State House of South Carolina

At a Glance

Purpose & Duties

The South Carolina Retirement System Investment Commission (RSIC) is responsible 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.

$30.1 Billion Total Assets

Retirement System

$25.65 Bil
SC Retirement System (SCRS)
498,584 members
$4.25 Bil
SC Police Officers Retirement System (PORS)
58,940 members
$151.42 Mil
Retirement System for Judges & Solicitors of SC (JSRS)
346 members
$31.73 Mil
Retirement System for General Assembly of SC (GARS)
509 members
$26.04 Mil
National Guard Retirement System (SCNG)
18,931 members

FYTD as of June 30, 2017

RSIC Pension Fund Structure

The benefits are funded by employer contributions, employee deposits, and investment income.

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.

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 RSIC investments are managed by our experienced investment team and the Commission. They are supported by 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
INVESTMENT
CONSULTANT
Meketa
Allocates
Assets
RSIC
INVESTMENT
TEAM
INVESTMENT
CONSULTANTS
Albourne/
Meketa

Hires Investment
Manager
RSIC
INVESTMENT
TEAM
INVESTMENT
CONSULTANTS
Meketa

RSIC
LEGAL
TEAM
Monitors
Performance
RSIC
INVESTMENT/ REPORTING
TEAM
INVESTMENT
CONSULTANT
Meketa
PERFORMANCE
MEASUREMENT
Albourne/
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 June 30, 2017, the RSIC has $30.1 billion in net assets and our 30-year investment return is 7.25 percent. Our 2016 return is available in Recent Activity.


Plan and Policy Benchmark

We are proud of the outstanding returns our investments have delivered to our members.

Image of Bar Graph showing the Total Plan and Policy Benchmark values for Month, 3 Month, FYTD, 1 Year, 3 Years, 5 Years, 10 Years, and RSIC Inception.
Historic Plan Performance
As of 06/30/17
Market Value
(in Millions)
Month 3
Months
FYTD 1 Year 3 Years 5 Years 10 Years RSIC Inception
Total Plan $30,102 0.24% 2.34% 11.88% 11.88% 4.23% 7.50% 4.34% 5.09%
Policy Benchmark 0.44% 3.19% 11.82% 11.82% 4.49% 7.11% 3.83% 4.59%

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.


Pension Trust Funds (2007-2016)

This chart depicts the revenue to the trust funds over a 10-year period. Investment income, employer contributions and employee contributions are the largest sources of revenue to the trust funds. 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 employer and employee contributions.

Amounts expressed in thousands
Data from the Comprehensive Annual Financial Report

Pie Chart Infographic showing the Pension Trust Funds percentages and totals from the chart to the right.

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