Tag: Mallory Factor

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.

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A Statement from Mallory Factor

Mallory Factor released the following statement yesterday regarding the South Carolina State Employee Retirement System.

Like many South Carolinians, I have become increasingly concerned about thefinancial performance of our State employees’ retirement assets. As an experiencedfinancial executive, I wanted to help improve that performance. That is, after all,how I have made my living for over 30 years. I have been successful at it; and I have always, always operated above-board and lawfully.

Sadly, the issues related to financing South Carolina’s retirement system are nowembroiled in politics to a degree that is very unhealthy for the State’s many currentemployees and retirees. Change is always bitterly resisted by those who benefit
from the current system.

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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.

Continue Reading →