Reference is to the bill as passed by the Senate.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
SECTION 1. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1815.
(A) Effective July 1, 2012, and July
1, 2013, the retirement allowance received by retirees and their
surviving annuitants pursuant to this chapter, inclusive of
supplemental allowances payable pursuant to the provisions of
Sections 9-1-1910, 9-1-1920, and 9-1-1930, must be increased by
one percent. Only those retirees and their surviving annuitants
in receipt of an allowance on July first preceding the effective
date of the increase provided by this subsection are eligible to
receive the increase. Any increase in allowance granted
pursuant to this subsection must be included in the
determination of subsequent increases.
(B)(1) Effective July
1, 2014, the retirement allowances received by retirees and
their surviving annuitants pursuant to this chapter, inclusive
of supplemental allowances payable pursuant to the provisions of
Sections 9-1-1910, 9-1-1920, and 9-1-1930, are subject to an
annual adjustment calculated as provided in this subsection.
Annually, beginning in November, 2013, the board shall subtract
the assumed annual rate of return on the investments of the
assets of the South Carolina Retirement System from the
five-year average investment return of the South Carolina
Retirement System. If the difference of that subtraction is a
positive percentage, then retirement allowances paid must be
increased by the same percentage, but not more than two percent.
If the annual calculation difference results in a positive
percentage, but the actual rate of return on the system's
investments for the preceding plan year was less than zero, an
increase may not be granted. In no case may the calculation
result in an adjustment that decreases benefits. If the annual
calculation results in increased retirement allowances, then the
board, by December thirty-first following the calculation, by
resolution, shall direct the increase.
(2)
For purposes of this subsection, the 'five-year average
investment return' means the average of the investment returns
of the most recent five plan years ending on June thirtieth
before the November calculation date as determined by the
board.
(C) An increase in the
retirement allowance pursuant to subsection (B) of this section
begins the July first immediately following the date of the
resolution directing the increase, and all increases in
retirement allowances must be granted to those retirees and
their surviving annuitants, in receipt of a retirement allowance
on July first immediately preceding the effective date of the
increase. Any increase in an allowance granted pursuant to
subsection (B) must be included in the determination of any
subsequent increase."
SECTION 2. A. Section 9-1-10 of the 1976 Code, as last amended by Act 353 of 2008, is further amended by adding a new item after item (18) to read:
"(18A) 'Class Three member' means an employee member of the system with an effective date of system membership after June 30, 2012."
B. Section 9-1-10(4) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(4)(a)
'Average final compensation' with respect to
those Class One and Class Two members
retiring on or after July 1, 1986, means the average annual
earnable compensation of a member during the twelve consecutive
quarters of his creditable service on which regular
contributions as a member were made to the system producing the
highest such average; a quarter means a period January through
March, April through June, July through September, or October
through December. An amount up to and including forty-five
days' termination pay for unused annual leave at retirement may
be added to the average final compensation. Average final
compensation for an elected official may be calculated as the
average annual earnable compensation for the thirty-six
consecutive months before the expiration of the elected
official's term of office.
(b)
'Average final compensation' with respect to
Class Three members means the average annual earnable
compensation of a member during the twenty consecutive quarters
of the member's creditable service on which regular
contributions as a member were made to the system producing the
highest such average; a quarter means a period January through
March, April through June, July through September, or October
through December. Termination pay for unused annual leave at
retirement may not be added to the average final
compensation."
C. Section 9-1-10(8) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(8)(a)
'Earnable compensation' means the full rate of the
compensation that would be payable to a member if the member
worked the member's full normal working time; when compensation
includes maintenance, fees, and other things of value the board
shall fix the value of that part of the compensation not paid in
money directly by the employer.
(b)
For work performed by a member after December
31, 2012, earnable compensation does not include any overtime
pay not mandated by the employer."
SECTION 3. Section 9-1-1020 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-1-1020.
The employee annuity savings fund shall be the account in
which shall be recorded the contributions deducted from the
earnable compensation of members to provide for their employee
annuities. Each employer shall cause to be deducted from the
compensation of each member on each and every payroll of such
employer for each and every payroll period four percent of his
earnable compensation. With respect to each member who is
eligible for coverage under the Social Security Act in
accordance with the agreement entered into during 1955 in
accordance with the provisions of Chapter 7 of this Title;
however, such deduction shall, commencing with the first day of
the period of service with respect to which such agreement is
effective, be at the rate of three percent of the part of his
earnable compensation not in excess of four thousand eight
hundred dollars, plus five percent of the part of his earnable
compensation in excess of four thousand eight hundred dollars.
In the case of any member so eligible and receiving compensation
from two or more employers, such deductions may be adjusted
under such rules as the board may establish so as to be as
nearly equivalent as practicable to the deductions which would
have been made had the member received all of such compensation
from one employer. In determining the amount earnable by a
member in a payroll period, the board may consider the rate of
annual earnable compensation of such member on the first day of
the payroll period as continuing throughout such payroll period
and it may omit deduction from earnable compensation for any
period less than a full payroll period if a teacher or employee
was not a member on the first day of the payroll period.
Each employer shall certify to the board on
each and every payroll or in such other manner as the board may
prescribe the amounts to be deducted and such amounts shall be
deducted and, when deducted, shall be credited to said employee
annuity savings fund, to the individual accounts of the members
from whose compensation the deductions were made.
The rates of the deductions, without regard
to a member's coverage under the Social Security Act, must be
the percentage of earnable compensation as provided in the
following schedule:
Class One
Class
Classes
Two and
Three
Before July 1, 2005
5 6
July 1, 2005 through
June 30, 2006 5.25
6.25
After June 30, 2006
through June 30, 2012
5.50 6.50
After June 30, 2012
through June 30, 2013
6
7
After June 30, 2013
6.50
7.50
Each department and political
subdivision shall pick up the employee contributions required by
this section for all compensation paid on or after July 1, 1982,
and the contributions so picked up shall be treated as employer
contributions in determining federal tax treatment under the
United States Internal Revenue Code. For this purpose, each
department and political subdivision is deemed to have taken
formal action on or before January 1, 2009, to provide that the
contributions on behalf of its employees, although designated as
employer contributions, shall be paid by the employer in lieu of
employee contributions. The department and political
subdivision shall pay these employee contributions from the same
source of funds which is used in paying earnings to the
employee. The department and political subdivision may pick up
these contributions by a reduction in the cash salary of the
employee.
The employee, however, must not be given
the option of choosing to receive the contributed amount of the
pick ups directly instead of having them paid by the employer to
the retirement system. Employee contributions picked up shall
be treated for all purposes of this section in the same manner
and to the extent as employee contributions made prior to the
date picked up.
Payments for unused sick leave, single
special payments at retirement, bonus and incentive-type
payments, or any other payments not considered a part of the
regular salary base are not compensation for which contributions
are deductible. Not including Class Three employees,
contributions are deductible on up to and including forty-five
days' termination pay for unused annual leave. If a member has
received termination pay for unused annual leave on more than
one occasion, contributions are deductible on up to and
including forty-five days' termination pay for unused annual
leave for each termination payment for unused annual leave
received by the member. However, only an amount up to and
including forty-five days' pay for unused annual leave from the
member's last termination payment shall
must be included in a member's average final compensation
calculation, for other than Class Three employees."
SECTION 4. Section 9-1-1080 of the 1976 Code is amended to read:
"Section 9-1-1080.
The total amount payable in each year by each employer for
credit to the employer annuity accumulation fund shall not be
less than the sum of the rate per cent
percent known as the normal contribution rate and the
accrued liability contribution rate of the total earnable
compensation of all members during the preceding year. After
June 30, 2012, this employer contribution rate shall not be less
than ten and six-tenths percent of the total earnable
compensation of all members during the preceding year, until the
accrued liability contribution is discontinued pursuant to
Section 9-1-1090. Subject to the provisions of
Section 9-1-1070, the amount of each annual accrued liability
contribution shall be at least three per cent greater than the
preceding annual accrued liability payment, and The
aggregate payment by employers shall be sufficient, when
combined with the amount in the fund, to provide the employer
annuities and other benefits payable out of the fund during the
year then current."
SECTION 5. A. Section 9-1-1140 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-1-1140.
(A) An active member may establish
service credit for any period of paid public service by making
a an actuarially neutral payment to the
system to be as determined by the
actuary for the board based on the member's current
age and service credit, but not less than sixteen percent of
the member's current salary or career highest fiscal year
salary, whichever is greater, for each year of credit purchased.
A member's career highest fiscal year salary shall include the
member's salary while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four-Year and Postgraduate Institutions
of Higher Education if the member has purchased service rendered
under any of these programs pursuant to subsection (F) of this
section. Periods of less than a year must be prorated. A
member may not establish credit for a period of public service
for which the member also may receive a retirement benefit from
another defined benefit retirement plan. A member may not
establish service credit for public service to the extent such
service purchase would violate Section 415 or any other
provision of the Internal Revenue Code.
(B) An active member
may establish service credit for any period of paid educational
service by making a an actuarially
neutral payment to the system determined by the actuary
for the board based on the member's current age and
service credit, but not less than sixteen percent of the
member's current salary or career highest fiscal year salary,
whichever is greater, for each year of credit purchased. A
member's career highest fiscal year salary shall include the
member's salary while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four-Year and Postgraduate Institutions
of Higher Education if the member has purchased service rendered
under any of these programs pursuant to subsection (F) of this
section. Periods of less than a year must be prorated. A
member may not establish credit for a period of educational
service for which the member also may receive a retirement
benefit from another defined benefit retirement plan. A member
may not establish service credit for educational service to the
extent such service purchase would violate Section 415 or any
other provision of the Internal Revenue Code.
(C) An active member
may establish up to six years of service credit for any period
of military service, if the member was discharged or separated
from military service under conditions other than dishonorable,
by making a an actuarially neutral
payment to the system to be determined by the actuary for
the board based on the member's current age and service
credit, but not less than sixteen percent of the member's
current salary or career highest fiscal year salary, whichever
is greater, for each year of credit purchased. A member's
career highest fiscal year salary shall include the member's
salary while participating in the State Optional Retirement
Program, the Optional Retirement Program for Teachers and School
Administrators, or the Optional Retirement Program for Publicly
Supported Four-Year and Postgraduate Institutions of Higher
Education if the member has purchased service rendered under any
of these programs pursuant to subsection (F) of this section.
Periods of less than a year must be prorated.
(D) An active member on
an approved leave of absence from an employer that participates
in the system who returns to covered employment within four
years may purchase service credit for the period of the approved
leave, but may not purchase more than two years of service
credit for each separate leave period, by making
a an actuarially neutral payment to the
system to be determined by the actuary for the board
based on the member's current age and service credit, but
not less than sixteen percent of the member's current salary or
career highest fiscal year salary, whichever is greater, for
each year of credit purchased. A member's career highest fiscal
year salary shall include the member's salary while
participating in the State Optional Retirement Program, the
Optional Retirement Program for Teachers and School
Administrators, or the Optional Retirement Program for Publicly
Supported Four-Year and Postgraduate Institutions of Higher
Education if the member has purchased service rendered under any
of these programs pursuant to subsection (F) of this section.
Periods of less than a year must be prorated.
(E) An active member
who has five or more years of earned service credit may
establish up to five years of nonqualified service by making
a an actuarially neutral payment to the
system to be determined by the actuary for the board
based on the member's current age and service credit, but
not less than thirty-five percent of the member's current salary
or career highest fiscal year salary, whichever is greater, for
each year of credit purchased. A member's career highest fiscal
year salary shall include the member's salary while
participating in the State Optional Retirement Program, the
Optional Retirement Program for Teachers and School
Administrators, or the Optional Retirement Program for Publicly
Supported Four-Year and Postgraduate Institutions of Higher
Education if the member has purchased service rendered under any
of these programs pursuant to subsection (F) of this section.
Periods of less than a year must be prorated.
(F) An active member
may establish service credit for any period of service in which
the member participated in the State Optional Retirement
Program, the Optional Retirement Program for Teachers and School
Administrators, or the Optional Retirement Program for Publicly
Supported Four-Year and Postgraduate Institutions of Higher
Education, by making a an actuarially
neutral payment to the system to be determined by the
actuary for the board based on the member's current
age and service credit, but not less than sixteen percent of
the member's current salary or career highest fiscal year
salary, whichever is greater, for each year of credit purchased.
A member's career highest fiscal year salary shall include the
member's salary while participating in the system or in the
State Optional Retirement Program, the Optional Retirement
Program for Teachers and School Administrators, or the Optional
Retirement Program for Publicly Supported Four-Year and
Postgraduate Institutions of Higher Education. Periods of less
than a year must be prorated. A member may not establish credit
for a period of service for which the member also may receive a
retirement benefit from another defined benefit retirement plan.
A member may not establish service credit under this subsection
to the extent such service purchase would violate Section 415 or
any other provision of the Internal Revenue Code. Service
purchased under this subsection is 'earned service' and counts
toward the required five or more years of earned service
necessary for benefit eligibility. Compensation earned for
periods purchased under this subsection while participating in
the State Optional Retirement Program, the Optional Retirement
Program for Teachers and School Administrators, or the Optional
Retirement Program for Publicly Supported Four-Year and
Postgraduate Institutions of Higher Education
shall must be treated as earnable
compensation and shall must be used in
calculating a member's average final compensation. A member
purchasing service under this subsection who has funds invested
in a TIAA Traditional account under a TIAA-CREF Retirement
Annuity contract shall be is eligible to
make a plan to plan transfer in accordance with the terms of
that contract.
(G) An active member
who previously withdrew contributions from the system may
reestablish the service credited to the member at the time of
the withdrawal of contributions by repaying the amount of the
contributions previously withdrawn, plus regular interest from
the date of the withdrawal to the date of repayment to the
system.
(H) An active member
establishing retirement credit pursuant to this chapter may
establish that credit by means of payroll deducted installment
payments. Interest must be paid on the unpaid balance of the
amount due at the rate of the prime rate plus two percent a
year.
(I) An employer, at its
discretion, may pay to the system all or a portion of the cost
for an employee's purchase of service credit under this chapter.
Any amounts paid by the employer under this subsection for all
purposes must be treated as employer contributions.
(J) Service credit
purchased under this section is not 'earned service' and does
not count toward the required five or more years of earned
service necessary for benefit eligibility except:
(1)
earned service previously withdrawn and reestablished;
(2)
service rendered while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four-Year and Postgraduate Institutions
of Higher Education that has been purchased pursuant to
subsection (F); or
(3)
service earned as a participant in the system, the South
Carolina Police Officers Retirement System, the Retirement
System for Members of the General Assembly, or the Retirement
System for Judges and Solicitors that is transferred to or
purchased in the system.
(K) A member may
purchase each type of service under this section once each
fiscal year.
(L) The board shall
promulgate regulations and prescribe rules and policies, as
necessary, to implement the service purchase provisions of this
chapter.
(M) At retirement,
after March 31, 1991, a Class One or Class Two member
shall receive credit for not more than ninety days of his unused
sick leave from the member's last employer at no cost to the
member. The leave must be credited at a rate where twenty days
of unused sick leave equals one month of service. This
additional service credit may not be used to qualify for
retirement.
(N) An employee drawing
workers' compensation who is on a leave of absence for a limited
period may voluntarily contribute on his contractual salary, to
be matched by the employer."
B. Upon approval of this act by the Governor, this SECTION takes effect January 1, 2013.
SECTION 6. Section 9-1-1510 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:
"Section 9-1-1510.
(A) A Class One or Class
Two member may retire upon written application to the system
setting forth at what time, no more than ninety days before nor
more than six months after the execution and filing of the
application, the member desires to be retired, if the member at
the time specified for the member's service retirement has:
(1)
five or more years of earned service;
(2)
attained the age of sixty years or has twenty-eight or
more years of creditable service; and
(3)
separated from service.
(B) A Class
Three member may retire upon written application to the system
setting forth at what time, no more than ninety days before nor
more than six months after the execution and filing of the
application, the member desires to be retired, if the member at
the time specified for the member's service retirement has:
(1)
five or more years of earned service;
(2)
attained the age of sixty years or has thirty or
more years of creditable service; and
(3)
separated from service.
(C) A member
who is an elected official whose annual compensation is less
than the earnings limitation pursuant to Section 9-1-1790 and
who is otherwise eligible for service retirement may retire for
purposes of this section without a break in service."
SECTION 7. Section 9-1-1515 of the 1976 Code, as last amended by Act 1 of 2001, is amended to read:
"Section 9-1-1515.
(A)(1) In addition to other
types of retirement provided by this chapter, a Class One or
Class Two member may elect early retirement if the member:
(1)(a) has
five or more years of earned service;
(2)(b) has
attained the age of fifty-five years;
(3)(c) has at
least twenty-five years of creditable service; and
(4)(d) has
separated from service.
A member electing early retirement
pursuant to this subsection shall apply in the manner
provided in Section 9-1-1510(A).
(B)(2) The
benefits for a member electing early retirement under this
section subsection must be calculated in
the manner provided in Section 9-1-1550, except that in lieu of
any other reduction factor, the member's early retirement
allowance is reduced by four percent a year, prorated for
periods less than one year, for each year of creditable service
less than twenty-eight.
(C)(3) A
member who elects early retirement under this
section subsection is ineligible to
receive any cost-of-living increase in the
member's retirement allowance as provided by law to retirees
until the second July first after the date the member attains
age sixty; or the second July first after the date the member
would have twenty-eight years' creditable service had
he the member not retired, whichever is
earlier.
(D)(1)(4)(a)
Except as provided in item (2) subitem
(b) of this subsection item, a
member who elects early retirement under this
section subsection is not covered by the
State Insurance Benefits Plan until the earlier of:
(a)(i) the
date the member attains age sixty, or
(b)(ii) the
date the member would have twenty-eight years' creditable
service had he the member not
retired.
(2)(b) A
member taking early retirement under this subsection may
maintain coverage under the State Insurance Benefits Plan until
the date his the member's coverage is
reinstated pursuant to item (1) subitem
(a) of this subsection item by
paying the total premium cost, including the employer's
contribution, in the manner provided by the Division of
Insurance Services of the State Budget and Control Board.
(B)(1) In
addition to other types of retirement provided by this chapter,
a Class Three member may elect early retirement if the member:
(a)
has five or more years of earned service;
(b)
has attained the age of fifty-five years;
(c)
has at least twenty-five years of creditable
service; and
(d)
has separated from service.
A member electing early retirement
pursuant to this subsection shall apply in the manner provided
in Section 9-1-1510(B).
(2)
The benefits for a member electing early
retirement under this subsection must be calculated in the
manner provided in Section 9-1-1550, except that in lieu of any
other reduction factor, the member's early retirement allowance
is reduced by four percent a year, prorated for periods less
than one year, for each year of creditable service less than
thirty.
(3)
A member who elects early retirement under this
subsection is ineligible to receive any increase in the member's
retirement allowance as provided by law to retirees until the
second July first after the date the member attains age sixty;
or the second July first after the date the member would have
thirty years' creditable service had the member not retired,
whichever is earlier.
(4)(a)
Except as provided in subitem (b) of this
item, a member who elects early retirement under this subsection
is not covered by the State Insurance Benefits Plan until the
earlier of:
(i)
the date the member attains age sixty, or
(ii)
the date the member would have thirty years'
creditable service had the member not retired.
(b)
A member taking early retirement under this
subsection may maintain coverage under the State Insurance
Benefits Plan until the date the member's coverage is reinstated
pursuant to subitem (a) of this item by paying the total premium
cost, including the employer's contribution, in the manner
provided by the Division of Insurance Services of the State
Budget and Control Board."
SECTION 8. A. Section 9-1-1540 of the 1976 Code, as lasted amended by Act 162 of 2010, is further amended to read:
"Section 9-1-1540.
(A) Upon the application of a
member in service or of his the member's
employer that is received by the system before January 1,
2013, a member in service on or after July 1, 1970, who has
had five or more years of the earned
service required pursuant to Section 9-1-1510 for the
member's class, or a contributing member who is disabled as
a result of an injury arising out of and in the course of the
performance of his the member's duties
regardless of length of membership on or after July 1, 1985, may
be retired by the board not less than thirty days and not more
than nine months next following the date of filing the
application on a disability retirement allowance if the system,
after a medical examination of the member, certifies that the
member is mentally or physically incapacitated for the further
performance of duty, that the incapacity is likely to be
permanent, and that the member should be retired. For purposes
of this section, a member is considered to be in service on the
date the application is filed if the member is not retired and
the last day the member was employed by a covered employer in
the system occurred not more than ninety days prior to the date
of filing.
The South Carolina Retirement System may
contract with the Department of Vocational Rehabilitation to
evaluate the medical evidence submitted with the disability
application relative to the job being performed and make
recommendations to the medical board. The system may approve a
disability retirement subject to the member participating in
vocational rehabilitation with the Department of Vocational
Rehabilitation. Upon determination by the department that a
member retired on disability is able to reenter the job market
and work is available, the retirement system may adjust the
benefit paid by the system in accordance with Sections 9-1-1580,
9-1-1590, 9-9-60, and 9-11-90.
(B)(1) Upon
the application of a member in service or of the member's
employer received by the system after December 31, 2012, a
member in service who has the earned service required for the
member's class pursuant to Section 9-1-1510, or who is disabled
as a result of an injury arising out of and in the course of the
performance of the member's duties regardless of length of
membership, may be retired by the board if the member is
determined to be disabled pursuant to subsection (B)(2) of this
section. For purposes of this section, a member is considered
to be in service on the date the application is filed if the
last day the member was employed by a covered employer in the
system occurred not more than ninety days before the date of
filing and, if the member has retired on a service retirement
allowance, the member's date of retirement occurred not more
than ninety days before the date of filing.
(2)
A member whose application for disability
retirement benefits was received by the system after December
31, 2012 is considered disabled if the member qualifies for the
payment of Social Security disability benefits and is eligible
for benefits pursuant to this section upon proof of the
disability, provided that the date of disability established by
the Social Security Administration falls within one year after
the last day the member was employed by a covered employer in
the system. The member shall submit to the retirement system the
Social Security Award Notice certifying the date of entitlement
for disability benefits as issued by the Social Security
Administration. Upon final approval by the system, disability
benefits become effective on the date of entitlement as
established by the Social Security Administration or the day
after the member's last day on the payroll of a covered
employer, whichever is later."
B. Section 9-1-1560 of the 1976 Code, as last amended by Act 166 of 1993, is further amended to read:
"Section 9-1-1560.
(A) Except as provided in
subsection (E) of this section, upon retirement for
disability on or after July 1, 1976, a Class One member shall
receive a service retirement allowance if he has attained the
age of sixty-five years. Otherwise he shall receive a disability
retirement allowance which shall be computed as follows:
(1)
Such allowance shall be equal to the service retirement
allowance which would have been payable had he continued in
service to age sixty-five based on the average final
compensation, minus the actuarial equivalent of the contribution
the member would have made during such continued service, with
an interest rate of four percent per annum.
(2)
Notwithstanding the foregoing provisions, any Class One
member whose creditable service commenced prior to July 1, 1976,
shall receive not less than the benefit which would have been
provided by the provisions of this section in effect immediately
prior to July 1, 1976.
(B) Except as
provided in subsection (E) of this section, upon retirement
for disability on or after May 19, 1973, a Class Two member
shall receive a service retirement allowance if he has attained
the age of sixty-five years. Otherwise he shall receive a
disability retirement allowance which shall be computed as
follows:
(1)
Such allowance shall be equal to the service retirement
allowance which would have been payable had he continued in
service to age sixty-five based on the average final
compensation, minus the actuarial equivalent of the contribution
the member would have made during such continued service, with
an interest rate of four percent per annum.
(2)
Notwithstanding the foregoing provisions, any Class Two
member whose creditable service commenced prior to July 1, 1964,
shall receive not less than the benefit provided by subsection
(A) of this section.
(C) Except as
provided in subsection (E) of this section, employees
retired on disability subsequent to July 1, 1982, must have
their benefits recalculated in accordance with the provisions of
item (1) of subsection (A) and item (2) of subsection (B).
(D) Notwithstanding any
other provision of this section, upon retirement for disability
after October 15, 1992, at any age, a member must receive a
disability retirement allowance equal to at least fifteen
percent of his average final compensation.
(2)
Upon retirement for disability based on an
application for disability benefits received by the system after
December 31, 2012, a Class Two or Class Three member shall
receive a disability retirement allowance equal to one and
eighty-two hundredths percent of his average final compensation,
multiplied by the number of years of his creditable service as
of the date of retirement, without reduction because of
commencement before the normal retirement date."
C. Section 9-1-1570 of the 1976 Code is amended to read:
"Section 9-1-1570.
(A) Once each year during the
first five years following the retirement of a member on a
disability retirement allowance and once in every three-year
period thereafter the board may, and upon his application,
require any disability beneficiary who has not yet attained the
age of sixty-five years to undergo a medical examination to be
made at the place of residence of the beneficiary or other place
mutually agreed upon by a physician designated by the board.
Should If any disability beneficiary who
has not yet attained the age of sixty-five years
refuse refuses to submit to at least one
medical examination in any such year by a physician designated
by the board his the member's disability
retirement allowance may be discontinued until
his the member's withdrawal of refusal
and should his if the member's refusal
continue continues for one year,
all his the member's rights in and to
his the member's disability retirement
allowance may be revoked by the board.
(B) A member
who is retired on a disability retirement allowance based upon
an application received by the system after December 31, 2012,
and who has not yet attained the age of sixty-five years
annually shall provide proof to the system that the member
remains qualified for the receipt of Social Security disability
benefits within thirty days of the anniversary of his retirement
date. A member's disability retirement allowance ceases upon a
determination by the Social Security Administration that the
member is no longer entitled to Social Security disability
benefits for any reason. If any disability beneficiary who has
not yet attained the age of sixty-five years refuses to provide
proof of disability required by the board, the member's
disability retirement allowance must be discontinued until the
member provides such proof. If a member's refusal to provide
proof that the member remains qualified for Social Security
disability benefits continues for one year, all of the member's
rights in and to the member's disability retirement allowance
pursuant to Section 9-1-1540 may be revoked by the
board."
SECTION 9. Section 9-1-1550 of the 1976 Code, as last amended by Act 1 of 2001, is further amended by adding a new subsection at the end to read:
"(C) Upon
retirement from service after December 31, 2012, a Class Three
member shall receive a service retirement allowance computed as
follows:
(1)
If the member's service retirement date occurs on or after
his sixty-fifth birthday or after he has completed thirty or
more years of creditable service, the allowance must be equal to
one and eighty-two hundredths percent of his average final
compensation, multiplied by the number of years of his
creditable service.
(2)
If the member's service retirement date occurs before his
sixty-fifth birthday and before he completes thirty years of
creditable service, his service retirement allowance is computed
as in item (1) of this subsection but is reduced by
five-twelfths of one percent thereof for each month, prorated
for periods less than a month, by which his retirement date
precedes the first day of the month coincident with or next
following his sixty-fifth birthday."
SECTION 10. Section 9-1-1660(A) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(A) The person
nominated by a member to receive the full amount of the member's
accumulated contributions if the member dies before retirement
may, if the member:
(1)
has five or more years of earned service;
(2)
dies while in service; and
(3)
has either attained the age of sixty years or has
accumulated fifteen years or more of creditable service, elect
to receive in lieu of the accumulated contributions an allowance
for life in the same amount as if the deceased member had
retired at the time of the member's death and had named the
person as beneficiary under an election of Option B of Section
9-1-1620(A). For purposes of the benefit calculation, a
Class One or Class Two member under age sixty with less
than twenty-eight years' credit, or thirty years such credit
in the case of a Class Three member, is assumed to be sixty
years of age."
SECTION 11. A. Section 9-1-1790(A) of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"(A)(1) A
retired member of the system who has been retired for at least
fifteen sixty consecutive calendar days
may be hired and return to employment covered by this system or
any other system provided in this title and earn up to ten
thousand dollars without affecting the monthly retirement
allowance he the member is receiving
from the system. If the retired member continues in service
after earning ten thousand dollars in a calendar year, the
member's allowance must be discontinued during his period of
service in the remainder of the calendar year. If the
employment continues for at least forty-eight consecutive
months, the provisions of Section 9-1-1590 apply. If a retired
member of the system returns to employment covered by this
system or any other system provided in this title sooner than
fifteen sixty days after retirement, the
member's retirement allowance is suspended while the member
remains employed by the participating employer. If an employer
fails to notify the system of the engagement of a retired member
to perform services, the employer shall reimburse the system for
all benefits wrongly paid to the retired member.
(2)
The earnings limitation imposed pursuant to this
item does not apply if the member meets at least one of the
following qualifications:
(a)
the member retired before January 1, 2013;
(b)
the member has attained the age of sixty-two
years at retirement; or
(c)
compensation received by the retired member from
the covered employer is for service in a public office filled by
the appointment of the Governor and with confirmation by the
Senate, by appointment or election by the General Assembly, or
by election of the qualified electors of the applicable
jurisdiction."
B. Upon approval of this act by the Governor, this SECTION takes effect January 1, 2013.
SECTION 12. Section 9-1-2210(A) of the 1976 Code, as last amended by Act 112 of 2007, is further amended to read:
"Section 9-1-2210. (A) An active Class One or Class Two contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article may elect to participate in the Teacher and Employee Retention Incentive Program (program). A member electing to participate in the program retires for purposes of the system. The program participant shall agree to continue employment with an employer participating in the system for a program period, not to exceed five years. The member shall notify the system before the beginning of the program period. Participation in the program does not guarantee employment for the specified program period. Class Three members are not eligible to participate in the program."
SECTION 13. A. Section 9-1-1810 of the 1976 Code is repealed.
B. Upon approval of this act by the Governor, this SECTION takes effect June 15, 2012.
SECTION 14. A. Section 9-9-60 of the 1976 Code, as last amended by Act 334 of 2002, is further amended to read:
"Section 9-9-60.
(1) A member of the system may retire
upon written application to the board setting forth at what
time, not more than ninety days before nor more than six months
after the execution and filing of the application, the member
desires to be retired, if at the time specified for retirement,
the member is no longer in the service of the State, whether as
a member of the General Assembly or otherwise, except as
provided in Section 9-9-40(3), and has either attained the age
of sixty years or completed thirty years of credited service.
(2) Effective July 1,
1989, a retired member shall receive a monthly retirement
allowance which is equal to one-twelfth of four and eighty-two
hundredths percent of earnable compensation multiplied by the
number of years of his credited service prorated for periods
less than a year.
(3)
A member who has attained the age of seventy and
one-half years and has twenty-five years of service or who has
attained the age of 70 or has 30 years of service may retire and
draw a retirement benefit while continuing to serve in the
General Assembly upon written application to the board setting
forth at what time, not more than ninety days before nor more
than six months after the execution and filing of the
application, the member desires to be retired. A member who has
retired under this provision shall make no further contributions
to the system, shall earn no further service credit, and may not
reenter membership in the system.
The member must retire at
the beginning of an annual session of the General Assembly and
the election to receive the member's retirement allowance under
this system is in lieu of receiving the constitutionally
mandated per diem salary, currently established at ten thousand
four hundred dollars for a regular session. This election if
made is irrevocable and applies for as long as that person
serves thereafter in the General Assembly including service in
both regular and extra sessions."
B. A member of the General Assembly who on the effective date of this section is receiving a GARS annuity benefit attributable to that member's credited service in GARS shall continue to receive that benefit as provided by the provisions of Section 9-9-60 in effect immediately before the effective date of this SECTION.
C. Upon approval of this act by the Governor, this SECTION takes effect after January 31, 2013.
SECTION 15. Section 9-9-120(2) of the 1976 Code is amended to read:
(2) Each member of the
System shall contribute ten eleven
percent of earnable compensation in each calendar year, up to
twenty-two years of credited service, commencing with the
calendar year 1976 2013. Such
contributions shall be made through payroll deductions in the
case of members of the General Assembly or through direct
remittance by contributing special members as set forth in Item
(2)(ii) of Section 9-9- 40. The twenty-two year limitation
provided for in this item shall not apply to any member of the
General Assembly during periods of active service.
SECTION 16. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-312.
(A) Effective July 1, 2012, and July
1, 2013, the retirement allowance received by retirees and their
surviving annuitants pursuant to this chapter, inclusive of
Section 9-11-140, must be increased by one percent. Only those
retirees and their surviving annuitants in receipt of an
allowance on July first preceding the effective date of the
increase provided by this subsection are eligible to receive the
increase. Any increase in allowance granted pursuant to this
subsection must be included in the determination of any
subsequent increase.
(B)(1) Effective July
1, 2014, the retirement allowance received by retirees and their
surviving annuitants pursuant to this chapter, inclusive of
Section 9-11-140, are subject to an annual adjustment calculated
as provided in this subsection. Annually, beginning in
November, 2013, the board shall subtract the assumed annual rate
of return on the investments of the assets of the South Carolina
Police Officers Retirement System from the five-year average
investment return of the South Carolina Police Officers
Retirement System. If the difference of that subtraction is a
positive percentage, then retirement allowances paid must be
increased by the same percentage, but not more than two percent.
If the annual calculation percentage results in a positive
percentage, but the actual rate of return on the system's
investments for the preceding plan year was less than zero, an
increase may not be granted. In no case may the calculation
result in an adjustment that decreases benefits. If the annual
calculation results in an increased retirement allowance, the
board, by December thirty-first following the calculation, by
resolution, shall direct the increase.
(2)
For purposes of this subsection, the 'five-year average
investment return' means the average of the investment returns
of the most recent five plan years ending on June thirtieth
before the November calculation date as determined by the
board.
(C) An increase in the
retirement allowance pursuant to subsection (B) of this section
begins the July first immediately following the date of the
resolution directing the increase, and all increases in
retirement allowances must be granted to those retirees and
their surviving annuitants in receipt of a retirement allowance
on July first immediately preceding the effective date of the
increase. Any increase in allowance granted pursuant to
subsection (B) must be included in the determination of any
subsequent increase."
SECTION 17. A. Section 9-11-10(7) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(7)(a)
'Average final compensation' after July 1, 1986, for
Class One and Class Two members means the average annual
compensation of a member during the twelve consecutive quarters
of the member's creditable service on which regular
contributions as a member were made to the system producing the
highest average; a quarter means a period January through March,
April through June, July through September, or October through
December. An amount up to and including forty-five days'
termination pay for unused annual leave at retirement may be
added to the average final compensation. Average final
compensation for an elected official may be calculated as the
average annual earnable compensation for the thirty-six
consecutive months prior to the expiration of his term of
office.
(b)
'Average final compensation' for Class Three
members means the average annual earnable compensation of a
member during the twenty consecutive quarters of the member's
creditable service on which regular contributions as a member
were made to the system producing the highest such average; a
quarter means a period January through March, April through
June, July through September, or October through December.
Termination pay for unused annual leave at retirement may not be
added to the average final compensation."
B. Section 9-11-10 of the 1976 Code, as last amended by Act 153 of 2005, is further amended by adding a new item after item (11) to read:
"(11A) 'Class Three member' means an employee member of the system with an effective date of membership after June 30, 2012."
SECTION 18. A. Section 9-11-50 of the 1976 Code, as last amended by Act 311 of 2008, is further amended to read:
"Section 9-11-50
(A) An active member may establish
service credit for any period of paid public service by making
a an actuarially neutral payment to the
system to be determined by the actuary for the board, based
on the member's current age and service credit,
board, but not less than sixteen percent of the
member's current salary or career highest fiscal year salary,
whichever is greater, for each year of credit purchased.
Periods of less than a year must be prorated. A member may not
establish credit for a period of public service for which the
member also may receive a retirement benefit from another
defined benefit retirement plan. A member may not establish
service credit for public service to the extent such service
purchase would violate Section 415 or any other provision of the
Internal Revenue Code.
(B) An active member
may establish service credit for any period of paid educational
service by making a an actuarially
neutral payment to the system to be determined by the
actuary for the board, based on the member's current age and
service credit, board, but not less than
sixteen percent of the member's current salary or career highest
fiscal year salary, whichever is greater, for each year of
credit purchased. Periods of less than a year must be prorated.
A member may not establish credit for a period of educational
service for which the member also may receive a retirement
benefit from another defined benefit retirement plan. A member
may not establish service credit for educational service to the
extent such service purchase would violate Section 415 or any
other provision of the Internal Revenue Code.
(C) An active member
may establish up to six years of service credit for any period
of military service, if the member was discharged or separated
from military service under conditions other than dishonorable,
by making a an actuarially neutral
payment to the system to be determined by the actuary for the
board, based on the member's current age and service credit,
board, but not less than sixteen percent of the
member's current salary or career highest fiscal year salary,
whichever is greater, for each year of credit purchased.
Periods of less than a year must be prorated.
(D) An active member on
an approved leave of absence from an employer that participates
in the system who returns to covered employment within four
years may purchase service credit for the period of the approved
leave, but may not purchase more than two years of service
credit for each separate leave period, by making
a an actuarially neutral payment to the
system to be determined by the actuary for the board, based
on the member's current age and service credit,
board, but not less than sixteen percent of the
member's current salary or career highest fiscal year salary,
whichever is greater, for each year of credit purchased.
Periods of less than a year must be prorated.
(E) An active member
who has five or more years of earned service credit may
establish up to five years of nonqualified service by making
a an actuarially neutral payment to the
system to be determined by the actuary for the board, based
on the member's current age and service credit
board, but not less than thirty-five percent of
the member's current salary or career highest fiscal year
salary, whichever is greater, for each year of credit purchased.
Periods of less than a year must be prorated.
(F) An active member
may establish service credit for any period of service in which
the member participated in the State Optional Retirement
Program, the Optional Retirement Program for Teachers and School
Administrators, or the Optional Retirement Program for Publicly
Supported Four-Year and Postgraduate Institutions of Higher
Education, by making a an actuarially
neutral payment to the system to be determined by the
actuary for the board, based on the member's current age and
service credit, board, but not less than
sixteen percent of the member's current salary or career highest
fiscal year salary, whichever is greater, for each year of
credit purchased. Periods of less than a year must be prorated.
A member may not establish credit for a period of service for
which the member also may receive a retirement benefit from
another defined benefit retirement plan. A member may not
establish service credit under this subsection to the extent
such service purchase would violate Section 415 or any other
provision of the Internal Revenue Code. Service purchased under
this subsection is 'earned service' and counts toward the
required five or more years of earned service necessary for
benefit eligibility. Compensation earned while participating in
the State Optional Retirement Program, the Optional Retirement
Program for Teachers and School Administrators, or the Optional
Retirement Program for Publicly Supported Four-Year and
Postgraduate Institutions of Higher Education is not earnable
compensation under the system and shall not be used in
calculating a member's average final compensation. A member
purchasing service under this subsection who has funds invested
in a TIAA Traditional account under a TIAA-CREF Retirement
Annuity contract shall be eligible to make a plan to plan
transfer in accordance with the terms of that contract.
(G) An active member
who previously withdrew contributions from the system may
reestablish the service credited to the member at the time of
the withdrawal of contributions by repaying the amount of the
contributions previously withdrawn, plus regular interest from
the date of the withdrawal to the date of repayment to the
system.
(H) An active member
establishing retirement credit pursuant to this chapter may
establish that credit by means of payroll deducted installment
payments. Interest must be paid on the unpaid balance of the
amount due at the rate of the prime rate plus two percent a
year.
(I) An employer, at its
discretion, may pay to the system all or a portion of the cost
for an employee's purchase of service credit under this chapter.
Amounts paid by the employer under this subsection for all
purposes must be treated as employer contributions.
(J) Service credit
purchased under this section is not 'earned service' and does
not count toward the required five or more years of earned
service necessary for benefit eligibility except:
(1)
earned service previously withdrawn and reestablished;
(2)
service rendered while participating in the State Optional
Retirement Program, the Optional Retirement Program for Teachers
and School Administrators, or the Optional Retirement Program
for Publicly Supported Four-Year and Postgraduate Institutions
of Higher Education that has been purchased pursuant to
subsection (F); or
(3)
service earned as a participant in the system, the South
Carolina Retirement System, the Retirement System for Members of
the General Assembly, or the Retirement System for Judges and
Solicitors that is transferred to or purchased in the system.
(K) A member may
purchase each type of service under this section once each
fiscal year.
(L) At retirement,
after March 31, 1991, a Class One or Class Two member
shall receive credit for not more than ninety days of his unused
sick leave from the member's last employer at no cost to the
member. The leave must be credited at a rate where twenty days
of unused sick leave equals one month of service. This
additional service credit may not be used to qualify for
retirement.
(M) The board shall
promulgate regulations and prescribe rules and policies, as
necessary, to implement the service purchase provisions of this
chapter.
(N) An employee drawing
workers' compensation who is on a leave of absence for a limited
period may voluntarily contribute on his contractual salary, to
be matched by the employer."
B. Upon approval of this act by the Governor, this SECTION takes effect January 1, 2013.
SECTION 19. Section 9-11-60(2) of the 1976 Code, as last amended by Act 387 of 2001, is further amended to read:
"(2) Upon service
retirement on or after July 1, 1989, the member shall receive a
service retirement allowance which is equal to the sum of (a),
(b), and (c) below:
(a)
a monthly retirement allowance equal to ten dollars and
ninety-seven cents multiplied by the number of years of his
Class One service;
(b)
a monthly retirement allowance equal to one-twelfth of two
and fourteen hundredths percent of his average final
compensation multiplied by the number of years of his Class Two
or Class Three service;
(c)
an additional monthly retirement allowance which is the
actuarial equivalent of the member's accumulated additional
contributions.
The sum of the retirement allowances
computed under (a) and (b) above may not be less than the
allowance which would have been provided under (a) if all of the
member's credited service were Class One service. For a police
officer who became a member before July 1, 1974, and who was a
participant in the Supplemental Allowance Program, the portion
of his service retirement allowance not provided by his
accumulated contributions may not be less than it would have
been if the provisions of the System in effect on June 30, 1974,
had continued in effect until his date of retirement."
SECTION 20. Section 9-11-80 of the 1976 Code, as last amended by Act 162 of 2010, is further amended to read:
"Section 9-11-80.
(1) On the application of a member in
service or the member's employer, a member who has five
or more completed the years of earned service
required for the member's class pursuant to Section
9-11-60(1) or any contributing member who is disabled as a
result of an injury arising out of and in the course of the
performance of the member's duties regardless of length of
membership, may be retired by the retirement board not
less than thirty days and not more than nine months next
following the date of filing the application on a disability
retirement allowance if the system, after a medical examination
of the member, certifies that the member is mentally or
physically incapacitated for the further performance of duty,
that the incapacity is likely to be permanent, and that the
member should be retired. For purposes of this section, a member
is considered to be in service on the date the application is
filed if the member is not retired and the last day the member
was employed by a covered employer in the system occurred not
more than ninety days prior to before
the date of filing.
The South Carolina Retirement System may
contract with the Department of Vocational Rehabilitation to
evaluate the medical evidence submitted with the disability
application relative to the job being performed and make
recommendations to the system. The system may approve a
disability retirement subject to the member participating in
vocational rehabilitation with the Department of Vocational
Rehabilitation. Upon determination by the department that a
member retired on disability is able to reenter the job market
and work is available, the retirement system may adjust the
benefit paid by the system in accordance with Sections 9-1-1580,
9-1-1590, 9-9-60, and 9-11-90.
(2)(A) Upon
disability retirement based upon an application received by
the system before January 1, 2013, the member shall receive
a disability retirement allowance which shall be equal to a
service retirement allowance computed on the basis of his
average final compensation, his years of credited service and
his accumulated additional contributions at the date of his
disability retirement; provided, however, that, at disability
retirement, his disability retirement allowance shall be
determined on the basis of the number of years of credited
service the member would have completed had he remained in
service until attaining age fifty-five and on the basis of the
average final compensation. For the purpose of calculating the
disability retirement allowance, the additional credited service
so determined shall be either Class One service or Class Two
service depending upon the classification of the member at time
of retirement.
(B)
Upon disability retirement based upon an
application received by the system after December 31, 2012, the
member shall receive a disability retirement allowance which is
equal to a service retirement allowance computed on the basis of
the member's average final compensation, the member's years of
credited service, and the member's accumulated additional
contributions at the date of the member's disability retirement.
However, at disability retirement, the member's disability
retirement allowance must be determined on the basis of the
member's average final compensation at retirement and on the
basis of the number of years of credited service the member
would have completed had the member remained in service until
attaining age fifty-five or until attaining twenty-five years of
credited service, whichever is less. For the purpose of
calculating the disability retirement allowance, the additional
credited service so determined must be either Class One service
or Class Two service depending upon the classification of the
member at time of retirement.
(3)(A) Once
each year during the first five years following the retirement
of a member on a disability retirement allowance, and once in
every three-year period thereafter, the Board may require any
disability beneficiary who has not yet attained the age of
fifty-five years to undergo a medical examination, such
examination to be made at the place of residence of the
beneficiary or other place mutually agreed upon, by the system.
Should any If a disability beneficiary
who has not yet attained the age of fifty-five years
refuse refuses to submit to any such
medical examination, his the member's
retirement allowance may be discontinued until
his the member's withdrawal of such
refusal, and should his if the refusal
continue continues for one year,
all his the member's rights in and to
his the member's retirement allowance
may be revoked, but upon revocation any unexpended portion of
his the member's accumulated
contributions to date of retirement shall be returned to
him the member.
(B)
To continue to receive a disability retirement
allowance, a member who is retired on a disability retirement
allowance based upon an application received by the system after
December 31, 2012, and who has not yet attained the age of
fifty-five years shall provide proof to the system that the
member is qualified for the receipt of Social Security
disability benefits. This proof must be submitted to the system
within thirty days of the third anniversary of the member's
disability retirement date and within thirty days of each
anniversary thereafter. A member's disability retirement
allowance ceases upon a determination by the Social Security
Administration that the member is no longer entitled to Social
Security disability benefits for any reason. If any disability
beneficiary who has not yet attained the age of fifty-five years
refuses to provide proof of disability required by the board,
his disability retirement allowance must be discontinued until
the member provides such proof. If a member's refusal to
provide proof that the member remains qualified for Social
Security disability benefits continues for one year, all of the
member's rights in and to the member's disability retirement
allowance pursuant to this section may be revoked by the
board.
(4) If the system
certifies that the member's disability has been removed and that
he the member has regained
his earning capacity, his
the member's disability retirement allowance may be
discontinued, or if the disability has been partly removed and
his the member's earning capacity
regained in part, the disability retirement allowance may be
reduced proportionately as provided pursuant to Section
9-1-1580. The determination of the board as to any disputed
question, after due consideration accorded to the member, is
conclusive. Should If the retirement
allowance of any member retired for disability
be is discontinued or reduced, and
should he if the member again
suffer suffers disability within five
years of the date of his the member's
recovery and again lose his loses
earning capacity, he shall be the member
is entitled to apply to the board for a restoration of
his the original retirement allowance,
and the board may restore all or part of his
the member's original retirement allowance. At the
expiration of the five-year period, if the retirement allowance
has not been restored, all rights in and to the member's
disability retirement allowance are revoked. The member then is
entitled to a deferred early retirement allowance as provided in
Section 9-11-70 based upon his the
member's average final compensation and credited service at
his the member's date of disability
retirement.
(5) After age
fifty-five, a disability retiree is subject to the same earnings
limitation as a service retiree.
(6) Notwithstanding any
other provision of this section, upon retirement for disability
after October 15, 1992, at any age, a member must receive a
disability retirement allowance equal to at least fifteen
percent of his average final compensation."
SECTION 21. A. Section 9-11-90(4)(a) of the 1976 Code, as last amended by Act 356 of 2002, is further amended to read:
"(a)(i)
Notwithstanding the provisions of subsections (1) and (2)
of this section, a retired member of the system who has been
retired for at least fifteen sixty
consecutive calendar days may be hired and return to employment
covered by this system or any system provided in this title
and may earn up to ten thousand dollars without affecting
the monthly retirement allowance he the
member is receiving from this system. If the retired
member continues in service after having earned ten thousand
dollars in a calendar year, the member's retirement allowance
must be discontinued during the member's period of service in
the remainder of the calendar year. If the employment
continues for at least forty-eight consecutive months, the
provisions of Section 9-11-90(3) apply. If a retired member of
the system returns to employment covered by the South Carolina
Police Officers Retirement System or any other system provided
in this title sooner than fifteen sixty
consecutive calendar days after retirement, the member's
retirement allowance is suspended while the member remains
employed by a participating employer of any of these systems.
If an employer fails to notify the system of the engagement of a
retired member to perform services, the employer shall reimburse
the system for all benefits wrongly paid to the retired member.
(ii)
The earnings limitation imposed pursuant to this
item does not apply if the member meets at least one of the
following qualifications:
(A)
the member retired before January 1, 2013;
(B)
the member has attained the age of fifty-seven
years at retirement; or
(C)
compensation received by the retired member from
the covered employer is for service in a public office filled by
the appointment of the Governor and with confirmation by the
Senate, by appointment or election by the General Assembly, or
by election of the qualified electors of the applicable
jurisdiction."
B. Upon approval of this act by the Governor, this SECTION takes effect January 1, 2013.
SECTION 22. Subsections (1) and (12) of Section 9-11-210, as last amended by Act 14 of 2005, are further amended to read:
"(1) Each Class
One member shall contribute to the system twenty-one dollars a
month during his service after becoming a member. Before
July 1, 2013, each Class Two member shall contribute to the
system six seven and
one-half percent of his compensation. After June
30, 2013, each Class Two member shall contribute to the system
seven and one-half percent of his compensation.
(12) Payments for
unused sick leave, single special payments at retirement, bonus
and incentive-type payments, or any other payments not
considered a part of the regular salary base are not
compensation for which contributions are deductible. This item
does not apply to bonus payments paid to certain categories of
employees annually during their work careers. Bonus or special
payments applied only during the 'Average Final Compensation'
period are excluded as compensation. Not including Class
Three members, contributions are deductible on up to and
including forty-five days' termination pay for unused annual
leave. If a member has received termination pay for unused
annual leave on more than one occasion, contributions are
deductible on up to and including forty-five days' termination
pay for unused annual leave for each termination payment for
unused annual leave received by the member. However, only an
amount up to and including forty-five days' pay for unused
annual leave from the member's last termination payment
shall must be included in a member's
average final compensation calculation for those members
eligible to have that pay included in that member's average
final compensation calculation."
SECTION 23. Section 9-11-220(1) of the 1976 Code is amended to read:
"(1) Commencing as of July 1, 1974, each employer shall contribute to the System seven and one-half percent of the compensation of Class One members in its employ and ten percent of compensation of Class Two members in its employ. Such rates of contribution shall be subject to adjustment from time to time on the basis of the annual actuarial valuations of the system; however, after June 30, 2012, the employer contribution rate for Class Two members shall not be less than twelve and three-tenths percent of the earnable compensation of those members, until an accrued liability contribution is no longer required."
SECTION 24. A. Section 9-11-310 of the 1976 Code is repealed.
B. Upon approval of this act by the governor, this SECTION takes effect June 15, 2012.
SECTION 25. Article 3, Chapter 16, Title 9 of the 1976 Code is amended by adding:
"Section 9-16-335. For all purposes of this title, the assumed annual rate of return on the investments of the retirement system must be established by the General Assembly pursuant to this section. Effective July 1, 2012, the assumed annual rate of return on retirement system investments is seven and one-half percent."
SECTION 26. A. Section 9-1-1135 of the 1976 Code, as added by Act 311 of 2008, is amended to read:
"Section 9-1-1135.
(A) Interest
shall must be credited to the account of
each member once each year as of June thirtieth, on the basis of
the balance in the account of each member as of the previous
June thirtieth. Upon the death, retirement, or termination of a
member, interest shall must be figured
to the end of the month immediately preceding the date of refund
or retirement, interest being based on the balance in
such the member's account as of the June
thirtieth immediately preceding the date of refund or
retirement.
(B)
Notwithstanding subsection (A), interest must not be
credited to an inactive member account. For purposes of this
subsection, a member account becomes inactive on July first if
no contributions were made to the account in the preceding
twelve months."
B. Section 9-8-185 of the 1976 Code, as added by Act 311 of 2008, is amended to read:
"Section 9-8-185.
(A) Interest
shall must be credited to the account of
each member once each year as of June thirtieth, on the basis of
the balance in the account of each member as of the previous
June thirtieth. Upon the death, retirement, or termination of a
member, interest shall must be figured
to the end of the month immediately preceding the date of refund
or retirement, interest being based on the balance in
such the member's account as of the June
thirtieth immediately preceding the date of refund or
retirement.
(B)
Notwithstanding subsection (A), interest must not be
credited to an inactive member account. For purposes of this
subsection, a member account becomes inactive on July first if
no contributions were made to the account in the preceding
twelve months."
C. Section 9-9-175 of the 1976 Code, as added by Act 311 of 2008, is amended to read:
"Section 9-9-175.
(A) Interest
shall must be credited to the account of
each member once each year as of June thirtieth, on the basis of
the balance in the account of each member as of the previous
June thirtieth. Upon the death, retirement, or termination of a
member, interest shall must be figured
to the end of the month immediately preceding the date of refund
or retirement, interest being based on the balance in
such the member's account as of the June
thirtieth immediately preceding the date of refund or
retirement.
(B)
Notwithstanding subsection (A), interest must not be
credited to an inactive member account. For purposes of this
subsection, a member account becomes inactive on July first if
no contributions were made to the account in the preceding
twelve months."
D. Section 9-11-265 of the 1976 Code, as added by Act 311 of 2008, is amended to read:
"Section 9-11-265.
(A) Interest
shall must be credited to the account of
each member once each year as of June thirtieth, on the basis of
the balance in the account of each member as of the previous
June thirtieth. Upon the death, retirement, or termination of a
member, interest shall must be figured
to the end of the month immediately preceding the date of refund
or retirement, interest being based on the balance in
such the member's account as of the June
thirtieth immediately preceding the date of refund or
retirement.
(B)
Notwithstanding subsection (A), interest must not be
credited to an inactive member account. For purposes of this
subsection, a member account becomes inactive on July first if
no contributions were made to the account in the preceding
twelve months."
SECTION 27. If any part, section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every part, section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other parts, sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 28. Except where otherwise stated, this act takes effect July 1, 2012. /
Renumber sections to conform.
Amend title to conform.