SC

Study: SC Pension Fund Pays Highest Fees In U.S.

South Carolina’s underperforming pension fund pays the highest fees in the nation, according to a new study released by a Maryland-based think tank. According to the report – published by the Maryland Public Policy Institute – the S.C. Retirement System Investment Commission (SCRSIC) pays 1.3 percent of its total assets…

South Carolina’s underperforming pension fund pays the highest fees in the nation, according to a new study released by a Maryland-based think tank.

According to the report – published by the Maryland Public Policy Institute – the S.C. Retirement System Investment Commission (SCRSIC) pays 1.3 percent of its total assets in fees each year. No other large public pension fund pays even 1 percent.

How is that exorbitantly high level of investment paying off for Palmetto retirees? Not well … South Carolina’s 1.5 percent return rate over the last five years is among the worst in the nation. In fact it is well behind the 2.4 percent five-year return rate of the ten states which pay the lowest fees.

Astounding …

Of course as one of the fund’s corrupt managers recently said, “we’re not thinking about putting ourselves in a horse race with other public pension peers.”

No really …

Since his election three years ago, S.C. Treasurer Curtis Loftis has been dutifully exposing the myriad problems with the pension fund – which is managed by a corrupt, secretive and totally unaccountable commission run by one Reynolds Williams, an appointee of legendary scamster Hugh Leatherman (RINO-Florence).

Specifically, Loftis has been exposing how commissioners and their staff have been receiving all sorts of undisclosed perks from the firms they are doing business with – and in some cases profiting directly from deals. What has Loftis gotten for his efforts? A literally non-stop vendetta … one fueled by the Palmetto State’s “bought and paid for” mainstream media.

In fact earlier this year S.C. Gov. Nikki Haley’s appointee to the commission sponsored a resolution to censure Loftis …

Ah, South Carolina … where no good deed goes unpunished by the status quo.

“The money that your state is paying to hot shot Wall Street money managers who are (falsely!) promising higher returns is money coming directly out of the retirement funds of teachers and whatnot and into the Hamptons homes of hedge fund dudes,” the website Gawker noted. “So please feel free to sit down and write a letter to your elected officials, asking your state not to do that.”

Exactly …

***

 

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72 comments

CNSYD July 3, 2013 at 2:13 pm

“bought and paid for” mainstream media. I presume you can provide specifics to back up this claim. Things like cancelled checks, videos of money being passed, etc. Is that correct?

Reply
Polyphemos July 3, 2013 at 4:29 pm

I’m assuming he’s speaking metaphorically, using Acton’s Axiom, which I CAN vouch for. If you are who I think you are, you’ve been around long enough to know how power influences power in this state. So don’t go acting all huffy-like you’re offended. The only difference between most Rs and most Ds is that one group of power-hungry jackwagons is in and the other group of power-hungry jackwagons is not. I said “most.”

Reply
CNSYD July 4, 2013 at 8:23 am

You seemed to have veered far off subject. The topic was not power or the effects of power. The topic was whether or not Sic Willie had PROOF of his claim that the msm was bought and paid for. It is easy to use throw away phrases but perhaps is difficult or impossible to back them up. That is ALL I was asking. Can he back them up.

BTW, who do you think I am?

Reply
Polyphemos July 4, 2013 at 10:09 am

And I was saying he was speaking metaphorically. Metaphors don’t need a proof. I’m not fighting Will’s battles for him. I just like to keep the argument pure.

You sound like somebody I used to know when I anchored at Channel 2 with Red Evans in the early 70’s & the Shipyard seal was a hint.

Reply
Smirks July 3, 2013 at 2:13 pm

Damn it, Mississippi, where are you!?

Reply
Fran July 3, 2013 at 5:21 pm

In Mississippi they know the basic theory of investing:

“Buy low, sell high.” We seem not to have grasp that simple principle.

Reply
Alan July 3, 2013 at 5:28 pm

I think State Treasurer Curtis Loftis is a true hero. He has been battered and bruised, harassed and censured yet he keeps on charging forward.

The Maryland think tank and the Wall Street Journal are serious institutions. Loftis is a serious guy and I hope he is tough enough to withstand the attacks on him.

Reply
CNSYD July 3, 2013 at 2:13 pm

“bought and paid for” mainstream media. I presume you can provide specifics to back up this claim. Things like cancelled checks, videos of money being passed, etc. Is that correct?

Reply
Slartibartfast July 3, 2013 at 4:29 pm

I’m assuming he’s speaking metaphorically, using Acton’s Axiom, which I CAN vouch for. If you are who I think you are, you’ve been around long enough to know how power influences power in this state. So don’t go acting all huffy-like you’re offended. The only difference between most Rs and most Ds is that one group of power-hungry jackwagons is in and the other group of power-hungry jackwagons is not. I said “most.”

Reply
CNSYD July 4, 2013 at 8:23 am

You seemed to have veered far off subject. The topic was not power or the effects of power. The topic was whether or not Sic Willie had PROOF of his claim that the msm was bought and paid for. It is easy to use throw away phrases but perhaps is difficult or impossible to back them up. That is ALL I was asking. Can he back them up.

BTW, who do you think I am?

Reply
Slartibartfast July 4, 2013 at 10:09 am

And I was saying he was speaking metaphorically. Metaphors don’t need a proof. I’m not fighting Will’s battles for him. I just like to keep the argument pure.

You sound like somebody I used to know when I anchored at Channel 2 with Red Evans in the early 70’s & the Shipyard seal was a hint.

Reply
Smirks July 3, 2013 at 2:13 pm

Damn it, Mississippi, where are you!?

Reply
Fran July 3, 2013 at 5:21 pm

In Mississippi they know the basic theory of investing:

“Buy low, sell high.” We seem not to have grasp that simple principle.

Reply
Alan July 3, 2013 at 5:28 pm

I think State Treasurer Curtis Loftis is a true hero. He has been battered and bruised, harassed and censured yet he keeps on charging forward.

The Maryland think tank and the Wall Street Journal are serious institutions. Loftis is a serious guy and I hope he is tough enough to withstand the attacks on him.

Reply
the real sheet July 3, 2013 at 2:19 pm

Another issue of the retirement program is that younger individuals are getting shafted in a couple of ways.
The current system allows for individuals to retire at 62 the problem with that is that if you started at 20 after your 28 years of work, you have 14 years before you can draw retirement. This keeps the old guard around and the younger more motivated workers cannot move up into positions that could impact a coming of age, where younger individuals have a better understanding of technology.
The terri program which was for teachers originally can be used by all state employees even on the local government level. Again keeping the old folks around for years and years. I know of a worker that is 67 been working for 45 years and is terring. I mean WTF!!??

Reply
Smirks July 3, 2013 at 2:26 pm

Younger, more motivated workers don’t stay in state government for long usually. There’s better pay elsewhere, unless you find yourself in the good graces of connected individuals.

Reply
the real sheet July 3, 2013 at 2:30 pm

no argument there!

Reply
nitrat July 3, 2013 at 3:23 pm

If you don’t know how to spell TERI, or, likely what it stands for, I really feel like you probably are not in state government and if you are, shouldn’t be.
Therefore, you probably don’t know WTF you are talking about.

Reply
chickenoregg July 4, 2013 at 4:17 pm

You are mixing up social security rules with state retirement system rules. Sometimes, if you don’t know what you are talking about, it is better to say nothing.

Reply
the real sheet July 3, 2013 at 2:19 pm

Another issue of the retirement program is that younger individuals are getting shafted in a couple of ways.
The current system allows for individuals to retire at 62 the problem with that is that if you started at 20 after your 28 years of work, you have 14 years before you can draw retirement. This keeps the old guard around and the younger more motivated workers cannot move up into positions that could impact a coming of age, where younger individuals have a better understanding of technology.
The terri program which was for teachers originally can be used by all state employees even on the local government level. Again keeping the old folks around for years and years. I know of a worker that is 67 been working for 45 years and is terring. I mean WTF!!??

Reply
Smirks July 3, 2013 at 2:26 pm

Younger, more motivated workers don’t stay in state government for long usually. There’s better pay elsewhere, unless you find yourself in the good graces of connected individuals.

Reply
the real sheet July 3, 2013 at 2:30 pm

no argument there!

Reply
nitrat July 3, 2013 at 3:23 pm

If you don’t know how to spell TERI, or, likely what it stands for, I really feel like you probably are not in state government and if you are, shouldn’t be.
Therefore, you probably don’t know WTF you are talking about.

Reply
chickenoregg July 4, 2013 at 4:17 pm

You are mixing up social security rules with state retirement system rules. Sometimes, if you don’t know what you are talking about, it is better to say nothing.

Reply
Ivan July 3, 2013 at 2:22 pm

It would be good for the entire state Hugh Leatherman had himself a Karen Silkwood sort of auto accident late one night.

Reply
Olanta Guy July 3, 2013 at 8:52 pm

Hugh Leatherman and Reynolds Williams. Two biggest crooks in SC.
Anyone deny that?

Reply
Ivan July 3, 2013 at 2:22 pm

It would be good for the entire state Hugh Leatherman had himself a Karen Silkwood sort of auto accident late one night.

Reply
Olanta Guy July 3, 2013 at 8:52 pm

Hugh Leatherman and Reynolds Williams. Two biggest crooks in SC.
Anyone deny that?

Reply
jimlewisowb July 3, 2013 at 2:43 pm

Not fully aware of all the penalties involved but it would be interesting to learn what would happen if every retiree and potential retiree held off filing/paying their 2013 State Income Tax Return for 30 days

Rather than filing/paying on April 15, 2014 wait until May 15, 2014

Maybe someone can enlightened readers as to the consequences

I have emailed/called everyone I can think of in regards to the little bastard cockroach and his sons of bitches cockroach friends but nothing seems to get their attention

Since the Legislators’ Deity appears to be the Almighty Dollar perhaps withholding such may get their attention

Reply
Soft Sigh from Hell July 3, 2013 at 7:28 pm Reply
jimlewisowb July 3, 2013 at 2:43 pm

not

Reply
Soft Sigh from Hell July 3, 2013 at 7:28 pm Reply
Elfego July 3, 2013 at 4:36 pm

The legislature has to receive its kickbacks for friends. Al government has become crooks!

Reply
Elfego July 3, 2013 at 4:36 pm

The legislature has to receive its kickbacks for friends. Al government has become crooks!

Reply
William July 3, 2013 at 5:15 pm

Curtis Loftis is spot on. The commission has bought every fad investment possible. The marketers selling these high fee high commission products love SC and people like them.

It is like selling Cadilacs to little old ladies!

Reply
William July 3, 2013 at 5:15 pm

Curtis Loftis is spot on. The commission has bought every fad investment possible. The marketers selling these high fee high commission products love SC and people like them.

It is like selling Cadilacs to little old ladies!

Reply
Cash2 July 3, 2013 at 6:12 pm

Curt Loftis is the best pol I ever voted for and I look forward to voting for him again in the next elections

Reply
Steve Benny Jr. July 3, 2013 at 7:17 pm

Agreed

Reply
Cash2 July 3, 2013 at 6:12 pm

Curt Loftis is the best pol I ever voted for and I look forward to voting for him again in the next elections

Reply
Steve Benny Jr. July 3, 2013 at 7:17 pm

Agreed

Reply
Sconset July 3, 2013 at 7:07 pm

Before jumping to any conclusion that Curtis Loftis might be right about the retirement commission, you need to consider the source of this information. If the information had come from a well known pension consulting firm unconnected to the retirement commission, a firm like Frank Russell Associates, it would be credible. Unfortunately, the Maryland Public Policy Institute is not some above the fray objective observer which can be believed. Instead, it is part of a network of anti-government Washington groups like the Cato Institute and the American Legislative Exchange Council (ALEC), which has been reeking havoc at the state level all over the country. These are just the sort of folks who would love to have Curtis Loftis in their pocket.

Reply
James July 3, 2013 at 7:16 pm

I just looked at the ethics docs and Loftis has not taken money from CATO, ALEC or Maryland. He has not received money from the Wall Street Journal either.

The Retirement Investment Commission has been trailing the market for a long time. They will never catch up as the money lost just can’t be regained.

Reply
sconset July 3, 2013 at 7:28 pm

These are the kind of groups whose donors are anonymous. That makes it real hard to connect the money behind the groups with the politicians they are trying to buy.

Reply
nitrat July 4, 2013 at 9:20 am

From their website:

“Founded in 2001, the Maryland Public Policy Institute is a nonpartisan public policy research and education organization that focuses on state policy issues. Our goal is to provide accurate and timely research analysis of Maryland policy issues and market these findings to key primary audiences.

The mission of the Maryland Public Policy Institute is to formulate and promote public policies at all levels of government based on principles of free enterprise, limited government, and civil society.

In order to maintain objectivity and independence, the Institute accepts no government funding and does not perform contract research. The Maryland Public Policy Institute is recognized as a 501 (C) (3) research and education organization under the Internal Revenue Code.

Contributions to the Institute are tax-deductible to the full extent allowed by law. ”
+++++++++++++++++++++++++++++

“based on principles of free enterprise, limited government, and civil society.”

But, they don’t mind being subsidized by that “limited government” via the 501 (C) (3) tax loophole.

I would hope than everyone who comes to this site realizes it is a shill for the Kochs and a variety of their many front groups, including Cato, Howard Rich, Mercatus…

Reply
sconset July 4, 2013 at 11:08 am

That may be what the Maryland Public Policy Institute says about itself but please take a look at Wikipedia. Just like the South Carolina Policy Council, this group is part of the State Policy Network, all funded by conservative/libertarian money with an agenda. Certainly, everyone is entitled to an opinion, just don’t try to sell it as fact. And, what is behind them writing about the SC pension fund when their focus is supposed to be state government in Maryland?

Chris July 4, 2013 at 2:58 pm

They wrote about ALL Public pension plans. It is just that the SC Pension Plan pays incredible fees so it sticks out like a sore thumb.

This nationwide survey has been vetted by several institutions, to include the Wall Street Journal. It is solid and scholarly.

There are many smart people in the world. Some are liberals, some are conservatives. Mindless attacks serve no purpose but to obscure thoughtful discussion. Until I hear a substantive argument against this survey I have no reason to listen to the rantings of partisans.

salty doggerel July 5, 2013 at 3:52 pm

Statistics–lipsticks on a pig.
All those dollars; all those numbers.
Perhaps the public has forgot ’em.
But while the SC electorate slumbers,
It’s always on the bottom.
Except in the matter of investment fees–
Thanks to Gazillions Williams and his crew.
Yet an expert in the doings of birds and bees
Like Icky Eckstrom, no stranger to a screw,
Was heard to exclaim between a thrust and a stop:
“It’s better to be on top!”

Reply
Sconset July 3, 2013 at 7:07 pm

Before jumping to any conclusion that Curtis Loftis might be right about the retirement commission, you need to consider the source of this information. If the information had come from a well known pension consulting firm unconnected to the retirement commission, a firm like Frank Russell Associates, it would be credible. Unfortunately, the Maryland Public Policy Institute is not some above the fray objective observer which can be believed. Instead, it is part of a network of anti-government Washington groups like the Cato Institute and the American Legislative Exchange Council (ALEC), which has been reeking havoc at the state level all over the country. These are just the sort of folks who would love to have Curtis Loftis in their pocket.

Reply
James July 3, 2013 at 7:16 pm

I just looked at the ethics docs and Loftis has not taken money from CATO, ALEC or Maryland. He has not received money from the Wall Street Journal either.

The Retirement Investment Commission has been trailing the market for a long time. They will never catch up as the money lost just can’t be regained.

Reply
sconset July 3, 2013 at 7:28 pm

These are the kind of groups whose donors are anonymous. That makes it real hard to connect the money behind the groups with the politicians they are trying to buy.

Reply
nitrat July 4, 2013 at 9:20 am

From their website:

“Founded in 2001, the Maryland Public Policy Institute is a nonpartisan public policy research and education organization that focuses on state policy issues. Our goal is to provide accurate and timely research analysis of Maryland policy issues and market these findings to key primary audiences.

The mission of the Maryland Public Policy Institute is to formulate and promote public policies at all levels of government based on principles of free enterprise, limited government, and civil society.

In order to maintain objectivity and independence, the Institute accepts no government funding and does not perform contract research. The Maryland Public Policy Institute is recognized as a 501 (C) (3) research and education organization under the Internal Revenue Code.

Contributions to the Institute are tax-deductible to the full extent allowed by law. ”
+++++++++++++++++++++++++++++

“based on principles of free enterprise, limited government, and civil society.”

But, they don’t mind being subsidized by that “limited government” via the 501 (C) (3) tax loophole.

I would hope than everyone who comes to this site realizes it is a shill for the Kochs and a variety of their many front groups, including Cato, Howard Rich, Mercatus…

Reply
sconset July 4, 2013 at 11:08 am

That may be what the Maryland Public Policy Institute says about itself but please take a look at Wikipedia. Just like the South Carolina Policy Council, this group is part of the State Policy Network, all funded by conservative/libertarian money with an agenda. Certainly, everyone is entitled to an opinion, just don’t try to sell it as fact. And, what is behind them writing about the SC pension fund when their focus is supposed to be state government in Maryland?

Chris July 4, 2013 at 2:58 pm

They wrote about ALL Public pension plans. It is just that the SC Pension Plan pays incredible fees so it sticks out like a sore thumb.

This nationwide survey has been vetted by several institutions, to include the Wall Street Journal. It is solid and scholarly.

There are many smart people in the world. Some are liberals, some are conservatives. Mindless attacks serve no purpose but to obscure thoughtful discussion. Until I hear a substantive argument against this survey I have no reason to listen to the rantings of partisans.

salty doggerel July 5, 2013 at 3:52 pm

Statistics–lipsticks on a pig.
All those dollars; all those numbers.
Perhaps the public has forgot ’em.
But while the SC electorate slumbers,
It’s always on the bottom.
Except in the matter of investment fees–
Thanks to Gazillions Williams and his crew.
Yet an expert in the doings of birds and bees
Like Icky Eckstrom, no stranger to a screw,
Was heard to exclaim between a thrust and a stop:
“It’s better to be on top!”

Reply
Centrist View July 3, 2013 at 10:10 pm

A picture is worth 1000 words. And, given a choice, most prefer a simple picture to 1000 words

http://paycheckeconomics.wordpress.com/2013/07/04/comparison-of-return-rates-investment-expenses-of-state-pension-funds/

Reply
DEHC July 4, 2013 at 7:16 am

WOW…this is great stuff. I love graphs and have a hard time with stats unless I see them this way.

Excellent job in providing clarity on this issue. As retiree it helps me see that South Carolina’s investments underperfoms its peers and that needs to stop.

Reply
Centrist View July 4, 2013 at 11:02 am

Thank you DEhC.

Seem to me that Loftis and staff should travel to Alabama, see what they have done to achieve the highest in the nation returns (and low fees), and shift the SC Pension strategy in that direction.

Reply
Centrist View July 3, 2013 at 10:10 pm

A picture is worth 1000 words. And, given a choice, most prefer a simple picture to 1000 words

http://paycheckeconomics.wordpress.com/2013/07/04/comparison-of-return-rates-investment-expenses-of-state-pension-funds/

Reply
DEHC July 4, 2013 at 7:16 am

WOW…this is great stuff. I love graphs and have a hard time with stats unless I see them this way.

Excellent job in providing clarity on this issue. As retiree it helps me see that South Carolina’s investments underperfoms its peers and that needs to stop.

Reply
Centrist View July 4, 2013 at 11:02 am

Thank you DEhC.

Seem to me that Loftis and staff should travel to Alabama, see what they have done to achieve the highest in the nation returns (and low fees), and shift the SC Pension strategy in that direction.

Reply
joe July 4, 2013 at 11:03 am

The local Sun-News, affectionately called the Un-News, reports double digit returns are earned by the pension fund.

Reply
Elliott July 4, 2013 at 3:01 pm

Probably true, but all pensions plans did that. I have not seen the numbers yet but I suspect they were in he bottom 25% of returns, meaning 75% of the plans made MORE money than SC.
If you are satisfied with that I have a bridge for sale in NYC for you

Reply
joe July 4, 2013 at 11:03 am

The local Sun-News, affectionately called the Un-News, reports double digit returns are earned by the pension fund.

Reply
Elliott July 4, 2013 at 3:01 pm

Probably true, but all pensions plans did that. I have not seen the numbers yet but I suspect they were in he bottom 25% of returns, meaning 75% of the plans made MORE money than SC.
If you are satisfied with that I have a bridge for sale in NYC for you

Reply
curmudgeon July 4, 2013 at 9:45 pm

Seems like there is a whole lot of one hand clapping going on here by Loftis’ taxpayer paid campaign staff. Hell Nikki’s got nuthin on ole Curt. The man has never let ignorance stand in the way of having an opinion. All he has to do is get Sic to print something and get his taxpayer funded flunkies to fill up the bandwidth with hosannas and hallelujahs.

Reply
Tomas July 18, 2013 at 3:05 pm

I think those that support LOFTIS are called supporters, and more importantly, voters. Discount them at our peril.
LOFTIS has a unique relationship with voters. He goes out and speaks to them and is it afraid to talk to them like adults. His poll numbers are sky high.

Being a hater is a narrow minded way to go through life. Try thinking. You might like it.

Reply
curmudgeon July 4, 2013 at 9:45 pm

Seems like there is a whole lot of one hand clapping going on here by Loftis’ taxpayer paid campaign staff. Hell Nikki’s got nuthin on ole Curt. The man has never let ignorance stand in the way of having an opinion. All he has to do is get Sic to print something and get his taxpayer funded flunkies to fill up the bandwidth with hosannas and hallelujahs.

Reply
Tomas July 18, 2013 at 3:05 pm

I think those that support LOFTIS are called supporters, and more importantly, voters. Discount them at our peril.
LOFTIS has a unique relationship with voters. He goes out and speaks to them and is it afraid to talk to them like adults. His poll numbers are sky high.

Being a hater is a narrow minded way to go through life. Try thinking. You might like it.

Reply
dm10ae July 5, 2013 at 2:27 am

Why do we allow this to continue-retirees and employees unite-nothing but cronism- Leatherman’s buddy is in charge of the investing team and why are we subsidizing a huge workforce to oversee our retirement fund? Why are we paying huge sums for a low return and high risk?

Reply
dm10ae July 5, 2013 at 2:27 am

Why do we allow this to continue-retirees and employees unite-nothing but cronism- Leatherman’s buddy is in charge of the investing team and why are we subsidizing a huge workforce to oversee our retirement fund? Why are we paying huge sums for a low return and high risk?

Reply
EJB July 8, 2013 at 1:16 pm

I notice that the folks in this forum that besmirch Mr. Loftis and the study quoted in this report don’t provide contradicting data showing the study to be wrong. They want one to assume the study is wrong because of their supporters. I’ve met and talked with Mr. Loftis and he will continue to get my vote every time he runs for office, any office. Defend the cockroaches if you want but you will have to show me reliable, incontrovertible, contradicting information before my opinion of him changes.

Reply
EJB July 8, 2013 at 1:16 pm

I notice that the folks in this forum that besmirch Mr. Loftis and the study quoted in this report don’t provide contradicting data showing the study to be wrong. They want one to assume the study is wrong because of their supporters. I’ve met and talked with Mr. Loftis and he will continue to get my vote every time he runs for office, any office. Defend the cockroaches if you want but you will have to show me reliable, incontrovertible, contradicting information before my opinion of him changes.

Reply

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