SC pension plan’s tab soars to $17 billion

COLUMBIA, S.C. (AP) — Experts say the long-term tab for the South Carolina Retirement System would soar from more than $13 billion to better than $17 billion after recommendations they’ve made on lowered investment returns and other retiree costs.

A draft report released Tuesday says reduced cost-of-living payments to retirees in the future will take more than $3 billion off the payout tab.

Legislators will get a briefing on the experts’ report Wednesday.

The report says lower salaries for workers over the years as well as longer life spans are factors in the system’s finances.

South Carolina now assumes that its investments will generate an average return of 8 percent. The experts recommend lowering that to 7.5 percent. That change and longer-living retirees decrease cash for the system by more than $2 billion.