Well, now, here’s an interesting bill I haven’t heard about (although Kathryn may point out that everyone else knew about it but me):
S 0531 General Bill, By Campsen, Ryberg, Grooms, Bryant, Rose, Campbell, Shoopman, Davis and Bright Similar(H 3568) A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 9-1-5, 9-8-5, 9-9-5, 9-11-5, AND 9-20-5 SO AS TO CLOSE THE SOUTH CAROLINA RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA, THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, AND THE STATE OPTIONAL RETIREMENT PROGRAM TO EMPLOYEES HIRED OR OFFICERS TAKING OFFICE AFTER JUNE 30, 2012, AND TO PROVIDE THAT OFFICERS OR EMPLOYEES HIRED OR TAKING OFFICE AFTER JUNE 30, 2012 MUST BE ENROLLED IN THE SOUTH CAROLINA RETIREMENT INVESTMENT PLAN; BY ADDING CHAPTER 22 TO TITLE 9 SO AS TO ESTABLISH THE SOUTH CAROLINA RETIREMENT INVESTMENT PLAN AS A DEFINED CONTRIBUTION PLAN AND PROVIDE FOR ITS ADMINISTRATION AND OPERATIONS; AND TO REPEAL, EFFECTIVE JULY 1, 2017, CHAPTER 22, TITLE 9 RELATING TO THE STATE OPTIONAL RETIREMENT PROGRAM.
02/09/11 Senate Introduced and read first time (Senate Journal-page 7)
02/09/11 Senate Referred to Committee on Finance (Senate Journal-page 7)
The boldfaced parts are my own enhancement. Oh, and here’s the House version:
H 3568 General Bill, By G.M. Smith and Ballentine Similar(S 531) A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 9-1-5, 9-8-5, 9-9-5, AND 9-20-5 SO AS TO CLOSE THE SOUTH CAROLINA RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA, AND THE STATE OPTIONAL RETIREMENT PROGRAM TO EMPLOYEES HIRED OR OFFICERS TAKING OFFICE AFTER JUNE 30, 2012, AND TO PROVIDE THAT OFFICERS OR EMPLOYEES HIRED OR TAKING OFFICE AFTER JUNE 30, 2012 MUST BE ENROLLED IN THE SOUTH CAROLINA RETIREMENT INVESTMENT PLAN; BY ADDING CHAPTER 22 TO TITLE 9 SO AS TO ESTABLISH THE SOUTH CAROLINA RETIREMENT INVESTMENT PLAN AS A DEFINED CONTRIBUTION PLAN AND PROVIDE FOR ITS ADMINISTRATION AND OPERATIONS; AND TO REPEAL, EFFECTIVE JULY 1, 2017, CHAPTER 22, TITLE 9 RELATING TO THE STATE OPTIONAL RETIREMENT PROGRAM.
02/02/11 House Introduced and read first time (House Journal-page 57)
02/02/11 House Referred to Committee on Ways and Means (House Journal-page 57)
02/08/11 House Member(s) request name added as sponsor: Ballentine
OK, so they were just alike. I just gave you both so you could get the names of the legislators responsible. You’ll note I provided links to each. I live to serve.
And to cause trouble, of course. Hard to imagine anything more likely to stir up one of the largest and most politically alert demographics you’re likely to find, state employees — even though it would not apply to them, but only to new hires.
Of course, there’s one thing that IS politically appealing here: Getting rid of the grossly overgenerous retirement system for legislators. That said, it seems that should be addressed in a separate bill, because the two things should not be mentioned in the same breath: the legislative system is SO much more generous, and offered in return for SO much less service, that the two things are like night and day. The state retirement system is a fiscal challenge. The legislators’ benefit is an outrage (read one of Cindi’s ever-popular columns on the subject, to remind you how outrageous). Changing what retirement looks like for future state employees may or may not be a great idea, or at least something that needs to be done whether its a great idea or not. Eliminating the legislators’ benefit is something that most would think is a great idea on its face.
Here’s how my thoughts went as I read the bill:
- “Close the South Carolina Retirement System…” Whoa! There’s a bombshell.
- … to employees hired or officers taking office after June 30, 2012…” Oh, OK. Still, that’s a huge issue that needs infinitely more discussion than it’s gotten.
- Require new hires to “be enrolled in the South Carolina Retirement Investment Plan.” Huh. Well, I’ve never heard of that. Is it a viable option? How’s it doing? How has it performed? Can we have confidence in it as a viable option to a defined benefit?
- “…establish the south carolina retirement investment plan…” So it doesn’t exist yet? OK, tell me more. Lots more.
And indeed, there are details below, although not quite enough — that is, not enough for a nonfinancial guy like me to tell whether the idea is viable.
What this looks like on its face is just what private employers have been doing for about a quarter-century and more: Moving employees out of pension plans, and into investment plans such as 401ks.
It’s worth talking about. A lot. Let’s start.