South Carolina legislation · 126th General Assembly
South Carolina S420: Investment of Funds by Political Subdivisions
Status: Signed into law, June 3, 2026
What the bill says
To amend the south carolina code of laws by amending section 6-5-10, relating to authorized investments by political subdivisions so as to allow a qualified retiree post-employment benefit trust maintained for the benefit of political subdivision retirees to invest in certain corporate debt issued by united states corporations. amend title to conform b e it enacted by the general assembly of the state of south carolina: s ection 1. s ection 6-5-10 of the s.c. code is amended by adding: ( 9) ( a) a qualified retiree post-employment benefits trust may invest in notes, bonds, debentures, o.
From the amended text, May 13, 2026:
A bill TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 6-5-10, RELATING TO AUTHORIZED INVESTMENTS BY POLITICAL SUBDIVISIONS SO AS TO ALLOW A QUALIFIED RETIREE POST-EMPLOYMENT BENEFIT TRUST MAINTAINED FOR THE BENEFIT OF POLITICAL SUBDIVISION RETIREES TO INVEST IN CERTAIN CORPORATE DEBT ISSUED BY UNITED STATES CORPORATIONS. Amend Title To Conform B e it enacted by the General Assembly of the State of South Carolina: S ECTION 1. S ection 6-5-10 of the S.C. Code is amended by adding: ( 9) ( a) A qualified retiree post-employment benefits trust may invest in notes, bonds, debentures, or other debt instruments issued by a United States corporation, provided that the instruments are rated investment grade by at least two of the following nationally recognized statistical rating organizations: S&P Global Ratings, Moody's Investors Service, and Fitch Ratings. The lowest rating assigned by any of the rating organizations shall control. Further, if an instrument held pursuant to this item is subsequently downgraded below investment grade by any such rating organization, the governing body of the political subdivision shall take prudent action within a reasonable period of time to address such downgrade, consistent with its fiduciary duties. ( b) Assets invested pursuant to this item must be separately accounted for and shall not be commingled with other funds of the political subdivision …