S*734 Session 104 (1981-1982)
S*0734(Rat #0458, Act #0372 of 1982) General Bill, By R.C. Dennis,
J.C. Lindsay and D.S. Taylor
A Bill to amend Sections 9-11-210, 9-1-1020, both as amended, and 9-1-1180,
Code of Laws of South Carolina, 1976, relating to monthly payments of employee
and employer contributions to the South Carolina Retirement System, the South
Carolina Police Officers Retirement System and the retirement system for
teachers and employees of Technical Training Schools, so as to disallow
contributions for unused sick leave and other single special payments at
retirement.
01/27/82 Senate Introduced and read first time SJ-11
01/27/82 Senate Referred to Committee on Finance SJ-11
02/10/82 Senate Committee report: Favorable Finance SJ-15
02/11/82 Senate Read second time SJ-17
02/17/82 Senate Read third time and sent to House SJ-17
02/18/82 House Introduced and read first time HJ-922
02/18/82 House Referred to Committee on Ways and Means HJ-922
05/06/82 House Committee report: Favorable Ways and Means HJ-2823
05/13/82 House Read second time HJ-2952
05/14/82 House Read third time and enrolled HJ-2984
05/20/82 Senate Ratified R 458 SJ-16
05/25/82 Signed By Governor
05/25/82 Effective date 05/25/82
05/25/82 Act No. 372
06/18/82 Copies available
(A372, R458, S734)
AN ACT TO AMEND SECTIONS 9-11-210, 9-1-1020, BOTH AS AMENDED, AND 9-1-1180, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO MONTHLY PAYMENTS OF EMPLOYEE AND
EMPLOYER CONTRIBUTIONS TO THE SOUTH CAROLINA RETIREMENT SYSTEM, THE SOUTH
CAROLINA POLICE OFFICERS RETIREMENT SYSTEM AND THE RETIREMENT SYSTEM FOR
TEACHERS AND EMPLOYEES OF TECHNICAL TRAINING SCHOOLS, SO AS TO DISALLOW
CONTRIBUTIONS FOR UNUSED SICK LEAVE AND OTHER SINGLE SPECIAL PAYMENTS AT
RETIREMENT.
Be it enacted by the General Assembly of the State of South Carolina:
Employee annuity savings fund
Section 1. Section 9-1-1020 of the 1976 Code, as last amended by an act of 1982 bearing Ratification Number
426, is further amended by adding at the end:
"Payments for unused sick leave and other single special payments at retirement, except up to forty-five
days' pay for unused annual leave, shall not be compensation for which contributions are deductible."
The section when amended shall 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.
Notwithstanding the foregoing, effective July 1, 1964, the rates of such deductions shall be, without regard to
a member's coverage under the Social Security Act, as follows: 'In the case of Class One members, three percent
of the portion of earnable compensation not in excess of four thousand eight hundred dollars, and five percent
of the portion in excess of four thousand eight hundred dollars; and, in the case of Class Two members, four
percent of the portion of earnable compensation not in excess of four thousand eight hundred dollars, and six
percent of the portion in excess of four thousand eight hundred dollars.'
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; however, each
department and political subdivision shall continue to withhold federal income taxes based upon these
contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the
United States Internal Revenue Code, these contributions shall not be included as gross income of the employee
until such time as they are distributed or made available. 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. 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 and other single special payments at retirement, except up to forty-five days'
pay for unused annual leave, shall not be compensation for which contributions are deductible."
Deductions
Section 2. Section 9-1-1180 of the 1976 Code is amended by adding at the end:
"Payments for unused sick leave and other single special payments at retirement, except up to forty-five
days' pay for unused annual leave, shall not be compensation for which contributions are deductible."
The section when amended shall read:
"Section 9-1-1180. The deductions authorized hereunder from the earnable compensation of teachers, the
payments by employers of teachers of the required percentages of earnable compensation and all retirement
allowances or other benefits herein provided shall be calculated upon the full earnable compensation of teachers
from public funds derived from any source, and all employers' contributions for teachers shall be paid by the
State. Provided, further, that all employers' contributions for employees of the various county technical training
schools shall be paid by the State, effective July 1, 1962.
Payments for unused sick leave and other single special payments at retirement, except up to forty-five days'
pay for unused annual leave, shall not be compensation for which contributions are deductible."
Payments for unused sick leave
Section 3. Section 9-11-210 of the 1976 Code, as last amended by an act of 1982 bearing Ratification Number
426, is further amended by adding at the end:
"(12) Payments for unused sick leave and other single special payments at retirement, except up to
forty-five days' pay for unused annual leave, shall not be compensation for which contributions are
deductible."
Time effective
Section 4. This act shall take effect upon the approval by the Governor. |