COLUMBIA--State retirees may not be seeing a cost-of-living increase in the coming year, the retirement systems executive director said Friday.

Peggy Boykin also told reporters at a briefing that a $420 million error was discovered in a report by an outside actuary. That error, discovered in a review of the retirement program known as the Teacher and Employee Retention Incentive, will be explained to the Budget and Control Board on Tuesday, Boykin said.

"I anticipate that the board would not be able to grant a COLA (cost-of-living adjustment) given our current position unless changes are made," Boykin said.

While cost-of-living increases are not guaranteed, Boykin has said in the past that retirees have come to expect them.

The state Board of Economic Advisers has said retirees would need to see an increase in their checks of 3.4 percent to keep benefits ahead of inflation in the coming fiscal year that starts July 1.

The last cost-of-living increase was 1.6 percent. That added $254 million to the retirement system's liabilities.

"We can keep pressing our foot on the gas pedal or put our foot on the brake," said Will Folks, spokesman for Gov. Mark Sanford, said of the state's growing retirement liability. "Our view is that if you are headed over the cliff, it is probably smart to start putting your foot on the brake."

Last year, Sanford and Comptroller General Richard Eckstrom voted against the increase because it added to the number of years it would take to accumulate all the money needed to pay current and future retirees if the plan were shut down immediately.

Boykin told reporters the newly discovered error causes that payoff liability to increase to 28 years from 27 years. State law allows the plan to have a maximum 30-year payoff limit.

At the briefing, Boykin said a review of a previous actuary's work had shown an error in how much money the state had to support the TERI program.

That program was created to keep veteran teachers in the classroom by allowing them to continue to work for five years after they retire, but also earn a salary.

In his latest budget, Sanford has proposed that new state workers work 30 years instead of the current 28 before retiring. He also wants the state to close its traditional pension plan to newcomers and cover their retirements with a defined contribution plan.