SC

Corrupt SC Pension Fund Doles Out Big Bonuses

South Carolina’s corrupt, incompetent pension fund has doled out $1.4 million worth of bonuses to its upper management. Details of the bonuses (i.e. who received them and how much they got) were not immediately available, but the fact that any bonuses are being awarded is truly shocking given this fund’s…

South Carolina’s corrupt, incompetent pension fund has doled out $1.4 million worth of bonuses to its upper management.

Details of the bonuses (i.e. who received them and how much they got) were not immediately available, but the fact that any bonuses are being awarded is truly shocking given this fund’s abysmal performance.

A recent study revealed that South Carolina’s pension fund pays the nation’s highest fees – yet produces one of the lowest returns on investment. In fact the Palmetto State’s $25 billion fund has consistently ranked in the bottom 30 percent of large public pension funds.

S.C. Treasurer Curtis Loftis has been dutifully exposing these shoddy results – as well as the shameless self-serving behavior of the fund’s corrupt commissioners, led by Hugh Leatherman appointee Reynolds Williams.

Has S.C. Gov. Nikki Haley helped him? Nope. In fact her appointee to the S.C. Retirement System Investment Commission (SCRSIC) led an effort to censure Loftis, and she’s been working behind the scenes to block an audit of the corrupt commission.

Incidentally, Loftis was the only member of the SCRSIC to vote against the bonuses. Every other member of the commission – including Haley’s appointee – voted in favor of them.

UPDATE: These one-time bonuses were independent of an SCRSIC pay raise we recently covered.

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30 comments

Centrist View September 26, 2013 at 3:24 pm

“A recent study revealed that South Carolina’s pension fund pays the nation’s highest fees – yet produces one of the lowest returns on investment. ”

A picture is worth 1000 words. And, given a choice, most prefer a simple picture to 1000 words. I took the numbers from the above mentioned study and created some sad pictures.

Comparison of Return Rates & Investment Expenses of State Pension Funds

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

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disqus_UygKgg4BbT September 26, 2013 at 4:58 pm

What the hell is Alabama doing? They are almost off the charts in performance. Are their people paid well? If not, they should be. Ours should be FIRED. Where is the audit?

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Original Good Old Boy September 26, 2013 at 8:23 pm

Well done. And you should forward to Will for him to use some of the graphs for his next story on this bullshit.

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Shocked September 26, 2013 at 3:44 pm

Unbelievable that THOMAS clods should recieve huge raises when average SC workers are struggling.

This is a scandal and I invite the courts or general assembly to investigate this.

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Dung Beetle September 26, 2013 at 9:18 pm

there’s nothing to investigate. the bonus structure has always existed there and is part of the policy for outperforming benchmarks.

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Frank Pytel September 27, 2013 at 4:09 am

Must have put the bench in a freakin pit.

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Shocke September 26, 2013 at 3:47 pm

I know lots of the staff at the Commission and I can tell you they are not worth their pay. They are the minor leagues.

They make too much money for the returns garnered.

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Yon September 26, 2013 at 3:58 pm

Unbelievable. In these hard times state employees receiving $300, ooo raises!

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Ying-Yon September 26, 2013 at 4:07 pm

Many in the private sector consider a “bonus” having your job given the economic climate, not that I’d expect those sucking on the government teat to know that.

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Guest September 26, 2013 at 4:47 pm

Loftis was one of 3 commissioners who served on the Committee which approved this plan. He has voted for this bonus plan almost a dozen times.

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Danny B. September 26, 2013 at 5:05 pm

Then when he is spotted in public places, walk up to him and toss water in his face. The time one might have to spend in jail would be well worth it – not to mention all the media attention.
BTW .. .. Hello, SLED …. Having fun spying on this website? Pffft!

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Staffer September 26, 2013 at 6:34 pm

That is untrue. LOFTIS has voted against the bonuses and the budget for two years in a row.

He has only been on commission 2.5 years

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cletus September 26, 2013 at 9:31 pm

According to the minutes of the Investment Commission meeting dated March 23, 2013 Curtis Loftis seconded the motion made by Reynolds Williams to approve the performance pay plan for investment staff. After discussion, the plan was approved unanimously. Any bonuses given to staff have been in accordance with the plan Loftis helped develop.
Now there are those who may feel that no one should receive bonuses for doing their job and that is their prerogative but remember the amount of the bonuses amounted to about $1.4 million for about a dozen people. Compare that to the $9 million Loftis gave to the two lawyers who worked on the Bank of New York case. They got the really big bucks while retirees got $20 million and Loftis commits the state to a ten year contract with a big city bank that breached their previous 5 year contract. BTW, as for as anyone knows, that contract has never been signed. Once Loftis signs it we will be able to read it. Maybe he doesn’t want us to know what’s in it. Maybe the Inspector General, or a Grand Jury, or the General Assembly should look into this matter.
Knowing, or rather hearing, how the Treasurer loves transparency I’m sure he would welcome the opportunity to let in a little sunshine.

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Staffer September 26, 2013 at 9:50 pm

This is just a lie. I work for an agency that deals with this and this is just bullshit.

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cletus September 26, 2013 at 10:54 pm

Since you claim to work for an agency that deals with this, then you must work for Loftis if in fact you are not Loftis. The information cited regarding the performance pay plan is a matter of public record and is archived in print, digital and video mediums. As for the amount Loftis paid the two lawyers, that too is a matter of public record and has been reported on extensively.

staffer September 26, 2013 at 11:09 pm

I do not work for Loftis. You seem smart enough so you should be able to figure where I work.

Loftis was on compensation committee. He voted for the compensation plan but not the BENCHMARKS that are use to calculate the bonuses. That is the important aspect of this. Investment personnel benefit from VERY LOW benchmarks that allow them to exploit the compensation plan. Loftis votes against the yearly plan and the agency budget and he is right to do so

The plan only encompasses the IC investment team. It should be broadened to include the IC operations team and the benchmarks should be raised. Only then will it be fair.

Thomas Jefferson September 26, 2013 at 5:03 pm

They were not bonuses. They were criminally illegal perks.
Give us the names of those who received the perks and the names of those who authorized them. They are stealing OUR money, and that is Not Right! … The public will have their heads.

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Giles September 26, 2013 at 5:18 pm

How do I sign up?
I b as smart as them jackets

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Elfego September 26, 2013 at 5:51 pm

Obtain and print the names.Politicians are nothing more than any other crook today!

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Lover September 26, 2013 at 6:37 pm

Give Em he’ll Curtis!

Nikki haleyman voted for the huge budget increase and the massive bonuses!

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Elliott September 26, 2013 at 8:02 pm

The Commission operates as a government all by itself. Nobody knows what they do or care (except Loftis). I have been working in the same building for three years and my interactions with them leave me believing they are nice enough people but don’t know their business. They get paid too much money for what the do and the amount of money they make.

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Phil September 26, 2013 at 8:33 pm

The Chairman Reynold Williams of the Willcox, Buyck and Williams Law Firm in Florence is under criminal investigation for conflict of interest because he made big bucks off of the Commission’s investments. I bet this is how he keeps his troops in line. Pay people obscene amounts of money is one way to keep their mouths shut.

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FloBoy September 26, 2013 at 9:55 pm

That law firm is the cash cow for Senator Leatherman and other crooks in Florence. Loftis should be careful if he is going up against those guys. He could end up with cement shoes.

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jimlewisowb September 26, 2013 at 9:17 pm

The other week a retired friend was driving downtown Columbia on Gervais. In a wink a man stepped off the curb right in front of his car and my friend ran over him

My friend was positive the individual was a member of the Legislature

Being the kind of man he is and given the current treatment of retirees by the Legislators he threw his car in reverse and backed over the fella

Once my friend could clearly see it was indeed a Legislator he put his car in drive and gave him a another shot

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Slartibartfast September 26, 2013 at 10:29 pm

The only question I have is, “Will The State, the Post and Courier, and the Greenville News ever report on the Leatherman connection?”

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Ron September 27, 2013 at 7:05 am

Never.

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KKL September 27, 2013 at 7:09 am

Greed in government is at a all time high. State employees making hundreds of thousands in bonuses is shocking to me and I can’t understand why the Governor allows it to happen. Nikki Haley should be held to account on this.

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Pappy O'Daniel September 27, 2013 at 8:34 am

According to this morning’s Post and Courier, your taxpayers’ hero Mr. Loftis, who you show so much love for, cost the state 9 million dollars in attorney fees for his lawsut against the commission. It’s easy to have priciples with other peoples money. Instead of Sic Willie I’m kind of thinking it should be “Slick Willie,” but alas that name is taken. You need a new vocation sir because you ain’t real good with this one.

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Staffer September 27, 2013 at 2:44 pm

Ther bank of New York paid all fees. The retirees or the State of Sc paid nothing. Period. End of story.

To say otherwise is to be untruthful.

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Salty Doggerel September 27, 2013 at 10:01 am

In the dimly-lit counting room,
Where the state treasurer accounts
For much of the moldering gloom,
Hedgerow voles are assigning amounts.

Pattycake, pattycake, leather man,
Give it the old soft shoe.
Take a bonus; yes you can,
Whether the ledger is untrue.

Declares fund chairman Gazillions:
“Who’ll notice a missing million (or two)
Out of billions and billions?
Here’s one for him and one for you.”

The voters, you shyster, that’s who.

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