Bill increases total cost to underfunded retirement system by $2.4 billion

The South Carolina Club for Growth today called on the South Carolina Senate to show fiscal discipline and reject the House of Representatives’ backdoor pay increase for legislators.

Today’s new legislative perk, hidden inside a larger bill which increases the state’s unfunded liabilities, increases legislators’ pensions by 2% each year one day after the state’s Board of Economic Advisors cut state revenue estimates by $180 million over the next two years. The legislative pension system is already three times more generous than the regular state employee system – and the regular system is reportedly more generous than 90% of similar public plans around the country according to a study done by the state Chamber of Commerce.

“It’s appalling that the House would pass this legislation without considering the long-term impact. Our state faces $20 billion in unfunded benefits to retirees and today’s decision adds billions in guaranteed new expenses to the retirement system. Press reports today quote an outgoing legislator telling a constituent to ‘get elected like I did’ if he wants a similarly generous retirement. We think it’s time for some legislators to get unelected given their disdain of the taxpayers.”

“In their haste to pad their own pockets, Legislators seem to have forgotten who pays their bills. Like other changes to the retirement system that have put us billions of dollars in the hole, this bill amounts to fiscal child abuse as the costs eventually must be borne by future generations,” said Matt Moore, Executive Director of SC Club for Growth.

“On top of that, House members evaded responsibility to their constituents by passing the bill without a roll-call vote. It’s shameful that in an election year these Representatives are trying to hide their actions from their constituents. We’re hopeful the Senate will recognize the problems with the bill and reject it.”

Related items…
One legislator tells a constituent to “get elected” if he wants a similar retirement
http://blogs.thestate.com/bradwarthensblog/2008/04/a-senator-expla.html

The State’s Cindi Scoppe says legislators shouldn’t sweeten their “uber-generous” pension system
http://www.thestate.com/editorial-columns/story/367517.html