H 3717 General Bill, By Kelley, Barfield, Barrett, Edge, Fleming, Frye, Keegan, 
Kirsh, Knotts, Koon, Loftis, Riser, Robinson, Sandifer, Snow, Trotter, Vaughn, 
Walker, Webb, Whatley, White and A. Young
 A BILL TO AMEND SECTION 9-1-2210, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE TEACHER AND EMPLOYEE RETENTION INCENTIVE PROGRAM, SO AS TO
 PROVIDE THAT PARTICIPATION IN THE PROGRAM MUST BE OFFERED BY THE EMPLOYER AND
 MUST BE AGREED TO MUTUALLY BY THE EMPLOYEE AND EMPLOYER, TO CLARIFY CONDITIONS
 UNDER WHICH A RETIREMENT SYSTEM MEMBER IS INELIGIBLE TO PARTICIPATE AND WHEN A
 PROGRAM PARTICIPANT IS NO LONGER ELIGIBLE TO PARTICIPATE, TO PROVIDE THAT
 PROGRAM PARTICIPANTS MUST NOT BE PAID FOR ANNUAL LEAVE WHEN THEY TERMINATE AND
 PROVIDE THAT THEY ACCRUE SICK AND ANNUAL LEAVE WHICH THEY MAY USE DURING THE
 PROGRAM PERIOD, TO DELETE REDUNDANT PROVISIONS AND REFERENCES TO THE STATUS OF
 EMPLOYEES FAILING TO TERMINATE AT THE END OF THE PROGRAM PERIOD; AND TO AMEND
 SECTION 8-17-370, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE EMPLOYEE
 GRIEVANCE PROCEDURE, SO AS TO EXEMPT TERI PARTICIPANTS.

   03/15/01  House  Introduced and read first time HJ-8
   03/15/01  House  Referred to Committee on Ways and Means HJ-8
   04/10/01  House  Member(s) request name removed as sponsor: Leach

TO AMEND SECTION 9-1-2210, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TEACHER AND EMPLOYEE RETENTION INCENTIVE PROGRAM, SO AS TO PROVIDE THAT PARTICIPATION IN THE PROGRAM MUST BE OFFERED BY THE EMPLOYER AND MUST BE AGREED TO MUTUALLY BY THE EMPLOYEE AND EMPLOYER, TO CLARIFY CONDITIONS UNDER WHICH A RETIREMENT SYSTEM MEMBER IS INELIGIBLE TO PARTICIPATE AND WHEN A PROGRAM PARTICIPANT IS NO LONGER ELIGIBLE TO PARTICIPATE, TO PROVIDE THAT PROGRAM PARTICIPANTS MUST NOT BE PAID FOR ANNUAL LEAVE WHEN THEY TERMINATE AND PROVIDE THAT THEY ACCRUE SICK AND ANNUAL LEAVE WHICH THEY MAY USE DURING THE PROGRAM PERIOD, TO DELETE REDUNDANT PROVISIONS AND REFERENCES TO THE STATUS OF EMPLOYEES FAILING TO TERMINATE AT THE END OF THE PROGRAM PERIOD; AND TO AMEND SECTION 8-17-370, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE EMPLOYEE GRIEVANCE PROCEDURE, SO AS TO EXEMPT TERI PARTICIPANTS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 9-1-2210 of the 1976 Code, as added by Part II, Section 2A.1 of an act of 2000 bearing ratification number 453, is amended to read:

    "Section 9-1-2210.    (A)    An active 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) when offered this program by an employer participating in the system. Eligibility for participation occurs upon mutual agreement of the employee and employer. A member electing to participate participating in the program retires for purposes of the system, and the member's normal retirement benefit is calculated on the basis of the member's average final compensation and service credit at the time the program period begins. A member is ineligible to participate after receiving a normal retirement benefit from the system. The program participant shall agree to continue employment with an employer participating in the system for a program period, but the total program period regardless of the number of employers may not to exceed five years from the time the program begins. A break in service while participating in the program ends the program for the participant. The member shall notify the system before the beginning of the program period and of any change in employer while in the program. Participation in the program does not guarantee employment for the specified program period.

    (B)    During the specified program period, receipt of the member's normal retirement benefit is deferred. The member's deferred monthly benefit must be placed in the system's trust fund on behalf of the member. No interest is paid on the member's deferred monthly benefit placed in the system's trust fund during the specified program period.

    (C)    During the specified program period, the employer shall pay to the system the employer contribution for active members prescribed by law with respect to any program participant it employs, regardless of whether the program participant is a full-time or part-time employee, or in a temporary or permanent employee position. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.

    (D)    A program participant is retired from the retirement system as of the beginning of the program period. A program participant makes no further employee contributions to the system, accrues no service credit during the program period, and is not eligible to receive group life insurance benefits or disability retirement benefits. Accrued annual leave and sick leave used in any manner in the calculation of the program participant's retirement benefit is deducted from the amount of such leave accrued by the participant, and the balance, if any, transfers to the program employment in accordance with the employer's leave policies. A program employee accrues leave as a regular employee. Program participants must not be paid for any annual leave when they terminate from the program, but these program participants accrue and may use sick and annual leave while participating in the program.

    (E)    A program participant is retired for retirement benefit purposes only. For employment purposes, a program participant is considered to be an active employee, retaining all other rights and benefits of an active employee and is not subject to the earnings limitation of Section 9-1-1790 during the specified program period.

    (F)    Upon termination of employment either during or at the end of the program period, the member must receive the balance in the member's program account by electing one of the following distribution alternatives either:

        (1)    a lump-sum distribution, paying appropriate taxes; or

        (2)    to the extent permitted under law, a tax sheltered rollover into an eligible plan.

    The member also must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program period began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790.

    (G)    If a program participant dies during the specified program period, the member's designated beneficiary must receive the balance in the member's program account by electing one of the following distribution alternatives either:

        (1)    a lump-sum distribution, paying appropriate taxes; or

        (2)    to the extent permitted under law, a tax sheltered rollover into an eligible plan.

    In accordance with the form of system benefit selected by the member at the time the program commenced, the member's designated beneficiary must receive either a survivor benefit or a refund of contributions from the member's system account.

    (H)    Reserved If a program participant fails to terminate employment with an employer participating in the retirement system within one month after the end of the specified program period, the member must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790. The program participant also must receive the balance in the member's program account by selecting one of the following alternatives:

        (1)    a lump-sum distribution, paying appropriate taxes; or

        (2)    to the extent permitted under law, a tax sheltered rollover into an eligible plan.

    (I)    A member is not eligible to participate in the program if the member has participated previously in and received a benefit under this program or any other state retirement system."

SECTION    2.    Section 8-17-370 of the 1976 Code, as last amended by Act 264 of 2000, is further amended by adding an appropriately numbered item at the end to read:

    "( )    Participants in the Teacher and Employee Retention Incentive Program established pursuant to Article 17, Chapter 1 of Title 9.

SECTION    3.    This act takes effect July 1, 2001, and applies for persons first participating in the TERI program after June 30, 2001.