UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC 20549

                                   FORM 11-K
                ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended DECEMBER 31, 1997     Commission file number 1-10557


                     POLICY MANAGEMENT SYSTEMS CORPORATION
                        401(K) RETIREMENT SAVINGS PLAN

          Name of issuer of the securities held pursuant to the Plan
              and the address of its principal executive office:

                     POLICY MANAGEMENT SYSTEMS CORPORATION
               ONE PMSC CENTER, BLYTHEWOOD, SOUTH CAROLINA 29016



                                  SIGNATURES

Pursuant  to  the  requirements of the Securities Exchange Act of 1934, Policy
Management  Systems  Corporation  401(k) Retirement Savings Plan Committee has
duly  caused  this annual report to be signed on its behalf by the undersigned
hereunto  duly  authorized.


                         POLICY MANAGEMENT SYSTEMS CORPORATION
                         401(k) Retirement Savings Plan

Date:  June 30, 1998     By:  Timothy V. Williams
                         Executive Vice President
                         and Chief Financial Officer