The House and Senate are still finalizing their budget plan, but it includes roughly $150 million for the first year of the pension law (fiscal year starting in July).
3 min. // U.S. News & World Report
