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H. 4523
STATUS INFORMATION
General Bill
Sponsors: Rep. Cotty
Document Path: l:\council\bills\ggs\22340htc04.doc
Introduced in the House on January 13, 2004
Currently residing in the House Committee on Ways and Means
Summary: Police Officers and State Retirement Systems, disability, returning to work; provisions
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/13/2004 House Introduced and read first time HJ-119 1/13/2004 House Referred to Committee on Ways and Means HJ-119
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTIONS 9-1-1580, 9-1-1590, AS AMENDED, AND 9-11-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISABILITY RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND RETURNING TO SERVICE AFTER RETIREMENT FOR PURPOSES OF THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE THAT NO REDUCTION MAY BE MADE TO THE DISABILITY RETIREMENT BENEFITS OF MEMBERS OF THESE SYSTEMS WHO RETURN TO EMPLOYMENT UNLESS THE MEMBER'S COMPENSATION EXCEEDS THE GREATER OF THE MEMBER'S AVERAGE FINAL COMPENSATION OR FIFTY THOUSAND DOLLARS A YEAR AND TO PROVIDE THAT A DISABILITY RETIREE RETURNING TO COVERED EMPLOYMENT DOES NOT HAVE HIS BENEFIT TERMINATED AND BECOME AN ACTIVE CONTRIBUTING MEMBER UNLESS THE MEMBER'S COMPENSATION FROM COVERED EMPLOYMENT EXCEEDS THE GREATER OF THE MEMBER'S AVERAGE FINAL COMPENSATION OR LESS THAN FIFTY THOUSAND DOLLARS A YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-1-1580 of the 1976 Code is amended to read:
"Section 9-1-1580. Should the Medical Board report and certify to the board that the A disability beneficiary is retiree engaged in or is able to engage in a gainful occupation may earn up to fifty thousand dollars a fiscal year without affecting the monthly retirement allowance the disability retiree receives. If paying more than the difference between his a member's disability retirement allowance benefit and his the member's average final compensation is greater than fifty thousand dollars in a fiscal year and should the board concur in the report, then the amount of his the retiree's disability retirement allowance must be reduced to an amount which, together with the amount earnable by him, equals the amount of his average final compensation. Should If his earning capacity be is later changed, the amount of his disability retirement allowance may be further modified. The new disability retirement allowance shall must not exceed the amount of the disability retirement allowance originally granted nor an amount which, when added to the amount earnable by the beneficiary, equals the amount of his average final compensation.
The average final compensation may be increased up to ten percent annually to adjust for inflation.
If the disability retirement allowance is eliminated as a result of this section retiree earns more than the greater of fifty thousand dollars or the difference between the member's average final compensation and the member's disability retirement allowance for a period of five consecutive years, all rights in and to his disability retirement allowance are revoked. The member then is entitled to a deferred retirement allowance as provided in Section 9-1-1650 based upon his average final compensation and creditable service at his date of disability retirement.
After age sixty-five, a disability retiree is subject to the same earnings limitation as a service retiree."
SECTION 2. The first two unnumbered paragraphs of Section 9-1-1590 of the 1976 Code are amended to read:
"A disability beneficiary restored to active service at a salary less than the greater of his average final compensation or fifty thousand dollars a year, shall does not become a member of the system and his employer annuity shall must be adjusted in accordance with the provisions of Section 9-1-1580.
Should If a disability beneficiary under the age of sixty-five years be is restored to active service and his compensation then, or at any time thereafter, be equal to or greater than exceeds the greater of his average final compensation at retirement or fifty thousand dollars a year, his retirement allowance shall cease ceases and any election of an optional benefit shall become becomes void and he shall again become becomes a member of the system and must contribute thereafter as provided in Section 9-1-1020. Any prior service certificate on the basis of which his service was computed at the time of his retirement shall must be restored to in full force and effect and, in addition, upon his subsequent retirement he shall must be credited with all his service as a member. The average final compensation may be increased up to ten percent annually to adjust for inflation."
SECTION 3. Subsections (1) and (2) of Section 9-11-90 of the 1976 Code are amended to read:
"(1) A disability beneficiary restored to active service at a salary less than his average final compensation or fifty thousand dollars a year, whichever is greater shall does not become a an active contributing member of the system and his the member's retirement allowance shall must be adjusted in accordance with the provisions of Section 9-11-80(4). For purposes of that adjustment, earning capacity means compensation less than the greater of the member's average final compensation or fifty thousand dollars a year.
(2) Should If a disability beneficiary under the age of fifty-five years be is restored to active service and his the member's compensation then, or at any time thereafter, be equal to or greater than exceeds the greater of his average final compensation at retirement or fifty thousand dollars a year, his retirement allowance shall cease ceases, any election of an optional benefit shall become becomes void, and he shall again becomes a an active contributing member of the system and contribute contributes thereafter as provided in Section 9-11-210(1). Any credited service to which he was entitled when he retired shall must be restored to him, and upon subsequent retirement his allowance shall must be based on his compensation and credited service before and after the period of prior retirement. The average final compensation in subsections (1) and (2) of this section may be increased up to ten percent annually to adjust for inflation."
SECTION 4. This act takes effect July 1, 2004.
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