By Paul Gable
South Carolina Treasurer Curtis Loftis again criticized the underperformance of the pension funds controlled by the S.C. Retirement System Investment Commission recently.
Speaking of the year end results for 2012, Loftis said, “It is unfortunate that the SC Investment Commission chooses not to tell the whole story about the state’s $27 billion pension fund. Our fund performs in the bottom third compared with our peers. That low performance is costing us big money. By being below average, South Carolina is leaving $175 million on the investment table.”
Since assuming the office of treasurer, Loftis has been a critic of the SCRSIC for poor performance, wasteful spending, lack of transparency and conflicts of interest.
The pension fund ended the year with approximately $27 billion in assets and was underfunded by approximately $16 billion in order to meet future pension requirements.
Loftis released a short statement to the public with attachments of graphs from TUCS and Bank of New York Mellon tracking systems. Click here to view: http://www.treasurer.sc.gov/Documents/2-18InvCommStmt.pdf
The graphs demonstrate South Carolina ranks in the bottom 20% and bottom 30%, respectively, of large pension funds tracked.
Loftis is in the process of recommending a series of reforms to the SCRSIC for consideration of the General Assembly. According to a source familiar with the list, Loftis’ proposals would result in a restructuring of how South Carolina’s pension system funds are invested combined with much more transparency of the system.
In addition, results of a SLED investigation into allegations of conflicts of interest for SCRSIC chairman Reynolds Williams is, reportedly, sitting in the S.C. Attorney General’s office awaiting a determination of how to proceed with the findings.