S*1178 Session 107 (1987-1988)
S*1178(Rat #0528, Act #0475 of 1988) General Bill, By Senate Finance
A Bill to amend Section 9-1-1550, Code of Laws of South Carolina, 1976,
relating to service retirement allowances for members of the South Carolina
Retirement System, so as to increase the multiplier fraction used in
calculating service retirement benefits from one percent of the first four
thousand eight hundred dollars of average final compensation and one and
three-tenths percent of average final compensation in excess of four thousand
eight hundred dollars to one and thirty-five hundredths percent of average
final compensation in the case of class one members and from one and
twenty-five hundredths percent of the first four thousand eight hundred
dollars of average final compensation and one and sixty-five hundredths
percent of average final compensation in excess of four thousand eight hundred
dollars to one and seven-tenths percent of average final compensation in the
case of class two members; to amend Section 9-1-1020, relating to
contributions to the South Carolina Retirement System, so as to increase
employee contributions from three percent of the first four thousand eight
hundred dollars of earnable compensation and five percent of earnable
compensation in excess of four thousand eight hundred dollars to five percent
of all earnable compensation in the case of class one members, and from four
percent of the first four thousand eight hundred dollars of earnable
compensation and six percent of earnable compensation in excess of four
thousand eight hundred dollars to six percent of all earnable compensation in
the case of class two members; to amend the 1976 Code by adding Section
9-1-1767, so as to increase retirement benefits payable due to retirement
before July 1, 1988, by ten percent, and to make all the provisions of this
Act effective July, 1, 1988.-amended title
02/10/88 Senate Introduced, read first time, placed on calendar
without reference SJ-4
02/11/88 Senate Read second time SJ-38
02/12/88 Senate Read third time and sent to House SJ-5
02/16/88 House Introduced and read first time HJ-1186
02/16/88 House Referred to Committee on Ways and Means HJ-1186
03/30/88 House Committee report: Favorable with amendment Ways
and Means HJ-2391
04/13/88 House Amended HJ-2654
04/13/88 House Read second time HJ-2657
04/13/88 House Unanimous consent for third reading on next
legislative day HJ-2657
04/14/88 House Read third time HJ-2928
04/14/88 House Returned HJ-2928
04/19/88 Senate Concurred in House amendment and enrolled SJ-9
04/26/88 Ratified R 528
05/02/88 Signed By Governor
05/02/88 Effective date 07/01/88
05/02/88 Act No. 475
08/01/88 Copies available
(A475, R528, S1178)
AN ACT TO AMEND SECTION 9-1-1550, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO SERVICE RETIREMENT ALLOWANCES FOR MEMBERS OF THE SOUTH CAROLINA
RETIREMENT SYSTEM, SO AS TO INCREASE THE MULTIPLIER FRACTION USED IN CALCULATING
SERVICE RETIREMENT BENEFITS FROM ONE PERCENT OF THE FIRST FOUR THOUSAND EIGHT
HUNDRED DOLLARS OF AVERAGE FINAL COMPENSATION AND ONE AND THREE-TENTHS PERCENT
OF AVERAGE FINAL COMPENSATION IN EXCESS OF FOUR THOUSAND EIGHT HUNDRED DOLLARS
TO ONE AND THIRTY-FIVE HUNDREDTHS PERCENT OF AVERAGE FINAL COMPENSATION IN THE
CASE OF CLASS ONE MEMBERS AND FROM ONE AND TWENTY-FIVE HUNDREDTHS PERCENT OF THE
FIRST FOUR THOUSAND EIGHT HUNDRED DOLLARS OF AVERAGE FINAL COMPENSATION AND ONE
AND SIXTY-FIVE HUNDREDTHS PERCENT OF AVERAGE FINAL COMPENSATION IN EXCESS OF FOUR
THOUSAND EIGHT HUNDRED DOLLARS TO ONE AND SEVEN-TENTHS PERCENT OF AVERAGE FINAL
COMPENSATION IN THE CASE OF CLASS TWO MEMBERS; TO AMEND SECTION 9-1-1020,
RELATING TO CONTRIBUTIONS TO THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO
INCREASE EMPLOYEE CONTRIBUTIONS FROM THREE PERCENT OF THE FIRST FOUR THOUSAND
EIGHT HUNDRED DOLLARS OF EARNABLE COMPENSATION AND FIVE PERCENT OF EARNABLE
COMPENSATION IN EXCESS OF FOUR THOUSAND EIGHT HUNDRED DOLLARS TO FIVE PERCENT OF
ALL EARNABLE COMPENSATION IN THE CASE OF CLASS ONE MEMBERS, AND FROM FOUR PERCENT
OF THE FIRST FOUR THOUSAND EIGHT HUNDRED DOLLARS OF EARNABLE COMPENSATION AND SIX
PERCENT OF EARNABLE COMPENSATION IN EXCESS OF FOUR THOUSAND EIGHT HUNDRED DOLLARS
TO SIX PERCENT OF ALL EARNABLE COMPENSATION IN THE CASE OF CLASS TWO MEMBERS; TO
AMEND THE 1976 CODE BY ADDING SECTION 9-1-1767 SO AS TO INCREASE RETIREMENT
BENEFITS PAYABLE DUE TO RETIREMENT BEFORE JULY 1, 1988, BY TEN PERCENT, AND TO
MAKE ALL THE PROVISIONS OF THIS ACT EFFECTIVE JULY 1, 1988.
Be it enacted by the General Assembly of the State of South Carolina:
Service retirement benefits
SECTION 1. (A) Section 9-1-1550(A)(3) of the 1976 Code is amended to read:
"(3) If he has a prior service certificate in full force and effect, an
additional employer annuity which must be equal to the employee annuity which
would have been provided at age sixty-five or at age of retirement, whichever is
less, by twice the contributions which he would have made during his entire
period of prior service had the System been in operation and had he contributed
thereunder during such entire period.
Upon retirement from service on or after July 1, 1988, a Class One member shall
receive a service retirement allowance computed as follows: 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 thirty-five hundredths percent of his average final compensation
multiplied by the number of years of his creditable service.
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 above, but is reduced by five-twelfths of one
percent thereof for each month by which his retirement date precedes the first
day of the month, prorated for periods less than a month, coincident with or next
following his sixty-fifth birthday.
Notwithstanding the foregoing provisions, any Class One member who retires on
or subsequent to July 1, 1976, shall receive not less than the
benefit provided under the formula in effect prior to July 1, 1976."
(B) Section 9-1-1550(B) of the 1976 Code is amended to read:
"(B) Upon retirement from service on or after July 1, 1988, a Class Two
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 seven-tenths 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 the thirty years of creditable service, his
service retirement allowance is computed as in item (1) above 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.
(3) 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."
Retirement contribution
SECTION 2. The third paragraph of Section 9-1-1020 of the 1976 Code is amended
to read:
"The rates of the deductions must be, without regard to a member's
coverage under the Social Security Act, as follows: in the case of Class One
members, five percent of earnable
compensation and, in the case of Class Two members, six percent of earnable
compensation."
Benefits increased
SECTION 3. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by
adding:
"Section 9-1-1767. Effective July 1, 1988, the benefits payable due to
retirement before July 1, 1988, must be increased by ten percent."
Time effective
SECTION 4. This act takes effect July 1, 1988. |