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News & Updates
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, May 13, 2008, and ratified the bill May 22, 2008. Governor
Mark Sanford vetoed the legislation May 27, 2008, and on June 4, 2008,
the General Assembly overrode the Governor’s veto.
As a result of the veto override, eligible retired
members of the South Carolina Retirement System (SCRS) and the Police
Officers Retirement System (PORS) are one step closer to receiving an
automatic annual cost-of-living adjustment (COLA) of up to 2 percent each
July 1 if the Consumer Price Index as of the previous December 31 is at
least 2 percent.
The guaranteed COLA provisions do not take effect unless
the State Budget and Control Board, as trustees for the Retirement
Systems, approves an increase in the Retirement Systems’ assumed rate of
investment return from 7.25 percent to 8 percent. This matter is on the
agenda for the Board’s June 17, 2008, meeting.
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.
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