Angel Tree

Commission Timeline


1943

1945

  • The South Carolina Retirement System (SCRS) was officially established to create a cost-sharing multiple-employer defined benefit pension plan.

1950

  • The SC Budget and Control Board was created by Reorganization Plan No. 2 and grew out of the South Carolina Preparedness for Peace Commission’s 1945 recommendations to merge existing state government functions under a new “Finance Committee” consisting of the governor and the chairmen of the two budget-writing committees.
  • The Budget and Control Board invested in domestic fixed income only.

1962

  • The South Carolina Police Officers Retirement System (PORS) was officially established.

1966

  • The Retirement System for Members of the General Assembly of the State of South Carolina (GARS) was established.

1975

  • The South Carolina National Guard Supplemental Retirement Plan (SCNG) was established.

1979

  • The Retirement System for Judges and Solicitors of the State of South Carolina (JSRS) was established.

1995

  • Actuarial assumptions changed to remove provisions for future cost of living adjustments (“COLAs”).
  • Actuarial assumptions changed to lower the assumed rate from 8.00 percent to 7.25 percent.
  • Funded ratio jumps from 80.7 percent to 88.2 percent.

1997

  • The Retirement Systems Investment Panel was created to advise and recommend an investment strategy for the Budget Control Board.
  • Voters approved a referendum allowing pension funds to be invested in equities, or stocks.
  • The State Treasurer’s Office responsibile for the bond portion of the portfolio.

1999

  • SCRS employee contribution is 6 percent, employer contribution is 7.55 percent.**
  • Funded ratio is 98.9 percent
  • PORS employee contribution is 6.50 percent, employer contribution is 10.30 percent.**

2000

  • Legislature enacted the 28-year retirement and the Teacher and Employee Retention Incentive (TERI) program. TERI and 28 years.*

2001

  • Ad hoc COLA increase is 3.4 percent.
  • Dot-com stock market crash significantly impacts pensions systems nationwide, including the Retirement.

2002

  • Ad hoc COLA increase is 1.3 percent.

2003

  • Ad hoc COLA increase is 2.4 percent.

2004

  • Ad hoc COLA increase is 1.6 percent.

2005

  • Ad hoc COLA increase is 2.4 percent.
  • Automatic COLA increase is 1 percent.
  • Funded ratio drops from 80.3 percent to 71.6 percent.
  • Unfunded liability amortization period reaches 30 years, the maximum allowed under State law before contribution rates must increase.
  • Act 153, the South Carolina State Retirement System Preservation and Investment Reform Act, created the Retirement System Investment Commission. The RSIC is structured as a separate state agency reporting to a body of appointed and ex officio Commissioners.
  • Up to 70 percent of the plan was allowed to be invested in equities and stocks.
  • S.618 changed interest credited on member accounts from 6 percent to 4 percent.

2006

  • Ad hoc COLA increase is 2.5 percent.
  • Automatic COLA increase is 1 percent.
  • Employer contribution increases to 8.20 percent.**

2007

  • Ad hoc COLA increaseis 1.4 percent.
  • Automatic COLA increase is 1 percent.
  • The passage of a constitutional amendment was approved by voters which deleted the restriction on equity investment in foreign equities.
  • Employer contribution increases to 9.21 percent.**

2008

  • The global financial crisis delivers a huge blow to pension systems nationwide, including the Retirement System.
  • Actuarial assumptions changed to smooth asset losses over a 10-year period instead of a 5-year period.
  • Actuarial assumptions changed to raise the assumed rate from 7.25 percent to 8.00 percent.
  • Ad hoc COLA increase is 1 percent.
  • Automatic COLA increase is 2 percent.
  • SCRS employee contribution increases to 6.5 percent, employer contribution increases to 9.39 percent.**

2009

  • PORS employee contribution remains at 6.50 percent, employer contribution increases to 10.65 percent.**

2010

  • ESCRS employer contribution increases to 9.68 percent.**
  • PORS employee contribution remain at 6.50 percent, employer contributions increases to 11.13 percent. **

2011

  • SCRS employee contribution increases to 7.5 percent, employer contribution increases to 10.60 percent.**
  • PORS employee contribution remain at 6.50 percent, employer actuarially determined employer contributions increase to 12.30 percent.**

2012

  • Pension reform Act 278 enacted.
  • Limited future COLAs (limited annual benefit adjustment (COLA) to 1 percent up to a max of $500.
  • Created Public Employee Benefit Authority (PEBA) combining the South Carolina Retirement Systems and the Employee Insurance Program to administer the various retirement plans under the umbrella of the Retirement Systems.
  • Closed GARS to newly elected officials after the general election of 2012. Newly elected officials are able to join SCRS or State ORP.
  • Eliminated interest on inactive accounts.
  • SCRS employee contribution increases to 8 percent, employer contribution increases to 10.90 percent.**
  • PORS employee contribution increases to 8.41 percent, employer actuarially determined employer contributions increase to 13.41 percent.**
  • Legislature lowers the expected return on investment from 8 percent to 7.5 percent and lawmakers limited COLA increases for retirees.
  • Vesting period increases from 5 years to 8 years.

2013

  • SCRS employee contribution increases to 8.16 percent, employer contribution increases to 11.06 percent.**
  • PORS employee contribution increases to 8.74 percent, employer actuarially determined employer contributions increase to 13.74 percent.**
  • TERI and 28 closes to new entrance.

2014

2015

  • Employee contribution increases to 8.19 percent of their salaries.**
  • Employer contribution increases to 11.09 percent.**

2016

  • Employee contribution increases to 8.66 percent of their salaries.**
  • Employer contribution increases to 11.56 percent.**
  • The State Fiscal Accountability Authority approved a 0.5 percent increase in employee and employer contributions. Employees contribution increased to 8.66 percent of salaries.
  • The Joint Committee on Pension Systems Review is created to work on pension reform to meet the difficulties presented by the Great Recession of 2008.
  • Funded ratio is 59.5 percent.

2017

  • The Retirement System Funding and Administration Act of 2017 passes.
  • Employee rates for SCRS will increase to 9 percent. Employer rates for SCRS increases to 13.56 percent with a 1 percent increase per year over the next six years to cap at 18.56 percent.
  • Employee rates for PORS will increase to 9.75 percent. Employer rates for PORS increases to 16.24 percent with a 1 percent increase per year over the next six years to cap at 21.24 percent.
  • The assumed rate of return changed from 7.50 percent to 7.25 percent.

2018

  • Fuston Advisory Services completed the 2014 fiduciary performance audit of the RSIC, which was conducted at the direction of the South Carolina State Inspector General. While the primary purpose of the 2018 audit was to evaluate the progress made in implementing the recommendations resulting from the 2014 fiduciary performance audit of the RSIC, the South Carolina Office of the State Auditor also requested that the review identify any areas of weakness in current operational policies and practices. The recommendations contained in the 2018 report are primarily intended to build upon this progress for further improvement and continuing to move RSIC into leading practices.


*TERI/28 encompasses 2 distinct benefit improvements. This link only describes TERI, not the 28 portion of reform, which lowered the retirement eligibility service period from 30 to 28 years.
**Contribution rates shown represent the actuarially determined contribution rates taken from a given fiscal year’s actuarial valuation report. There is a 2-year delay in implementation of a contribution rate increase from the date of valuation, following Board approval.