H 4982 Session 112 (1997-1998)
H 4982 General Bill, By Stille, Barrett, Bowers, J. Brown, A.W. Byrd, Campsen,
Clyburn, Davenport, Haskins, J. Hines, M. Hines, Littlejohn, Martin, McGee,
Robinson, Rodgers, Vaughn, Walker, Wilder, Woodrum and W.J. Young
A BILL TO AMEND TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
STATE RETIREMENT SYSTEMS, BY ADDING CHAPTER 19 SO AS TO ENACT THE PUBLIC
EMPLOYEES' DEFINED CONTRIBUTION RETIREMENT PLAN AND PROVIDE FOR ITS
MEMBERSHIP, OPERATIONS, AND ADMINISTRATION.
04/08/98 House Introduced and read first time HJ-23
04/08/98 House Referred to Committee on Ways and Means HJ-23
A BILL
TO AMEND TITLE 9, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO STATE RETIREMENT SYSTEMS, BY
ADDING CHAPTER 19 SO AS TO ENACT THE PUBLIC
EMPLOYEES' DEFINED CONTRIBUTION RETIREMENT PLAN
AND PROVIDE FOR ITS MEMBERSHIP, OPERATIONS, AND
ADMINISTRATION.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 9 of the 1976 Code is amended by adding:
"CHAPTER 19
Public Employees'
Defined Contribution Retirement Plan
Section 9-19-10. This chapter may be cited as the Public
Employees' Defined Contribution Retirement Plan.
Section 9-19-20. As used in this chapter:
(1) 'Board' means the State Budget and Control Board.
(2) 'Defined contribution plan' or 'plan' means the defined
contribution plans authorized by this chapter as those plans may be
established by the board including one established to replace the
South Carolina Police Officers Retirement System and one
established to replace the South Carolina Retirement System.
(3) 'Existing retirement system' means the South Carolina
Retirement System established pursuant to Chapter 1 of this title and
the Police Officers Retirement System established pursuant to
Chapter 11 of this Title.
(4) 'Member' has the meaning provided in Sections 9-1-10(6) for
persons who otherwise would be members of the South Carolina
Retirement System and 9-11-10(7) for persons who otherwise would
be members of the South Carolina Police Officers Retirement
System.
(5) 'Employer' has the meaning provided in Sections 9-1-10(5) and
9-11-10(5).
(6) 'Compensation' has the meaning provided in Sections
9-1-10(16) and 9-11-10(13).
(7) 'Member contribution' means an amount reduced from the
employee's regular pay periods and deposited into the member's
individual account within a defined contribution plan but not less
than the amount withheld from the employee if the employee was a
member of the applicable existing retirement system.
(8) 'Employer contribution' means an amount deposited into the
member's individual account on a periodic basis coinciding with the
employee's regular pay period by an employer from its own funds but
not less than the amount contributed on behalf of a state employee
member if the employee was a member of the applicable existing
retirement system.
(9) 'Individual account' or 'account' means an account in a defined
contribution plan established for each member to record the deposit
of member and employer contributions and earnings thereon on
behalf of the member.
(10) 'Retirement' means a member's withdrawal from the active
employment of a participating employer and completion of all
conditions precedent to retirement.
(11) 'Fund' means the Public Employees' Defined Contribution
Retirement Plan Fund.
(12) 'Administrator' means the board or the service provider hired
by the board to provide plan administration services to the plan.
Section 9-19-30. (A) Members first employed after June 30,
1999, are not members of existing retirement systems but instead are
members of the plan established by this chapter. This subsection
does not affect the availability of the optional retirement program
allowed pursuant to Chapter 17 of this title for members first
employed after June 30, 1999.
(B) Existing retirement systems must continue in the manner
provided by law for individuals first becoming members before July
1, 1999, and for former members who are reemployed after June 30,
1999, if they so elect.
Section 9-19-40. A member of an existing retirement system on
July 1, 1999, in lieu of continued participation in the existing
retirement system, may irrevocably elect membership in the plan
authorized by this chapter. The administrator of the plan shall notify
the existing retirement system of the election and it shall, within
forty-five days, transfer to the plan administrator a payment equal to
the present actuarial value of the member's accrued service benefit on
the date of transfer. The amount transferred must be credited to the
electing member's individual account.
Section 9-19-50. (A) The plan authorized by this chapter must
be established and administered in accordance with the requirements
for qualified retirement or eligible deferred compensation plans
respectively under the Internal Revenue Code of 1986.
(B) The board shall establish vesting rights in employer
contributions in a manner consistent with the requirements of the
Internal Revenue Code of 1986, but which afford maximum
portability of the member's account.
Section 9-19-60. The board has all powers necessary to effectuate
the purposes of this chapter, and shall determine and charge
reasonable costs of administering the system. The board may
contract with a private pension, insurance, annuity, mutual fund,
financial institution, or other qualified company or any combination
of these entities to administer the day-to-day operation of the plan.
Section 9-19-70. There is established in the State Treasury the
Public Employees Defined Contribution Retirement Plan Fund,
separate and distinct from the general fund and all other funds held
in trust on behalf of members but subject to the administrative costs
allowed by this chapter.
Section 9-19-80. The plan must include more than one
employee-directed investment fund appropriate for investment by
public employees, and an educational program, approved by the
board, that explains to employees considering their elections the
probable and possible benefits and risks of the various funds.
Section 9-19-90. The board, or the entity with which it has
contracted, in conjunction with the plan, may purchase group annuity
contracts, individual retirement annuities, disability insurance
investment contracts, securities, mutual funds, interest in trusts and
other financial instruments as necessary or appropriate for the plan to
provide retirement and related benefits similar to those provided
under an existing retirement system. Selections of plan
administrators, annuities, and insurance products must be made
pursuant to the provisions of Chapter 35 of Title 11, the South
Carolina Consolidated Procurement Code.
Section 9-19-100. The administrator shall prepare, or cause to be
prepared, at least quarterly a statement for each member's individual
account. The statement shall include the current market value of the
account, including self-directed investment options, an itemization of
changes in the account, the amount vested, and other information
required by the board. The administrator shall arrange for an
independent audit of the plan's assets unless the audit is provided for
by a third party organization."
SECTION 2. This act takes effect July 1, 1999.
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