SC Club for Growth Urges McMaster to Veto Pension Plan Disaster
COLUMBIA – The South Carolina Club for Growth, the state’s leading conservative watchdog group, called on Governor Henry McMaster to veto the recently passed pension reform plan sent to him this week for consideration.
“Once again, legislators in Columbia are raiding the pockets of hardworking South Carolinians,” said Club Chairman Dave Ellison. “Our elected officials are throwing good money after bad and promising reform later. But in Columbia, later means never.”
Ellison, a financial advisor from Greenville, says it is necessary to move to a defined-contribution plan and away from the current defined-benefit plan. “Defined-benefit plans are unsustainable. Just look at the mess we are in now.”
The current proposal on the Governor’s desk would raise taxpayer contributions to the state workers’ retirement system by $826 million per year with a likely increase each following year. Public employees’ contributions to their own retirements would only increase by $40 million.
“Make no mistake, this is an $826 million tax increase – per year – on South Carolinians. Without reform, there is no protection to ensure the state workers’ retirement system doesn’t go deep into the red again,” said Ellison. “Governor McMaster recently stated that tax increases are rarely the answer. We find that to be true in this case and are calling on Governor McMaster to veto this pension plan disaster.”