H 3941 Session 111 (1995-1996)
H 3941 General Bill, By Lanford, Allison, Anderson, Askins, Bailey, D.W. Beatty,
J. Brown, B.D. Cain, Canty, Carnell, C.D. Chamblee, Clyburn, Cooper, Cotty,
J.L.M. Cromer, Davenport, Delleney, L.L. Elliott, J.G. Felder, Gamble, Govan,
H.M. Hallman, Harrell, J.L. Harris, P.B. Harris, Harvin, B.H. Harwell,
J.H. Hodges, Howard, T.E. Huff, Jennings, Keegan, W.D. Keyserling, M.H. Kinon,
Kirsh, Klauber, Knotts, Koon, Law, Limehouse, Littlejohn, L.M. Martin,
J.G. McAbee, McCraw, McKay, D.E. McTeer, Meacham, J.H. Neal, Neilson, Phillips,
Quinn, Rhoad, Rice, Riser, Robinson, Sandifer, Scott, Sharpe, J.S. Shissias,
Simrill, R. Smith, Spearman, Stuart, Townsend, Tripp, Trotter, J.W. Tucker,
D.C. Waldrop, Walker, C.C. Wells, Whatley, Whipper, Wilder, Wilkes, Wilkins,
Witherspoon, H.G. Worley, D.A. Wright and Young-Brickell
Similar(S 714, H 3308)
A Bill to amend Section 9-11-150, as amended, Code of Laws of South Carolina,
1976, relating to optional forms of retirement allowances under the Police
Officers Retirement System, so as to allow a member under particular options
to receive a full retirement allowance rather than a reduced allowance under
certain conditions, and to amend Section 9-11-210, as amended, relating to
contributions to the System, so as to increase the employee contributions of
Class One and Class Two members to offset the actuarial cost of the above
provision.
04/06/95 House Introduced and read first time HJ-30
04/06/95 House Referred to Committee on Ways and Means HJ-31
A BILL
TO AMEND SECTION 9-11-150, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO
OPTIONAL FORMS OF RETIREMENT ALLOWANCES UNDER
THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO
ALLOW A MEMBER UNDER PARTICULAR OPTIONS TO
RECEIVE A FULL RETIREMENT ALLOWANCE RATHER
THAN A REDUCED ALLOWANCE UNDER CERTAIN
CONDITIONS, AND TO AMEND SECTION 9-11-210, AS
AMENDED, RELATING TO CONTRIBUTIONS TO THE
SYSTEM, SO AS TO INCREASE THE EMPLOYEE
CONTRIBUTIONS OF CLASS ONE AND CLASS TWO
MEMBERS TO OFFSET THE ACTUARIAL COST OF THE
ABOVE PROVISION.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 9-11-150 of the 1976 Code, as last
amended by Act 336 of 1992, is further amended to read:
"Section 9-11-150. Until the first payment on account
of a retirement allowance becomes normally due, any member or
beneficiary may elect, by filing with the system, to convert the
retirement allowance otherwise payable on his account after
retirement into a retirement allowance of equivalent value under one
of the optional forms named below, the retirement allowance under
the option selected being due and payable on the date of retirement:
Option 1. A reduced retirement allowance payable
during the retired member's life, with the provision that the
reduced allowance continues after his death to and for the
life of the beneficiary, or to the trustee of the beneficiary,
nominated by him by written designation duly acknowledged and
filed with the board at the time of retirement, if the person survives
him. To the extent the actuarial cost of the beneficiary's
allowance provided under this option exceeds the cost of the
member's benefit as provided under Option 2, the member's
retirement allowance must be reduced to offset the actuarial cost in
excess of the member's benefit as provided in Option 2;
Option 2. A reduced retirement allowance payable
during the retired member's life, with the provision that it continues
after his death at one-half the rate paid to him to and for the life of
the beneficiary, or the trustee of the beneficiary, nominated by him
by written designation duly acknowledged and filed with the board
at the time of retirement, if the person survives him. The
retirement allowance of the member under this option must be the
allowance otherwise payable to him on his account without
reduction, except that to the extent the actuarial cost of the
beneficiary's allowance provided under this option exceeds fifteen
percent of the member's maximum benefit, the member's retirement
allowance must be reduced to offset the cost in excess of fifteen
percent of the member's maximum benefit;
Option 3. Effective July 1, 1990, a retirement allowance of the
amount that, with his benefit under Title II of the Federal Social
Security Act, he will receive, so far as possible, approximately the
same amount a year before and after the earliest age at which he
becomes eligible, upon application therefor, to receive a Social
Security benefit. Cost-of-living and other special increases in
benefits are not applied to the amount advanced under this Option;
Option 4. A member may elect either Option 1 or
2 with the added provision that, if the designated beneficiary
predeceases the member, the retirement allowance payable to the
member after the designated beneficiary's death must be equal to
the retirement allowance which would have been payable had the
member not elected the option;
Option 5. A member may elect Option 1 or 2 with the added
provision that the reduced retirement allowance after his death must
be 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 the beneficiary survives him. The benefit reduction
factor must be based on the average age of the beneficiaries.
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.
A member who retired after under 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."
SECTION 2. Section 9-11-210(1) of the 1976 Code, as last
amended by Act 424 of 1988, is further amended to read:
"(1) Each Class One member shall contribute to the
system twenty-one dollars twenty-four dollars and
twenty-five cents a month during his service after becoming a
member. Each Class Two member shall contribute to the system
six and one-half seven and fifty-one hundredths
percent of his compensation."
SECTION 3. Section 1 of this act takes effect upon approval by
the Governor and applies with respect to persons retiring on or after
the effective date of this act. Section 2 of this act takes effect upon
approval by the Governor and applies with respect to contributions
made after June 30, 1995.
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