Archived Legislative Issues


2008 Session - House Bill 4876

The South Carolina General Assembly passed House Bill 4876, which included the recommendations of the State Treasurer’s COLA Task Force concerning public retiree cost-of-living adjustments (COLAs), May 13, 2008, and ratified the bill May 22, 2008. Governor Mark Sanford vetoed the legislation May 27, 2008, and on June 3, 2008, the General Assembly overrode the Governor’s veto.

At its June 17, 2008, meeting, the State Budget and Control Board, as trustees for the Retirement Systems, approved an increase in the Retirement Systems’ assumed rate of investment return from 7.25 percent to 8 percent. As a result of this action, the guaranteed COLA provisions of House Bill 4876 took effect June 17, 2008.

As a result of the legislation, each July 1, eligible retired members of the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) will receive an automatic COLA of up to 2 percent as long as the Consumer Price Index (CPI) as of the previous December 31 was at least 2 percent. If the CPI was less than 2 percent, the COLA will equal the actual increase in the CPI.

House Bill 4876 also set restrictions for the approval of future ad hoc COLAs for retirees and revised the statutes governing the Retirement Systems to ensure continued compliance with certain provisions of the Internal Revenue Code relative to public pension plan administration.