Reference is to Printer's Date 5/16/12-S.
Amend the bill, as and if amended, by adding an appropriately numbered new Part to read:
/
SECTION __. A. Title 9 of the 1976 Code is amended by adding:
Section 9-4-10. (A)
Effective July 1, 2012, there is created the
South Carolina Public Employee Benefit Authority. The authority
is comprised of the Insurance Reserve Fund, 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 members, appointed by the President Pro Tempore of the
Senate, one of whom is a representative member who is either an
active or retired member of the South Carolina Police Officers
Retirement System or a retired member of the South Carolina
Retirement System, and one member from the State at large;
(3)
one member appointed by the Chairman of the Senate Finance
Committee;
(4)
two members appointed by the Speaker of the House of
Representatives, one of whom is a representative member who must
be a state employee who is an active contributing member of the
South Carolina Retirement System or an employee of a public
school district in South Carolina who is an active member of the
South Carolina Retirement System, and one member from the State
at large;
(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
credentialed by 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)
health care;
(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,
2012, the following offices, divisions, or components of the
State Budget and Control Board are transferred to, and
incorporated into, an administrative agency of state government
to be known as the South Carolina Public Employee Benefit
Authority:
(1)
Employee Insurance Program;
(2)
Retirement Division; and
(3)
Insurance Reserve Fund.
Section 9-4-15. The South Carolina Public Employee Benefit Authority shall operate the Insurance Reserve Fund and may establish it as a division or other appropriate subdivision of the authority.
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 systems 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) 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 Office of the Comptroller General, which may
provide guidance to the authority."
B. This SECTION takes effect July 1, 2012.
SECTION __. Section 1-11-140 of the 1976 Code is amended to read:
"Section 1-11-140.
(A) The State Budget and
Control Board Public Employee Benefits
Authority, through the Office of Insurance
Services Insurance Reserve Fund, is authorized
to provide insurance for the State, its departments, agencies,
institutions, commissions, boards, and the personnel employed by
the State in its departments, agencies, institutions,
commissions, and boards so as to protect the State against tort
liability and to protect these personnel against tort liability
arising in the course of their employment. The insurance also
may be provided for physicians or dentists employed by the
State, its departments, agencies, institutions, commissions, or
boards against any tort liability arising out of the rendering
of any professional services as a physician or dentist for which
no fee is charged or professional services rendered of any type
whatsoever so long as any fees received are directly payable to
the employer of a covered physician or dentist, or to any
practice plan authorized by the employer whether or not the
practice plan is incorporated and registered with the Secretary
of State; provided, any insurance coverage provided by the
Budget and Control Board authority may
be on the basis of claims made or upon occurrences. The
insurance also may be provided for students of high schools,
South Carolina Technical Schools, or state-supported colleges
and universities while these students are engaged in work study,
distributive education, or apprentice programs on the premises
of private companies. Premiums for the insurance must be paid
from appropriations to or funds collected by the various
entities, except that in the case of the above-referenced
students in which case the premiums must be paid from fees paid
by students participating in these training programs. The
board authority has the exclusive
control over the investigation, settlement, and defense of
claims against the various entities and personnel for whom it
provided insurance coverage and may promulgate regulations in
connection therewith.
(B)(1)
Beginning on January 1, 2013, and biennially
thereafter, the Insurance Reserve Fund must request
applications, in a manner and form prescribed by the fund, from
private attorneys and law firms to determine from the applicants
those that will be authorized to defend litigation covered by
fund policies. The fund shall authorize attorneys and law firms
to defend litigation covered by fund policies based upon such
factors as it determines relevant, including those necessary to
maintain the appropriate level of qualification, experience, and
expertise given geographical needs, case load, efficiencies, and
other business requirements.
(2)
Before submitting a request for applicants, the
fund must submit the list of factors for authorizing attorneys
and law firms to defend litigation covered by fund policies to
the Chairman of the Senate Judiciary Committee and the Chairman
of the House Judiciary Committee and receive comments and
recommendations offered by the committees.
(B)(C)
Any political subdivision of the State including,
without limitations, municipalities, counties, and school
districts, may procure the insurance for itself and for its
employees in the same manner provided for the procurement of
this insurance for the State, its entities, and its
employees, or in a manner provided by Section 15-78-140.
(C)(D)
The procurement of tort liability insurance in the
manner provided is the exclusive means for the procurement of
this insurance.
(D)(E)
The State Budget and Control Board
authority, through the Office of Insurance
Services Insurance Reserve Fund, also is
authorized to offer insurance to governmental hospitals and any
subsidiary of or other entity affiliated with the hospital
currently existing or as may be established; and chartered,
nonprofit, eleemosynary hospitals and any subsidiary of or other
entity affiliated with the hospital currently existing or as may
be established in this State so as to protect these hospitals
against tort liability. Notwithstanding any other provision of
this section, the procurement of tort liability insurance by a
hospital and any subsidiary of or other entity affiliated with
the hospital currently existing or as may be established
supported wholly or partially by public funds contributed by the
State or any of its political subdivisions in the manner herein
provided is not the exclusive means by which the hospital may
procure tort liability insurance.
(E)(F)
The State Budget and Control Board
authority, through the Office of Insurance
Services Insurance Reserve Fund, is authorized
to provide insurance for duly appointed members of the boards
and employees of health system agencies, and for members of the
State Health Coordinating Council which are created pursuant to
Public Law 93-641.
(F)(G)
The board authority,
through the Office of Insurance Services
Insurance Reserve Fund, is further authorized to provide
insurance as prescribed in Sections 10-7-10 through 10-7-40,
59-67-710, and 59-67-790.
(G)(H)
Documentary or other material prepared by or for
the Office of Insurance Services Insurance
Reserve Fund in providing any insurance coverage authorized
by this section or any other provision of law which is contained
in any claim file is subject to disclosure to the extent
required by the Freedom of Information Act only after the claim
is settled or finally concluded by a court of competent
jurisdiction.
(H)(I)
The board authority,
through the Office of Insurance Services
Insurance Reserve Fund, is further authorized to provide
insurance for state constables, including volunteer state
constables, to protect these personnel against tort liability
arising in the course of their employment, whether or not for
compensation, while serving in a law enforcement capacity."
SECTION __. Section 1-11-703(9) and (10) of the 1976 Code, as added by Act 195 of 2008, is amended to read:
"(9) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority.
(10) 'Employee
insurance program' or 'EIP' means the office of the
board South Carolina Public Employee Benefit
Authority designated by the board to operate insurance
programs pursuant to this article."
SECTION __. Section 1-11-710(A) of the 1976 Code, as last amended by Act 195 of 2008, before the first item, is further amended to read:
"(A) The
State Budget and Control Board board
shall:"
SECTION __. Section 1-11-720(B) of the 1976 Code is amended to read:
"(B) To be
eligible to participate in the state health and dental insurance
plans, the entities listed in subsection (A) shall comply with
the requirements established by the State Budget and
Control Board board, and the benefits provided
must be the same benefits provided to state and school district
employees. These entities must agree to participate for a
minimum of four years and the board may adjust the premiums
during the coverage period based on experience. An entity which
withdraws from participation may not subsequently rejoin during
the first four years after the withdrawal date."
SECTION __. Section 1-11-725 of the 1976 Code, as added by Act 353 of 2008, is amended to read:
"Section 1-11-725.
The State Budget and Control Board's
board's experience rating of all local disabilities and
special needs providers pursuant to Section 1-11-720(A)(3) must
be rated as a single group when rating all optional groups
participating in the state employee health insurance
program."
SECTION __. Section 1-11-730(A)(2) of the 1976 Code, as last amended by Act 195 of 2008, is amended to read:
"(2) A member of
the General Assembly who leaves office or retires with at least
eight years' credited service in the General Assembly Retirement
System is eligible to participate in the state health and dental
plans by paying the full premium as determined by the
State Budget and Control Board
board."
SECTION __. Sections 1-11-740 and 1-11-750 of the 1976 Code are amended to read:
"Section 1-11-740.
The Division of Insurance Services of
the State Budget and Control Board board
may develop an optional long-term care insurance program for
active and retired members of the various state retirement
systems depending on the availability of a qualified vendor. A
program must require members to pay the full insurance premium.
Section 1-11-750. The
Budget and Control Board board shall
devise a method of withholding long-term care insurance premiums
offered under Section 1-11-740 for retirees if sufficient
enrollment is obtained to make the deductions feasible."
SECTION __. Section 1-11-770(A) of the 1976 Code, before the first item, is amended to read:
"(A) Subject to
appropriations, the General Assembly authorizes the
State Budget and Control Board board to
plan, develop, and implement a statewide South Carolina 211
Network, which must serve as the single point of coordination
for information and referral for health and human services. The
objectives for establishing the South Carolina 211 Network are
to:"
SECTION __. A. Sections 8-23-20 and 8-23-30 of the 1976 Code, as last amended by Act 305 of 2008, are further amended to read:
"Section 8-23-20.
A Deferred Compensation Commission is established
consisting of eight members including the director of the South
Carolina Retirement System, chief investment officer of the
State Retirement System Investment Commission, and the executive
director of the State Employees' Association, each of whom serve
ex officio, and five other public employees to be appointed by
the State Budget and Control Board, at least two of whom must be
state employees and one must be a retired public employee. The
appointed members shall serve for terms of three years and until
their successors are appointed and qualify. The State Budget
and Control Board shall designate the chairman.
The commission Board of
Directors of the South Carolina Public Employee Benefit
Authority shall establish such rules and regulations as it
deems necessary to implement and administer the Deferred
Compensation Program. The commission
board shall make such administrative appointments and
contracts as are necessary to carry out the purpose and intent
of this chapter and in the administration of account assets.
For purposes of administering this program, an individual
account shall be maintained in the name of each employee.
The commission
board shall select, through competitive bidding and
contracts, plans for purchase of fixed and variable annuities,
savings, mutual funds, insurance and such other investments as
the commission board may approve which
are not in conflict with the State Constitution and with the
advice and approval of the State Treasurer.
Costs of administration may be paid from
the interest earnings of the funds accrued as a result of
deposits or as an assessment against each account.
Section 8-23-30. The
State or any political subdivision of the State, by contract,
may agree with an employee to defer, a portion of his
compensation in an amount as provided for in a plan approved by
the commission Board of Directors of the
South Carolina Public Employee Benefit Authority and
subsequently with the consent of the employee may contract for
purchase or otherwise procure fixed or variable annuities,
savings, mutual funds, insurance, or such other investments as
the commission board may approve for the
purpose of carrying out the objectives of the program with the
advice and approval of the State Treasurer. The investments
shall be underwritten and offered in compliance with applicable
federal and state laws and regulations by persons who are
authorized by the commission board in
accordance with the provisions of this chapter."
B. Section 8-23-70 of the 1976 Code is amended to read:
"Section 8-23-70.
The Deferred Compensation Program established pursuant to
this chapter shall be in addition to retirement, pension,
or benefit systems established by the State, federal
government, or political subdivision and no deferral of
income under the Deferred Compensation Program shall affect a
reduction of any retirement, pension, social security, or
other benefit provided by law. Any sum deferred under the
Deferred Compensation Program shall not be subject to taxation
until distribution is actually made to the employee.
Nothing contained in this chapter shall be
construed to prohibit counties, municipalities, school
districts, and other political subdivisions of the State and
their employees from participation in deferred compensation
plans or programs offered independently of the State
Deferred Compensation Commission Board of Directors
of the South Carolina Public Employee Benefit Authority by
building and loan or savings and loan associations, banks, trust
companies, and credit unions chartered by the state or
federal governments, and all such political subdivisions shall
be empowered with such contractual authority as may be necessary
or incident to such participation; provided, however, that (a)
such deferred compensation plans or programs shall comply with
applicable federal income tax law in providing income deferral,
(b) all deferred amounts shall be held in accounts, certificates
of deposit, or other forms of savings vehicles which are
insured by the Federal Savings and Loan Insurance Corporation in
the case of savings and loan associations, the Federal Deposit
Insurance Corporation in the case of commercial banks, and the
National Credit Union Administration in the case of credit
unions."
C. Section 8-23-110 of the 1976 Code, as added by Act 387 of 2000, is amended to read:
"Section 8-23-110.
(A) The commission
Board of Directors of the South Carolina Public Employee
Benefit Authority shall ensure that plan documents governing
deferred compensation plans administered by the
commission board permit employer
contributions to the extent allowed under the Internal Revenue
Code.
(B) Political
subdivisions of the State, including school districts,
participating in deferred compensation plans administered by the
commission board or such plans offered
by other providers may make matching or other contributions on
behalf of their participating employees.
(C) As an additional
benefit for state employees, and to the extent funds are
appropriated for this purpose, the State shall make matching or
other contributions on behalf of state employees participating
in the deferred compensation plans offered by the
commission board or such plans offered
by other providers in an amount and under the terms and
conditions prescribed for such contributions by the
State Budget and Control Board
board."
D. The amendments to Sections 8-23-20, 8-23-30, 8-23-70, and 8-23-110 of the 1976 Code contained in this SECTION take effect January 1, 2014.
SECTION __. Section 9-1-10(6) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(6) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority which shall act under the provisions of this
chapter through its Division of Retirement Systems."
SECTION __. Section 9-1-20 of the 1976 Code is amended to read:
"Section 9-1-20. A
retirement system is hereby established and placed under the
management of the State Budget and Control
Board board for the purpose of providing
retirement allowances and other benefits for teachers and
employees of the State and political subdivisions or agencies or
departments thereof. The system so created shall have the power
and privileges of a corporation and shall be known as the 'South
Carolina Retirement System', and by such name all of its
business shall be transacted, all of its funds invested and all
of its cash, securities, and other property held."
SECTION __. Section 9-1-210 of the 1976 Code is amended to read:
"Section 9-1-210.
The general administration and responsibility for the
proper operation of the system and for making effective the
provisions hereof are hereby vested in the State Budget
and Control Board board."
SECTION __. Section 9-1-310 of the 1976 Code, as last amended by Act 155 of 2005, is further amended to read:
"Section 9-1-310.
The administrative cost of the South Carolina Retirement
System, the South Carolina Police Officers Retirement System,
the Retirement System for Members of the General Assembly of the
State of South Carolina, the Retirement System for Judges and
Solicitors of the State of South Carolina, and the National
Guard Retirement System must be funded from the interest
earnings of the above systems. The allocation of the
administrative costs of the systems must be made by the
State Budget and Control Board board and
must be based upon a proration of the cost in proportion to the
assets that each system bears to the total assets of all of the
systems for the most recently completed fiscal year."
SECTION __. Section 9-1-1515(D)(2) of the 1976 Code is amended to read:
"(2) A member
taking early retirement may maintain coverage under the State
Insurance Benefits Plan until the date his coverage is
reinstated pursuant to item (1) of this subsection 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
board."
SECTION __. Section 9-1-1830 of the 1976 Code is amended to read:
"Section 9-1-1830.
Starting July 1, 1981, there must be paid to the system,
and credited to the post-retirement increase special fund,
contributions by the employers in an amount equal to two-tenths
of one percent of the earnable compensation of each member
employed by each employer. In addition, the State
Budget and Control Board shall board, on the
recommendation of the actuary, shall transfer a portion
of the monies as are received pursuant to Section 9-1-1050 that
are available due to actuarial gains in the system if the
transfers do not adversely affect the funding status of the
system. Starting July 1, 1986, all contributions previously
credited to the post-retirement increase special fund must be
diverted and credited to the employer annuity accumulation
fund."
SECTION __. Chapter 2, Title 9 of the 1976 Code is amended to read:
Section 9-2-10.
There is hereby created the South
Carolina Retirement and Preretirement Advisory
Board Panel for the purpose of advising
the Director of the South Carolina Retirement System and the
Director of the State Personnel Division on matters relating to
retirement and preretirement programs and policies.
Section 9-2-20.(a) The
board panel shall consist of eight
members appointed by the State Budget and Control
Board Board of Directors of the South Carolina
Public Employee Benefit Authority and must be constituted as
follows:
(1)
one member representing municipal employees;
(2)
one member representing county employees;
(3)
three members representing state employees, one of whom
must be retired and one of whom must be an active or retired law
enforcement officer who is contributing to or receiving benefits
from the Police Officers Retirement System. If this law
enforcement member is retired, the other two members
representing state employees do not have to be retired;
(4)
two members representing public school teachers, one of
whom must be retired;
(5)
one member representing the higher education teachers.
The Budget and Control Board board of
directors shall invite the appropriate associations, groups,
and individuals to recommend persons to serve on the
board panel.
(b) The terms of the
members shall be for four years and until their successors have
been appointed and qualify. No member shall serve more than two
consecutive terms. After serving two consecutive terms a member
shall be eligible to serve again, four years after the
expiration of his second term. Provided that of those first
appointed, four of the members shall serve for a term of two
years. In the event of a vacancy, a successor shall be
appointed in the same manner as the original appointment to
serve the unexpired term.
(c) A chairman, vice
chairman, and secretary shall be elected from among the
membership to serve for terms of two years.
Section 9-2-30. The
board panel shall meet once a year with
the Director of the South Carolina Retirement System; once a
year with the State Personnel Director; and once a year with the
State Budget and Control Board Executive
Director of the South Carolina Public Employee Benefit
Authority. The chairman may call additional meetings of the
board panel at such other times as
deemed considered necessary and shall
give timely notice of such meetings.
Section 9-2-40. The
board panel shall review retirement and
preretirement programs and policies, propose recommendations,
and identify major issues for consideration.
Section 9-2-50. The
board panel is authorized to seek
reasonable staff assistance from the South Carolina Retirement
System, the State Personnel Division, and other state
agencies which may be concerned with a particular area of study.
The board panel is also encouraged to
use such resources as faculty and students at public
universities, colleges, and technical education schools
in South Carolina."
SECTION __. Section 9-8-10(3) of the 1976 Code is amended to read:
"(3) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority."
SECTION __. Section 9-8-30(1) of the 1976 Code is amended to read:
"(1) The
administration and responsibility for the operation of the
system and for making effective the provisions of this chapter
are vested in the State Budget and Control
Board board."
SECTION __. The last undesignated paragraph of Section 9-8-60(1) of the 1976 Code, as added by Act 164 of 1993, is amended to read:
"A person receiving retirement
allowances under this system who is elected to the General
Assembly continues to receive the retirement allowances while
serving in the General Assembly, and must also
must be a member of the General Assembly
Retirement System retirement system unless the
person files a statement with the State Budget and
Control Board board on a form prescribed by the
board electing not to participate in the General
Assembly Retirement System the applicable system
while a member of the General Assembly. A person making this
election shall not make contributions to the General
Assembly Retirement System applicable retirement
system nor shall the State make contributions on the
member's behalf and the person is not entitled to benefits from
the General Assembly Retirement System
applicable retirement system after ceasing to be a member
of the General Assembly."
SECTION __. Section 9-9-10(3) of the 1976 Code is amended to read:
"(3) 'Board'
shall mean means the State
Budget and Control Board Board of Directors of the
South Carolina Public Employee Benefit Authority."
SECTION __. Section 9-9-30(1) of the 1976 Code is amended to read:
"(1) The general
administration and responsibility for the proper operation of
the system and for making effective the provisions hereof are
hereby vested in the State Budget and Control
Board board."
SECTION __. Section 9-10-10(1) of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"(1) 'Board'
or 'board' means the State Budget and
Control Board Board of Directors of the South
Carolina Public Employee Benefit Authority, acting pursuant
to the provisions of this chapter through its Division of
Retirement Systems."
SECTION __. Section 9-10-60(D) of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"(D) The General
Assembly annually shall appropriate sums sufficient to establish
and maintain the National Guard Retirement System on a sound
actuarial basis as determined by the State Budget and
Control Board board."
SECTION __. Section 9-11-10(9) of the 1976 Code is amended to read:
"(9) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority acting through its Division of Retirement
Systems."
SECTION __. Section 9-11-30(1) of the 1976 Code is amended to read:
"(1) The general
administration and responsibility for the proper operation of
the system and for making effective the provisions hereof are
hereby vested in the State Budget and Control
Board board."
SECTION __. Section 9-12-10(1) of the 1976 Code, as added by Act 311 of 2008, is amended to read:
"(1) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority acting as trustee of the retirement systems and
acting through its Division of Retirement Systems."
SECTION __. Items (3) and (9) of Section 9-16-10 of the 1976 Code, as added by Act 371 of 1998, are amended to read:
"(3) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority acting as trustee of the retirement system.
(9) 'Trustee' means the
State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority."
SECTION __. Section 9-16-55(F) of the 1976 Code, as added by Act 248 of 2008, is amended to read:
"(F)
Present, future, and former board
members, officers, and employees of the State Budget and Control
Board, present, future, and former directors, officers, and
employees of the South Carolina Public Employee Benefit
Authority, the Retirement System Investment Commission, and
contract investment managers retained by the commission must be
indemnified from the general fund of the State and held harmless
by the State from all claims, demands, suits, actions, damages,
judgments, costs, charges, and expenses, including court costs
and attorney's fees, and against all liability, losses, and
damages of any nature whatsoever that these present, future, or
former board members, officers, employees, or contract
investment managers shall or may at any time sustain by reason
of any decision to restrict, reduce, or eliminate investments
pursuant to this section."
SECTION __. Section 9-18-10(3) of the 1976 Code, as added by Act 38 of 1995, is amended to read:
"(3) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority."
SECTION __. Section 9-20-30 of the 1976 Code, as last amended by Act 54 of 2001, is further amended to read:
Section 9-20-30. The
South Carolina Retirement System shall provide for the
administration of the State Optional Retirement Program under
this chapter. The Director acting on behalf of
the South Carolina Retirement System acting on behalf of the
Board of Directors of the South Carolina Public Employee Benefit
Authority shall designate no fewer than four companies to
provide annuity contracts, mutual fund accounts, or similar
investment products offered through state or national banking
institutions, or a combination of them, under the program. In
making the designation, selection criteria must include:
(1)
the nature and extent of the rights and benefits to be
provided by the contracts or accounts, or both, of participants
and their beneficiaries;
(2)
the relation of the rights and benefits to the amount of
contributions to be made;
(3)
the suitability of these rights and benefits to the needs
of the participants;
(4)
the ability and experience of the designated companies in
providing suitable rights and benefits under the contracts or
accounts, or both;
(5)
the ability and experience of the designated companies to
provide suitable education and investment options.
Companies participating in the optional
retirement program for publicly supported four-year and
postgraduate institutions of higher education as of July 1,
2002, or the optional retirement program for teachers and school
administrators as of July 1, 2001, may continue to participate
in this program and this participation is
governed by their existing contracts.
SECTION __. Section 9-21-20(2) of the 1976 Code, as added by Act 12 of 2003, is amended to read:
"(2) 'Board' means
the State Budget and Control Board Board of
Directors of the South Carolina Public Employee Benefit
Authority."
SECTION __. Section 15-78-140 of the 1976 Code is amended to read:
"Section 15-78-140.
(a) (Reserved)
(b) The political
subdivisions of this State, in regard to tort and automobile
liability, property and casualty insurance shall procure
insurance to cover these risks for which immunity has been
waived by (1) the purchase of liability insurance pursuant to
Section 1-11-140; or (2) the purchase of liability insurance
from a private carrier; or (3) self-insurance; or (4)
establishing pooled self-insurance liability funds, by
intergovernmental agreement, which may not be construed as
transacting the business of insurance or otherwise subject to
state laws regulating insurance. A pooled self-insurance
liability pool is authorized to purchase specific and aggregate
excess insurance. A pooled self-insurance liability fund must
provide liability coverage for all employees of a political
subdivision applying for participation in the fund. If the
insurance is obtained other than pursuant to Section 1-11-140,
it must be obtained subject to the following conditions:
(1)
If the political subdivision does not procure tort
liability insurance pursuant to Section 1-11-140, it must also
procure its automobile liability and property and casualty
insurance from other sources and shall not procure these
coverages through the Budget and Control Board
Insurance Reserve Fund;
(2)
If a political subdivision procures its tort liability
insurance, automobile liability insurance, or property and
casualty insurance through the Budget and Control
Board Insurance Reserve Fund, all liability
exposures of the political subdivision as well as its property
and casualty insurance must be insured with the Budget
and Control Board Insurance Reserve Fund;
(3)
If the political subdivision, at any time, procures its
tort liability, automobile liability, property, or casualty
insurance other than through the Budget and Control
Board Insurance Reserve Fund and then
subsequently desires to obtain this coverage with the
Budget and Control Board Insurance Reserve
Fund, notice of its intention to so obtain this subsequent
coverage must be provided the Budget and Control
Board Insurance Reserve Fund at least ninety
days prior to before the beginning of
the coverage with the State Budget and Control
Board Insurance Reserve Fund. The other lines
of insurance that the political subdivision is required to
procure from the board fund are not
required to commence until the coverage for that line of
insurance expires. Any political subdivision may cancel all
lines of insurance with the State Budget and Control
Board Insurance Reserve Fund if it gives ninety
days' notice to the board fund. The
Budget and Control Board Insurance Reserve
Fund may negotiate the insurance coverage for any political
subdivision separate from the insurance coverage for other
insureds.
(4)
If any political subdivision cancels its insurance with
the Budget and Control Board Insurance
Reserve Fund, it is entitled to an appropriate refund of the
premium, less reasonable administrative cost.
(c) For any claim filed
under this chapter, the remedy provided in Section 15-78-120 is
exclusive. The immunity of the State and its political
subdivisions, with regard to the seizure, execution, or
encumbrance of their properties is reaffirmed."
SECTION __. Section 59-1-470 of the 1976 Code is amended to read:
"Section 59-1-470.
Funds appropriated by the General Assembly for a deferred
compensation employer matching contribution must be distributed
by the State Department of Education to school districts for the
purpose of providing an employer matching contribution for
eligible school district employees making contributions to
deferred compensation plans offered by the South Carolina
Deferred Compensation Commission or, after December 31, 2013,
the South Carolina Public Employee Benefit Authority, or
other approved and qualified plans of other providers. These
funds must be distributed in a manner consistent with the
provisions of Section 8-23-110. The employer matching
contribution by the school district may not exceed three hundred
dollars for each eligible employee a year. Individuals
eligible for the matching contribution must be classified as
required in Section 9-20-20, the Optional Retirement Program for
Teachers and School Administrators."
SECTION __. This subpart takes effect July 1, 2012.
SECTION __. (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,
2012, employees of the South Carolina Public Employee Benefit
Authority, with the same compensation, classification, and grade
level, as applicable. Before 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, 2013,
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, 2013.
(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 State Budget and Control Board, the Insurance Reserve Fund,
the Employee Insurance Program, the Retirement Division, and the
Deferred Compensation Commission to reflect the transfer to the
South Carolina Public Employee Benefit Authority. References to
the State Budget and Control Board, 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.
SECTION __. Except where otherwise provided, this Part takes effect July 1, 2012. /
Renumber sections to conform.
Amend title to conform.