HomeMy WebLinkAboutSouth Carolina Employee Benefit Authority - South Carolina Retirement Systems - Public Financial ReportPopular Annual
Financial Report
South Carolina Retirement Systems
For the fiscal year ended June 30, 2021
Pension trust funds of the state of South Carolina
Popular Annual Financial Report2
THIS REPORT CONTAINS AN ABBREVIATED DESCRIPTION OF THE RETIREMENT BENEFITS OFFERED BY THE SOUTH CAROLINA PUBLIC
EMPLOYEE BENEFIT AUTHORITY (PEBA). THE INFORMATION IN THIS REPORT IS MEANT TO SERVE AS A GUIDE FOR OUR MEMBERS
AND DOES NOT CONSTITUTE A BINDING REPRESENTATION OF PEBA. TITLE 9 OF THE SOUTH CAROLINA CODE OF LAWS CONTAINS A
COMPLETE DESCRIPTION OF THE RETIREMENT BENEFITS, THEIR TERMS AND CONDITIONS, AND GOVERNS ALL RETIREMENT BENEFITS
OFFERED BY THE STATE. STATE STATUTES ARE SUBJECT TO CHANGE BY THE GENERAL ASSEMBLY. PLEASE CONTACT PEBA FOR THE MOST
CURRENT INFORMATION.
THE LANGUAGE USED IN THIS REPORT DOES NOT CREATE ANY CONTRACTUAL RIGHTS OR ENTITLEMENTS AND DOES NOT CREATE A
CONTRACT BETWEEN THE MEMBER AND PEBA. PEBA RESERVES THE RIGHT TO REVISE THE CONTENT OF THIS REPORT.
9 Statement of fiduciary net position
10 Statement of changes in fiduciary net position
12 Additions and deductions to pension trust funds | 2007-2021
12 Fiduciary Net Position for Past 15 Fiscal Years
13 Additions and deductions to pension trust funds in fiscal year 2021
13 Summary of Additions and Deductions for Past Five Fiscal Years
14 Investments overview
15 Portfolio Exposure
16 List of Largest Assets Held
18 Portfolio Exposure and Target Asset Allocation
19 Awards
7 Summary of financial condition
6 Fiscal year 2021 operational activities
5 Membership and annuitant composition
4 Profile of the Systems
3 A message from leadership
Table of contents
Popular Annual Financial Report 3
Dear members:
We are pleased to present the South Carolina
Public Employee Benefit Authority’s (PEBA) Popular
Annual Financial Report (PAFR) for the South Carolina
Retirement Systems for the fiscal year ended June
30, 2021. This is the Systems’ 18th consecutive
annual popular report and it is intended to provide
a summary of the Systems’ annual financial
information in an easily understandable format
to supplement the more thorough Comprehensive
Annual Financial Report.
Data presented in this report was derived from
the fiscal year 2021 Comprehensive Annual Financial
Report, which was prepared in accordance with
Generally Accepted Accounting Principles. To learn
more about the Systems’ financial activities, the
Comprehensive Annual Financial Report, which contains
more detailed information, is available on the Facts
and figures page of our website at peba.sc.gov. For
any other questions, contact our Customer Contact
Center at 803.737.6800 or 888.260.9430.
Peggy G. Boykin, CPA
Executive Director
Travis J. Turner, CPA, CISA
Chief Financial Officer
Tammy B. Nichols, CPA
Retirement Finance Director
Our vision
Serving those who serve
South Carolina
Our mission
PEBA’s mission is to provide
competitive retirement and
insurance benefit programs for
South Carolina public employers,
employees and retirees.
Our core values
Solutions oriented
Communication
Credibility
Collaboration
Responsive
Emotional intelligence
Ethical behavior
A message from leadership
Popular Annual Financial Report4
The PAFR contains information on these defined benefit pension trust funds:
• The South Carolina Retirement System (SCRS) was established July 1, 1945, to provide retirement and other
benefits for teachers and employees of the state and its political subdivisions. SCRS covers employees of
state agencies, public school districts, higher education institutions, other participating local subdivisions
of government and individuals newly elected to the South Carolina General Assembly at or after the 2012
general election.
• The South Carolina Police Officers Retirement System (PORS) was established July 1, 1962, to provide
retirement and other benefits to police officers and firefighters. PORS also covers peace officers, coroners,
probate judges and magistrates.
• The Retirement System for Members of the General Assembly of the State of South Carolina (GARS) was
established January 1, 1966, to provide retirement and other benefits to members of the General Assembly.
Retirement reform legislation closed the GARS plan to individuals newly elected to the South Carolina
General Assembly at or after the 2012 general election.
• The Retirement System for Judges and Solicitors of the State of South Carolina (JSRS) was established July 1,
1979, to provide retirement and other benefits to state judges and solicitors. JSRS also covers circuit public
defenders.
• The South Carolina National Guard Supplemental Retirement Plan (SCNG) was established July 1, 1975, to
provide supplemental retirement benefits to members who served in the South Carolina National Guard.
The Retirement Systems assumed administrative responsibility for this fund in 2006.
PEBA, created July 1, 2012, and governed by an
11-member Board, is the state agency responsible
for providing retirement and insurance benefits
to participants and beneficiaries of the state’s
employee benefit plans. As such, PEBA is responsible
for administering the South Carolina Retirement
Systems’ five defined benefit pension plans. The
Retirement System Investment Commission, created
by the General Assembly in 2005, has exclusive
authority to invest and manage the retirement trust
funds’ assets.
A defined benefit plan is a retirement plan in which
contributions are made to fund a level of retirement
income at a future retirement date. Monthly service
retirement benefits, as well as disability benefits and
death benefits are provided to eligible members
and/or their surviving beneficiaries. The plans’
terms specify the amount of pension benefits to be
provided at a future date or after a certain period
of time. Monthly benefits are calculated using a
formula that includes the member’s average final
compensation, years of service and a multiplier.
PEBA also sponsors the State Optional Retirement
Program (State ORP), which is a defined contribution
plan administered by four third-party service
providers. State ORP is an alternative plan available
to newly hired employees of state agencies, public
higher education institutions, public school districts
and individuals first elected to the General Assembly
at or after the general election in November 2012.
In addition, PEBA is responsible for the South
Carolina Deferred Compensation Program, which
offers 401(k) and 457 plans, and is administered by a
third-party record keeper. Finally, PEBA administers
and manages the state’s employee insurance
programs. State ORP, Deferred Compensation and
employee insurance assets are not considered part
of the Retirement Systems for financial statement
purposes.
Profile of the Systems
Popular Annual Financial Report 5
The membership and annuitant data provided below is based on the July 1, 2020, actuarial valuations and the
data provided to the Systems’ actuary for preparation of the July 1, 2020, valuations.
Active Inactive Retirees and
beneficiaries1
SCRS 201,144 198,926 146,131
PORS 27,795 18,811 19,625
GARS 87 35 338
JSRS 160 4 223
SCNG 12,099 1,739 4,981
1Represents members who retired, including those who returned to
employment as a working retiree, and surviving beneficiaries of former
members.
SCRS PORS GARS JSRS SCNG
Active members
Average age 46 40 60 57 32
Average years of service 10 10 18 16 10
Average annual salary $46,526 $49,709 $22,757 $189,662 N/A2
Annuitants and beneficiaries
Average current age for service retirees 71 66 75 73 72
Average age at retirement for service
retirees 59 55 61 61 60
Average years of service at retirement
(all retirees)22 18 20 19 26
Average AFC3 at retirement (all retirees)$45,538 $47,495 $22,126 $125,457 N/A
Average current annual benefit
(all retirees)4 $20,851 $21,237 $18,521 $113,094 $906
2The South Carolina National Guard Supplemental Retirement Plan is non-contributory; therefore, active member salaries are not reported to the
Systems.
3Average final compensation (AFC) is a component used in the formula for calculating annuity benefits.
4Includes benefit adjustments applied since retirement.
241,285
219,515
171,298
Active members
Inactive members
Retirees and beneficiaries
Retirees and
beneficiaries
Inactive members
Active members
Membership and annuitant composition
Popular Annual Financial Report6
PEBA’s vision is serving those who serve South Carolina and our mission is to provide competitive retirement
and insurance benefit programs for South Carolina public employers, employees and retirees. The agency
accomplishes this by focusing goals in areas that promote financially sound programs, enhance the customer
service experience and responsibly manage risk. Initiatives during fiscal year 2021 included:
Benefits administration
PEBA processed and paid the following benefit
claims:
• 6,685 service retirement applications;
• 165 disability applications;
• 12,508 refund requests; and
• 7,082 death claims.
COVID-19
• Transitioned to providing online member and
employer education.
• Identified and proactively contacted new
benefits administrators to offer training.
• Developed and deployed the availability for
Customer Service to provide scheduled phone
and video consultations to members.
Legislative
• The General Assembly provided nonemployer
contribution funding to SCRS and PORS to
help offset a portion of the contribution
requirements for some employers.
• The General Assembly committed additional
funding to stabilize JSRS.
Risk management
• Implemented online dual factor authentication
for employers.
• Monitored employer payroll growth in
comparison with actuarial assumptions.
• Completed a disaster recovery provider transfer.
• Enhanced the agency’s business continuity
testing.
PEBA:Connect
One of the most significant operational challenges
the agency faces is the pending replacement of its
legacy information systems. PEBA’s core operational
system was built in the early 1990s. The typical
system life expectancy is 15-20 years. The agency
went through an extensive process to assess the
market and evaluate options.
• The project is now in the implementation phase
and is estimated to take four to five years to
implement.
• The project is on-time and on-budget.
• Weekly meetings are held to render timely
decisions, address escalated issues and review
overall project progress.
• Monthly communication is provided to all PEBA
staff members to ensure that those who aren’t
actively engaged in the project remain informed.
• Channels are in place for communication with
employers and members when it’s needed.
Fiscal year 2021 operational activities
Popular Annual Financial Report 7
The main funding objective of the pension trust
funds is to meet future benefit obligations of retirees
and beneficiaries through employee and employer
contributions and investment earnings. Each year,
the external consulting actuaries determine the
actuarial soundness of the plans based on long
term obligations and the sufficiency of current
contribution levels to fund the liabilities of each
plan over a reasonable time frame. In addition to
contribution requirements, there are numerous
measures used to monitor a plan’s funding status
including the funding period, the dollar amount of
the unfunded actuarial accrued liability (UAAL) and
the funded ratio.
The annual actuarial valuations dated July 1, 2020,
determined the actuarial status of each plan and
were adopted by PEBA’s Board of Directors in
December 2020.
The UAAL of each plan is paid down or amortized
over a period of years, similar to a home mortgage,
after which time the plan is expected to be fully
funded. Pension funding reform legislation enacted
in 2017 included a schedule for the funding period
of SCRS and PORS to be reduced over a 10-year time
period beginning in fiscal year 2018 to a maximum
of 20 years by fiscal year 2028. The funding period
for SCRS, which represents the largest membership
of the five plans, decreased to 20 years as of July 1,
2020. The funding period for PORS is 18 years for
the same time period. The chart below illustrates the
funding period over the past five fiscal years for SCRS
and PORS.
Funding Period in Years
30
24
22 23
20
30
23
20 20
18
0
5
10
15
20
25
30
35
July 1, 2016 July 1, 2017 July 1, 2018 July 1, 2019 July 1, 2020
Ye
a
r
s
SCRS PORS
1
Summary of financial condition
1The July 1, 2019, funding period is based on the contribution rate schedule as modified by Act 135 of 2020.
Popular Annual Financial Report8
As of July 1, 2020, the dollar amount of the UAAL for
SCRS increased from $23 billion in the prior year to
$23.9 billion, and PORS increased from $2.9 billion
to $3 billion. The largest source of increase was the
annual accrual of interest on the UAAL and continual
recognition of deferred investment losses. Actuarial
smoothing techniques, which defer investment gains
and losses, help to dampen the short-term volatility
inherent in investment markets by using a systematic
approach that allows only a portion of investment
gains and losses to be recognized each year.
Adjusting for a five-year smoothing phase, each plan
recognized a net actuarial loss on investment returns
for the valuation year.
The funded ratio is a measurement of a plan’s
funded status, and it is calculated as the ratio of the
actuarial value of assets to the actuarial accrued
liability. The funded ratios of the five plans as of July
1, 2020, range from a high of 62.5 percent for PORS
to a low of 42.6 percent for JSRS. The funded ratio
for SCRS decreased from 54.4 percent in fiscal year
2019 to 54.1 percent in 2020. The decrease resulted
from the recognition of deferred investment losses
from prior years, and because the contributions to
the plan attributable to financing the UAAL were less
than the interest on the unfunded liability.
Actuarial Funded Ratios
Actuarial assets as a percentage of actuarial accrued liabilities
0%
20%
40%
60%
80%
SCRS PORS GARS JSRS SCNG
July 1, 2016 July 1, 2017 July 1, 2018
July 1, 2019 July 1, 2020
The 2017 legislation also set in statute a schedule of
contribution increases to help lessen the impact if
actual investment returns do not meet the assumed
rate of return. Effective July 1, 2017, the legislation
increased and established a ceiling for SCRS and
PORS employee contribution rates. The employee
rates increased to and were capped at 9 percent for
SCRS and 9.75 percent for PORS. The legislation also
increased employer contribution rates for both SCRS
and PORS by 2 percent effective July 1, 2017, and
scheduled employer contribution rates to increase
by 1 percent each year until reaching the scheduled
employer rate of 18.56 percent for SCRS and 21.24
percent for PORS. If the scheduled contributions are
not sufficient to meet the funding periods set in state
statute, the PEBA Board of Directors can increase the
employer contribution rates as necessary.
Contribution rates by fiscal year1
SCRS
8.
6
6
%
9.
0
0
%
9.
0
0
%
9.
0
0
%
9.
0
0
%
11
.
5
6
%
13
.
5
6
%
14
.
5
6
%
15
.
5
6
%
15
.
5
6
%
0%
5%
10%
15%
20%
2017 2018 2019 2020 2021
Employee Employer
PORS
9.
2
4
%
9.
7
5
%
9.
7
5
%
9.
7
5
%
9.
7
5
%
14
.
2
4
%
16
.
2
4
%
17
.
2
4
%
18
.
2
4
%
18
.
2
4
%
0%
5%
10%
15%
20%
2017 2018 2019 2020 2021
Employee Employer
1Rates are inclusive of incidental death contributions and
Accidental Death Program contributions where applicable.
Popular Annual Financial Report 9
South Carolina Retirement Systems Fiduciary Net Position as of June 30
Amounts expressed in thousands
Increase/(Decrease)
2021 2020 Amount Percent
Assets
Cash/cash equivalents, receivables and prepaid expenses $4,596,950 $5,249,820 $(652,870)(12.44%)
Investments, at fair value 38,173,987 28,875,414 9,298,573 32.20%
Securities lending cash collateral invested 21,348 20,452 896 4.38%
Capital assets, net of accumulated depreciation 2,084 2,156 (72)(3.34%)
Total assets 42,794,369 34,147,842 8,646,527 25.32%
Liabilities
Obligations under securities lending 21,348 20,452 896 4.38%
Other liabilities 2,874,921 2,874,001 920 0.03%
Total liabilities 2,896,269 2,894,453 1,816 0.06%
Net position restricted for pensions $39,898,100 $31,253,389 $8,644,711 27.66%
The Statement of Fiduciary Net Position below
presents the Systems’ assets and liabilities and
the resulting net position restricted for pensions.
This statement reflects a year-end snapshot of the
Systems’ investments, at fair value, along with cash
and short-term investments, receivables and other
assets and liabilities.
Total fiduciary net position for all five defined benefit
plans of the Systems combined, increased from $31.3
billion to $39.9 billion, which was nearly 28 percent
from the prior fiscal year ended June 30, 2020.
It is important to note that growth in fiduciary net
position depends on both investment performance
and contributions from employers and employees.
The plans are in a net cash outflow position with
benefit payments exceeding contributions; therefore,
investment performance must first make up this gap
before fiduciary net position can grow. The increase
in net position was attributable primarily to positive
investment performance.
The Systems’ investment portfolio participates in a
securities lending program, managed by BNY Mellon,
whereby securities are loaned for the purpose of
generating additional income. Securities lending
revenue net of borrower rebates was $1.8 million,
a decrease from $2.75 million in the prior year. As
reported by BNY Mellon, at June 30, 2021, the fair
value of securities on loan was $64.33 million, the
fair value of the invested cash collateral was $21.35
million, and the securities lending obligations were
$65.97 million. The reported difference in the value
of the invested cash collateral and the securities
lending obligations in the securities lending program,
is reflected within “Other liabilities” on the Systems’
Statement of Fiduciary Net Position, consistent with
information reported on accounting statements
provided by BNY Mellon as both the custodial bank
and securities lending agent.
Statement of fiduciary net position
Popular Annual Financial Report10
The Statement of Changes in Fiduciary Net Position
on Page 11 presents information showing how
the Systems’ net position restricted for pensions
changed during the year. This statement includes
additions for employee, employer, nonemployer
and state appropriated contributions and net
investment income. It also includes deductions for
retirement benefit payments for annuities, refunded
contributions and death benefit payments, and
administrative expenses.
The dollar amount of employee and employer
contributions collected increased compared to the
prior year, and the rise is primarily attributable
to increased contribution rates plus some limited
payroll growth. For fiscal year 2021, employee rates
remained capped at 9 percent for SCRS and 9.75
percent for PORS. The General Assembly postponed
the 1 percent increase in the SCRS and PORS
employer contribution rates that was scheduled
to go into effect beginning July 1, 2020, so the
rates remained 15.56 percent and 18.24 percent,
respectively.
For the fiscal year ended June 30, 2021, the net
of fee investment performance return on a time-
weighted basis as reported by the custodial bank,
BNY Mellon, was 28.57 percent. This return reflects
performance of the Systems, at the aggregate for
the pooled investments of the consolidated pension
trust funds, after the deduction for manager fees
and/or expenses. This fiscal year’s performance had
a significant impact, especially compared to the prior
year’s return of negative 1.58 percent. Additionally,
since the actuarial assumed rate of return is 7.25
percent, the plan experienced an actuarial gain this
fiscal year.
Annuity benefits for the five defined benefit plans,
taken as a whole, increased almost 3 percent from
the prior fiscal year. Among other factors, the
increase resulted from the required annual benefit
adjustment equal to the lesser of 1 percent or $500
granted to eligible SCRS and PORS annuity benefit
recipients effective July 1, 2020, as well as a slight
increase in the number of annuitants.
Statement of changes in fiduciary net position
11Popular Annual Financial Report
South Carolina Retirement Systems Changes in Fiduciary Net Position as of June 30
Amounts expressed in thousands
Increase/(Decrease)
2021 2020 Amount Percent
Additions
Employee contributions $1,087,933 $1,079,562 $8,371 0.78%
Employer contributions 1,960,953 1,936,319 24,634 1.27%
Nonemployer contributions 104,076 104,076 - 0.00%
State appropriated contributions 5,290 5,290 - 0.00%
Net investment income (loss) 9,243,637 (523,842) 9,767,479 1864.58%
Other income 2,050 1,862 188 10.10%
Total additions 12,403,939 2,603,267 9,800,672 376.48%
Deductions
Annuity benefits 3,554,269 3,451,616 102,653 2.97%
Refunds 148,709 140,534 8,175 5.82%
Death benefits 33,771 25,324 8,447 33.36%
Administrative and other expenses 22,479 18,367 4,112 22.39%
Total deductions 3,759,228 3,635,841 123,387 3.39%
Net increase (decrease) in net position 8,644,711 (1,032,574) 9,677,285 937.20%
Net position restricted for pensions
Beginning of year 31,253,389 32,285,963 (1,032,574)(3.20%)
End of year $39,898,100 $31,253,389 $8,644,711 27.66%
Popular Annual Financial Report12
The following graph reflects Fiduciary Net Position restricted for pensions for the five
consolidated defined benefit plans over the past 15 fiscal years.
South Carolina Retirement Systems Fiduciary Net Position for Past 15 Fiscal Years
as of June 30
Amounts expressed in millions
$28,049
$26,633
$20,492
$22,692
$25,892
$24,979
$26,901
$29,928
$29,306
$28,067
$30,217
$31,207
$32,286
$31,253
$39,898
$0
$10,000
$20,000
$30,000
$40,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal year
Additions and deductions to pension trust funds | 2007-2021
Includes SCRS, PORS, GARS, JSRS and SCNG | Amounts expressed in millions
Additions
20.7%
31.8%
46.6%
Employer
contributions
$18,701
Investment
income
$27,473
Employee
contributions
$12,191
Other
0.9%
$533
Includes nonemployer
and state appropriated
contributions and other income
Deductions
94.8%Total
annuities
$42,383
Death
benefits
0.8%
$340
Refunds
3.8%
$1,685
Administrative and
other expenses
0.7%
$302
Popular Annual Financial Report 13
Additions and deductions to pension trust funds in fiscal year 2021
Includes SCRS, PORS, GARS, JSRS and SCNG
The following graph represents additions from all sources (employee contributions,
employer contributions and investment gains and losses) and deductions (annuities,
refunds, death benefits, administrative expense and depreciation) from Fiduciary Net
Position over the past five fiscal years.
South Carolina Retirement Systems Summary of Additions and Deductions
for Past Five Fiscal Years as of June 30
Amounts expressed in billions
$5.6 $5.0 $4.6
$2.6
$12.4
$3.5 $4.0 $3.5 $3.6 $3.8
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2017 2018 2019 2020 2021
Fiscal year
Additions Deductions
$12.4 B
Net additions in
FY 2021
$39.9 B
Net position
restricted for
pensions for FY 2021
$3.8 B
Total deductions in
FY 2021
Popular Annual Financial Report14
As of June 30, 2021, the custodial bank reported that the net asset value of the pension trust funds had a fair
value of $39 billion. This represents an $8 billion increase, after payment of benefits, over the previous fiscal year
end’s fair value. The Retirement System Investment Commission (RSIC) is responsible for investing and managing
the pension trust funds. The Systems’ investment policies and strategies are available on RSIC’s website at
www.rsic.sc.gov.
Summary of Investment Performance as of June 30, 2021
28.57%
10.23%10.07%
7.60%7.25%
2.25%5.32%2.56%2.44%1.88%
0%
5%
10%
15%
20%
25%
30%
Fiscal year 2021 3-fiscal year
annualized
5-fiscal year
annualized
10-fiscal year
annualized
Actual performance annualized¹Actuarial assumed rate of return²
Actual inflation component²US CPI Urban Consumers SA
1Plan returns are provided by BNY Mellon and are presented on a time-weighted calculation basis, net of fees. All returns are expressed in
U.S. dollars. Periods greater than one year are annualized.
2The actuarial assumed rate of return is net of investment expenses and was set at 7.50 percent for fiscal years July 1, 2011, through June
30, 2017, but reduced to 7.25 percent for fiscal year 2018. The rate was composed of 2.75 percent inflation and 4.75 percent real rate of
return through fiscal year 2016; 2.25 percent inflation and 5.25 percent real return for fiscal year 2017; and 2.25 percent inflation and
5.00 percent real return beginning with fiscal year 2018. Based on recommendation from the consulting actuary, at its December 2020
meeting, the PEBA Board proposed the assumed rate of return be reduced to 7 percent and submitted such to the General Assembly
as required by Section 9-16-335(B). The General Assembly did not enact a joint resolution to continue or amend the prior 7.25 percent
assumed annual rate of return before its expiration on July 1, 2021, so pursuant to S.C. state statute, the assumed annual rate of
return developed and submitted by the PEBA Board automatically takes effect for the next four-year period beginning July 1, 2021, until
subsequent action of the General Assembly.
Investments overview
Popular Annual Financial Report 15
Portfolio Exposure as of June 30, 20211, 2
Global Equity Real Assets Opportunistic3 Diversified Credit Conservative Fixed Income
1Asset class exposures include exposure from RSIC’s derivative overlay program. Portable Alpha Hedge Funds, as collateral supporting the
Overlay program, net to zero when calculating total Plan exposure.
2The June 30, 2021, exposure reflects the Commission’s implementation of a simplified asset allocation, which was adopted by the
Commission on April 16, 2020, for the fiscal year beginning July 1, 2020.
3Asset classes in which hedge funds can be used.
Portfolio Exposure as of June 30, 20201
Cash and Short Duration (Net), 0.23%
Core Fixed Income, 16.26%
Emerging Markets Debt3, 3.95%
High Yield Bonds/Bank Loans3, 4.56%
Private Debt3, 7.39%
Other Opportunistic3, 0.70%
GTAA3, 1.60%
Private Infrastructure3, 1.11%
Public Real Estate3, 1.55%
Public Infrastructure3, 1.61%
Private Real Estate3, 8.20%Equity Options, 2.26%
Private Equity, 7.03%
Global Public Equity3, 43.55%
Private Debt, 6.93%
Private Equity, 8.09%
Real Assets, 11.63%
Global Equity, 47.87%
Bonds, 25.48%
Popular Annual Financial Report16
South Carolina Retirement Systems List of Largest Assets Held
as of June 30, 2021
Amounts expressed in thousands
Index fund holdings
Units Description SCRS PORS GARS JSRS SCNG Fair value
367,268,824 Blackrock MSCI ACWI $9,368,624,868 $1,714,609,505 $11,478,923 $57,833,457 $9,719,467 $11,162,266,220
12,035,183 State Street Daily MSCI USA
Index
2,384,526,954 436,406,905 2,921,646 14,719,923 2,473,824 2,841,049,252
90,547,263 State Street MSCI ACWI ex
USA Index
1,683,722,650 308,148,410 2,062,984 10,393,788 1,746,776 2,006,074,608
34,994,371 Blackrock MSCI EAFE Small
Cap Equity Index
645,912,097 118,212,335 791,405 3,987,280 670,101 769,573,218
14,602,775 Blackrock Emerging
Markets Small Cap Equity
225,572,526 41,283,412 276,383 1,392,482 234,020 268,758,823
3,682,070 Blackrock MSCI Canada
Small Cap Equity Index
61,128,993 11,187,592 74,898 377,355 63,418 72,832,256
Total of index fund holdings $17,120,554,377
Top 10 equity holdings
Units Description SCRS PORS GARS JSRS SCNG Fair value
7,662,947 Owl Rock Capital Corp $91,778,989 $16,797,036 $112,452 $566,561 $95,216 $109,350,254
210,321 Crown Castle International
Corp
34,440,018 6,303,079 42,198 212,602 35,730 41,033,627
309,740 Prologis Inc 31,074,037 5,687,050 38,074 191,823 32,238 37,023,222
43,930 Equinix Inc 29,592,649 5,415,932 36,258 182,678 30,701 35,258,218
108,011 SBA Communications Corp 28,891,728 5,287,652 35,400 178,352 29,974 34,423,106
323,150 Welltower Inc 22,538,688 4,124,944 27,616 139,134 23,383 26,853,765
530,760 UDR Inc 21,819,282 3,993,280 26,734 134,693 22,636 25,996,625
1,945,637 National Grid PLC 20,772,358 3,801,676 25,451 128,230 21,550 24,749,265
255,776 Cheniere Energy Inc 18,620,987 3,407,941 22,815 114,949 19,318 22,186,010
443,553 TC Energy Corp 18,441,103 3,375,019 22,595 113,839 19,132 21,971,688
Total of top 10 equity holdings $378,845,780
Popular Annual Financial Report 17
South Carolina Retirement Systems List of Largest Assets Held (cont.)
as of June 30, 2021
Amounts expressed in thousands
Top 10 fixed income holdings
Par value Description SCRS PORS GARS JSRS SCNG Fair Value
$57,150,000 Commit to Purchase
FNMA SF Mtg 2.50% due
08/01/2051
$49,548,147 $9,068,110 $60,709 $305,866 $51,404 $59,034,236
(50,450,000)Commit to Purchase
FNMA SF Mtg 3.50% due
08/01/2051
(44,606,967) (8,163,795) (54,655) (275,363) (46,277) (53,147,057)
41,000,000 Commit to Purchase
FNMA SF Mtg 2.00% due
08/01/2051
34,723,566 6,354,973 42,545 214,352 36,024 41,371,460
29,800,000 US Treasury Bond 2.50%
due 02/15/2045
27,079,951 4,956,068 33,180 167,167 28,094 32,264,460
15,820,993 Preferred Term Securities
144A Var Rate due
09/22/2037
11,950,876 2,187,203 14,643 73,774 12,398 14,238,894
12,750,002 Evicof II Trust 0.00% due
5/20/2023
10,988,667 2,011,103 13,464 67,834 11,400 13,092,468
12,674,986 GNMA GTD REMIC P/T
15-H09 FA Var Rate due
04/20/2065
10,752,417 1,967,866 13,174 66,376 11,155 12,810,988
9,700,000 US Treasury Bond 2.875%
due 05/15/2043
9,369,202 1,714,715 11,480 57,837 9,720 11,162,954
10,700,000 Wolf Entertainment Issuer
Inc
8,980,639 1,643,602 11,004 55,438 9,317 10,700,000
11,000,000 US Treasury Note 0.875%
due 11/15/2030
8,786,691 1,608,106 10,766 54,241 9,116 10,468,920
Total of top 10 fixed income holdings $151,997,323
A complete list of portfolio holdings is available upon request.
Popular Annual Financial Report18
Portfolio Exposure and Target Asset Allocation as of June 30, 20211, 2
6.93%
8.09%
11.63%
25.48%
47.87%
7.00%
9.60%
12.00%
26.00%
45.40%
0%5%10%15%20%25%30%35%40%45%50%55%
Private Debt
Private Equity³
Real Assets
Bonds
Global Equity³
Target Exposure
1Target Asset Allocation reflects the policy targets that were adopted by the Commission and in effect at the end of fiscal year 2021.
2Asset class exposures include exposure from RSIC’s derivative overlay program. Portable Alpha Hedge Funds, as collateral supporting the
Overlay program, net to zero when calculating total Plan exposure.
3The target weight to Private Equity is equal to its actual weight, reported by the custodial bank, as of the prior month end. The target
weight to Public Equity floats in relation to Private Equity such that the combined target weight of both asset classes equals 55 percent of
the Plan.
Popular Annual Financial Report 19
Fiscal Year 2020 GFOA Award
The South Carolina Retirement Systems’ Popular Annual Financial Report for the
fiscal year ended June 30, 2020, received an Award for Outstanding Achievement
in Popular Annual Financial Reporting from the Government Finance Officers
Association (GFOA) of the United States and Canada.
This is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government popular reports.
To receive this award, a government unit must publish a Popular Annual Financial
Report in which the content conforms to program standards of creativity,
presentation, understandability and reader appeal.
This award is valid for one year only. The Systems have received the Award for
Outstanding Achievement for each of the past 17 consecutive years (fiscal years
ended 2004-2020). We believe our current report continues to conform to the
GFOA’s requirements and are submitting it for consideration.
2021 PPCC Award
The South Carolina Retirement Systems received the Public Pension Coordinating
Council’s Public Pension Standards 2021 Award.
It is the 18th consecutive year during which the S.C. Public Employee Benefit Authority
applied for and received the Council’s award in recognition of meeting professional
plan design and administration standards.
The Public Pension Coordinating Council is a confederation of the National
Association of State Retirement Administrators, the National Conference on Public
Employee Retirement Systems and the National Council on Teacher Retirement.
Government Finance Officers Association
Award for Outstanding Achievement in Popular Annual Financial Reporting
Presented to
SC Public Employee Benefit Authority - South Carolina Retirement Systems
For its Annual Financial Report for the Fiscal Year Ended 2020
Executive Director/CEO
Public Pension Coordinating Council Public Pension Standards Award For Funding and Administration 2021 Presented to South Carolina Retirement Systems In recognition of meeting professional standards for plan funding and administration as set forth in the Public Pension Standards. Presented by the Public Pension Coordinating Council, a confederation of National Association of State Retirement Administrators (NASRA) National Conference on Public Employee Retirement Systems (NCPERS) National Council on Teacher Retirement (NCTR)
Alan H. Winkle Program Administrator
P CP C
Awards
This document does not constitute a comprehensive or binding representation regarding the employee benefits offered by the South Carolina Public Employee Benefit Authority (PEBA). The terms and
conditions of the retirement benefit plans offered by PEBA are set out in the applicable statutes and are subject to change. Please contact PEBA for the most current information. The language used in this document does not create any contractual rights or entitlements for any person.SCPEBA 122021Data classification: public information
South Carolina Public Employee Benefit Authority
Serving those who serve South Carolina
202 Arbor Lake Drive
Columbia, SC 29223
803.737.6800 | 888.260.9430
peba.sc.gov