Aug 22 2011
We’ve found more bad news to the ever increasing debt figure for South Carolinians. The SC Police Retirement System (includes most law enforcement and Summary Court Judges) is $1.9 billion off. So we are now at $32 billion.
Some say this system is “actuarially sound”. You can throw that term out there if you want to, but the non-debatable figure is $1.9 billion. Remember this $1.9 is assuming the investments will earn 8% return. The 10-year annualized return of the investments of the System fund (which invests for all of the 5 separate systems, including PORS) is 3.95%, and that include the FY 2010 return of 14.62%. So in reality, the $1.9 billion (and all the other figures) is overly optimistic.
We’re awaiting on a new actuarial study that will almost certainly show a larger hole.
That’s on top of these: $ 9.5 billion-OPEB unfunded liability (other post employment benefits); $ 13 billion-SCRS unfunded liability (South Carolina retirement system); $ 10.4 billion-Local debt (municipalities, counties, school districts, & special purpose districts); $ 1.4 billion-Higher Education debt; $ 750 million -Unemployment Insurance Federal debt