SC Ways and Means panel advances pension reform

COLUMBIA, S.C. (AP) — A bill meant to shore up South Carolina’s pension system for roughly 220,000 public workers is heading to the House floor.

The Ways and Means Committee unanimously approved Tuesday a bill requiring newly hired employees to work an additional two years to collect full retirement benefits, while current employees could still retire after 28 years.

It would require workers to contribute more toward their retirement. But the committee approved a phase in, increasing the contribution from 6.5 percent of their salary to 7.5 percent over two years, instead of immediately.

Other changes are meant to prevent what’s called spiking. Benefits would be based on employees’ last five years of pay, rather than three. Money paid for unused vacation and sick days at careers’ end couldn’t be rolled into benefit calculations.