S*0660(Rat #0377, Act #0336 of 1992)  General Bill, By J.M. Waddell
 A Bill to amend Sections 9-1-1620, as amended, 9-9-70, as amended, and
 9-11-150, as amended, Code of Laws of South Carolina, 1976, relating to the
 retirement benefit options for members of the South Carolina Retirement
 System, the Retirement System for Members of the General Assembly, and the
 South Carolina Police Officers Retirement System, so as to provide that a
 member electing a new retirement option after the death of a spouse must make
 the election before the later of July 1, 1992, or the first anniversary of the
 death of the spouse, to provide that a new option may be elected after a
 change in marital status, and to allow persons retiring before July 1, 1990,
 who retired under the option advancing Social Security payments to elect to
 make a lump sum payment to eliminate benefit reductions attributable to
 cost-of-living and special benefit increases and provide that the benefit of a
 retiree electing not to make the payment must be adjusted after the excess of
 the cost-of-living and special increases over the increases the retiree would
 have received under another option is recovered; to amend Section 9-8-70,
 relating to the retirement benefit option for members of the Retirement System
 for Judges and Solicitors, so as to allow multiple beneficiaries; and to amend
 Section 9-11-25, relating to the authority for allowing probate judges to
 participate in the Police Officers Retirement System, so as to delete the
 separate payment provisions.-amended title

   02/14/91  Senate Introduced and read first time SJ-6
   02/14/91  Senate Referred to Committee on Finance SJ-6
   03/20/91  Senate Committee report: Favorable Finance SJ-11
   03/21/91  Senate Read second time SJ-29
   03/21/91  Senate Unanimous consent for third reading on next
                     legislative day SJ-30
   03/22/91  Senate Read third time and sent to House SJ-9
   03/26/91  House  Introduced and read first time HJ-9
   03/26/91  House  Referred to Committee on Ways and Means HJ-10
   04/25/91  House  Committee report: Majority favorable, minority
                     unfavorable Ways and Means HJ-53
   01/16/92  House  Debate adjourned until Thursday, January 30, 1992 HJ-29
   02/06/92  House  Debate adjourned until Tuesday, February 11, 1992 HJ-35
   03/25/92  House  Amended HJ-55
   03/25/92  House  Read second time HJ-57
   03/26/92  House  Read third time and returned to Senate with
                     amendments HJ-45
   04/09/92  Senate Concurred in House amendment and enrolled SJ-7
   04/28/92         Ratified R 377
   05/04/92         Signed By Governor
   05/04/92         Effective date 05/04/92
   05/04/92         Act No. 336
   06/02/92         Copies available

AN ACT TO AMEND SECTIONS 9-1-1620, AS AMENDED, 9-9-70, AS AMENDED, AND 9-11-150, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RETIREMENT BENEFIT OPTIONS FOR MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE THAT A MEMBER ELECTING A NEW RETIREMENT OPTION AFTER THE DEATH OF A SPOUSE MUST MAKE THE ELECTION BEFORE THE LATER OF JULY 1, 1992, OR THE FIRST ANNIVERSARY OF THE DEATH OF THE SPOUSE, TO PROVIDE THAT A NEW OPTION MAY BE ELECTED AFTER A CHANGE IN MARITAL STATUS, AND TO ALLOW PERSONS RETIRING BEFORE JULY 1, 1990, WHO RETIRED UNDER THE OPTION ADVANCING SOCIAL SECURITY PAYMENTS TO ELECT TO MAKE A LUMP SUM PAYMENT TO ELIMINATE BENEFIT REDUCTIONS ATTRIBUTABLE TO COST-OF-LIVING AND SPECIAL BENEFIT INCREASES AND PROVIDE THAT THE BENEFIT OF A RETIREE ELECTING NOT TO MAKE THE PAYMENT MUST BE ADJUSTED AFTER THE EXCESS OF THE COST-OF-LIVING AND SPECIAL INCREASES OVER INCREASES THE RETIREE WOULD HAVE RECEIVED UNDER ANOTHER OPTION IS RECOVERED; TO AMEND SECTION 9-8-70, RELATING TO THE RETIREMENT BENEFIT OPTION FOR MEMBERS OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO ALLOW MULTIPLE BENEFICIARIES; AND TO AMEND SECTION 9-11-25, RELATING TO THE AUTHORITY FOR ALLOWING PROBATE JUDGES TO PARTICIPATE IN THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO DELETE THE SEPARATE PAYMENT PROVISIONS.

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

Retirement option

SECTION 1. The next-to-last paragraph of Section 9-1-1620 of the 1976 Code, as last amended by Act 412 of 1990, is further amended to read:

"A member having elected Option 2, 3, or 5 and nominated his or her spouse to receive a retirement allowance upon the member's death may, after divorce from or death of his or her spouse, revoke the nomination and elect a new option effective on the first day of the month in which the new option is elected, providing for a retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The election of a new option after the death of the member's spouse must be made before the later of July 1, 1992, or the first anniversary of the death of the spouse. A new option may be elected after a change in marital status."

Multiple beneficiaries

SECTION 2. Section 9-8-70 of the 1976 Code is amended to read:

"Section 9-8-70. Until the first payment of a retirement allowance becomes normally due, a member may elect, by filing written application with the board, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value under which a reduced retirement allowance is payable during the beneficiary's life, with the provision that one-third of the reduced allowance continues after his death to and for the life of the contingent beneficiary designated by him in the application, if the beneficiary were to survive him. For purposes of this section, the member may not designate his spouse as contingent beneficiary.

Until the final payment of a retirement allowance becomes normally due, a member may elect, by filing written application with the board, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value under which a reduced retirement allowance is payable during the beneficiary's life, with the provision that one-third of the reduced allowance is payable in equal shares to and for the life of each of two or more beneficiaries or to the trustee or trustees of the beneficiaries, for so long as each beneficiary survives him. The benefit reduction factor must be based on the average age of the beneficiaries.

The board may approve a five-year, pay-out plan developed by the actuary on the basis of the total retirement allowance for surviving beneficiaries, other than a spouse."

Retirement option

SECTION 3. The second-to-last paragraph of Section 9-9-70 of the 1976 Code, as amended by Act 412 of 1990, is further amended to read:

"A member having elected Option 1, 2, or 3 and nominated his or her spouse to receive a retirement allowance upon the member's death may, after divorce from or death of his or her spouse, revoke the nomination and elect a new option effective on the first day of the month in which the new option is elected, providing for a retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The election of a new option after the death of the member's spouse must be made before the later of July 1, 1992, or the first anniversary of the death of the spouse. A new option may be elected after a change in marital status."

Separate payment deleted

SECTION 4. Section 9-11-25 of the 1976 Code, as added by Act 678 of 1988, is amended to read:

"Section 9-11-25. Probate judges may elect to participate in the South Carolina Police Officers Retirement System or they may elect to remain under regular state retirement."

Retirement option

SECTION 5. The last paragraph of Section 9-11-150 of the 1976 Code, as amended by Act 412 of 1990, is further amended to read:

"A member having elected Option 1, 2, or 4 and nominated his or her spouse to receive a retirement allowance upon the member's death may, after divorce from or death of his or her spouse, revoke the nomination and elect a new option effective on the first day of the month in which the new option is elected, providing for a retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The election of a new option after the death of the member's spouse must be made before the later of July 1, 1992, or the first anniversary of the death of the spouse. A new option may be elected after a change in marital status."

Lump sum payments

SECTION 6. Section 9-1-1620 of the 1976 Code, as last amended by Act 412 of 1990, is further amended by adding immediately before the last paragraph:

"A member who retired under the provisions of Option 4 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992."

Lump sum payments

SECTION 7. Section 9-11-150 of the 1976 Code, as last amended by Act 412 of 1990, is further amended by adding at the end:

"A member who retired after the provisions of Option 3 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992."

Time effective

SECTION 8. This act takes effect upon approval by the Governor.

Approved the 4th day of May, 1992.