H 4507 Session 110 (1993-1994)
H 4507 General Bill, By Walker, Allison, Davenport, Littlejohn and C.C. Wells
Similar(S 12)
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.
01/13/94 House Introduced and read first time HJ-273
01/13/94 House Referred to Committee on Ways and Means HJ-273
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
1994, 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, 1994.
SECTION 5. This act takes effect upon approval by the Governor.
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