Letters: Are SC Retirement System fees too high?

We’ve all heard that individuals need to ask pointed questions to fully understand how their money is managed. “That’s the way it is always done” may really mean the process benefits the company but not the investor.

Recently the decision was made to once again raise the percentage of their pay that state employees and state agencies must contribute to the State Retirement System. Retirees are told that additional measures may be necessary, which could result in lower benefits. While there is ample documentation that action must be taken to reduce future state obligations, not enough has been written regarding the cost the state pays investment companies to manage the retirement funds.

The Legislative Audit Council published a report in December 2015 that said the annual fees rose from $22 million in 2005 to $467 million in 2014.

This dramatic increase is even more vexing given the poor results during the same period. Are we asking the right questions from those who are entrusted with critical retirement system investment decisions?

This story was originally published January 8, 2017 at 6:13 PM with the headline "Letters: Are SC Retirement System fees too high?."