COLUMBIA, S.C. - State Treasurer Grady Patterson told a Senate subcommittee how he would fix problems that have emerged in the state's primary retirement system Tuesday.

Patterson's testimony came as about 300 state employees and retirees came to the Statehouse to tell legislators to protect their retirement plans and the cost of living adjustments that come with it.

Those annual adjustments are in jeopardy now because the system's liabilities are near at a limit set by law. Gov. Mark Sanford says the retirement system's problems are "a ticking time bomb for state retirees."

Patterson solutions include:

_ Requiring people who retire and return to work for state government to continue to pay 6 percent payroll contributions. That would shave five years from the system's a 28-year gap between money it has on hand and what would ultimately have to pay retirees.

_ Increase employer contributions by 2 percent over four years. Each 0.5 percent costs the state's general fund $15 million, but cuts five years from the system's liabilities.

_ Require people participating in an optional retirement plan that is similar to a 401(k) to stay on the job for some period of time. Now, employees who leave can take their contributions and the state's match regardless of how long they've worked.

_ Set up a trust fund for future cost of living allowances.