S 0012 General Bill, By Reese

Similar(H 4507)
 A Bill to amend Sections 9-1-1510 and 9-1-1550, both as amended, Code of Laws
 of South Carolina, 1976, relating to retirement under the South Carolina
 Retirement System, so as to reduce from thirty years to twenty-five years the
 credited service required for a member to retire at any age without a
 reduction in benefits, to authorize the State Budget and Control Board to
 adjust retirement contributions to pay the actuarial cost of this early
 retirement, and to repeal Sections 9-1-1515 and 9-1-1850, relating to another
 early retirement option and the purchase of additional service credit by a
 member with at least twenty-five years of credited service.

   01/12/93  Senate Introduced and read first time SJ-30
   01/12/93  Senate Referred to Committee on Finance SJ-30

A BILL

TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY YEARS TO TWENTY-FIVE YEARS THE CREDITED SERVICE REQUIRED FOR A MEMBER TO RETIRE AT ANY AGE WITHOUT A REDUCTION IN BENEFITS, TO AUTHORIZE THE STATE BUDGET AND CONTROL BOARD TO ADJUST RETIREMENT CONTRIBUTIONS TO PAY THE ACTUARIAL COST OF THIS EARLY RETIREMENT, AND TO REPEAL SECTIONS 9-1-1515 AND 9-1-1850, RELATING TO ANOTHER EARLY RETIREMENT OPTION AND THE PURCHASE OF ADDITIONAL SERVICE CREDIT BY A MEMBER WITH AT LEAST TWENTY-FIVE YEARS CREDITED SERVICE.

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

SECTION 1. The first paragraph of Section 9-1-1510 of the 1976 Code is amended to read:

"Any A member may retire upon written application to the board setting forth at what time, not more than ninety days prior before nor more than six months subsequent to after the execution and filing thereof of the application, he desires to be retired, if such the member at the time so specified for his service retirement shall have has attained the age of sixty years or shall have has thirty twenty-five or more years of creditable service and shall have has separated from service and, if the time so specified is subsequent to after the date of application, notwithstanding that, during such the period of notification, he may have separated from service."

SECTION 2. Subsections (A) and (B) of Section 9-1-1550 of the 1976 Code, as last amended by Act 189 of 1989, are further amended to read:

"(A) Upon retirement from service on or after July 1, 1964, a Class One member shall receive a service retirement allowance which shall consist of:

(1) An employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and

(2) An employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and

(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, 1989 1993, 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 twenty-five or more years of creditable service, the allowance must be equal to one and forty-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 twenty-five 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 before July 1, 1976.

(B) Upon retirement from service on or after July 1, 1989 1993, 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 twenty-five or more years of creditable service, the allowance must be equal to one and eighty-two hundredths 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 twenty-five 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, a Class Two member whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section.

SECTION 3. The State Budget and Control Board may increase employee or employer retirement contributions, or both, in an amount sufficient to offset the actuarial cost of the provisions of Sections 9-1-1510 and 9-1-1550 of the 1976 Code as amended by this act.

SECTION 4. Sections 9-1-1515 and 9-1-1850 of the 1976 Code are repealed with respect to members of the South Carolina Retirement System retiring after June 30, 1993.

SECTION 5. This act takes effect upon approval by the Governor.