Save the Pensions for Police and Firefighters

Police Officer Retirement System (PORS) FACTS!

As of June 30, 2011, The Police Officer Retirement System (PORS) was 74.5% funded, which is the Highest funded plan out of ALL South Carolina’s retirement systems. ** The desired Level of funding for government pension plans is 80%, as stated by the Government Accounting Standards Board (GASB).

The South Carolina Retirement System manages 5 different retirement systems with 5 different benefit structures. Each of the 5 retirement systems were created to incentivize and reward 5
distinct and different types of professions. Yes, all employees are government employees, but everyone does not perform the same tasks and should therefore be rewarded according to the level
of sacrifice and service given.

PORS members have an annuity factor of %2.14. In other words, when an officer becomes eligible to retire after 25 years of service, he or she is ONLY eligible to draw 53.3% of their
salary. In many states, public safety employees draw upwards of 70-80% of their salary and may or may not contribute personally to retirement fund. For example, in Florida Police Officers retires
75% of their salary and never contributed to retirement system personally.

In 2011, the average PORS retiree with 25 years of service makes only $38,012. In 2011, the average PORS retiree drew a retirement benefit of only $18,652. PORS members have paid 6.5% in employee contribution since July 1, 1988. Members of the SC Retirement System only started paying 6.5% in employee contribution in 2006.

Legislators have proposed a 5% increase for some state law enforcement agencies to offset the cost of increased employee contributions to the retirement and increase premiums for health insurance.

Unfortunately, approximately 66% of PORS members will not benefit from that salary increase as they work for municipal and county governments and will be forced to take on these additional
costs with what is already a minimal salary.

PORS members are willing to take the necessary steps to restore the system’s financial well being. However, we ask the legislature to allow these changes to be implement gradually or only on NEW
HIRES in order to lessen the burden on current public safety officers. After all, any increases, no matter how small, is a major increase to PORS members.

Standard State Retirement System

Many Fire Departments are also under the State Retirement System. 37 fire departments in South Carolina are under the standard plan. The below listed concerns with H. 4898 hold true for protecting those firefighters:
• The average Fire Chief starting salary in this state is $54,849.
• The average Firefighter starting salary in this state is $26,258.