H*4721 Session 110 (1993-1994)
H*4721(Rat #0482, Act #0420) General Bill, By Kirsh
A Bill to amend Sections 9-1-440, 9-1-1140, and 9-1-1850, all as amended, Code
of Laws of South Carolina, 1976, relating to establishing service credit for
purposes of the South Carolina Retirement System, so as to increase from four
to six percent of earnable compensation the cost of establishing service when
the member originally elected not to be covered, to increase the cost of
establishing time for pregnancy leave from eight to twelve percent of earnable
compensation, and to provide a schedule of rates for a member with at least
twenty-five years service establishing credit for up to five years additional
service; to amend Sections 9-11-50, as amended, 9-11-55, 9-11-210, as amended,
and 9-11-325, relating to establishing credit for prior service and the
accompanying contribution rates for purposes of the South Carolina Police
Officers Retirement System, so as to increase the cost of establishing
pregnancy leave, federal civilian service, and other establishable new police
service, from ten to twelve percent of earnable compensation, increase the
contribution rate to establish prior police service from sixteen to twenty-one
dollars a month for class one service and from five to six and one-half
percent of monthly compensation, and to increase the cost of establishing
out-of-state service from ten to twelve percent of salary; and to repeal
Section 9-11-65, relating to an obsolete purchase of additional service credit
by members with at least twenty-five years service.
02/10/94 House Introduced and read first time HJ-508
02/10/94 House Referred to Committee on Ways and Means HJ-509
04/07/94 House Committee report: Favorable with amendment Ways
and Means HJ-2
04/26/94 House Amended HJ-20
04/26/94 House Read second time HJ-20
04/27/94 House Read third time and sent to Senate HJ-17
04/28/94 Senate Introduced and read first time SJ-13
04/28/94 Senate Referred to Committee on Finance SJ-14
05/03/94 Senate Recalled from Committee on Finance SJ-4
05/04/94 Senate Read second time SJ-24
05/04/94 Senate Ordered to third reading with notice of
amendments SJ-24
05/11/94 Senate Read third time and enrolled SJ-96
05/19/94 Ratified R 482
05/25/94 Signed By Governor
06/09/94 Effective date 05/25/94
06/09/94 See act for exception to or explanation of
effective date
06/09/94 Copies available
(A420, R482, H4721)
AN ACT TO AMEND SECTIONS 9-1-440, 9-1-1140, AND 9-1-1850,
ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO ESTABLISHING SERVICE CREDIT FOR PURPOSES
OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO
INCREASE FROM FOUR TO SIX PERCENT OF EARNABLE
COMPENSATION THE COST OF ESTABLISHING SERVICE WHEN
THE MEMBER ORIGINALLY ELECTED NOT TO BE COVERED, TO
INCREASE THE COST OF ESTABLISHING TIME FOR PREGNANCY
LEAVE FROM EIGHT TO TWELVE PERCENT OF EARNABLE
COMPENSATION, AND TO PROVIDE A SCHEDULE OF RATES FOR
A MEMBER WITH AT LEAST TWENTY-FIVE YEARS SERVICE
ESTABLISHING CREDIT FOR UP TO FIVE YEARS ADDITIONAL
SERVICE; TO AMEND SECTIONS 9-11-50, AS AMENDED, 9-11-55,
9-11-210, AS AMENDED, AND 9-11-325, RELATING TO
ESTABLISHING CREDIT FOR PRIOR SERVICE AND THE
ACCOMPANYING CONTRIBUTION RATES FOR PURPOSES OF THE
SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO
AS TO INCREASE THE COST OF ESTABLISHING PREGNANCY
LEAVE, FEDERAL CIVILIAN SERVICE, AND OTHER
ESTABLISHABLE NEW POLICE SERVICE, FROM TEN TO TWELVE
PERCENT OF EARNABLE COMPENSATION, INCREASE THE
CONTRIBUTION RATE TO ESTABLISH PRIOR POLICE SERVICE
FROM SIXTEEN TO TWENTY-ONE DOLLARS A MONTH FOR
CLASS ONE SERVICE AND FROM FIVE TO SIX AND ONE-HALF
PERCENT OF MONTHLY COMPENSATION, AND TO INCREASE
THE COST OF ESTABLISHING OUT-OF-STATE SERVICE FROM
TEN TO TWELVE PERCENT OF SALARY; AND TO REPEAL
SECTION 9-11-65, RELATING TO AN OBSOLETE PURCHASE OF
ADDITIONAL SERVICE CREDIT BY MEMBERS WITH AT LEAST
TWENTY-FIVE YEARS SERVICE.
Be it enacted by the General Assembly of the State of South Carolina:
Percentage increased
SECTION 1. The first paragraph of Section 9-1-440 of the 1976 Code is
amended to read:
"A teacher or employee whose membership in the system was
contingent on his own election and who elected not to become a member of
the system may apply for and be admitted to membership. The person shall
receive prior service credit for service rendered before the date he was first
eligible to become a member and membership service credit for service
rendered subsequent to that date if he pays to the system while a
contributing member by a single payment before his retirement or death the
contributions which he would have made had he belonged to the system
during the period he was eligible, together with regular interest thereon. A
former member who withdrew his contributions and has again become a
member of the system may have the service credited to him under the
system at the time he withdrew his contributions restored to him if he pays
to the system while a contributing member, by a single payment before his
retirement or death, the amount of the contributions previously withdrawn,
together with the interest which would have been credited thereon had the
contributions remained in the system to the date of his payment of the
amount to the system. The board may estimate the amount of contributions
required by this section in an equitable and uniform manner, but the
member contribution for nonmember service must not be less than six
percent of his annual earnable compensation, or six percent of the average
of the three highest consecutive fiscal years of salary whichever is greater,
at the time of payment, for each year of service and a proportionate part
thereof for a portion of a year."
Percentage increased
SECTION 2. The second unnumbered paragraph of Section 9-1-1140 of
the 1976 Code is amended to read:
"A period of time up to one year for each pregnancy not to exceed
a total of three years service credit may be established for maternity leave
provided the member pays the full actuarial cost as determined by the
board. However, the payment must not be less than twelve percent of the
annual salary at the time of purchase or the average of the three highest
consecutive fiscal years of salary at the time of purchase, whichever is
greater, for a year of credit prorated for periods less than a year. To be
eligible for maternity leave credit an employee must not be absent from
work for a period greater than two years for each pregnancy."
Buy-out percentages fixed
SECTION 3. Section 9-1-1850(A) of the 1976 Code, as last amended by
Act 166 of 1993, is further amended to read:
"(A) (1) A member who has at least twenty-five years of
creditable service in any retirement system provided in this title may elect
to receive up to five years of additional service credit as though the
additional service credit were rendered by the member as an employee or
member by paying into the member's retirement system the amount
provided in this item. The required amount is determined by multiplying
the member's current salary or the highest fiscal year salary in the member's
work career, whichever is greater, by the percentage provided in this item
and multiplying the result by the number of years credited, prorated for
periods less than one year. The applicable percentage of salary to calculate
the payment allowed pursuant to this subsection is as follows:
Years to be Credited Percentage of Salary
(a) not more than one year 58 percent
(b) over one year but not54 percent for each
more than two years year
(c) over two years but50 percent for each
not more than three year
years
(d) over three years, but46 percent for each
not more than four years year
(e) over four years 42 percent for each
year
(2) The member also shall pay the employer and employee cost for
health and dental insurance for a time period equal to the period of service
credit purchased, or until the date the member attains age sixty, at which
time the member becomes eligible for employer-paid health and dental
insurance.
(3) Any service credit purchased under this subsection qualifies the
member for retirement and the member must retire within ninety days after
the purchase."
Percentage increased
SECTION 4. Items (5) and (6) of Section 9-11-50 of the 1976 Code, as
last amended by Act 87 of 1991, are further amended to read:
"(5) A period of time up to one year for each pregnancy not to
exceed a total of three years of service credit may be established for
maternity leave if the member pays the full actuarial cost as determined by
the board. The payment must not be less than twelve percent of the annual
salary at the time of purchase or the average of the three highest
consecutive fiscal years of salary at the time of purchase, whichever is
greater, for a year of credit prorated for periods less than a year. To be
eligible for maternity leave credit an employee must not be absent from
work for a period greater than two years for each pregnancy.
(6) (a) A former employee of the United States employed in this State
by an employer covered by the system and who is currently a contributing
member, may elect to receive prior service credit for service rendered as an
employee of the United States upon his paying into the system the actuarial
cost as determined by the board. The member payment must not be less
than twelve percent of the earnable compensation, or the average of the
three highest consecutive fiscal years of compensation at the time of
payment, whichever is greater, for each year of service prorated for periods
of less than one year. A member who elects to receive creditable service
for federal employment may establish a portion of the service on a one-time
basis. This service may not exceed the total creditable service, exclusive of
federal service, which he would have if he remained in service until
completion of the eligibility requirements for an unreduced service
retirement allowance. In no event shall any benefits payable under the
system duplicate benefits being paid under any other retirement system for
the same period of service.
(b) Merchant marine seamen who served in active ocean-going
service from December 7, 1941, to August 15, 1947, and civil service crew
members aboard United States Army Transport Service and Naval
Transportation Service vessels in ocean-going service in foreign waters
during the same period may establish their period of service as creditable
service in the manner that military service is established as creditable
service pursuant to this section."
Percentage increased
SECTION 5. Section 9-11-55 of the 1976 Code is amended to read:
"Section 9-11-55. A member of the South Carolina Police
Officers Retirement System may establish additional creditable service for
this system for prior nonpolice service which has never been credited under
another state retirement system for which a member of the South Carolina
Retirement System may establish additional creditable service. The
creditable service is established upon payment of a lump-sum contribution
equal to twelve percent of his annual earnable compensation at the time of
payment for each year of prior service and a proportionate part thereof for a
fraction of a year but the special lump-sum contribution may not be less
than his earnable compensation in any of the three preceding fiscal
years."
Percentage increased
SECTION 6. Section 9-11-210(4) of the 1976 Code is amended to
read:
"(4) A member who has rendered service before his date of
membership which is not otherwise credited under the system may elect by
written notice filed with the board at any time before retirement to establish
credit for the service as Class One service in the case of a Class One
member or as Class Two service in the case of a Class Two member. A
member who makes this election shall make a special contribution to the
system before retirement, determined as follows:
(a) In the case of a Class One member, the amount which would have
resulted if the member had contributed twenty-one dollars during each
month of the service for which credit is to be established and such
contributions were accumulated at regular interest to the date of payment;
or
(b) In the case of a Class Two member, six and one-half percent of the
member's monthly rate of compensation at the time the contribution is made
multiplied by the number of months of service for which credit is to be
established."
Out-of-state service percentage
SECTION 7. Section 9-11-325 of the 1976 Code is amended to read:
"Section 9-11-325. Members of the South Carolina Police
Officers Retirement System are entitled under this system to special
annuities or to additional creditable service on account of their out-of-state
service in the same manner and under the same terms and conditions that
members of the South Carolina Retirement System are so entitled
regardless of whether or not this out-of-state service was as a police officer
or in another capacity not as a police officer. The cost of establishing this
out-of-state service is twelve percent of current salary or the average of
salary received in the three highest salary consecutive fiscal years,
whichever is greater."
Obsolete provision repealed
SECTION 8. Section 9-11-65 of the 1976 Code is repealed.
Time effective
SECTION 9. Section 8 of this act takes effect upon approval by the
Governor. Section 3 of this act applies with respect to payments made
pursuant to Section 9-1-1850(A) of the 1976 Code after June 30, 1994.
The remaining sections apply with respect to payments made after June 30,
1995, to establish retirement system service credit.
Approved the 25th day of May, 1994. |