Tag: Curtis Loftis

Reynolds Williams Should Step Down

S.C. Retirement System Investment Commission chairman Reynolds Williams barely escaped having to step down as commission chair Thursday when his vote resulted in a 3-3 tie on a motion by S.C. Treasurer Curtis Loftis.

Loftis’ motion asked commissioners to remove Williams from the chair while he is under investigation by the S.C. Ethics Commission and S.C. Law Enforcement Division.

“The chairman has an immense amount of responsibility,” said Loftis in discussing the motion. “I don’t think that person, while under a significant amount of investigation, should be chairman.”

"Public pensions must be more transparent, accountable." Curtis M. Loftis Jr.

Better Oversight, More Transparency Required

“The treasurer has a legitimate concern. He has the right, if he is putting his signature on there, to have staff to give him confidence that what he is doing is right for the people of the state.” Governor Nikki Haley

Better oversight and more transparency of investment decisions for the state’s $25 billion pension fund may result from a vote taken by the S.C. Budget and Control Board Thursday.

The board, chaired by Gov. Nikki Haley and including Treasurer Curtis Loftis, Comptroller General Richard Eckstrom, Senate Finance Committee Chairman Hugh Leatherman and House Ways and Means Committee Chairman Brian White as members, unanimously (5-0) approved a motion by Loftis to “hire a counsel to determine the fiduciary and statutory responsibilities of all trustees, custodians and commission members” with regard to investment decisions and contracts of the pension fund.

The Investigation of Reynolds Williams and the $25 Billion S.C. Public Pension Fund Moves Forward

Williams Investigation Moves Forward

An investigation of alleged misconduct and conflict of interest against S.C. Retirement System Investment Commission chairman Reynolds Williams moved forward Tuesday when the S.C. Attorney General’s office requested SLED and the S.C. Ethics Commission to investigate the charges.

A Statement from AG Wilson’s Office: Based upon the nature of the allegations in the Treasurer’s letter, we are today forwarding the material we have on file to both SLED and the State Ethics Commission. (The Treasurer’s letter alleges activity that would fall under each authority, criminal and ethical.) When both entities have completed their reviews, we will then determine what, if any, prosecutorial action is warranted.

Enumerated in a letter from S.C. Treasurer Curtis Loftis to Attorney General Alan Wilson, the allegations stem from work Williams’ law firm did for American Timberlands, LLC while the company was being considered as a partner on an investment by the SCRSIC.

Reynolds Williams, The Timber Company And Our $25 Billion Pension Fund

Reynolds Williams and… that timber company

S.C. Treasurer Curtis Loftis has requested S.C. Attorney General Alan Wilson to investigate the actions of S.C. Retirement System Investment Commission chairman Reynolds Williams with respect to a joint investment the commission made with American Timberlands, LLC.

Loftis said the investment seemed straightforward at the time, but information he became privy to after the commission vote brings to light possible conflict of interest problems for Williams and possible criminal violations.

The investment commission took up the matter of the investment during its November 2011 Wampee Reteat and business meeting. Commission members, less Williams who was not present for the vote, approved the investment.

"Public pensions must be more transparent, accountable." Curtis M. Loftis Jr.

Public Pension Plans Must Be Transparent

It’s no secret that public pension plans and their investment boards nationwide are underperforming. Blame is often assigned to the economy, over-promising politicians, unrealistic assumed rates of investment returns, and workers that retire earlier and live longer. But, is there more to the story?

“In all 50 states hard-working public employees and taxpayers supply the money for these investments. They should not be riding in the back of the bus, and in fact they should be driving the bus. ”

My research and experience shows that many pension investment boards lack vital transparency and accountability. The absence of these key principles of good governance leaves the plans vulnerable to increased risk. The inner workings of these investment boards are mysterious to outsiders; in fact these investment boards are places where enormous sums of public dollars are entrusted to a select few, but coveted by many.

Loftis, Factor Cleared by AG

For those of you who may have missed it over the Easter weekend, SC Attorney General Alan Wilson cleared state Treasurer Curtis Loftis and Mallory Factor of any wrongdoing in an alleged “pay to play” scheme involving the nearly $25 billion state retirement fund.

Loftis has been a critic of the management of the state’s pension fund for much of his 13 months as treasurer. On January 31, 2012, Loftis outlined problems associated with the pension fund during testimony to the Senate Finance Retirement Committee.

Among those problems, Loftis listed the $25 billion pension fund is underfunded by approximately $13 billion dollars (33%) in order to meet its future liabilities; full-time employees of the pension system have risen from three in 2006 to 23 currently; investment management fees have rocketed from $31 million in 2005 to $343 million 2011 and the fund has consistently underperformed with respect to similar pension funds in other states over the past five years.

Tax Credits for School Choice, Dividends for All

More than 15,000 low-income students attend private schools in South Carolina. Their parents scrimp and save. They make sacrifices. They’ve put their children’s education at the top of the family’s financial priority list.

Those parents also pay taxes. More than $8.5 million this year in state income taxes alone.

Much larger than their contribution to the government coffers is the sum they save other taxpayers. If those 15,000 students enrolled in public schools and were funded at the rate of the existing public school students, it would cost state taxpayers more than $72 million. Taxpayers below the $35,000 income class would not pick up that slack; it would be borne by those with deeper pockets.

Loftis and the High Cost of Political Courage

What happens when a newly elected South Carolina official tries to bring openness and accountability to the management of the state’s retirement system investment commission?

He finds himself in the news after “documents” are leaked, to the Associated Press, in which a possible “pay to play” scheme is mentioned and a SLED investigation is requested by the SC Attorney General’s office.

Looking at it another way, S.C. Treasurer Curtis Loftis finds himself in a political knife fight for trying to buck South Carolina’s “good ol’ boy” system.

Loftis has been a critic of the management of the state’s pension fund for much of his 13 months as treasurer. On January 31, 2012, Loftis outlined problems associated with the pension fund during testimony to the Senate Finance Retirement Committee.