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South Carolina has become the latest state looking to close itsdefined benefit pension plan and move all newstate workers into a defined contribution plan.
According to a report in Chief Investment Officer, in aneffort to control the state's unfunded liabilities, Henry McMaster,the governor, sees a DC plan as a means of shutting off the flow ofstate funds to what he describes as an "open system"—as he termedit in this comment in his state of the state address: "Puttingmoney into an open system like that is like trying to fill abathtub with the drain open. We must close enrollment first."
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
