South Carolina faces an estimated $13-17 Billion shortfall in its 5 State Employee Retirement Systems, which include state agency workers, teachers, police, firefighters, judges, legislators and National Guard soldiers.
The House Ways and Means Committee Retirement System Study Committee is considering requiring the state’s 141,000 employees to contribute more toward their retirement benefits. State employees currently have 6.5% of their salaries withheld for retirement benefits.
Consulting firm Cavenaugh Macdonald issued a February report recommending an increase in state employee retirement contributions of about 1% to close the shortfall. Several groups representing state employees voiced opposition to the proposed contribution increase.
The South Carolina FairTax Act (H-3993/S-274) provides a solution to this impasse. By eliminating the 7% state personal income tax, state employees could contribute more toward their retirement benefits and still realize an increase in take-home pay.
The House Ways and Means Committee Retirement System Study Committee meets Tues., Nov. 29 at 11:30 in Blatt Building Room 521 to discuss legislative solutions for the shortfall. Please contact Chairman Jim Merrill at JimMerrill@schouse.gov and House Majority Leader Kenny Bingham at KennyBingham@schouse.gov and recommend the South Carolina FairTax Act as the best legislative solution for the projected State Retirement System shortfall.
