Pension Reform Case Study from the Palmetto State

In 2012, South Carolina enacted the following pension reforms that applued to new hires:

• Rule of 90
• Unused leaveis not part of benefit calculations
• Vesting in 8 years, up from 5

The following 2012 pension reforms affected all South Carolina state employees:

• 8% worker contribution, a 1.5% increase phased in over 2 years
• Phased out an incentive program that allowed retirees to return to work and still draw a pension
• Limit all return to work retirees stop drawing benefits when they reach $10,000 in salary in a year
• Standard 1% annual COLA

Charlotte Observer | A look at the Legislature’s last pension reform law