SC retirees might get smaller raises

COLUMBIA, S.C. (AP) — Some South Carolina lawmakers are warning that retired state employees might get smaller cost-of-living increases in the years ahead.

The State newspaper reported (http://bit.ly/qoGkuR ) an actuarial firm has recommended that South Carolina reduce the amount of money it expects its retirement fund to earn.

State law would require the South Carolina Retirement System to reduce cost-of-living increases from 2 percent to 1 percent if the revenue forecast is reduced.

Carlton Washington with the state employees association says reduced increases and the hike in health care costs would make life harder for retired workers.

State officials expect the retirement fund to earn 8 percent each year. But the actuarial firm recommends reducing that estimate to 7.5 percent, based on market conditions today.

The retirement system serves more than 106,000 people.

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Information from: The State, http://www.thestate.com