Reference is to Printer's Date 2/16/12--S.
Amend the bill, as and if amended, Part VIII, by adding an appropriately numbered SECTION after SECTION 36 to read:
/ SECTION __. A. Title 9 of the 1976 Code is amended by adding:
Section 9-4-10. (A)
Effective, July 1, 2013, there is created
the South Carolina Public Employee Benefit Authority. The
authority is comprised of the employee insurance division and
the retirement systems division. The governing body of the
authority is a board of directors consisting of nine members.
The functions of the authority must be performed, exercised, and
discharged under the supervision and direction of the board.
The board may organize its staff as it considers appropriate to
carry out the various duties, responsibilities, and authorities
assigned to it and to its various divisions. The board may
delegate to one or more officers, agents, or employees the
powers and duties it determines are necessary for the effective,
efficient, operation of the authority, including the hiring of
an executive director of the authority. The executive director
must be employed by the authority and compensation of the
executive director may be fixed by the board in its judgment and
as appropriated by the General Assembly.
(B) The board is
composed of:
(1)
three members appointed by the Governor;
(2)
two representative members, appointed by the President Pro
Tempore of the Senate, one who is either an active or retired
member of the Police Officers Retirement System and one who is a
retired member of the South Carolina Retirement System;
(3)
one member appointed by the Chairman of the Senate Finance
Committee;
(4)
two representative members appointed by the Speaker of the
House of Representatives, one of whom must be a state employee
who is an active contributing member of the South Carolina
Retirement System and an employee of a public school district in
South Carolina who is an active member of the South Carolina
Retirement System;
(5)
one member appointed by the Chairman of the House Ways and
Means Committee.
(C)(1) A
nonrepresentative member may not be appointed to the board
unless the person possesses at least one of the following
qualifications:
(a)
at least twelve years of professional experience in the
financial management of pensions or insurance plans;
(b)
at least twelve years academic experience and holds a
bachelor's or higher degree from a college or university as
classified by the Carnegie Foundation;
(c)
at least twelve years of professional experience as a
certified public accountant with financial management, pension,
or insurance audit expertise;
(d)
at least twelve years as a Certified Financial Planner
credential of the Certified Financial Planner Board of
Standards; or
(e)
at least twelve years membership in the South Carolina Bar
and extensive experience in one or more of the following areas
of law:
(i)
taxation;
(ii)
insurance;
(iii)
healthcare;
(iv)
securities;
(v)
corporate;
(vi)
finance; or
(vii)
the Employment Retirement Income Security Act (ERISA).
(2)
In addition to the requirements of subsections (B)(2) and
(4) of this section, a representative member may not be
appointed to the board unless the person:
(a)
possesses one of the qualifications set forth in item (1);
or
(b)
has at least twelve years of public employment experience
and holds a bachelor's degree from a college or university as
classified by the Carnegie Foundation.
(D) Representative
members must be appointed from three nominations jointly made to
the appointing official by membership organizations
representative of the interests to be represented. The
appointing official may request three additional nominations if
the official elects not to appoint any of those nominated.
(E) Members of the
board shall serve for terms of two years and until their
successors are appointed and qualify. Vacancies must be filled
in the manner of original appointment for the unexpired portion
of the term. Terms commence on July first of even numbered
years. Upon a member's appointment, the appointing official
shall certify to the Secretary of State that the appointee meets
or exceeds the qualifications set forth in subsections (B) and
(C). No person appointed may qualify unless he first certifies
that he meets or exceeds the qualifications applicable for their
appointment. A member may be removed before the expiration of
his term by the applicable appointing official only for the
reasons specified in Section 1-3-240(C).
(F) The members shall
select a nonrepresentative member to serve as chairman and shall
select those other officers they determine necessary. Subject
to the qualifications for chairman provided in this section,
members may set their own policy related to the rotation of the
selection of a chairman of the board.
(G)(1) Each member must
receive an annual salary of twelve thousand dollars. This
compensation must be paid from approved accounts of general
funds and retirement system funds based on the proportionate
amount of time the board devotes to its various functions.
Members may receive the mileage and subsistence authorized by
law for members of state boards, commissions, and committees
paid from approved accounts funded by general funds and
retirement system funds in the proportion that compensation is
paid.
(2)
Notwithstanding any other provision of law, membership on
the board does not make a member eligible to participate in a
retirement system administered pursuant to this title and does
not make a member eligible to participate in the employee
insurance program administered pursuant to Article 5, Chapter
11, Title 1. Any compensation paid on account of the member's
service on the board is not considered earnable compensation for
purposes of any state retirement system.
(H) Minimally, the
board shall meet monthly. If the chairman considers it more
effective, the board may meet by teleconferencing or video
conferencing. However, if the agenda of the meeting consists of
items that are not exempt from disclosure or the meeting may not
be closed to the public pursuant to Chapter 4, Title 30, the
provisions of Chapter 4, Title 30 apply, and the meeting must be
open to the public.
(I) Effective July 1,
2013, and notwithstanding any other provision of law, the
following offices, divisions, or components of the Department of
Administration and the State Contracts and Accountability
Authority are transferred to, and incorporated into, an
administrative agency of state government to be known as the
South Carolina Public Employee Benefit Authority:
(1)
the Employee Insurance Program;
(2)
the Retirement Division; and
(3)
the Insurance Reserve Fund.
Section 9-4-15. The South Carolina Public Employee Benefit Authority shall operate the Insurance Reserve Fund.
Section 9-4-20. (A)
The South Carolina Public Employee Benefit
Authority shall operate an employee insurance program division
to administer insurance programs pursuant to Article 5, Chapter
11, Title 1.
(B) The board of
directors of the authority shall appoint a State Health Plan
Advisory Committee (committee) to review and make
recommendations to the board on proposed changes to the State
Health Plan. Representation on the committee must be equal
among health care professionals, the insurance industry, and
consumers. The board, by resolution, shall establish the
committee, provide for its membership, and provide for its
operations. Members shall serve without compensation, but may
receive the mileage, subsistence, and per diem allowed by law
for members of state boards, committees, and commissions to be
paid from approved accounts of the authority.
(C) Notwithstanding any
other provision of law or policy to the contrary, the board
shall allow the governing body of a participating political
subdivision to allow a judicial appointee to participate in the
program.
Section 9-4-30. (A)(1)
The South Carolina Public Employee Benefit
Authority shall operate a retirement division to administer the
various retirement system and retirement programs pursuant to
Title 9 and, effective after December 31, 2013, to administer
the deferred compensation program pursuant to Chapter 23, Title
8.
(2)
Expenses incurred by the retirement division in
administering, after December 31, 2013, the deferred
compensation plans must be reimbursed to the retirement division
from funds generated by the deferred compensation plans
available to pay for administrative expenses.
(B)(1)(a)
Notwithstanding the provisions of Sections 9-1-1020 and
9-1-1050, or any other provision of Chapter 1 of this title
relating to the setting of employee and employer contributions
required for the South Carolina Retirement System either
established by statute or administratively, the employer and
employee contribution rates for this system for fiscal years
2012-2013 through 2015-2016 expressed as a percentage of
earnable compensation, are as follows:
Fiscal Year Employer
Contribution Employee
Contribution
2012-2013 9.38
6.64
2013-2014 10.45
7.14
2014-2015 10.45
7.64
2015-2016 and after
10.45 7.71
(b)
If the scheduled employer and employee contributions
provided in subitem (a) of this item are insufficient to
maintain a thirty year amortization schedule for the unfunded
liabilities of this system, then the board of directors shall
increase the contributions as provided in the schedule provided
in subitem (a) of this item in equal percentage amounts for
employer and employee contributions as necessary to maintain an
amortization schedule of no more than thirty years. Such
adjustments may be made without regard to the annual limit
increase of one half percent of earnable compensation provided
pursuant to subitem (c) of this item, but the differentials in
the employer and employee contribution rates provided in subitem
(a) of this item must be maintained at the rate provided in the
schedule for the applicable fiscal year.
(c)
After June 30, 2016, and in addition to any increase
imposed pursuant to subitem (b) of this item, the board of
directors, when it determines it necessary, may impose an
increase in the percentage rate in employer and employee
contributions for that system, but any such increase may not
result in a differential between the employee and employer
contribution rate for that system that exceeds 2.74 percent of
earnable compensation. An increase in the contribution rate
imposed by the board of directors pursuant to this item may not
be imposed in an amount of more than one-half of one percent of
earnable compensation in any one year.
(2)(a)
Notwithstanding the provisions of Sections 9-11-75,
9-11-210(1), 9-11-220, or any other provision of Chapter 11 of
this title relating to the setting of employee and employer
contributions required for the South Carolina Police Officer
Retirement System established either by statute or
administratively, the employer and employee contribution rates
for this system for fiscal years 2012-2013 through 2015-2016
expressed as a percentage of earnable compensation, are as
follows:
Fiscal Year Employer
Contribution Employee
Contribution
2012-2013 11.36
6.73
2013-2014 11.90
7.23
2014-2015 and after
11.90 7.27
(b)
If the scheduled employer and employee contributions
provided in subitem (a) of this item are insufficient to
maintain a thirty year amortization schedule for the unfunded
liabilities of this system, then the board of directors shall
increase the contributions as provided in the schedule provided
in subitem (a) of this item in equal percentage amounts for
employer and employee contributions as necessary to maintain an
amortization schedule of no more than thirty years. Such
adjustments may be made without regard to the annual limit
increase of one half percent of earnable compensation provided
pursuant to subitem (c) of this item, but the differentials in
the employer and employee contribution rates provided in subitem
(a) of this item must be maintained at the rate provided in the
schedule for the applicable fiscal year.
(c)
After June 30, 2015, and in addition to any increase
imposed pursuant to subitem (b) of this item, the board of
directors, when it determines it necessary, may impose an
increase in the percentage rate of employer and employee
contributions for that system, but any such increase may not
result in a differential between the employee and employer
contribution rate for that system that exceeds 4.63 percent of
compensation. An increase in contributions imposed by the board
of directors pursuant to this item may not be imposed in an
amount more than one-half percent of compensation in any one
year.
(3)
Increases in employer and employee contribution rates
above those allowed pursuant to items (1) and (2) of this
subsection may be imposed only by an act of the General
Assembly.
(C) The South Carolina
Public Employee Benefits Authority shall provide copies of
annual actuarial valuations of all retirement systems requiring
such annual valuations to the General Assembly by the second
Tuesday in January of every year.
Section 9-4-40. Each year in the general appropriations act, the General Assembly shall appropriate sufficient funds to the Office of the State Inspector General to employ a private audit firm to perform a fiduciary audit on the South Carolina Public Employee Benefit Authority. The audit firm must be selected by the State Inspector General. The report from the previous fiscal year must be completed by January fifteenth. Upon completion, the report must be submitted to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee.
Section 9-4-50. (A)
The South Carolina Public Employee Benefit
Authority shall maintain a transaction register that includes a
complete record of all funds expended, from whatever source for
whatever purpose. The register must be prominently posted on
the authority's Internet website and made available for public
viewing and downloading.
(1)(a)
The register must include for each expenditure:
(i)
the transaction amount;
(ii)
the name of the payee;
(iii)
the identification number of the transaction; and
(iv)
a description of the expenditure, including the source of
funds, a category title, and an object title for the
expenditure.
(b)
The register must include all reimbursements for expenses,
but must not include an entry for:
(i)
salary, wages, or other compensation paid to individual
employees; and
(ii)
retirement benefits, deferred compensation plan
distributions, insurance reimbursements, or other payments paid
to individual employees, members, or participants, as
applicable, pursuant to programs administered by the board.
(c)
The register must not include a social security
number.
(d)
The register must be accompanied by a complete explanation
of any codes or acronyms used to identify a payee or an
expenditure.
(e)
The register may exclude any information that can be used
to identify an individual employee or student.
(f)
This section does not require the posting of any
information that is not required to be disclosed under Chapter
4, Title 30.
(2)
The register must be searchable and updated at least once
a month. Each monthly register must be maintained on the
Internet website for at least three years.
(B) Any information
that is expressly prohibited from public disclosure by federal
or state law or regulation must be redacted from any posting
required by this section.
(C) If the authority
has a question or issue relating to technical aspects of
complying with the requirements of this section or the
disclosure of public information under this section, it shall
consult with the Comptroller General's Office, which may provide
guidance to the authority.
B. Effective July 1, 2013, Section 9-16-310 of the 1976 Code, relating to the State Retirement Systems Investment Panel, is repealed. Effective after December 31, 2014, the Deferred Compensation Commission is abolished. All of the functions and duties of the Deferred Compensation Commission are devolved upon the board of directors of the South Carolina Public Employee Benefit Authority as of January 1, 2015.
C. (A) Where the
provisions of this act transfer portions of the Budget and
Control Board to the South Carolina Public Employee Benefit
Authority, the employees, authorized appropriations, and assets
and liabilities of the transferred portions of the Budget and
Control Board are also transferred to and become part of the
South Carolina Public Employee Benefit Authority. All classified
or unclassified personnel employed by the transferred portions
of the Budget and Control Board either by contract or by
employment at will, shall become on July 1, 2013, employees of
the South Carolina Public Employee Benefit Authority, with the
same compensation, classification, and grade level, as
applicable. Prior to its abolition, the Budget and Control Board
shall cause all necessary actions to be taken to accomplish this
transfer in accordance with state laws and regulations.
Notwithstanding the provisions of Section 9-4-10(A) of the 1976
Code as added by this act, on the effective date of this
SECTION, the Governor and the Chairmen of the House Ways and
Means Committee and the Senate Finance Committee jointly shall
appoint the initial and any necessary succeeding executive
director of the South Carolina Public Employee Benefit Authority
to serve through December 31, 2014, after which the position
must be filled by the appointment of the authority board.
Notwithstanding the provisions of Section 9-4-10(F) of the 1976
Code as added by this act, the Governor shall name a member of
the board of directors of the South Carolina Public Employee
Benefit Authority to serve as chairman of that board through
December 31, 2014.
(B) Regulations
promulgated by the transferred portions of the Budget and
Control Board are continued and are considered to be promulgated
by the South Carolina Public Employee Benefit Authority.
Contracts entered into by the Budget and Control Board and the
Deferred Compensation Commission are continued and are
considered to be devolved upon the South Carolina Public
Employee Benefit Authority at the time of the transfer.
(C) The Code
Commissioner is directed to change or correct all references to
the Insurance Reserve Fund, the Employee Insurance Program, the
Retirement Division, and the Deferred Compensation Commission to
reflect its transfer to the South Carolina Public Employee
Benefit Authority. References to the name of the Insurance
Reserve Fund, the Employee Insurance Program, the Retirement
Division, and the Deferred Compensation Commission in the 1976
Code or other provisions of law are considered to be and must be
construed to mean appropriate references. /
Amend further, as and if amended, SECTION 4, by striking item (4) of Section 1-30-125(A) and subsection (B) in their entirety; and by striking SECTION 28, SECTION 31, and SECTION 32 in their entirety.
Renumber sections to conform.
Amend title to conform.