H 3378 Session 112 (1997-1998)
H 3378 General Bill, By W. McLeod, J. Brown, Harrison, J.H. Hodges, Jennings,
Townsend and Wilder
A BILL TO AMEND SECTIONS 9-1-1510, AND 9-1-1550, BOTH AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO SERVICE RETIREMENT UNDER THE SOUTH
CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY TO TWENTY-FIVE THE
YEARS OF CREDITABLE SERVICE TO RETIRE AT ANY AGE WITHOUT PENALTY; TO REQUIRE
THE STATE BUDGET AND CONTROL BOARD TO INCREASE BOTH EMPLOYER AND EMPLOYEE
CONTRIBUTIONS IN AN AMOUNT SUFFICIENT TO OFFSET THE INCREASED ACTUARIAL COST
OF THESE PROVISIONS WITH NOT LESS THAN SEVENTEEN PERCENT OF THE TOTAL INCREASE
TO BE PAID BY EMPLOYERS; AND TO REPEAL SECTIONS 9-1-1515 AND 9-1-1850,
RELATING TO OTHER EARLY RETIREMENT PROVISIONS MADE OBSOLETE BY THIS ACT.
02/05/97 House Introduced and read first time HJ-14
02/05/97 House Referred to Committee on Ways and Means HJ-14
A BILL
TO AMEND SECTIONS 9-1-1510, AND 9-1-1550, BOTH AS
AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO SERVICE RETIREMENT UNDER THE SOUTH
CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE
FROM THIRTY TO TWENTY-FIVE THE YEARS OF
CREDITABLE SERVICE TO RETIRE AT ANY AGE WITHOUT
PENALTY; TO REQUIRE THE STATE BUDGET AND
CONTROL BOARD TO INCREASE BOTH EMPLOYER AND
EMPLOYEE CONTRIBUTIONS IN AN AMOUNT SUFFICIENT
TO OFFSET THE INCREASED ACTUARIAL COST OF THESE
PROVISIONS WITH NOT LESS THAN SEVENTEEN PERCENT
OF THE TOTAL INCREASE TO BE PAID BY EMPLOYERS;
AND TO REPEAL SECTIONS 9-1-1515 AND 9-1-1850,
RELATING TO OTHER EARLY RETIREMENT PROVISIONS
MADE OBSOLETE BY THIS ACT.
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
1997, 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
1997, 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 shall increase
employer and employee contributions in an amount sufficient to
offset the additional actuarial cost of the amendments to Sections
9-1-1510 and 9-1-1550 of the 1976 Code as amended by this act, but
the employer-paid increase must not be less than seventeen percent
of the total increase.
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, 1997.
SECTION 5. This act takes effect July 1, 1997.
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