Pension Funding Mechanism from the Palmetto State

South Carolina legislator is proposing a cigarette tax increase to fund the pension system.

The pension shortfall in South Carolina: $20 billion

Are cigarette tax increases enough to fill the pension deficit? No.

4 additional reforms:

• reduce the # of state employees
• increase employee contribution rates
• move new employees into a 401K sytle plan
• use unclaimed lottery proceeds to fund pensions

The Island Packet | Cigarette tax increase considered to save SC’s failing pension fund