H 3465 Session 112 (1997-1998)
H 3465 General Bill, By J.H. Hodges and Harrell
A BILL TO AMEND SECTION 9-1-1770, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO PRERETIREMENT DEATH BENEFITS FOR A STATE EMPLOYEE, SO AS TO
PROVIDE FOR A FIFTY PERCENT DEATH BENEFIT TO ELIGIBLE SURVIVORS WHEN THE
EMPLOYEE DIES A VIOLENT DEATH WHILE PERFORMING STATE DUTIES; TO AMEND SECTION
9-1-1680, AS AMENDED, RELATING TO EXEMPTION OF STATE RETIREMENT BENEFITS FROM
CERTAIN TAX LIABILITY, SO AS TO PROVIDE FOR THE NONTAXABILITY OF THE
PRERETIREMENT DEATH BENEFITS PAYABLE TO ELIGIBLE SURVIVORS OF A STATE EMPLOYEE
WHO DIES A VIOLENT DEATH WHILE PERFORMING STATE DUTIES; AND TO AMEND SECTION
59-111-110, RELATING TO TUITION WAIVERS FOR CHILDREN OF CERTAIN STATE
EMPLOYEES, SO AS TO INCLUDE THE SURVIVING CHILDREN OF A STATE EMPLOYEE WHO
DIES A VIOLENT DEATH WHILE PERFORMING STATE DUTIES.
02/18/97 House Introduced and read first time HJ-13
02/18/97 House Referred to Committee on Ways and Means HJ-14
04/17/97 House Committee report: Favorable with amendment Ways
and Means HJ-6
04/29/97 House Amended HJ-19
04/29/97 House Read second time HJ-21
04/30/97 House Read third time and sent to Senate HJ-8
05/01/97 Senate Introduced and read first time SJ-19
05/01/97 Senate Referred to Committee on Finance SJ-19
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 29, 1997
H. 3465
Introduced by Reps. Hodges and Harrell
S. Printed 4/29/97--H.
Read the first time February 18, 1997.
A BILL
TO AMEND SECTION 9-1-1770, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO
PRERETIREMENT DEATH BENEFITS FOR A STATE
EMPLOYEE, SO AS TO PROVIDE FOR A FIFTY PERCENT
DEATH BENEFIT TO ELIGIBLE SURVIVORS WHEN THE
EMPLOYEE DIES A VIOLENT DEATH WHILE PERFORMING
STATE DUTIES; TO AMEND SECTION 9-1-1680, AS
AMENDED, RELATING TO EXEMPTION OF STATE
RETIREMENT BENEFITS FROM CERTAIN TAX LIABILITY,
SO AS TO PROVIDE FOR THE NONTAXABILITY OF THE
PRERETIREMENT DEATH BENEFITS PAYABLE TO ELIGIBLE
SURVIVORS OF A STATE EMPLOYEE WHO DIES A VIOLENT
DEATH WHILE PERFORMING STATE DUTIES; AND TO
AMEND SECTION 59-111-110, RELATING TO TUITION
WAIVERS FOR CHILDREN OF CERTAIN STATE EMPLOYEES,
SO AS TO INCLUDE THE SURVIVING CHILDREN OF A
STATE EMPLOYEE WHO DIES A VIOLENT DEATH WHILE
PERFORMING STATE DUTIES.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 9-1-1770 of the 1976 Code, as last amended
by Act 458 of 1996, is further amended to read:
"Section 9-1-1770. (A) Effective July 1, 1968, there
shall be is created the Preretirement Death Benefit
Program, which shall be effective as of that date to all
employers under the system, except counties,
municipalities, and other political subdivisions, as well
as and to those state departments, agencies, or
other institutions which pay directly to the system the total employer
contributions for the participating members in their employ.
(B) The program shall be is available to
those employers exempted in the preceding paragraph
subsection (A) by written application of such
the employer. Applications shall be are an
irrevocable commitment to participate under the program. For
applications received by the system prior to before
October 1, 1968, the effective date of the coverage shall be
is July 1, 1968. For all other applications the effective date
shall be is the next July first next following
the date of receipt by the system of the application.
(C)(1) Upon receipt of proof, satisfactory to the board, of
the death of a contributing member in service who had completed at
least one full year of membership in the system or of the death of a
contributing member as a result of an injury arising out of and in the
course of the performance of his duties regardless of length of
membership, as of the effective date of his employer's participation,
there must be paid to the person he nominated or designated
for the refund of his accumulated contributions, unless he has
nominated a different beneficiary by written designation filed with
the board, in the event of his death pursuant to Section 9-1-1650, if
the that person
is living at the time of the member's death, otherwise to the member's
estate, a death benefit equal to the annual earnable compensation of
the member at the time his death occurs. The death benefit is payable
apart and separate from the payment of the member's accumulated
contributions on his death pursuant to Sections 9-1-1650 or 9-1-1660.
For purposes of this section, a member is considered to be in service
at the date of his death if he has not retired and if within ninety
days of his death was the last day the member
he was employed in a continuous, regular pay status, while
earning regular or unreduced wages and regular or unreduced
retirement service credit, whether the member
he was physically working on that day or taking continuous
accrued annual leave or sick leave while receiving a full salary,
occurred not more than ninety days before the date of his death and
he has not retired.
(2) Notwithstanding the provisions of item (1) of this
subsection, upon receipt of the proper proof of death of an eligible
member in service whose death was a natural and proximate result of
an act by a person of criminal violence, which constitutes
a felony under the 1976 Code, incurred while undergoing a hazard
peculiar to the member's employment or while in the actual
performance of his state duty, except that the death was without
wilful negligence on the part of the deceased, and upon the finding
and certification by the board that the death occurred on or after
January 1, 1996, there must be paid to the member's surviving
spouse, a pension of fifty percent of the member's compensation at
the time of death. If there is no surviving spouse, or if the surviving
spouse dies before the youngest child of the deceased member
reaches the age of eighteen, the pension is paid to the children,
divided in a manner as the board determines, to continue for the
benefit of the children until every child dies or reaches the age of
eighteen. If no spouse or children under the age of eighteen years
survive the death of the member, the pension must be paid to the
member's surviving father or mother, or both, as the board may
direct, to continue for life. If the member at the time of his death
does not leave a surviving spouse, or children under the age of
eighteen, or surviving parents, no death benefit is payable under this
section. The death benefit is payable apart and separate from the
payment of any other benefits payable at the member's death
pursuant to the provisions of Section 9-1-1650 or 9-1-1660.
(D) The board is authorized to may take
such necessary action as may be necessary
to provide the death benefit under this section in the form of group
life insurance upon a determination that to do so would guarantee a
more favorable tax treatment of the benefit to beneficiaries to whom
such benefit is payable and taxable.
(E) Upon the death of a retired member on or after July
1, 1985, whose most recent employer before retirement is
covered by the Group Life Insurance Program, there must be
paid to the designated beneficiary or beneficiaries, if living at the
time of the retired member's death, otherwise to the retired member's
estate, a death benefit of:
(1) one thousand dollars if the retired member had ten
years of creditable service but less than twenty
years,;
(2) two thousand dollars if the retired member had
twenty years of creditable service but less than
thirty,; and
(3) three thousand dollars if the retired member had
at least thirty years of creditable service at the time of retirement,
provided the retired member's most recent employer prior to
retirement is covered by the Group Life Insurance Program."
SECTION 2. Section 9-1-1680 of the 1976 Code, as last amended
by Act 189 of 1989, is further amended to read:
"Section 9-1-1680. (A) The right of a person to an
annuity or a retirement allowance or to the return of contributions, an
annuity, or a retirement allowance itself, any
an optional benefit, or any other right a
accrued or accruing to any a person under the
provisions of this chapter, except as provided in subsection (B)
of this section, and the monies of the system created under the
provisions of this chapter or any a private retirement
system operated by a municipality, are exempted from any
a state or municipal tax, except the taxes imposed pursuant
to Chapters 7, 15, and 16 of Title 12, and exempted from levy and
sale, garnishment, attachment, or any other process, and are
unassignable except as specifically otherwise provided in this
chapter.
(B) The right of a person to a preretirement death benefit
pursuant to Section 9-1-1770(C)(2) and the monies of the system
created under the provisions of this chapter for that purpose are
exempted from a state and municipal tax, from levy and sale,
garnishment, attachment, and other process, and are unassignable
except as specifically otherwise provided in this chapter."
SECTION 3. Section 59-111-110 of the 1976 Code is amended to
read:
"Section 59-111-110. No tuition shall be charged for a period
of four school years by any A state-supported college or
university or any state-supported vocational or technical
school shall not charge tuition for a period of four school years
of undergraduate education for children of firemen, both
regularly employed and members of volunteer organized units,
organized rescue squad members, members of the Civil Air Patrol,
law enforcement officers, or corrections officers, as defined
herein in this article, including reserve and auxiliary
units of counties or municipalities who become totally disabled
or are killed in line of duty, or state teachers and employees,
who are killed or become permanently and totally disabled as defined
by the State Retirement System while performing their employment
duties for the State of South Carolina or its political subdivisions,
where the death or disability occurred as a result of a criminal act by
another person against the employee, and the criminal act is a felony
under the 1976 Code, or die a violent death while performing the
state's duties on or after July 1, 1964 January 1,
1996."
SECTION 4. This act takes effect upon approval by the Governor.
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