opeb constitutional amendment hearing 2014.05.22

holeThe South Carolina Senate Finance Special Subcommittee to Review the Investment will have a public hearing on s.1251 on Thursday 2014.05.22 immediately upon adjournment.

s. 1251 is a constitutional Amendment to allow the diversification of an unfunded liability approaching $10 billion. opeb stands for other post employment benefits. This is healthcare expenses that South Carolina is contractually bound to provide for retired state employees. It is on a down hill course as the unfunded debt will grow even further unless we repair this fund.

Last year, the opeb gained a mere 1.9%. Compare to the SCRIS’s (South Carolina Retirement Investment Commission) investments gained 10%. OPEB is constitutionally bound to only be invested in bonds. When these healthcare costs for state retirees climb, and opeb is empty, guess who pays then? Every South Carolina Taxpayer.

This is a critical issue, and hopefully, we can pass it this year.

S 1251 Joint Resolution, By Bryant, Campsen, Lourie, Cleary, Leatherman, Bennett, Alexander, Cromer, Campbell, Grooms, Hembree, Young, Turner, S. Martin and Fair