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SC Voters Say No to Stock Investments for Government Benefits
The Associated Press reported Tuesday night that with 79% of precincts reporting, 58% of voters rejected the constitutional amendment allowing the state to invest in stocks to pay for future retirees’ health care and pensions. Fifty-six percent voted no on the amendment for local governments.
South Carolinians rejected the measures even though governments warned that if they did not pass, taxes will have to be raised or spending trimmed to make sure they have enough money for the benefits.
According to the AP, supporters of the amendments say they will try again in two years.
AMENDMENT 2:
Must Section 16, Article X of the Constitution of this
State relating to benefits and funding of public employee
pension plans in this State and the investments allowed
for funds of the various state-operated retirement
systems be amended so as to provide that the funds of any
trust fund established by law for the funding of
post-employment benefits for state employees and public
school teachers may be invested and reinvested in equity
securities subject to the same limitations on such
investments applicable for the funds of the various
state-operated retirement systems?
"Post-employment benefits" are benefits, mainly health
insurance, provided to eligible state government and
school district retirees. To comply with a change in
accounting standards, the state has created trust funds
to pay for these post-employment benefits. This amendment
relates to how the money in these trust funds may be
invested. A "yes" vote would give the state government
the option to invest these funds in equity securities
(stocks). A "no" vote would mean that state government is
not allowed to invest these funds in any kind of equity
securities (stocks).
AMENDMENT 3:
Must Section 16, Article X of the Constitution of this
State relating to benefits and funding of public employee
pension plans in this State and the investments allowed
for funds of the various state-operated retirement
systems be amended so as to provide that the funds of any
political subdivision of this State that have been set
aside for the funding of post-employment benefits for the
political subdivision's employees, including those
invested in independent trusts established for that
purpose, may be invested or reinvested in equity
securities of the type permitted for investment by the
various state operated retirement systems, as provided
for by the General Assembly?
This amendment is the same as Amendment 2 except it
applies to local governments' post-employment benefits
(instead of the state government's post-employment
benefits).