H 4274 Session 109 (1991-1992)
H 4274 General Bill, By Carnell, Alexander, R.L. Altman, Bailey, B.O. Baker,
R.A. Barber, G.A. Brown, D.M. Bruce, K.T. Burch, Cato, C.D. Chamblee,
H.H. Clyborne, J.D. Cole, Cooper, K.S. Corbett, Elliott, Fair, T.L. Farr,
J.G. Felder, S.R. Foster, R.C. Fulmer, H.M. Hallman, J.L. Harris, P.B. Harris,
Harrison, Harvin, B.H. Harwell, Haskins, B.L. Hendricks, D.N. Holt, T.E. Huff,
Jennings, J.C. Johnson, Keegan, K.G. Kempe, H.H. Keyserling, M.H. Kinon, Koon,
Lanford, Littlejohn, C.V. Marchbanks, Martin, J.G. Mattos, J.G. McAbee, McCraw,
A.C. McGinnis, McKay, D.E. McTeer, Neilson, E.L. Nettles, Phillips, Quinn,
J. Rama, Rhoad, Meacham, Riser, T.F. Rogers, I.K. Rudnick, Scott, Sharpe,
J.R. Shirley, J.S. Shissias, R. Smith, J.J. Snow, E.C. Stoddard, C.H. Stone,
C.L. Sturkie, Townsend, J.W. Tucker, D.C. Waldrop, C.C. Wells, J.M. White,
J.B. Wilder, Wilkins, S.S. Wofford, D.A. Wright and Young-Brickell
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 a particular option
to receive a full retirement allowance rather than a reduced allowance payable
during the member's life with the provision that at his death the allowance
continues at one-half the rate paid to him for the life of his named
beneficiary, 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 by eighty-nine hundredths of one percent to
offset the actuarial cost of the above provision.
01/28/92 House Introduced and read first time HJ-5
01/28/92 House Referred to Committee on Medical, Military,
Public and Municipal Affairs HJ-6
02/19/92 House Committee report: Favorable with amendment
Medical, Military, Public and Municipal Affairs HJ-7
02/25/92 House Debate adjourned until Wednesday, February 26,
1992 HJ-21
02/26/92 House Amended HJ-31
02/26/92 House Debate interrupted HJ-31
02/26/92 House Read second time HJ-40
02/27/92 House Read third time and sent to Senate HJ-13
03/03/92 Senate Introduced and read first time SJ-8
03/03/92 Senate Referred to Committee on Finance SJ-8
Indicates Matter Stricken
Indicates New Matter
AMENDED
February 26, 1992
H. 4274
Introduced by REPS. Carnell, Wofford, McAbee, Waldrop, Jennings,
T.C. Alexander, Altman, G. Bailey, Barber, G. Brown, Bruce, K. Burch,
Cato, Chamblee, Clyborne, Cole, Cooper, Corbett, D. Elliott, Fair, Farr,
Felder, Foster, Fulmer, Hallman, J. Harris, P. Harris, Harrison, Harvin,
Harwell, Haskins, Hendricks, Holt, Huff, J.C. Johnson, Keegan, Kempe,
Keyserling, Kinon, Koon, Lanford, Littlejohn, Marchbanks, L. Martin,
Mattos, McCraw, McGinnis, McKay, McTeer, Meacham, Neilson,
Nettles, Phillips, Quinn, Rama, Rhoad, Riser, Rudnick, Scott, Sharpe,
Shirley, Shissias, Smith, Snow, Stoddard, Stone, Townsend, Tucker,
Wells, White, Wilder, Wilkins, Wright, A. Young, Rogers, Sturkie and
Baker
S. Printed 2/26/92--H.
Read the first time January 28, 1992.
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 A PARTICULAR OPTION TO RECEIVE A FULL
RETIREMENT ALLOWANCE RATHER THAN A REDUCED
ALLOWANCE PAYABLE DURING THE MEMBER'S LIFE WITH
THE PROVISION THAT AT HIS DEATH THE ALLOWANCE
CONTINUES AT ONE-HALF THE RATE PAID TO HIM FOR THE
LIFE OF HIS NAMED BENEFICIARY, 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
BY EIGHTY-NINE HUNDREDTHS OF ONE PERCENT TO OFFSET
THE ACTUARIAL COST OF THE ABOVE PROVISION.
Amend Title To Conform
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 412 of 1990, 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.
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."
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 and eighteen 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 thirty-nine 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. Section 2 of this act applies with respect to contributions
made after June 30, 1992.
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