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.

“The city's actions are laudable and well-intended,” Justice Donald W. Beatty wrote in an opinion published Monday. “However, 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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