State employee health insurance is getting more expensive. How SC plans to pay for it
South Carolina state employees not only would receive a 3% pay raise as part of the House budget plan for the coming fiscal year, they’ll also be able to keep more of the money in their paychecks.
As part of the $13.9 billion spending plan, approved by the House on Monday and sent to the Senate, the state would cover increases in health insurance premiums so state employees won’t have to pay higher premium costs.
The additional $101 million set aside by lawmakers would fully cover health and dental insurance monthly premium increases and well visits for state employees.
House budget writers were able to spend that much on employee benefits because the state has an additional $4.6 billion in new revenue to spend in the budget. Part of that money is planned to go toward an income tax cut.
State employees all are in line to receive a 3% pay raise and a $1,500 bonus under the House budget.
The 3% pay raise is the largest in the last six years for state employees, said state Rep. Bruce Bannister, R-Greenville, who sits on the House budget writing Ways and Means Committee.
House budget writers also set aside $152 million to put toward the state’s pension system, including catching up on the delayed pension contribution in 2020, which was suspended at the beginning of the pandemic.
“Obviously, our state employees and our pensioners all count on that, so making that fiscally solid was really important,” Bannister said.
