H 4126 General Bill, By Maddox, Altman, Bales, Breeland, Clyburn, Cobb-Hunter, 
Emory, Harrison, J. Hines, Inabinett, McGee, Moody-Lawrence, J.M. Neal, Parks and 
Whipper

Similar(H 3152)
 A BILL TO AMEND SECTIONS 9-1-1140 AND 9-11-50, BOTH AS AMENDED, AND SECTION
 9-8-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ESTABLISHING SERVICE
 CREDIT IN THE SOUTH CAROLINA RETIREMENT SYSTEM, THE SOUTH CAROLINA POLICE
 OFFICERS RETIREMENT SYSTEM, AND THE SOUTH CAROLINA RETIREMENT SYSTEM FOR
 JUDGES AND SOLICITORS, SO AS TO ALLOW A MEMBER TO ESTABLISH SERVICE CREDIT FOR
 MILITARY SERVICE PERFORMED AFTER 1975 UPON MAKING THE PAYMENT REQUIRED TO
 ESTABLISH FEDERAL CIVILIAN SERVICE AND TO PROVIDE THAT OTHER LIMITATIONS ON
 ESTABLISHING SERVICE CREDIT FOR MILITARY SERVICE CONTINUE TO APPLY AND TO
 DELETE OBSOLETE PROVISIONS.

   05/19/99  House  Introduced and read first time HJ-16
   05/19/99  House  Referred to Committee on Ways and Means HJ-17

TO AMEND SECTIONS 9-1-1140 AND 9-11-50, BOTH AS AMENDED, AND SECTION 9-8-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ESTABLISHING SERVICE CREDIT IN THE SOUTH CAROLINA RETIREMENT SYSTEM, THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, AND THE SOUTH CAROLINA RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO ALLOW A MEMBER TO ESTABLISH SERVICE CREDIT FOR MILITARY SERVICE PERFORMED AFTER 1975 UPON MAKING THE PAYMENT REQUIRED TO ESTABLISH FEDERAL CIVILIAN SERVICE AND TO PROVIDE THAT OTHER LIMITATIONS ON ESTABLISHING SERVICE CREDIT FOR MILITARY SERVICE CONTINUE TO APPLY AND TO DELETE OBSOLETE PROVISIONS.

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

SECTION 1. The third unnumbered paragraph of Section 9-1-1140 of the 1976 Code, as last amended by Act 439 of 1998 is further amended to read:

"Any A 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 A member may not receive credit for more than six years of military service. Credit for active military duty performed subsequent to after December 31, 1975, may not be considered creditable service established as military service, but may be established as federal civilian service as provided in this section. 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 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 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. The purchase of federal service is prohibited if the same period of service qualifies the individual to receive a monthly annuity from a state, local, or federal public pension plan. For the purpose of this section, service as an employee of the United States includes active military service rendered after December 31, 1975, and all federal civilian service. Active military service rendered on or before December 31, 1975, may not be established as federal service, but may be established as military service in accordance with this section."

SECTION 2. Section 9-8-50(3) of the 1976 Code is amended to read:

"(3)(a) Any A member with two or more years of credited service shall receive additional credited service for the period of his active military service, at the rate of one year of military service for each two years one year of his credited service excluding any period of credited military service, if he was discharged or separated from the military service under conditions other than dishonorable, and pays to the system, by a single payment prior to before his retirement or death or by such other 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 credited had he been employed in the position he held immediately prior to 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 prior to before his becoming a member of the system, such those payments shall must be determined on the basis of what a member in the position contributed for the same period of time plus interest. No A member shall not receive credit for more than six years of military service and such duty. Credit for active military service performed subsequent to July 1, 1974, shall not be creditable after December 31, 1975, may not be established as military service, but may be established as federal civilian service pursuant to subsection (b).

(b) A former employee of the United States who is 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 of an unreduced service retirement allowance. The purchase of federal service is prohibited if the same period of service qualifies the individual to receive a monthly annuity from a state, local, or federal public pension plan. For the purpose of this subsection, service as an employee of the United States includes active military service rendered after December 31, 1975, and all federal civilian service. Active military service rendered on or before December 31, 1975, may not be established as federal service, but may be established as military service in accordance with subsection (a)."

SECTION 3. Section 9-11-50(4) and (6)(a) of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:

"(4) Any A 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 a member may not receive credit for more than six years of military service. Credit for active military duty performed subsequent to before December 31, 1975, may not be considered creditable service established as military service, but may be established as federal civilian served as provided in subsection (6)(a). 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.

(6)(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. The purchase of federal service is prohibited if the same period of service qualifies the individual to receive a monthly annuity from a state, local, or federal public pension plan. For the purposes of this subsection, service as an employee of the United States includes active military service rendered after December 31, 1975, and all federal civilian service. Active military service rendered on or before December 31, 1975, may not be established as federal service, but may be established as military service in accordance with subsection (4) of this section."

SECTION 4. Upon approval by the Governor, this act takes effect July 1, 1999.