City Trust Can't Invest In Equity Securities: Court

Law360, New York (August 20, 2008, 12:00 AM EDT) -- The South Carolina Supreme Court has ruled that the city of Charleston violated the state constitution when it decided to invest funds for employee retirement benefits in equity securities.

β€œThe city's actions are laudable and well-intended,” Justice Donald W. Beatty wrote in an opinion published Monday. β€œHowever, the city's well-intended actions do not obviate the requirement to comply with constitutional mandates.”

The suit hinges on a new system for funding employee retirement benefits that the city of Charleston adopted in 2004, in order to comply with...
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