South Carolina lawmakers are considering further changes to the state’s $28 billion pension.
A joint Statehouse committee met Tuesday to plan an information-gathering approach that may eventually alter the retirement plan for state workers and retirees.
Already, Republican Gov. Henry McMaster has signed into law a bill to reduce the state’s more than $20 billion pension debt. That plan reduces the assumed rate of return from 7.5 percent to 7.25 percent and increases contributions from employees and employers.
The committee took no action and didn’t debate plan details, but wants to hear from employees, the private sector, municipal groups, and other states with healthy retirement systems.
Lawmakers may consider freezing new entrants to the system, enrolling them instead in a 401(k) type of plan, as a possible solution the state’s sprawling debt.
“We want to help our folks but we also want to make sure that we’re good stewards,” Sen. Vincent Sheheen, D-Camden. Sheheen co-chairs the committee together with Rep. Bill Herbkersman, R-Bluffton.