TREASURER THANKS HOUSE FOR PASSING COLA LEGISLATION AND STRENGTHENING RETIREMENT SYSTEM
For Immediate Release: May 13, 2008
Contact: Scott Malyerck (803) 446-2881
(Columbia, SC)….State Treasurer Converse Chellis thanked members of the House for their foresight in passing a bill today that will decrease the unfunded liability of the State’s Retirement Systems. “We’re finally addressing a problem that has been plaguing the Retirement Systems for decades,” said Treasurer Chellis adding, “The action by the House today is a bold move that will strengthen the state employees and police retirement systems for years to come.” The bill has also passed the State Senate and it on tract to head to the Governor’s desk for signature.
The bill protects the stability of the State Retirement System while decreasing the System’s $9 billion unfunded liability. The bill also stops the granting of costly ad hoc COLA’s that have contributed to the System’s unfunded liability over the past 40 years. The bill would guarantee retirees a 2% COLA without any additional funding from the General Assembly or the taxpayers. If passed, the bill would also help protect our State’s credit rating by reducing the $9 billion liability.
The bill is supported by the SC Sheriff’s Association, SC Troopers Association, SC Chamber of Commerce, Teachers and the Education Association, State Retirees Association, State Employees Association, the State Treasurer, State Comptroller General, State Budget and Control Board, and financial experts across the state.
Chellis said, “The bill is a well thought-out comprehensive long-range solution to a major financial problem. Without this legislation, the State will have to find additional funds or raise taxes to pay for the retirees COLA. Or, for the very first time in about 40 years, not grant a COLA to our State’s retirees.”
The Governor is against the bill. He incorrectly state’s in his press release from earlier today that, “The bill seeks to cover that shortfall (in the retirement system’s unfunded liability) by simply changing the state’s assumed rate of return on retirement system investments.” The bill does not set the rate of return. The Governor’s Office release again states that the bill is a “smoke and mirrors move.” It seems that the only smoke in the statehouse is coming from the Governor’s Office when they continue to provide false and misleading numbers in an effort to derail this bill.
“The General Assembly is right on target with this legislation. On behalf of the state’s retirees, law enforcement personnel, teachers, and state employees, I thank them for their strong leadership,” said Chellis. “As the State’s Chief Financial Officer, I am sworn to protect our State’s financial resources, and this bill does just that.”
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General Chellis is on the right track. He and the study committee have consistantly taken the high road and the govenor has consistantly tried to make the retirees a political issue. Thank you Converse Chellis As to the govenor, we only have two more years of “do nothing”.
Freddy
May 14, 2008 at 11:30 am