AP News

SC pension fund misses the mark on returns

COLUMBIA, S.C. (AP) — South Carolina's pension fund investments have generated far less over the past year than hoped, but officials say there's no cause for alarm.

Preliminary numbers from the state's Retirement System Investment Commission show a return on investments of 0.6 percent for the fiscal year ending June 30. The state assumes a 7.5 percent annual return when calculating what it needs to keep the system solvent long-term.

The portfolio's return for 2010-11 was 18.3 percent.

Public Employee Benefit Authority director Bill Blume says the fund is in the hole significantly, but the hope is that year-to-year fluctuations average out to hit the goal.

The fund is worth $25.3 billion, down from $26.2 billion last summer. The system paid $2 billion to retirees, and took in $1 billion from workers.

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