SC legislators give initial OK to pension reform

COLUMBIA, S.C. (AP) — A legislative panel has initially approved a plan to fix South Carolina’s pension system.

A House subcommittee unanimously approved the rough draft Monday. It includes increasing the number of years public employees must work to draw full retirement from 28 years to 30.

The proposal would also tie retirement to age. Workers could not draw full retirement until age 62. A reduced benefit would be an option at 60.

Employees currently within five years of retirement would be exempt from those age and length-of-service changes.

Full retirement is generally designed to be 55 percent of a person’s working income.

The bill would also require employees to contribute more of their pay toward retirement, from 6.5 percent to 7.5 percent.

Legislators say pension reform will be a top priority in 2012.