H 4744 Session 112 (1997-1998)
H 4744 General Bill, By Hinson
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 FOR PERSONS
FIRST BECOMING MEMBERS OF THE SOUTH CAROLINA SYSTEM AFTER JUNE 30, 1998; AND
TO REQUIRE THE STATE BUDGET AND CONTROL BOARD TO INCREASE BOTH EMPLOYER AND
EMPLOYEE CONTRIBUTIONS ON PERSONS FIRST BECOMING MEMBERS AFTER JUNE 30, 1998,
IN AN AMOUNT SUFFICIENT TO OFFSET THE INCREASED ACTUARIAL COST OF THESE
PROVISIONS.
03/03/98 House Introduced and read first time HJ-3
03/03/98 House Referred to Committee on Ways and Means HJ-3
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 FOR PERSONS FIRST BECOMING MEMBERS OF
THE SOUTH CAROLINA SYSTEM AFTER JUNE 30, 1998; AND
TO REQUIRE THE STATE BUDGET AND CONTROL BOARD
TO INCREASE BOTH EMPLOYER AND EMPLOYEE
CONTRIBUTIONS ON PERSONS FIRST BECOMING
MEMBERS AFTER JUNE 30, 1998, IN AN AMOUNT
SUFFICIENT TO OFFSET THE INCREASED ACTUARIAL COST
OF THESE PROVISIONS.
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 or more years
of creditable service, or, in the case of a person first becoming a
member after June 30, 1998, has 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
1998, 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 or more years of creditable service, or, in the
case of a person first becoming a member after June 30, 1998, has
completed 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 years of creditable
service, or, in the case of a person first becoming a member after
June 30, 1998, before completing 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
1998, 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 or more years of
creditable service, or, in the case of a person first becoming a
member after June 30, 1998, has completed 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 years of
creditable service, or, in the case of a person first becoming a
member after June 30, 1998, before completing 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 for persons first becoming
members after June 30, 1998, 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.
SECTION 4. This act takes effect July 1, 1998.
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