South Carolina Gov. Henry McMaster called for the closing of the $32.2 billion South Carolina Retirement Systems, Columbia, in his state of the state address Wednesday.
Mr. McMaster, a Republican, called for the systems, whose investments are managed by the South Carolina Retirement System Investment Commission, to be closed to new hires at the end of this year, and for new state employees to be enrolled instead in defined contribution plans.
"We have all been hearing the alarm bell for years," according to the prepared text of the speech on his website.
"Putting money into an open system is like trying to fill a bathtub with the drain open. We must close enrollment first," he said.
Mr. McMaster did not say whether new hires should be enrolled in newly created defined contribution plans or any existing plans.
As of July 1, 2018, the funding ratios of the South Carolina Police Officers Retirement System and South Carolina Retirement System were 63.1% and 55%, respectively, according to the systems' most recent comprehensive annual financial report.
Peggy G. Boykin, executive director of the South Carolina Public Employee Benefit Authority, could not be immediately reached for comment.
The RSIC manages the assets of South Carolina's state pension funds on behalf of the South Carolina Public Employee Benefit Authority.
