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SOUTH CAROLINA’S STATE PENSION BOARD How the South Carolina Retirement System Investment Commission puts retirees and taxpayers at risk
Curtis M. Loftis, Jr., State Treasurer May 2015
The South Carolina Retirement System Investment Commission:
1. We pay too much.
2. We earn too little.
3. Our portfolio is overly expensive and complex.
4. Puts retirees and taxpayers at risk.
2
SC PENSION FUND FEES & EXPENSES
$19 $23 $22 $31 $39
$130
$176
$314 $332
$304
$427.5
$468
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
BOTTOM 20% INVESTMENT
PERFORMANCE
10x the Fees But Still
BOTTOM 20% INVESTMENT
PERFORMANCE
Fees have increased 10x since 2007, but returns remain among the lowest in the country.
3
$348,000,000
$10,365,000,000
$17,371,000,000
$19,328,073,000
1999 2006 2013 2014
UNFUNDED ACTUARIAL LIABILITY 1999 to 2014 Accrued
4
0.57%
1.56%
National Average (2013) South Carolina
2014 INVESTMENT FEES & EXPENSES (% of Ending Assets)
5
$468
$171
SC’s WORKING CLASS TO WEALTHY MONEY MANAGERS TRANSFER OF WEALTH
$297,000,000 TRANSFER OF WEALTH
TO WALL STREET MONEY MANAGERS
6
Actual SC Fees for FY2014
SC Fees at the National Average
$468 million paid in 2014
$171 million had we paid national average of .57%
minus
equals
SC’S RETIREMENT FUND ALTERNATIVE INVESTMENTS
7
21%
47%
Median (National Council of PublicEmployee Retirement Systems)
South Carolina
South Carolina’s Share of Alternative Investments to Total Assets versus the National Median
8
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