State House of South Carolina

At a Glance

Purpose & Duties

The Retirement System Investment Commission (RSIC) has exclusive authority for investing and managing all assets held in trust for the participants and beneficiaries of the five state defined benefit plans, collectively referred to as the (“Retirement System”) or (Systems).

Each plan provides lifetime retirement annuities, disability benefits, and death benefits to eligible members and their beneficiaries.

$31.1 Billion Total Assets

Pension Trust Funds

$27 Bil
SC Retirement System (SCRS)
498,587 members
$4.5 Bil
SC Police Officers Retirement System (PORS)
58,940 members
$166 Mil
Retirement System for Judges & Solicitors of SC (JSRS)
346 members
$36.2 Mil
Retirement System for General Assembly of SC (GARS)
509 members
$30.4 Mil
National Guard Retirement System (SCNG)
18,931 members

*FYTD December 31, 2017
**FYE June 30, 2017

RSIC Pension Fund Structure

Investment income, employer contributions, and employee contributions are the largest sources of revenue to the trust funds.

Infographic showing the RSIC Pension Fund Structure. Employer and Employee Contribution (collected by PEBA) plus Investment Returns (managed by RSIC) equals Benefit Payments (by PEBA) to Beneficiaries (retiree)

PEBA administers the state's public pension plan while the RSIC manages the assets of the Retirement System.

This chart depicts the revenue to the trust funds over a 10-year period. The exact proportion of these numbers to each other will change over time as investment income changes (investment income will change each year depending upon investment strategy and market returns) and if any changes are made to the employer and employee contributions.



40%
$11,373,074
Investment Income
36%
$10,193,293
Employer Contributions
24%
$7.027,078
Employee Contributions
0%
$42,148
State-appropriated contributions
0%
$29,262
Other income

Amounts expressed in thousands
Data from the Comprehensive Annual Financial Report (CAFR)

Oversight

The statutes governing the RSIC are found in the Title 9, Chapter 16 South Carolina Code of Laws.

While the RSIC has exclusive authority to manage and invest the assets held in trust for the Retirement System participants and beneficiaries, other fiduciaries and trustees also exercise authority and have oversight roles.

Retirement System Investment Commission (RSIC)

Named Trustee and Fiduciary Responsibilities:

  • Invests and manages pension funds
  • Manage custodial banking relationship

Public Employee Benefit Authority (PEBA)

Named Trustee and Fiduciary Responsibilities:

  • Manages Custodial Banking Relationship
  • Sets the RSIC accounting policies
  • Provides investment accounting and financial reporting
  • Directs external auditing
  • Provides the RSIC IT support

State Fiscal Accountability Authority (SFAA)

Legal Framework:

  • Approves the RSIC purchasing policy
  • Members appoint 6 of 8 Commissioners

State Legislature

Policy and Legal Framework:

  • Sets the RSIC legal authorities
  • Sets fund assumed rate of return
  • Members appoint 2 of 8 Commissioners

Oversight:

  • Approves budget annually
  • Approves headcount annually

State Auditor

Oversight:

  • Selects fiduciary audit firm
  • Conducts fiduciary performance reviews every four years

Attorney General

Oversight:

  • Approves retention and rates for non-investment related matters
  • Approves hiring of temporary internal counsel

Comptroller General

Oversight:

  • Conducts accounts payable and payroll procedures audit

Standards

The pension fund investments are managed by our experienced RSIC (agency) team and the Commission (governing body). They are supported by hired industry-leading consultants and external managers. We all work together to make informed, responsible decisions about the RSIC investments.

WITH SUPPORT FROM:
RSIC
Investment
Policy
RSIC Investment Team
_______________
Meketa Investment Group
Allocates
Assets
RSIC Investment Team
_______________
Albourne America, LLC
_______________
Meketa Investment Group
Hires Investment
Manager
RSIC Investment Team
_______________
RSIC Investment Operations Team
_______________
RSIC Legal Team
_______________
Meketa Investment Group
Monitors
Performance
RSIC Investment Team
_______________
RSIC Reporting Team
_______________
RSIC Enterprise Risk Management
& Compliance Team

_______________
Meketa Investment Group
_______________
Albourne America, LLC
_______________
BNY Mellon


We measure our investment performance by:
  1. The stated return objective of the portfolio - 7.25 percent annualized net return
  2. The investment policy benchmark - calculated by applying the investment performance of each asset class benchmark to the strategic allocation for each asset class.
  3. Performance relative to a peer universe - allows constituents to evaluate the competitiveness of the investment staff's implementation of the portfolio relative to other pension plans.
As of December 31, 2017, the RSIC has $31.8 billion in net assets and our 30-year assumed rate of return is 7.25 percent. Our 2017 return is available in Recent Activity.


Plan and Policy Benchmark

Our goal is to achieve a trailing three year rate of return that exceeds the median pension fund and our policy benchmark.

Image of Bar Graph showing the Total Plan and Policy Benchmark values for Quarter, FYTD, 1 Year, 3 Years, 5 Years, 10 Years, and RSIC Inception.

Performance
Executive Summary
Market Value
(in Millions)
Quarter FYTD 1 Year 3 Years 5 Years 10 Years
Total Plan $31,801 3.54% 7.51% 14.70% 7.07% 7.56% 4.86%
Policy Benchmark 3.29% 6.69% 14.55% 7.10% 7.24% 4.30%
Net Benefit Payments (millions) ($351) ($554) ($1,130) ($3,303) ($5,347) ($9,891)

Returns are provided by BNY Mellon and are time-weighted, total return calculations. Net of fee performance is calculated and presented after the deduction of fees and expenses. Periods greater than one year are annualized. Past performance is no guarantee of future results. Policy benchmark is the blend of asset class policy benchmarks using policy weights. Asset class benchmarks and policy weights are reviewed annually by the Commission’s consultant and adopted by the Commission, and have changed over time. The policy benchmark return history represents a blend of these past policies.