H*4898(Rat #0522, Act #0439 of 1998)  General Bill, By Robinson
 A BILL TO AMEND SECTIONS 9-1-1140, AS AMENDED, 9-9-50, AS AMENDED, AND
 9-11-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
 CREDITED SERVICE FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE
 RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY AND THE POLICE OFFICERS
 RETIREMENT SYSTEM, SO AS TO ALLOW MILITARY SERVICE TO BE ESTABLISHED AS
 CREDITABLE SERVICE ON THE BASIS OF ONE YEAR OF MILITARY SERVICE RATHER THAN
 TWO YEARS OF MILITARY SERVICE FOR EACH YEAR OF SERVICE ESTABLISHED AND TO
 REQUIRE THE EMPLOYER CONTRIBUTION FOR SUCH SERVICE TO BE PAID BY THE MEMBER'S
 CURRENT EMPLOYER, TO ALLOW NATIONAL GUARD SERVICE TO BE ESTABLISHED AND TO
 PROVIDE THE REQUIREMENTS FOR ESTABLISHING SUCH SERVICE AND TO CLARIFY
 PROVISIONS PROHIBITING THE DUPLICATION OF BENEFITS.-AMENDED TITLE

   03/25/98  House  Introduced and read first time HJ-74
   03/25/98  House  Referred to Committee on Ways and Means HJ-75
   04/08/98  House  Committee report: Favorable with amendment Ways
                     and Means HJ-11
   04/15/98  House  Amended HJ-28
   04/15/98  House  Read second time HJ-31
   04/16/98  House  Read third time and sent to Senate HJ-11
   04/21/98  Senate Introduced, read first time, placed on calendar
                     without reference SJ-27
   05/13/98  Senate Read second time SJ-45
   06/04/98  Senate Read third time and enrolled SJ-29
   06/10/98         Ratified R 522
   06/16/98         Signed By Governor
   06/23/98         Effective date 6/16/98 and applies to military
                     service established in the state retirement
                     sytems on or after that date
   06/23/98         Copies available
   08/05/98         Act No. 439

AN ACT TO AMEND SECTIONS 9-1-1140, AS AMENDED, 9-9-50, AS AMENDED, AND 9-11-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CREDITED SERVICE FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO ALLOW MILITARY SERVICE TO BE ESTABLISHED AS CREDITABLE SERVICE ON THE BASIS OF ONE YEAR OF MILITARY SERVICE RATHER THAN TWO YEARS OF MILITARY SERVICE FOR EACH YEAR OF SERVICE ESTABLISHED AND TO REQUIRE THE EMPLOYER CONTRIBUTION FOR SUCH SERVICE TO BE PAID BY THE MEMBER'S CURRENT EMPLOYER, TO ALLOW NATIONAL GUARD SERVICE TO BE ESTABLISHED AND TO PROVIDE THE REQUIREMENTS FOR ESTABLISHING SUCH SERVICE AND TO CLARIFY PROVISIONS PROHIBITING THE DUPLICATION OF BENEFITS.

Be it enacted by the General Assembly of the State of South Carolina:

South Carolina Retirement System, establishing service credit

SECTION 1. The third unnumbered paragraph of Section 9-1-1140 of the 1976 Code, as last amended by Act 166 of 1993, is further amended to read:

"Any member with two or more years of creditable service shall receive additional creditable service for the period of his military service at the rate of one year of military service for each one year of his creditable service excluding any period of creditable military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. No member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment also applies to credit established for service in the national guard, and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title. Any former employee of the United States employed in this State by an employer covered by the system, and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment may not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event may any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service."

Legislative Retirement Systems, establishing service credit

SECTION 2. Section 9-9-50(4) of the 1976 Code is amended to read:

"(4) Any member with two or more years of credited service shall receive additional credited service for the period of his military service, at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, provided he was discharged or separated from the military service under conditions other than dishonorable, and upon paying to the system, by a single payment before his retirement or death or by such other method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of such military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his becoming a member of the General Assembly the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. No member shall receive credit for more than six years of military service. Military service includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment for each year of service credited. The prohibition on duplication of benefits applicable to credit established for federal employment pursuant to Section 9-1-1140 also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title."

Police Officers Retirement System, establishing service credit

SECTION 3. Subsections (4) and (6)(a) of Section 9-11-50 of the 1976 Code, as last amended by Act 420 of 1994, are further amended to read:

"(4) Any member with two or more years of credited service shall receive additional credited service for the period of his military service at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. However, no member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment as provided in subsection (6) of this section also applies to credit established for service in the national guard, and national guard service may not be established for periods of service credited or creditable in any retirement system under this title.

(a) A former employee of the United States employed in this State by an employer covered by the system and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment must not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event shall any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service."

Time effective

SECTION 4. This act takes effect upon approval by the Governor and applies with respect to military service established in the state retirement systems on or after that date.

Approved the 16th day of June, 1998.