Tag: SC Treasurer

South Carolina’s Public Pension Problems

Six years after SC Treasurer Curtis Loftis began complaining about the poor performance of public pension investments under the SC Retirement Systems Investment Commission, legislators in Columbia have finally heard the message.

Fixing a seriously underfunded pension system has become a priority for this legislative year, The problem is you don’t fix an approximately $25 billion shortfall overnight.

When Loftis assumed the office of SC Treasurer, he became a statutory member of the investment commission. As a statutory member of the South Carolina Retirement System Investment Commission, Loftis criticized the high fees, low performance and lack of transparency associated with South Carolina’s public pension funds.

Almost immediately, the ‘good ole boy’ system in Columbia struck back. Loftis was subjected to allegations in 2011 that he and Mallory Factor were partners in what was called a “pay to play” scheme involving state retirement funds.

Despite the best efforts of members of the SC Retirement System Investment Commission, Gov. Nikki Haley, then state senator Greg Ryberg and others, Loftis was cleared of all allegations by SLED and the SC Attorney General’s office.

A couple of years later, Loftis was censured by the same SCRSIC he serves on for “false, deceitful and misleading rhetoric.”

At the time, Loftis said the commission members didn’t like him looking under rocks and asking questions about investments made by commission staff.

Things changed last spring when the CEO of the investment commission, Michael Hitchcock, told members of a Senate committee that the returns of the state pension fund have “underperformed” in recent years. He said the approximately $16 billion shortfall in the pension fund accounts has been aggravated in recent years by the gap between the assumed rate of return set by lawmakers (7.5%) and the actual rate of return (1.6%).

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Curtis M. Loftis Jr., South Carolina’s treasurer

Fixing the SC Public Retirement System

It appears the SC General Assembly is finally realizing major work must be done to save the SC public retirement system.

This realization comes in the aftermath of a SC Legislative Audit Council report on the SC Retirement System Investment Commission (SCRSIC). “The LAC’s report reveals that our retirement and pension system’s longevity is in jeopardy and in need of immediate effective adjustments,” said SC House Speaker Jay Lucas.

What is bothersome is Lucas’ next quote attempting to take credit for discovering the deficiencies within the system: “Without the initiation of this report, we might not know the truly delicate state of South Carolina’s pension system. Although its findings reveal significant flaws and deficiencies, it gives the General Assembly a starting point to offer assistance to the RSIC by helping them institute corrective measures that will put South Carolina’s pension plan on a path to solvency,” Lucas said.

The LAC report called the retirement system “significantly underfunded” and that “it underreported risk” of its investments. It called for improvement in controlling conflicts of interest and pointed out the high fees paid and the low rate of return earned on its investments.

These are exactly the same criticisms SC Treasurer Curtis Loftis has leveled at the SCRSIC since taking office in 2011.

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Curtis M. Loftis Jr., South Carolina’s treasurer

Treasurer Curtis Loftis – The Message

SC Treasurer Curtis Loftis extends the following letter to his South Carolina constituents.

Loftis has been a watchdog and critic of SC pension fund investment since he first assumed the office of Treasurer in January 2011.

While the fight has been difficult, Loftis is making some headway in lowering pension fees paid by the SC Retirement System Investment Commission and raising the investment percentage realized.

The letter from Loftis:

Hi,

I’m passionate about protecting South Carolina’s money. Actually, it’s your money and the State should manage it with care.

You wouldn’t overpay for a service or accept poor investment returns and neither should the State. Unfortunately, the penalty for the State’s mismanagement of money is that you must pay higher taxes and employee contributions.

I was featured in the financial section of Sunday’s New York Times concerning the best ways to manage and protect your money. Please take a few minutes and give the article a read – it is important to me that you see my efforts on your behalf.

As the custodian of the State’s funds, making sure your money is protected and properly managed is my first priority. It’s what you elected me to do…and I am on it!

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Curtis Loftis Visits “Big Talk”

S.C. Treasurer Curtis Loftis made an appearance at yesterday’s taping of the “Big Talk” television show.

In the area to address several Republican groups, Loftis agreed to be a special guest on “Big Talk” where he spoke of his conservative approach to government and duties as state treasurer.

Loftis said government should be simple, open and accountable to the citizens, but it is often the bureaucracies surrounding government that make it anything but.

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John R Rakowsky ESQ

Southern Holdings Settlement Check Saga – Corrected

A settlement check issued by the state of South Carolina for the Southern Holdings case plaintiffs wound up nine months later in the account of an attorney not connected to the case.

After six years in litigation where the state Insurance Reserve Fund spent several million dollars on lawyers defending the case, a rushed “settlement” was allegedly arranged between lawyers for the plaintiff and lawyers for the defendants.

The alleged settlement took place behind closed doors with the federal trial judge, after jury selection was complete.

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Senate Panel Investigates Curtis Loftis Pension Complaints

A panel of four senators began hearings last week on the complaints of SC Treasurer Curtis Loftis about the SC Retirement System Investment Commission.

Panel co-chairman Sen. Joel Lourie said he hopes the panel can settle the complaints of the treasurer about what Loftis calls corruption and wasteful spending at the SCRSIC.

Since taking office and becoming a statutory member of the SCRSIC, Loftis has complained about the high fees paid by the commission, the low investment results despite these fees and the perks enjoyed by employees as well as the cloak of secrecy surrounding the decisions the employees make.

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More Attacks on Curtis Loftis

S.C. Treasurer Curtis Loftis was subjected to another attack by the good ole boys at the S.C. Retirement System Investment Commission last week when staffer and former state senator Greg Ryberg went on a 20 minute rant against him during a commission meeting last week.

SCRSIC chairman Reynolds Williams would not allow Loftis to respond to Ryberg’s mouthing off, which seems to be a new tactic to attempt to wear Loftis down.

Loftis is the only member of the commission who questions the expenses and results of the SCRSIC, so he is the only member who is truly representing the citizens of South Carolina.

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Curtis Loftis Wins Battle for Public Fund Accountability

An agreement between S.C. Treasurer Curtis Loftis and the S.C. Retirement System Investment Commission (SCRSIC) is expected to be finalized tomorrow allowing four members of Loftis’ staff greater access to supporting investment documents of the state’s public pension fund.

Loftis has already signed the agreement and the SCRSIC board, on which Loftis serves, is expected to vote its approval tomorrow.

Since taking office nearly three years ago, Loftis sought to have members of his staff in the Treasurer’s Office get greater access to SCRSIC documents in order to help him (Loftis) conduct proper due diligence on investment decisions by the commission.

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SC Treasurer Announces SC Pension Fund Lawsuit Settlement

SC Treasurer Curtis Loftis told fellow members of the S.C. Retirement System Investment Commission Thursday that a lawsuit with Bank of New York Mellon Corp. regarding the SC pension fund had been settled.

The lawsuit dated back to 2009 when the state alleged the bank had lost $200 million of state pension funds through bad investments associated with the financial meltdown of 2008-09. The suit was run through the SC Treasurer’s office beginning with Loftis’ predecessor Converse Chellis.

Loftis declined to discuss details of the settlement with the commission until all settlement provisions are completed, according to provisions of the settlement.

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Loftis’ Palmetto Payback Tour Coming Monday

The Palmetto Payback tour of South Carolina Treasurer Curtis Loftis is coming to Horry and Georgetown counties Monday.

The Palmetto Payback Program may be holding unclaimed property which belongs to you. Millions of dollars are transferred to the Program annually by companies who cannot locate the owners. Examples of the type of property covered by the Program include bank accounts, stock certificates, checks, insurance policies and utility deposits. The Palmetto Payback Program does not include tangible property like land or vehicles.

“The property transferred to the Program for safekeeping is held indefinitely for the benefit of the rightful owners,” Loftis said. “If we are holding property for you, you always have the right to claim your property any time at no cost. Until claimed, the funds are used for the good of all South Carolina citizens.”

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