H 3091 Session 109 (1991-1992)
H 3091 General Bill, By D.M. Bruce, J. Brown, C.D. Chamblee, Cooper, Elliott,
T.L. Farr, Harvin, Keegan, K.G. Kempe, Lanford and D.C. Waldrop
A Bill to amend Title 9, Code of Laws of South Carolina, 1976, relating to the
various retirement systems, by adding Chapter 14 so as to establish the
Retirement System for Volunteer Firefighters and Volunteer Rescue Squad
Members; and to amend the 1976 Code by adding Section 38-7-45 so as to impose
a one percent fire insurance premium tax to pay a portion of the cost of this
retirement system and to provide for refunding that portion of the tax in
excess of the system's actuarial requirements.
12/27/90 House Prefiled
12/27/90 House Referred to Committee on Ways and Means
01/08/91 House Introduced and read first time HJ-62
01/08/91 House Referred to Committee on Ways and Means HJ-63
04/23/91 House Tabled in committee
A BILL
TO AMEND TITLE 9, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO THE VARIOUS RETIREMENT SYSTEMS, BY
ADDING CHAPTER 14 SO AS TO ESTABLISH THE RETIREMENT
SYSTEM FOR VOLUNTEER FIREFIGHTERS AND VOLUNTEER
RESCUE SQUAD MEMBERS; AND TO AMEND THE 1976 CODE
BY ADDING SECTION 38-7-45 SO AS TO IMPOSE A ONE
PERCENT FIRE INSURANCE PREMIUM TAX TO PAY A
PORTION OF THE COST OF THIS RETIREMENT SYSTEM AND
TO PROVIDE FOR REFUNDING THAT PORTION OF THE TAX IN
EXCESS OF THE SYSTEM'S ACTUARIAL REQUIREMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 9 of the 1976 Code is amended by adding:
"CHAPTER 14
Retirement System for
Volunteer Firefighters and
Volunteer Rescue Squad Workers
Section 9-14-10. The Retirement System for Volunteer
Firefighters and Volunteer Rescue Squad workers is created under the
administration of the State Budget and Control Board to provide
retirement allowances and other benefits for volunteer firefighters and
volunteer rescue squad workers.
Section 9-14-20. As used in this chapter:
(1) `Eligible firefighter' means a volunteer firefighter who belongs
to a bona fide fire department, as determined by the system, and which
operates fire apparatus and equipment valued at five thousand dollars or
more, and holds drills and meetings not less than four hours monthly and
volunteer firefighters attend at least thirty-six hours of all drills and
meetings in each calendar year. Each department shall determine and
report the names of those firefighters meeting the eligibility
qualifications to its respective governing body annually, which upon
determination of the validity and accuracy of the qualification shall
promptly certify the list to the system promptly.
(2) `Eligible rescue squad worker' means a volunteer member of
a rescue squad as determined by the system, and who has attended a
minimum of thirty hours of training and meetings in the last calendar
year.
(3) `Eligible rescue squad worker' does not include `eligible
firefighter' as defined in this section nor may an `eligible rescue squad
worker' qualify also as an `eligible firefighter' in order to receive double
benefits available under this chapter.
(4) `Member' means an eligible firefighter and eligible rescue
squad worker who has applied for membership in the system and who
is current with his monthly contributions as required by this chapter.
(5) `Monthly contribution' is an amount equal to five dollars
which may be increased by the system no more than once a year and by
not more than ten percent at one time.
(6) `System' means the Retirement System for Volunteer
Firefighters and Volunteer Rescue Squad Workers.
Section 9-14-30. Eligible firefighters and rescue squad workers
may apply for membership to the system. Upon becoming a member of
the system, each member shall pay the system a monthly contribution for
twenty years. The monthly contribution must be credited to the separate
account of the member and must be kept by the system so it is available
for payment on withdrawal from membership or retirement.
Section 9-14-40. An eligible firefighter or rescue squad worker
who previously has not elected to become a member may apply to the
system for membership. The person shall make a lump sum payment of
the total amount of monthly contributions retroactively to the time he
first became eligible, plus interest at an annual rate of eight percent for
each year of his retroactive payments. Upon making the lump sum
payment, the person must be given credit for all prior service in the same
manner as if he had made application for membership at the time he first
became eligible.
Section 9-11-50. No later than July 1, 1991, eligible firefighters
and eligible rescue squad workers at least thirty-five years of age on July
1, 1990, may establish credit for prior service for years during which
they were eligible firefighters and eligible rescue squad workers as
defined in this chapter upon payment of a lump sum equal to the total of
monthly contributions that would have been paid during the years for
which credit is established. For purposes of this calculation, the monthly
contribution is five dollars. Upon making the lump sum payment, the
person must be given credit for all prior service in the same manner as
if he had been a member during these years.
Section 9-14-60. An individual who had been a member of the
system and who applies to rejoin the system is not entitled to
membership until he has paid an administrative fee of twenty-five
dollars which fee is in addition to any other charges or payments
required by the system to rejoin the system based upon the system's loss
of earnings resulting from the member's withdrawal from the system.
The administrative fees collected by the system must be retained by it to
defray administrative expenses, including salaries.
Section 9-14-70. (A) A member who has served twenty years
as an eligible firefighter or eligible rescue squad worker in this State and
who has attained the age of fifty-five years is entitled to be paid a
monthly pension from this system of one hundred dollars.
No person is entitled to a pension until his official duties as a
volunteer firefighter or volunteer rescue squad worker are terminated
and he has retired according to standards fixed by the system.
(B) A member who is totally and permanently disabled while in
the discharge of his official duties as a result of bodily injuries sustained
or as a result of extreme exercise or extreme activity experienced in the
course and scope of his official duties and who leaves the fire or rescue
squad service because of this disability is entitled to be paid from the
system a monthly benefit in an amount of one hundred dollars beginning
the first month after his fifty-fifth birthday. All applications for
disability are subject to the approval of the system which may appoint
physicians to examine and evaluate the disabled member before
approval of his application and annually thereafter. A disabled member
is not required to make the monthly payment of five dollars.
(C) A member who is totally and permanently disabled for a
cause, other than line of duty, who leaves the fire or rescue squad service
because of this disability and who has at least ten years of service with
the system may continue making the monthly contribution to the system
until he has paid into the system an amount equal to the total of monthly
contributions that he would be required to make if he continued in active
service for twenty years. The member, upon attaining the age of
fifty-five years, is entitled to receive a pension as provided by this
section. All applications for disability are subject to the approval of the
system which may appoint physicians to examine and evaluate the
disabled member before approval of his application and annually
thereafter.
(D) The pensions provided pursuant to this section are in addition
to all other pensions or benefits under any other statutes of this State or
the United States.
Section 9-14-80. The system shall direct payment in lump sums
from the system in settlement of all claims against it as follows:
(1) To a member upon attaining the age of fifty-five years, who,
for any reason, is not qualified to receive the monthly retirement pension
and who was enrolled as a member of the system, an amount equal to the
amount paid into the system by him.
(2) If a member dies before attaining the age at which a pension
is payable to him under the provisions of this chapter, there must be paid
to a beneficiary he nominates an amount equal to the amount he paid
into the system.
(3) If a member dies after beginning to receive the pension
payable to him by this chapter and before receiving an amount equal to
the amount he paid into the system, there must be paid to a beneficiary
he nominates an amount equal to the difference between the amount he
paid into the system and the amount received by him as a pensioner.
(4) A member withdrawing from the system, upon proper
application, must be paid all monies the individual contributed to the
system without accumulated earnings on the payments after the time
they were made less an administrative fee equal to the lesser of the
amount the individual contributed to the system or twenty-five dollars.
The administrative fees collected by the system must be retained by the
system to defray administrative expenses, including salaries. If any
person has made contributions on behalf of a member and that member
withdraws from the system, the person is entitled to a refund equal to the
amount of contributions made by him after the system has been notified
of the contributor's desire to be refunded contributions upon the
member's withdrawal. Any refunds to a contributor other than a member
also are subject to the twenty-five dollar administrative fee. If a refund
is to be shared by a member and another party the administrative fee
must be applied to each portion on a pro rata basis.
Section 9-14-90. If, for any reason, the system is unable to pay in
full any pension benefits, or other charges, then all benefits or payments
must be reduced pro rata, for as long as the deficiency in amount exists.
No claim may accrue with respect to any amount by which a pension or
benefit payment is reduced.
Section 9-14-100. The pensions granted are subject to future
legislative change or revision, and no member of the system, or any
person, is considered to have acquired any vested right to a pension or
other payment provided by this chapter.
Section 9-14-110. The system shall determine the number of years'
credit for service of members.
Section 9-14-120. An eligible fireman's or rescue squad worker's
length of service is not affected by the fact that he may have served with
more than one department or squad or both and upon transfer from one
department or squad to another, notice of the fact must be given to the
system.
Section 9-14-130. A member who becomes six months delinquent
in making monthly contributions required by this chapter by the tenth of
the month with respect to which the payment is due forfeits his
membership in the system."
SECTION 2. Chapter 7, Title 38 of the 1976 Code is amended by
adding:
"Section 38-7-45. Each fire insurer shall pay to the
commission an amount equal to one percent of all premiums written on
fire insurance required to be reported under Section 38-7-70 during the
preceding year ending December 31, or for the portion the year the
insurer has done business in this State. The revenue from the tax must
be credited to the State Retirement System for Volunteer Firefighters
and Volunteer Rescue Squad Workers and any of the tax in excess of the
system's actuarial requirements must be refunded."
SECTION 3. This act takes effect July 1, 1991.
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