Pension Reform

ALEC Policy Champion: South Carolina Rep. Bill Taylor Keeps Politics Out of Pensions

“This bill very simply makes sure that we make money for those that are in the state pension program."

On February 14, Governor Henry McMaster and the South Carolina General Assembly showed their love for sound pension reform when H 3690, known as the “ESG Pension Protection Act,” was signed into law. Sponsored by State Representative Bill Taylor, the bill passed with overwhelming bipartisan support. The legislation closely follows the policy ideas in the ALEC model State Government Employee Retirement Protection Act, requiring fiduciaries to make all investment decisions based solely on the pecuniary interests of the plan. The model policy is featured in our Essential Policy Solutions for 2024.

“The goal of this bill is to take the politics out of the pension investments of South Carolina,” said State Representative Bill Taylor. “This bill very simply makes sure that we make money for those that are in the state pension program. We want them to have a happy and fulfilling retirement with money in their pocket.”

South Carolina is the latest state to recognize the threat of playing politics with pensions and take steps to prevent it. Last year, Arkansas, Montana, and others passed similar legislation consistent with the ALEC model policy.

As the latest edition of Unaccountable and Unaffordable shows, state pension plans are already severely underfunded. Politicized investment schemes threaten to grow unfunded liabilities even further, with the taxpayer footing the bill. For more, check out Keeping the Promise: Getting Politics Out of Pensions.

Congratulations to Representative Taylor on the massive free market success of H 3690!

In Depth: Pension Reform

Modern, 401(k)-style plans are now commonplace in the private sector. For state workers, however, traditional pensions are still the norm. As former Utah State Senator Dan Liljenquist wrote in Keeping the Promise: State Solutions for Government Pension Reform, this is not a partisan issue, but a math problem. State Budget…

+ Pension Reform In Depth