S*0107(Rat #0062, Act #0032 of 1981)  General Bill, By R.C. Dennis, 
J.C. Lindsay and D.S. Taylor
 A Bill to amend Sections 9-11-80, 9-11-90 and 9-1-1560, as amended, and
 9-1-1580 and 9-1-1590, Code of Laws of South Carolina, 1976, relating to the
 South Carolina Retirement System and the Police Officers Retirement System, so
 as to increase the amount that a member retired on disability may earn from
 gainful employment and to calculate a disability retirement allowance on the
 average of the three highest consecutive fiscal years of salary instead of
 current salary.

   01/27/81  Senate Introduced and read first time SJ-13
   01/27/81  Senate Referred to Committee on Finance SJ-13
   02/12/81  Senate Committee report: Favorable Finance SJ-14
   02/17/81  Senate Read second time SJ-11
   02/19/81  Senate Read third time and sent to House SJ-14
   02/24/81  House  Introduced and read first time HJ-739
   02/24/81  House  Referred to Committee on Ways and Means HJ-739
   03/12/81  House  Committee report: Favorable Ways and Means HJ-1188
   04/02/81  House  Read second time HJ-1654
   04/08/81  House  Read third time and enrolled HJ-1716
   04/09/81  Senate Ratified R 62 SJ-6
   04/14/81         Signed By Governor
   04/14/81         Effective date 04/14/81 (Secs. 1 & 4: 07/01/81)
   04/14/81         Act No. 32
   04/28/81         Copies available

AN ACT TO AMEND SECTIONS 9-11-80, 9-11-90 AND 9-1-1560, AS AMENDED, AND 9-1-1590, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO INCREASE THE AMOUNT THAT A MEMBER RETIRED ON DISABILITY MAY EARN FROM GAINFUL EMPLOYMENT AND TO CALCULATE A DISABILITY RETIREMENT ALLOWANCE ON THE AVERAGE OF THE THREE HIGHEST CONSECUTIVE FISCAL YEARS OF SALARY INSTEAD OF CURRENT SALARY.

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

Allowance

SECTION 1. (A) Item (1) of subsection (A) of Section 9-1-1560 of the 1976 Code, as last amended by Act 587 of 1976, is further amended to read:

"(1) Such allowance shall be equal to the service retirement allowance which would have been payable had he continued in service to age sixty-five based on the average final compensation, minus the actuarial equivalent of the contribution the member would have made during such continued service."

(B) Item (1) of subsection (B) of Section 9-1-1560 of the 1976 Code is amended to read:

"(1) Such allowance shall be equal to the service retirement allowance which would have been payable had he continued in service to age sixty-five based on the average final compensation, minus the actuarial equivalent of the contribution the member would have made during such continued service."

Compensation may be increased

SECTION 2. Section 9-1-1580 of the 1976 Code is amended by adding at the end:

"The average final compensation may be increased up to ten percent annually to adjust for inflation."

Disabilities beneficiary

SECTION 3. The second paragraph of Section 9-1-1590 of the 1976 Code is amended by adding at the end:

"The average final compensation may be increased up to ten percent annually to adjust for inflation." The paragraph when amended shall read:

"Should a disability beneficiary under the age of sixty-five years be restored to active service and his compensation then, or at anytime thereafter, be equal to or greater than his average final compensation at retirement, his retirement allowance shall cease and any election of an optional benefit shall become void and he shall again become a member of the system and contribute thereafter as provided in Section 9-1-1020. Any prior service certificate on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect and, in addition, upon his subsequent retirement he shall be credited with all his service as a member. The average final compensation may be increased up to ten percent annually to adjust for inflation."

Disability retirement allowance

SECTION 4. Subsection (2) of Section 9-11-80 of the 1976 Code, as last amended by Act 140 of 1979, is further amended by deleting beginning on line ten "which he would have had if he had continued in service without further change in compensation until the completion of such number of years of credited service. "The subsection when amended shall read:

"(2) Upon disability retirement, the member shall receive a disability retirement allowance which shall be equal to a service retirement allowance computed on the basis of his average final compensation, his years of credited service and his accumulated additional contributions at the date of his disability retirement; provided, however, that, at disability retirement, his disability retirement allowance shall be determined on the basis of the number of years of credited service the member would have completed had he remained in service until attaining age fifty-five and on the basis of the average final compensation. For the purpose of calculating the disability retirement allowance, the additional credited service so determined shall be either Class One service or Class Two service depending upon the classification of the member at time of retirement."

Retirement allowance

SECTION 5. Subsection (2) of Section 9-11-90 of the 1976 Code is amended by adding at the end: "The average final compensation in subsections (1) and (2) of this section may be increased up to ten percent annually to adjust for inflation." The subsection when amended shall read:

"(2) Should a disability beneficiary under the age of fifty-five years be restored to active service and his compensation then, or at any time thereafter, be equal to or greater than his average final compensation at retirement, his retirement allowance shall cease, any election of an optional benefit shall become void, and he shall again become a member of the System and contribute thereafter as provided in Section 9-11-210(1). Any credited service to which he was entitled when he retired shall be restored to him, and upon subsequent retirement his allowance shall be based on his compensation and credited service before and after the period of prior retirement. The average final compensation in subsections (1) and (2) of this section may be increased up to ten percent annually to adjust for inflation."

Time effective

SECTION 6. This act shall take effect upon approval by the Governor except Sections 1 and 4 shall take effect July 1, ACN:.