S*0732(Rat #0372, Act #0315 of 1982)  General Bill, By R.C. Dennis, 
J.C. Lindsay and D.S. Taylor

Similar(S 970)
 A Bill to amend Sections 9-1-1160, 9-9-120 and 9-11-210, all as amended, and
 9-1-1020, Code of Laws of South Carolina, 1976, and Act 150 of 1979, as
 amended, relating to the South Carolina Retirement System, the police officers
 retirement system and the retirement systems for members of the General
 Assembly, Judiciary and Solicitors, so as to provide that the employee's
 contributions to the system shall be picked up by the employer through a
 salary reduction plan for the purpose of deferring payment of federal income
 taxes until the funds are withdrawn or upon retirement.

   01/27/82  Senate Introduced and read first time SJ-11
   01/27/82  Senate Referred to Committee on Finance SJ-11
   02/10/82  Senate Committee report: Favorable Finance SJ-14
   02/11/82  Senate Read second time SJ-16
   02/17/82  Senate Read third time and sent to House SJ-17
   02/18/82  House  Introduced and read first time HJ-921
   02/18/82  House  Referred to Committee on Ways and Means HJ-922
   03/24/82  House  Committee report: Favorable Ways and Means HJ-1794
   03/25/82  House  Read second time HJ-1834
   03/26/82  House  Read third time and enrolled HJ-1858
   04/08/82  Senate Ratified R 372 SJ-7
   04/14/82         Signed By Governor
   04/14/82         Effective date 04/14/82
   04/14/82         Act No. 315
   04/21/82         Copies available

AN ACT TO AMEND SECTIONS 9-1-1160, 9-9-120 And 9-11-210, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA 1976, AND ACT 150 OF 1979, AS AMENDED, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM, THE POLICE OFFICERS RETIREMENT SYSTEM AND THE RETIREMENT SYSTEMS FOR MEMBERS OF THE GENERAL ASSEMBLY, JUDICIARY AND SOLICITORS, SO AS TO PROVIDE THAT THE EMPLOYEE'S CONTRIBUTIONS TO THE SYSTEM SHALL BE PICKED UP BY THE EMPLOYER THROUGH A SALARY REDUCTION PLAN FOR THE PURPOSE OF DEFERRING PAYMENT OF FEDERAL INCOME TAXES UNTIL THE FUNDS ARE WITHDRAWN OR UPON RETIREMENT.

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

Contributions picked up by employer

Section 1. Section 9-1-1020 of the 1976 Code is amended by adding at the end:

"Each department and political subdivision shall pick up the employee contributions required by this section for all compensation earned after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 2. Section 9-1-1160 of the 1976 Code, as last amended by Section 19, Part II, of Act 709 of 1976, is further amended by adding at the end:

"Each department and political subdivision shall pick up the employee contributions required by this section for all compensation earned after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 3. Section 9-9-120 of the 1976 Code, as last amended by Section 27, Part II, of Act 644 of 1977, is further amended by adding at the end:

"(6) Each department and political subdivision shall pick up the employee contributions required by this section for all compensation earned after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not he included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 4. Section 9-11-210 of the 1976 Code, as last amended by Section 26, Part II, of Act 219 of 1977, is further amended by adding at the end:

" (11) Each department and political subdivision shall pick up the employee contributions required by this section for all compensation earned after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 5. Section 13 of Act 150 of 1979 is amended by adding at the end:

"(4) Each department and political subdivision shall pick up the employee contributions required by this section for all compensation earned after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Time effective

Section 6. This act shall take effect upon the approval by the Governor.