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1 RESOLUTION OF CENSURE

WHEREAS, the South Carolina State Treasurer is an ex officio voting member of the South Carolina Retirement System Investment Commission and therefore is held to fiduciary standards; and WHEREAS, the South Carolina State Treasurer has chosen to publicly and vehemently criticize the Investment Commission, often using data cited as factual; and WHEREAS, the South Carolina State Treasurer often has concluded his criticisms with charges of dishonesty and fraud on the part of the Commission; and WHEREAS, the South Carolina State Treasurer said on February 19, 2013 on the radio that, I give my oath that what I have told you is true and factual (In the Pickle Barrel, WJMX, February 19, 2009); and WHEREAS, the South Carolina State Treasurer falsely stated on February 6, 2012 that, Either the elites in Columbia and New York have control, or the people who own the money have control, (SC Pension Fund Tanking, FITSNews, February 6, 2013, http://www.fitsnews.com/2012/02/06/sc-pension-fund-tanking/); and WHEREAS, the South Carolina State Treasurer falsely stated on July 12, 2012 that, They (the Commission) continually put out information that is not correct (Loftis gets snippy as budget control board agrees to hire attorney, SCnow.com, July 12, 2012, http://www.scnow.com/news/local/article_d79f3866-6cbc-5ca9-afbe-1da9cc204212.html); and WHEREAS, the South Carolina State Treasurer falsely stated on June 12, 2012 that, We have people making decisions that may be unduly influenced by huge sums of money (South Carolina pension officials succumb to Wall Street greed, The Daily Caller, June 12, 2012, http://dailycaller.com/2012/06/12/south-carolina-pension-officials-succumb-to-wall-streetgreed/) ; and WHEREAS, the South Carolina State Treasurer falsely stated on May 23, 2012 that, We have people who are attacking that trust fund. We have people who are wanting to spend that money in ways that it shouldnt have been spent, and people who want to open up the doors so it will be less efficient and more people will have their hands into it (SenatorRonnieCromers channel, Curtis Loftis Stands with Ronnie Cromer, YouTube video,: 21, May 23, 2012, http://www.youtube.com/watch?v=InR4zmJ38w8); and

2 WHEREAS, the South Carolina State Treasurer falsely stated on February 4, 2012 that, They are going to fight transparency and accountability(State investment panel squabbles intensify, The State, February 4, 2012, http://www.thestate.com/2012/02/04/2139766/state-investmentpanel-squabbles.html); and WHEREAS, the South Carolina State Treasurer falsely stated on December 29, 2012 that, Theres this hidden world of the investment commission that no one knows anything about (Treasurer Wants to Overhaul S.C. Retirement Board Free Times, December 29, 2012, http://www.freetimes.com/index.php?cat=1992912064017974&ShowArticle_ID=11012612122982753); and WHEREAS,, the South Carolina State Treasurer falsely says the state has a mandate not to exceed 50 percent in alternative assets. (http://www.Instututioninvestorsalpha.com/Article/3160401/News-And-Analysis/Showdownat-South-Carolinas-Pension-Fund.html) WHEREAS, false personal attacks by the South Carolina State Treasurer have created a hostile work environment for Commission staff by implying they lack integrity and fail to live up to professional codes of ethics (see October and November 2012 email messages to the Chief Investment Officer, January 2013 email to the Chief of Staff describing him as simply dishonorable, and letter to the General Council claiming an audio file of the November 2011 Commission meeting was altered); and WHEREAS, the South Carolina State Treasurer is, by statute, a fiduciary accountable for prudent investment management in the sole best interests of System participants and beneficiaries, he often demonstrates a false understanding of the scope of his fiduciary obligations by stating, for example, on December 29, 2012 that, the investment commission is unaccountable to the Legislature and to the pensioners and the taxpayers of this state ((Treasurer Wants to Overhaul S.C. Retirement Board Free Times, December 29, 2012, http://www.freetimes.com/index.php?cat=1992912064017974&ShowArticle_ID=11012612122982753); and WHEREAS, the South Carolina State Treasurer in January 2013 falsely claimed that a majority of Commissioners called for a special meeting of the Commission (Loftis, Curtis, e-mail message to Reynolds Williams, January 16, 2013); and WHEREAS, the South Carolina State Treasurer on January 17, 2013 informed an investment partner that their money would be withheld pending said ersatz meeting (Loftis, Curtis, e-mail message to Commissioners, January 17, 2013); and

3 WHEREAS, the South Carolina State Treasurer falsely issued a notice on Commission letterhead for said fictitious meeting (Loftis, Curtis, email message to Commissioners, January 17, 2013); and WHEREAS, the South Carolina State Treasurer falsely stated on January 29, 2013 that Commission policy benchmarks are set primarily to allow staff to earn compensation bonuses (South Carolina Treasurer to Fix States Public Pension Plan Institutional Investors Alpha, January 29, 2013, http://www.institutionalinvestorsalpha.com/Article/3147842/SouthCarolina-Treasurer-Out-to-Fix-States-Public-Pension-Plan.html); and WHERAS, the South Carolina State Treasurer now argues that the policy benchmark is set too low and is used primarily to award bonuses to investment staff, the fact is that in 2012, the compensation policy for investment employees was discussed in detail and at length in public session. Not only did the Treasurer vote for the current system; he was part of a three person Compensation Committee which worked with a nationally respected consultant that proposed the system using the benchmarks for which the Treasurer voted. (http://www.instututioonalinvestorsalpha.com/Article/3147842/Search/S...) WHEREAS, the South Carolina State Treasurer falsely stated on February 18, 2013 that, The Commission misleads the public at every turn, it is deceitful and should stop (Curtis Loftis Facebook page, accessed February 18, 2013, http://www.facebook.com/curtisloftis); and WHEREAS, the South Carolina State Treasurer falsely stated on February 19, 2013 that the data issued by the Commission were deceptive and that the Commission lacks a moral core, (Retirement system earned $3 billion in 2012, The State, February 19, 2013, http://www.thestate.com/2013/02/19/2639049/retirement-system-earned-3-billion.html and Curtis Loftis Facebook, January 27, 2013); and WHEREAS, the South Carolina State Treasurer has falsely stated that, The Commission regularly denies me information pertinent to the safe-keeping of those funds (Curtis Loftis Issues Statement about Fund Performance, FITSNews, February 20, 2013, http://www.fitsnews.com/2013/02/20/curtis-loftis-issues-statement-on-pension-fundperformance/); and WHEREAS, the South Carolina State Treasurer falsely stated on February 19, 2013 that, I've tried to work with the Commission over and over and over, but I'm largely ignored (In the Pickle Barrel, WJMX, February 19, 2013); and WHEREAS, the South Carolina State Treasurer falsely stated on February 19, 2013 that, we have a small clique of people who like the Commission as it is an will accept no change (In the Pickle Barrel, WJMX, February 19, 2013); and 3

4 WHEREAS, the South Carolina State Treasurer falsely stated on February 19, 2013 that, We had an opportunity to go on oath last during a Senate committee meeting, but no one wanted to do it but me (In the Pickle Barrel, WJMX, February 19, 2013); and WHEREAS, the South Carolina State Treasurer falsely stated on February 19, 2013 that, I probably have 25 or 30 outstanding requests (for information) (In the Pickle Barrel, WJMX, February 19, 2013); and WHEREAS, the South Carolina State Treasurer falsely stated on February 19, 2013 that, They claim that they're 29% less risky than the average plan. I've asked for (the underlying math). I can't get it (In the Pickle Barrel, WJMX, February 19, 2013); and

WHEREAS, the South Carolina State Treasurer falsely stated February 19, 2013 that, I found where contracts that we voted on that have a certain amount of fee structure are not the contracts that are realized. So we're paying more in fees than we voted on--millions of dollars (In the Pickle Barrel, WJMX, February 19, 2013); and WHEREAS, the South Carolina State Treasurer falsely stated on February 19, 2013 that, The local media doesn't talk about it because when you stand up against the Commission, you're standing up against the rich and the powerful--the richest and most powerful people in this state and the richest and most powerful people in this country (In the Pickle Barrel, WJMX, February 19, 2013); now, therefore, be it RESOLVED this 28th day of February 2013 the South Carolina Retirement System Investment Commission hereby condemns and censures the South Carolina State Treasurer for engaging in false, misleading, and deceitful rhetoric; and, be it RESOLVED FURTHER, this resolution be entered into the Commission minutes for the February 28, 2013 Commission meeting..