H 3263 Session 111 (1995-1996)
H 3263 General Bill, By Walker, Allison, Anderson, Askins, Bailey, D.W. Beatty,
G. Brown, J. Brown, B.D. Cain, Carnell, C.D. Chamblee, Cooper, J.L.M. Cromer,
Dantzler, Davenport, Delleney, L.L. Elliott, Fair, J.G. Felder, Fleming, Govan,
H.M. Hallman, Harrell, J.L. Harris, P.B. Harris, Harvin, B.H. Harwell, Haskins,
R.J. Herdklotz, T.E. Huff, H.G. Hutson, Inabinett, M.F. Jaskwhich, Jennings,
Kelley, Kennedy, W.D. Keyserling, M.H. Kinon, Klauber, Knotts, Law,
L.H. Limbaugh, Littlejohn, C.V. Marchbanks, J.G. McAbee, McCraw, J.T. McElveen,
McKay, McMahand, D.E. McTeer, J.H. Neal, Neilson, Phillips, Rhoad, Rice,
Richardson, Riser, Sandifer, Scott, Sharpe, J.S. Shissias, R. Smith, Spearman,
Stille, E.C. Stoddard, P.H. Thomas, Townsend, Tripp, Trotter, D.C. Waldrop,
C.C. Wells, Whatley, Wilder, Wilkes, Witherspoon, H.G. Worley, D.A. Wright and
Young-Brickell
A Bill to amend Sections 9-1-1510 and 9-1-1550, both as amended, Code of Laws
of South Carolina, 1976, relating to retirement under the South Carolina
Retirement System, so as to reduce from thirty years to twenty-five years the
credited service required for a member to retire at any age without a
reduction in benefits and to phase in this reduction over five years; to amend
Section 9-1-1020, as amended, relating to employee contributions under the
South Carolina Retirement System, so as to increase employee contributions, to
authorize the State Budget and Control Board to adjust retirement
contributions to pay the actuarial cost of this early retirement, and to
repeal effective July 1, 1999, Sections 9-1-1515 and 9-1-1850 relating to
another early retirement option and the purchase of additional service credit
by a member with at least twenty-five years credited service.
01/17/95 House Introduced and read first time HJ-6
01/17/95 House Referred to Committee on Ways and Means HJ-7
A BILL
TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS
AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO RETIREMENT UNDER THE SOUTH
CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE
FROM THIRTY YEARS TO TWENTY-FIVE YEARS THE
CREDITED SERVICE REQUIRED FOR A MEMBER TO
RETIRE AT ANY AGE WITHOUT A REDUCTION IN
BENEFITS AND TO PHASE IN THIS REDUCTION OVER FIVE
YEARS; TO AMEND SECTION 9-1-1020, AS AMENDED,
RELATING TO EMPLOYEE CONTRIBUTIONS UNDER THE
SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO
INCREASE EMPLOYEE CONTRIBUTIONS, TO AUTHORIZE
THE STATE BUDGET AND CONTROL BOARD TO ADJUST
RETIREMENT CONTRIBUTIONS TO PAY THE ACTUARIAL
COST OF THIS EARLY RETIREMENT, AND TO REPEAL
EFFECTIVE JULY 1, 1999, SECTIONS 9-1-1515 AND 9-1-1850
RELATING TO ANOTHER EARLY RETIREMENT OPTION
AND THE PURCHASE OF ADDITIONAL SERVICE CREDIT
BY A MEMBER WITH AT LEAST TWENTY-FIVE YEARS
CREDITED SERVICE.
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 1999, 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
1999, 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 third unnumbered paragraph of Section
9-1-1020 of the 1976 Code, as last amended by Act 475 of 1988, is
further amended to read:
"The rates of the deductions must be, without regard to a
member's coverage under the Social Security Act, as follows: in
the case of Class One members five six and
one-half percent of earnable compensation through June 30,
1999, and seven percent thereafter and, in the case of Class
Two members, six seven and one-half percent of
earnable compensation through June 30, 1999, and eight percent
thereafter."
SECTION 4. (A) Notwithstanding the provisions of Sections
9-1-1510 and 9-1-1550 of the 1976 Code with respect to the
number of years of credited service under the South Carolina
Retirement System required for a member to retire at any age
without a reduction in benefits, the following amounts of credited
service are required for service retirement before age sixty-five
without a reduction in benefits for members retiring before July 1,
1999:
Fiscal year of Required years of
Retirement Credited
Service
1995-96 29
1996-97 28
1997-98 27
1998-99 26
(B) For members of the South Carolina Retirement System
electing to purchase creditable service as provided in Section
9-1-1850 of the 1976 Code for retirement before July 1, 1999, the
maximum amount that may be purchased pursuant to that section is
the amount necessary to obtain the required years of credited
service provided in subsection (A) of this section.
SECTION 5. The State Budget and Control Board may increase
employer retirement contributions in an amount sufficient to offset
the actuarial cost of the provisions of Sections 9-1-1510 and
9-1-1550 of the 1976 Code as amended by this act and the actuarial
cost of Section 4 of this act.
SECTION 6. Sections 9-1-1515 and 9-1-1850 of the 1976 Code
are repealed effective for members of the South Carolina
Retirement System retiring after June 30, 1999.
SECTION 7. The amendments to Sections 9-1-1510 and
9-1-1550 of the 1976 Code in Sections 1 and 2 of this act apply
with respect to members of the South Carolina Retirement System
retiring after June 30, 1999. Except where otherwise stated, the
remaining sections of this act take effect July 1, 1995.
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