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Bill Number: 3356 Ratification Number: 463 Act Number 424 Introducing Body: House Subject: Police retirement benefits
(A424, R463, H3356)
AN ACT TO AMEND SECTIONS 9-11-60 AND 9-11-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CALCULATION OF RETIREMENT ALLOWANCES AND YEARS OF SERVICE REQUIRED FOR RETIREMENT ELIGIBILITY FOR MEMBERS OF THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO INCREASE FROM NINE DOLLARS TO TEN DOLLARS AND TWENTY-FIVE CENTS THE AMOUNT MULTIPLIED BY YEARS OF SERVICE IN THE CASE OF CLASS ONE SERVICE TO DETERMINE BENEFITS AND TO INCREASE FROM ONE AND THREE-FOURTHS TO TWO PERCENT THE FRACTION USED IN CALCULATING CLASS TWO SERVICE BENEFITS AND TO REDUCE FROM THIRTY TO TWENTY-FIVE YEARS THE YEARS OF SERVICE NECESSARY TO RETIRE AT ANY ACE WITHOUT PENALTY; TO AMEND SECTION 9-11-210, RELATING TO CONTRIBUTIONS, SO AS TO INCREASE THE EMPLOYEE CONTRIBUTIONS OF CLASS ONE MEMBERS FROM SIXTEEN DOLLARS TO TWENTY-ONE DOLLARS A MONTH AND TO INCREASE THE EMPLOYEE CONTRIBUTIONS OF CLASS TWO MEMBERS FROM FIVE TO SIX AND ONE-HALF PERCENT OF COMPENSATION, TO PROVIDE THAT THE STATE BUDGET AND CONTROL BOARD SHALL ADJUST EMPLOYER CONTRIBUTIONS IN AN AMOUNT NOT TO EXCEED THREE PERCENT OF PAYROLL TO OFFSET THE ACTUARIAL COSTS OF THIS ACT, TO AUTHORIZE THE BOARD TO ADJUST EMPLOYEE CONTRIBUTIONS IF NECESSARY TO OFFSET ADDITIONAL ACTUARIAL COST, TO PROVIDE THAT IF CONTRIBUTION RATES EXCEED THE ACTUARIAL COSTS, BOTH EMPLOYEE AND EMPLOYER CONTRIBUTIONS MUST BE DECREASED PROPORTIONATELY; TO AMEND SECTION 9-11-300, RELATING TO A ONE-TIME INCREASE IN BENEFITS, SO AS TO PROVIDE A FOURTEEN AND THREE-TENTHS PERCENT INCREASE IN BENEFITS PAYED AS A RESULT OF RETIREMENT PRIOR TO JULY 1, 1988, AND TO PROVIDE THAT THE PROVISIONS OF THIS ACT ARE EFFECTIVE JULY 1, 1988.
Be it enacted by the General Assembly of the State of South Carolina:
Police retirement benefits
SECTION 1. Section 9-11-60 of the 1976 Code is amended to read:
"Section 9-11-60. (1) A member may retire upon written application to the board setting forth at what time, not more than ninety days before nor more than six months subsequent to the execution and filing, he desires to be retired, if the member at the time specified for his service retirement has attained the age of fifty-five years and completed five or more years of credited service and has separated from service and, if the time specified is subsequent to the date of application, notwithstanding that, during the period of notification, he may have separated from service.
(2) Upon service retirement, the member shall receive a service retirement allowance which is equal to the sum of (a), (b), and (c) below:
(a) a monthly retirement allowance equal to ten dollars and twenty-five cents multiplied by the number of years of his Class One service;
(b) a monthly retirement allowance equal to one-twelfth of two percent of his average final compensation multiplied by the number of years of his Class Two service;
(c) an additional monthly retirement allowance which is the actuarial equivalent of the member's accumulated additional contributions.
The sum of the retirement allowances computed under (a) and (b) above may not be less than the allowance which would have been provided under (a) if all of the member's credited service were Class One service. For a police officer who became a member before July 1, 1974, and who was a participant in the Supplemental Allowance Program, the portion of his service retirement allowance not provided by his accumulated contributions may not be less than it would have been if the provisions of the System in effect on June 30, 1974, had continued in effect until his date of retirement.
(3) Any member who has completed five or more years of credited service but has not attained age fifty-five, upon written application to the governing or administering board of his retirement system, may retire on an early retirement allowance commencing upon his attainment of age fifty-five, as follows:
(a) If the member is less than fifty-five years of age and has at least twenty-five years of creditable service, he may elect to receive up to five years of additional service credit as though the additional service credit were rendered by him as an employee or member upon his paying into his retirement system the actuarial cost as determined by regulation promulgated by the governing or administering board of his retirement system, provided the actuarial cost is determined on the basis of current salary or the highest fiscal year salary in the work career, whichever is greater.
(b) The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, and any service credit purchased must qualify the member for retirement and the member must retire within ninety days subsequent to the purchase."
Twenty-five years' service
SECTION 2. Section 9-11-70(2) of the 1976 Code is amended to read:
"(2) Upon early retirement, the member is entitled to a deferred early retirement allowance commencing upon the attainment of age fifty-five, which is equal to a service retirement allowance computed as provided in Section 9-11-60(2) on the basis of the member's average final compensation and credited service at his date of early retirement. A member with twenty-five or more years of credited service is eligible for a service retirement allowance without a reduction."
SECTION 3. Section 9-11-210(1) of the 1976 Code is amended to read:
"(1) Each Class One member shall contribute to the System twenty-one dollars a month during his service after becoming a member. Each Class Two member shall contribute to the System six and one-half percent of his compensation."
SECTION 4. The amendments to Sections 9-11-60 and 9-11-70 of the 1976 Code contained in this act are effective for members of the South Carolina Police Officers Retirement System retiring after June 30, 1988, and for contributions made after June 30, 1988.
SECTION 5. The State Budget and Control Board shall adjust the employer contribution paid by employers under the South Carolina Police Officers Retirement System in an amount sufficient to offset the actuarial cost of the provisions of Sections 9-11-60 and 9-11-70 of the 1976 Code as amended by this act, not to exceed three percent of payroll. If the employer contribution adjustment provided in this section is insufficient to offset the actuarial cost of the provisions of this act, the board shall adjust employee contributions of the members of the South Carolina Police Officers Retirement System in an amount sufficient to offset the additional actuarial cost. If the contribution rates as set pursuant to this act exceed the actuarial cost of the provisions of this act, the board shall decrease the contribution rate for both employers and employees on a proportional basis.
SECTION 6. Section 9-11-300 of the 1976 Code is amended by adding at the end:
"Benefits payable due to retirement prior to July 1, 1988, shall be increased by fourteen and three-tenths percent effective July 1, 1988. "
SECTION 7. This act takes effect July 1, 1988.