In the July 28 Post and Courier, the editorial staff wrote “A vision for South Carolina pension system reform in 2020.”
Although editorial staff members are well-intentioned, they couldn’t be more wrong with their approach to South Carolina’s state pension system.
South Carolina’s state pension system is in good shape, and over the last couple of years, lawmakers have been making full payments into the system. If lawmakers decided to close the state pension system to new hires, as the editorial suggests, they would be making the same fateful mistake that other states and municipalities have made in the past.
Michigan, West Virginia, and Alaska have all, at one point, closed their pension systems to new hires. Not only did the unfunded liability of their respective pension systems worsen, but recruitment plummeted and they had a hard time retaining qualified state employees.
In Palm Beach, Florida, and Branford, Connecticut, these municipalities made the same mistake and saw their public safety officers head for the door to seek employment in other departments with better benefits.
Things got so bad in these states and municipalities that West Virginia, Palm Beach and Branford reopened their pension systems to retain quality employees and relieve their operational budgets.
South Carolina lawmakers should not repeat the mistakes of other states and cities by closing the state’s pension system to newly hired public employees. By continuing to make employee and employer contributions, the pension system will continue to stabilize.
BRIDGET EARLY
Executive Director
National Public Pension Coalition
16th Street Northwest
Washington, D.C.