S*0984(Rat #0619, Act #0529 of 1986)  General Bill, By R.C. Dennis, Holland and 
J.C. Lindsay
 A Bill to amend Sections 9-1-1020, 9-1-1180, 9-1-1540, 9-11-40, 9-11-80,
 9-11-210, all as amended, and 9-1-650, Code of Laws of South Carolina, 1976,
 relating to contributions to the South Carolina Retirement System and the
 Police Officers Retirement System, so as to provide that bonus and incentive
 payments or other payments not part of the regular salary base are not
 compensation for which contributions are deductible, that contributions are
 deductible on pay for unused annual leave, and that the average final salary
 under either the South Carolina Retirement System or the Police Officers
 Retirement System may be used for retirement benefit calculation under both
 systems for consecutive earned service credit and to provide that a disabled
 member may be retired not more than nine months instead of six months next
 following the date of filing application and certification that the member is
 mentally or physically incapacitated.-amended title

   02/12/86  Senate Introduced and read first time SJ-540
   02/12/86  Senate Referred to Committee on Finance SJ-540
   02/26/86  Senate Committee report: Favorable Finance SJ-756
   02/27/86  Senate Read second time SJ-772
   03/25/86  Senate Read third time and sent to House SJ-1173
   03/26/86  House  Introduced and read first time HJ-1955
   03/26/86  House  Referred to Committee on Ways and Means HJ-1956
   05/01/86  House  Committee report: Favorable Ways and Means HJ-2765
   05/06/86  House  Objection by Rep. J. Bradley, Aydlette, Winstead,
                     Foxworth & Davenport HJ-2830
   06/03/86  House  Objection withdrawn by Rep. Aydlette HJ-3598
   06/04/86  House  Objection withdrawn by Rep. Foxworth, Davenport &
                     Winstead HJ-3670
   06/04/86  House  Amended HJ-3671
   06/04/86  House  Read second time HJ-3673
   06/05/86  House   Read third time HJ-3787
   06/05/86  House  Returned HJ-3787
   06/05/86  Senate Concurred in House amendment and enrolled SJ-3698
   06/05/86         Ratified R 619
   06/18/86         Signed By Governor
   06/26/86         Effective date 06/18/86
   06/26/86         Act No. 529
   06/26/86         Copies available

AN ACT TO AMEND SECTIONS 9-1-1020, 9-1-1180, 9-1-1540, 9-11-40, 9-11-80, 9-11-210, ALL AS AMENDED, AND 9-1-650, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTRIBUTIONS TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE THAT BONUS AND INCENTIVE PAYMENTS OR OTHER PAYMENTS NOT PART OF THE REGULAR SALARY BASE ARE NOT COMPENSATION FOR WHICH CONTRIBUTIONS ARE DEDUCTIBLE, THAT CONTRIBUTIONS ARE DEDUCTIBLE ON PAY FOR UNUSED ANNUAL LEAVE, AND THAT THE AVERAGE FINAL SALARY UNDER EITHER THE SOUTH CAROLINA RETIREMENT SYSTEM OR THE POLICE OFFICERS RETIREMENT SYSTEM MAY BE USED FOR RETIREMENT BENEFIT CALCULATION UNDER BOTH SYSTEMS FOR CONSECUTIVE EARNED SERVICE CREDIT AND TO PROVIDE THAT A DISABLED MEMBER MAY BE RETIRED NOT MORE THAN NINE MONTHS INSTEAD OF SIX MONTHS NEXT FOLLOWING THE DATE OF FILING APPLICATION AND CERTIFICATION THAT THE MEMBER IS MENTALLY OR PHYSICALLY INCAPACITATED.

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

Payments

SECTION 1. The fifth paragraph of Section 9-1-1020 of the 1976 Code, as last amended by Section 48, Part II, of Act 201 of 1985, is further amended to read:

"Payments for unused sick leave, single special payments at retirement, bonus and incentive-type payments, or any other payments not considered a part of the regular salary base are not compensation for which contributions are deductible. Contributions are deductible on pay for unused annual leave."

Further

SECTION 2. The second paragraph of Section 9-1-1180 of the 1976 Code, as last amended by Section 48, Part II, of Act 201 of 1985, is further amended to read:

"Payments for unused sick leave, single special payments at retirement, bonus and incentive-type payments, or any other payments not considered a part of the regular salary base are not compensation for which contributions are deductible. Contributions are deductible on pay for unused annual leave."

Further

SECTION 3. Item (12) of Section 9-11-210 of the 1976 Code, as last amended by Section 48, Part II, of Act 201 of 1985, is further amended to read:

"(12) Payments for unused sick leave, single special payments at retirement, bonus and incentive-type payments, or any other payments not considered a part of the regular salary base are not compensation for which contributions are deductible. This item does not apply to bonus payments paid to certain categories of employees annually during their work careers. Bonus or special payments applied only during the 'Average Final Compensation' period are excluded as compensation. Contributions are deductible on pay for unused annual leave."

Member to notify director

SECTION 4. The second paragraph of Section 9-1-650 of the 1976 Code is amended to read:

"If a member of any correlated system ceases to occupy a position covered under the System and if, within the protective period and under such conditions as are set forth in the correlated system for continuation of membership therein, he accepts a position covered by another correlated system, he shall notify the Director of each System of the employment, and his membership in the first System must be continued so long as his membership in the other System continues. Service credited to the member under the provisions of the first System must be considered service credits for the purpose of determining eligibility for benefits, but not the amount thereof, under the other System. Any benefit under any one of the correlated systems must be computed solely on the basis of service and contributions credited under that System, and must be payable at such times and subject to such age and service conditions as are set forth therein, except the average final salary under either the South Carolina Retirement System or the Police Officers Retirement System may be used for the benefit calculation under both systems for consecutive earned service credit. A member shall not be eligible to receive retirement payments so long as he is employed in a position covered by the South Carolina Retirement System or the South Carolina Police Officers Retirement System."

Further

SECTION 5. The second paragraph of item (9) of Section 9-11-40 of the 1976 Code is amended to read:

"If a member of any correlated system ceases to occupy a position covered under the System and if, within the protective period and under such conditions as are set forth in the correlated system for continuation of membership therein, he accepts a position covered by another correlated system, he shall notify the Director of each System of such employment, and his membership in the first System must be continued so long as his membership in the other System continues. Service credited to the member under the provisions of the first System must be considered service credits for the purpose of determining eligibility for benefits, but not the amount thereof, under the other System. Any benefit under any one of the correlated systems must be computed solely on the basis of service and contributions credited under that System, and must be payable at such times and subject to such age and service conditions as are set forth therein, except the average final salary under either the South Carolina Retirement System or the Police Officers Retirement System may be used for the benefit calculation under both systems for consecutive earned service credit. A member is not eligible to receive retirement payments so long as he is employed in a position covered by the South Carolina Retirement System or the South Carolina Police Officers Retirement System."

Application

SECTION 6. The first paragraph of Section 9-1-1540 of the 1976 Code, as last amended by Act 74 of 1985, is further amended to read:

"Upon the application of a member in service or of his employer, any member in service on or after July 1, 1970, who has had five or more years of creditable service or any contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his duties regardless of length of membership on or after July 1, 1985, may be retired by the Board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that the member should be retired."

Further

SECTION 7. The first paragraph of subsection (1) of Section 9-11-80 of the 1976 Code, as last amended by Act 408 of 1980, is further amended to read:

"Upon the application of a member in service or of his employer, any member who has five or more completed years of credited service or any contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his duties regardless of length of membership may be retired by the Retirement Board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent and that the member should be retired."

Time effective

SECTION 8. This act shall take effect upon approval by the Governor.