Tag: SC Pension Fund

SC Pension Fund Woes

A recent report released by two Maryland public policy think tanks lists SC pension fund at the top of the list of 10 states paying the most money management fees over the last five years.

The report by the Maryland Public Policy Institute and Maryland Tax Education Foundation looked at average fees paid versus average investment return for fiscal years 2008-2012 inclusive.

South Carolina paid the most fees across the study span with an average of 1.3% of pension fund assets. For that, South Carolina’s average rate of return over the five years was 1.5%, according to the study.

SC Treasurer Announces SC Pension Fund Lawsuit Settlement

SC Treasurer Curtis Loftis told fellow members of the S.C. Retirement System Investment Commission Thursday that a lawsuit with Bank of New York Mellon Corp. regarding the SC pension fund had been settled.

The lawsuit dated back to 2009 when the state alleged the bank had lost $200 million of state pension funds through bad investments associated with the financial meltdown of 2008-09. The suit was run through the SC Treasurer’s office beginning with Loftis’ predecessor Converse Chellis.

Loftis declined to discuss details of the settlement with the commission until all settlement provisions are completed, according to provisions of the settlement.

"Public pensions must be more transparent, accountable." Curtis M. Loftis Jr.

Public Pension Plans Must Be Transparent

It’s no secret that public pension plans and their investment boards nationwide are underperforming. Blame is often assigned to the economy, over-promising politicians, unrealistic assumed rates of investment returns, and workers that retire earlier and live longer. But, is there more to the story?

“In all 50 states hard-working public employees and taxpayers supply the money for these investments. They should not be riding in the back of the bus, and in fact they should be driving the bus. ”

My research and experience shows that many pension investment boards lack vital transparency and accountability. The absence of these key principles of good governance leaves the plans vulnerable to increased risk. The inner workings of these investment boards are mysterious to outsiders; in fact these investment boards are places where enormous sums of public dollars are entrusted to a select few, but coveted by many.