H*3132 Session 108 (1989-1990)
H*3132(Rat #0476, Act #0412 of 1990) General Bill, By Barfield
A Bill to amend Sections 9-1-1620, 9-9-70, and 9-11-150, Code of Laws of South
Carolina, 1976, relating to the retirement benefit options available for
members of the South Carolina Retirement System, the Retirement System for
Members of the General Assembly, and the South Carolina Police Officers
Retirement System, so as to provide for payments to more than one beneficiary
and to provide for a benefit reduction factor, to provide that cost-of-living
and other special benefit increases are not applied to benefits advanced under
the option allowing advancement of Social Security benefits, and to provide
that members who designated a spouse as a beneficiary may make a new
designation after the death of a spouse; to amend the 1976 Code by adding
Sections 9-1-100, 9-9-220, and 9-11-15 so as to provide that payments to
beneficiaries under these retirement systems may be made to more than one
person, to trustees, and to estates; to amend Section 9-9-50, relating to
credited service for members of the Retirement System for Members of the
General Assembly, so as to provide for the method by which a member of the
South Carolina Retirement System with prior legislative service may establish
credit for his years of legislative service; to amend Sections 9-1-1770,
9-8-110, 9-9-100, and 9-11-120, relating to payments of death benefits for
purposes of the various state retirement systems, so as to allow designation
of more than one beneficiary.-amended title
01/10/89 House Introduced and read first time HJ-60
01/10/89 House Referred to Committee on Ways and Means HJ-60
01/18/90 House Committee report: Favorable with amendment Ways
and Means HJ-8
01/25/90 House Amended HJ-15
01/25/90 House Read second time HJ-22
01/25/90 House Unanimous consent for third reading on next
legislative day HJ-22
01/26/90 House Read third time and sent to Senate HJ-1
01/30/90 Senate Introduced and read first time SJ-17
01/30/90 Senate Referred to Committee on Finance SJ-18
03/07/90 Senate Committee report: Favorable with amendment
Finance SJ-19
03/08/90 Senate Amended SJ-11
03/08/90 Senate Read second time SJ-11
03/08/90 Senate Ordered to third reading with notice of
amendments SJ-11
03/20/90 Senate Amended SJ-14
03/20/90 Senate Read third time and returned to House with
amendments SJ-15
03/29/90 House Concurred in Senate amendment and enrolled HJ-24
04/05/90 Ratified R 476
04/11/90 Signed By Governor
04/11/90 Effective date 01/01/91
04/11/90 Act No. 412
04/11/90 See act for exception to or explanation of
effective date
05/08/90 Copies available
(A412, R476, H3132)
AN ACT TO AMEND SECTIONS 9-1-1620, 9-9-70, AND 9-11-150, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO THE RETIREMENT BENEFIT OPTIONS
AVAILABLE FOR MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE
RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE SOUTH
CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE FOR PAYMENTS
TO MORE THAN ONE BENEFICIARY AND TO PROVIDE FOR A BENEFIT REDUCTION
FACTOR, TO PROVIDE THAT COST-OF-LIVING AND OTHER SPECIAL BENEFIT
INCREASES ARE NOT APPLIED TO BENEFITS ADVANCED UNDER THE OPTION ALLOWING
ADVANCEMENT OF SOCIAL SECURITY BENEFITS, AND TO PROVIDE THAT MEMBERS WHO
DESIGNATED A SPOUSE AS A BENEFICIARY MAY MAKE A NEW DESIGNATION AFTER THE
DEATH OF THE SPOUSE; TO AMEND THE 1976 CODE BY ADDING SECTIONS 9-1-100,
9-9-220, AND 9-11-15 SO AS TO PROVIDE THAT PAYMENTS TO BENEFICIARIES
UNDER THESE RETIREMENT SYSTEMS MAY BE MADE TO MORE THAN ONE PERSON, TO
TRUSTEES, AND TO ESTATES; TO AMEND SECTION 9-9-50, RELATING TO CREDITED
SERVICE FOR MEMBERS OF THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL
ASSEMBLY, SO AS TO PROVIDE FOR THE METHOD BY WHICH A MEMBER OF THE SOUTH
CAROLINA RETIREMENT SYSTEM WITH PRIOR LEGISLATIVE SERVICE MAY ESTABLISH
CREDIT FOR HIS YEARS OF LEGISLATIVE SERVICE; TO AMEND SECTIONS 9-1-1770,
9-8-110, 9-9-100, AND 9-11-120, RELATING TO PAYMENTS OF DEATH BENEFITS
FOR PURPOSES OF THE VARIOUS STATE RETIREMENT SYSTEMS, SO AS TO ALLOW
DESIGNATION OF MORE THAN ONE BENEFICIARY.
Be it enacted by the General Assembly of the State of South Carolina:
Retirement options
SECTION 1. Section 9-1-1620 of the 1976 Code is amended to read:
"Section 9-1-1620. 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 actuarial 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 if he dies within ten years from
his retirement date, an amount equal to his accumulated contributions at
retirement, less one-one hundred twentieth of the amount for each month
for which he has received a retirement allowance payment, must be paid
to his legal representatives or to the person he nominates by written
designation duly acknowledged and filed with the board;
Option 2. A reduced retirement allowance payable during the retired
member's life, with the provision that it continues after his death 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;
Option 3. 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;
Option 4. 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 5. A member may elect either Option 2 or 3 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 6. A member may elect Option 2 or 3 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 each
beneficiary survives him. The benefit reduction factor must be based on
the average age of the beneficiaries.
Any member having elected Option 2, 3, or 5 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 prior to the effective date of the new option.
The board may approve a five-year pay-out plan developed by the
actuary on the basis of the total retirement allowance for surviving
beneficiaries, other than a spouse."
Retirement options
SECTION 2. Section 9-9-70 of the 1976 Code is amended to read:
"Section 9-9-70. 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 actuarial 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 it continues after his death 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;
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;
Option 3. 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 4. A member may elect Option 1 or 2 with the added provision that
the reduced retirement allowance after his death is 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 each
beneficiary survives him. The benefit reduction factor must be based on
the average age of the beneficiaries.
Any member having elected Option 1, 2, or 3 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 prior to the effective date of the new option.
A member may, upon occurrence of a change in his marital status
after the date of retirement, revoke the form of payment elected 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 prior to the effective date of the new option.
The board may approve a five-year pay-out plan developed by the
actuary on the basis of the total retirement allowance for surviving
beneficiaries, other than a spouse."
Retirement options
SECTION 3. Section 9-11-150 of the 1976 Code is 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;
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;
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.
Any 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 prior to the effective date of the new option."
Payments to beneficiaries
SECTION 4. Article 1, Chapter 1, Title 9 of the 1976 Code is amended
by adding:
"Section 9-1-100. Payments made to beneficiaries pursuant to
the provisions of this chapter may include payments to a person or
persons, trustees, and estates."
Payments to beneficiaries
SECTION 5. Chapter 9, Title 9 of the 1976 Code is amended by adding:
"Section 9-9-220. Payments made to beneficiaries pursuant to
the provisions of this chapter may include payments to a person or
persons, trustees, and estates."
Payments to beneficiaries
SECTION 6. Article 1, Chapter 11, Title 9 of the 1976 Code is
amended by adding:
"Section 9-11-15. Payments made to beneficiaries pursuant to
the provisions of this chapter may include payments to a person or
persons, trustees, and estates."
Transfer of credit
SECTION 7. (A) Section 9-9-50(2) of the 1976 Code is amended by
adding at the end:
"A former member of the General Assembly who is a member of the
South Carolina Retirement System may transfer credit from the Retirement
System for members of the General Assembly to the South Carolina
Retirement System upon payment of an amount equal to four percent of his
current salary or the average of his salary in the three highest
consecutive years, whichever is greater, for each year of service
credited."
(B) The amendment to Section 9-9-50(2) of the 1976 Code in
subsection (A) of this section is effective upon approval by the
Governor.
Death benefits
SECTION 8. The fifth paragraph of Section 9-1-1770 of the 1976 Code
is amended to read:
"Upon the death of a retired member on or after July 1, 1985,
there must be paid to the designated beneficiary or beneficiaries, if
living at the time of the retired member's death, otherwise to the
retired member's estate, a death benefit of one thousand dollars if the
retired member had ten years of creditable service but less than twenty
years, two thousand dollars if the retired member had twenty years of
creditable service but less than thirty, and three thousand dollars if
the retired member had at least thirty years of creditable service at the
time of retirement, provided the retired member's most recent employer
prior to retirement is covered by the Group Life Insurance Program."
Death benefits
SECTION 9. The last (unnumbered) paragraph of Section 9-8-110 of the
1976 Code is amended to read:
"Upon the death of a retired member on or after July 1, 1985,
there must be paid to the designated beneficiary or beneficiaries, if
living at the time of the retired member's death, otherwise to the
retired member's estate, a death benefit of one thousand dollars if the
retired member had ten years of creditable service but less than twenty
years, two thousand dollars if the retired member had twenty years of
creditable service but less than thirty, and three thousand dollars if
the retired member had at least thirty years of creditable service at the
time of retirement."
Death benefits
SECTION 10. The last (unnumbered) paragraph of Section 9-9-100 of the
1976 Code is amended to read:
"Upon the death of a retired member on or after July 1, 1985,
there must be paid to the designated beneficiary or beneficiaries, if
living at the time of the retired member's death, otherwise to the
retired member's estate, a death benefit of one thousand dollars if the
retired member had ten years of creditable service but less than twenty
years, two thousand dollars if the retired member had twenty years of
creditable service but less than thirty, and three thousand dollars if
the retired member had at least thirty years of creditable service at the
time of retirement."
Death benefits
SECTION 11. The sixth paragraph of Section 9-11-120 of the 1976 Code
is amended to read:
"Upon the death of a retired member on or after July 1, 1985,
there must be paid to the designated beneficiary or beneficiaries, if
living at the time of the retired member's death, otherwise to the
retired member's estate, a death benefit of one thousand dollars if the
retired member had ten years of creditable service but less than twenty
years, two thousand dollars if the retired member had twenty years of
creditable service, but less than thirty, and three thousand dollars if
the retired member had at least thirty years of creditable service at the
time of retirement, provided the retired member's most recent employer
prior to retirement is covered by the Group Life Insurance Program."
Time effective
SECTION 12. This act takes effect January 1, 1991, except that Option
4, as contained in Section 9-1-1620 of the 1976 Code and Option 3, as
contained in Section 9-11-150 of the 1976 Code, take effect as stated in
those options.
Approved the 11th day of April, 1990.
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