By Matt Tomsic
mtomsic@scbiznews.com
Published June 20, 2012

South Carolina’s pension plan is cause for serious concern, and the state needs to improve the management of its retiree health care, according to a study by the Pew Center on the States.

The study analyzed liabilities for pensions and retiree health care for all 50 states.

“Although South Carolina consistently paid its full annual pension contribution from 2005 to 2010, the system was 66% funded in fiscal year 2010 and faced a $15 billion funding gap,” according to the study, which added pensions should be at least 80% funded.

The state also paid 5% of its $9.7 billion bill for retiree health care costs. The national average for health care payments was 8% in 2010.

The General Assembly is considering a bill, H 3066, that would increase employee contributions, change the formula used to calculate benefits and limit annual cost-of-living adjustments.

Lawmakers introduced the bill in January 2011 and it passed in the House, 96-13, in March 2011. The bill went to the Senate, where lawmakers amended it before debate was interrupted in June 2011. Lawmakers resumed work on the bill in January, and lawmakers continued amending the bill, which has been referred to a conference committee. Both bodies have appointed lawmakers to the committee.