South Carolina General Assembly
110th Session, 1993-1994

Bill 4721


                    Current Status
Introducing Body:               House
Bill Number:                    4721
Ratification Number:            482
Act Number:                     420
Primary Sponsor:                Kirsh
Type of Legislation:            GB
Subject:                        S.C.Retirement System,
                                service credit
Date Bill Passed both Bodies:   19940511
Computer Document Number:       JIC/5502HC.94
Governor's Action:              S
Date of Governor's Action:      19940525
Introduced Date:                19940210
Date of Last Amendment:         19940426
Last History Body:              ------
Last History Date:              19940525
Last History Type:              Act No. 420
Scope of Legislation:           Statewide
All Sponsors:                   Kirsh
Type of Legislation:            General Bill

History

Bill   Body    Date          Action Description              CMN  Leg Involved
----   ------  ------------  ------------------------------  ---  ------------
4721   ------  19940525      Act No. 420
4721   ------  19940525      Signed by Governor
4721   ------  19940519      Ratified R 482
4721   Senate  19940511      Read third time, enrolled for
                             ratification
4721   Senate  19940504      Read second time, notice of
                             general amendments
4721   Senate  19940503      Recalled from Committee,        06
                             placed on Calendar
4721   Senate  19940428      Introduced, read first time,    06
                             referred to Committee
4721   House   19940427      Read third time, sent to
                             Senate
4721   House   19940426      Amended, read second time
4721   House   19940407      Committee Report: Favorable     30
                             with amendment
4721   House   19940210      Introduced, read first time,    30
                             referred to Committee
View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A420, R482, H4721)

AN ACT TO AMEND SECTIONS 9-1-440, 9-1-1140, AND 9-1-1850, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ESTABLISHING SERVICE CREDIT FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE FROM FOUR TO SIX PERCENT OF EARNABLE COMPENSATION THE COST OF ESTABLISHING SERVICE WHEN THE MEMBER ORIGINALLY ELECTED NOT TO BE COVERED, TO INCREASE THE COST OF ESTABLISHING TIME FOR PREGNANCY LEAVE FROM EIGHT TO TWELVE PERCENT OF EARNABLE COMPENSATION, AND TO PROVIDE A SCHEDULE OF RATES FOR A MEMBER WITH AT LEAST TWENTY-FIVE YEARS SERVICE ESTABLISHING CREDIT FOR UP TO FIVE YEARS ADDITIONAL SERVICE; TO AMEND SECTIONS 9-11-50, AS AMENDED, 9-11-55, 9-11-210, AS AMENDED, AND 9-11-325, RELATING TO ESTABLISHING CREDIT FOR PRIOR SERVICE AND THE ACCOMPANYING CONTRIBUTION RATES FOR PURPOSES OF THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO INCREASE THE COST OF ESTABLISHING PREGNANCY LEAVE, FEDERAL CIVILIAN SERVICE, AND OTHER ESTABLISHABLE NEW POLICE SERVICE, FROM TEN TO TWELVE PERCENT OF EARNABLE COMPENSATION, INCREASE THE CONTRIBUTION RATE TO ESTABLISH PRIOR POLICE SERVICE FROM SIXTEEN TO TWENTY-ONE DOLLARS A MONTH FOR CLASS ONE SERVICE AND FROM FIVE TO SIX AND ONE-HALF PERCENT OF MONTHLY COMPENSATION, AND TO INCREASE THE COST OF ESTABLISHING OUT-OF-STATE SERVICE FROM TEN TO TWELVE PERCENT OF SALARY; AND TO REPEAL SECTION 9-11-65, RELATING TO AN OBSOLETE PURCHASE OF ADDITIONAL SERVICE CREDIT BY MEMBERS WITH AT LEAST TWENTY-FIVE YEARS SERVICE.

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

Percentage increased

SECTION 1. The first paragraph of Section 9-1-440 of the 1976 Code is amended to read:

"A teacher or employee whose membership in the system was contingent on his own election and who elected not to become a member of the system may apply for and be admitted to membership. The person shall receive prior service credit for service rendered before the date he was first eligible to become a member and membership service credit for service rendered subsequent to that date if he pays to the system while a contributing member by a single payment before his retirement or death the contributions which he would have made had he belonged to the system during the period he was eligible, together with regular interest thereon. A former member who withdrew his contributions and has again become a member of the system may have the service credited to him under the system at the time he withdrew his contributions restored to him if he pays to the system while a contributing member, by a single payment before his retirement or death, the amount of the contributions previously withdrawn, together with the interest which would have been credited thereon had the contributions remained in the system to the date of his payment of the amount to the system. The board may estimate the amount of contributions required by this section in an equitable and uniform manner, but the member contribution for nonmember service must not be less than six percent of his annual earnable compensation, or six percent of the average of the three highest consecutive fiscal years of salary whichever is greater, at the time of payment, for each year of service and a proportionate part thereof for a portion of a year."

Percentage increased

SECTION 2. The second unnumbered paragraph of Section 9-1-1140 of the 1976 Code is amended to read:

"A period of time up to one year for each pregnancy not to exceed a total of three years service credit may be established for maternity leave provided the member pays the full actuarial cost as determined by the board. However, the payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year. To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy."

Buy-out percentages fixed

SECTION 3. Section 9-1-1850(A) of the 1976 Code, as last amended by Act 166 of 1993, is further amended to read:

"(A) (1) A member who has at least twenty-five years of creditable service in any retirement system provided in this title may elect to receive up to five years of additional service credit as though the additional service credit were rendered by the member as an employee or member by paying into the member's retirement system the amount provided in this item. The required amount is determined by multiplying the member's current salary or the highest fiscal year salary in the member's work career, whichever is greater, by the percentage provided in this item and multiplying the result by the number of years credited, prorated for periods less than one year. The applicable percentage of salary to calculate the payment allowed pursuant to this subsection is as follows:

Years to be Credited Percentage of Salary

(a) not more than one year 58 percent

(b) over one year but not54 percent for each

more than two years year

(c) over two years but50 percent for each

not more than three year

years

(d) over three years, but46 percent for each

not more than four years year

(e) over four years 42 percent for each

year

(2) 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, or until the date the member attains age sixty, at which time the member becomes eligible for employer-paid health and dental insurance.

(3) Any service credit purchased under this subsection qualifies the member for retirement and the member must retire within ninety days after the purchase."

Percentage increased

SECTION 4. Items (5) and (6) of Section 9-11-50 of the 1976 Code, as last amended by Act 87 of 1991, are further amended to read:

"(5) A period of time up to one year for each pregnancy not to exceed a total of three years of service credit may be established for maternity leave if the member pays the full actuarial cost as determined by the board. The payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year. To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy.

(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 other retirement system for the same period of service.

(b) Merchant marine seamen who served in active ocean-going service from December 7, 1941, to August 15, 1947, and civil service crew members aboard United States Army Transport Service and Naval Transportation Service vessels in ocean-going service in foreign waters during the same period may establish their period of service as creditable service in the manner that military service is established as creditable service pursuant to this section."

Percentage increased

SECTION 5. Section 9-11-55 of the 1976 Code is amended to read:

"Section 9-11-55. A member of the South Carolina Police Officers Retirement System may establish additional creditable service for this system for prior nonpolice service which has never been credited under another state retirement system for which a member of the South Carolina Retirement System may establish additional creditable service. The creditable service is established upon payment of a lump-sum contribution equal to twelve percent of his annual earnable compensation at the time of payment for each year of prior service and a proportionate part thereof for a fraction of a year but the special lump-sum contribution may not be less than his earnable compensation in any of the three preceding fiscal years."

Percentage increased

SECTION 6. Section 9-11-210(4) of the 1976 Code is amended to read:

"(4) A member who has rendered service before his date of membership which is not otherwise credited under the system may elect by written notice filed with the board at any time before retirement to establish credit for the service as Class One service in the case of a Class One member or as Class Two service in the case of a Class Two member. A member who makes this election shall make a special contribution to the system before retirement, determined as follows:

(a) In the case of a Class One member, the amount which would have resulted if the member had contributed twenty-one dollars during each month of the service for which credit is to be established and such contributions were accumulated at regular interest to the date of payment; or

(b) In the case of a Class Two member, six and one-half percent of the member's monthly rate of compensation at the time the contribution is made multiplied by the number of months of service for which credit is to be established."

Out-of-state service percentage

SECTION 7. Section 9-11-325 of the 1976 Code is amended to read:

"Section 9-11-325. Members of the South Carolina Police Officers Retirement System are entitled under this system to special annuities or to additional creditable service on account of their out-of-state service in the same manner and under the same terms and conditions that members of the South Carolina Retirement System are so entitled regardless of whether or not this out-of-state service was as a police officer or in another capacity not as a police officer. The cost of establishing this out-of-state service is twelve percent of current salary or the average of salary received in the three highest salary consecutive fiscal years, whichever is greater."

Obsolete provision repealed

SECTION 8. Section 9-11-65 of the 1976 Code is repealed.

Time effective

SECTION 9. Section 8 of this act takes effect upon approval by the Governor. Section 3 of this act applies with respect to payments made pursuant to Section 9-1-1850(A) of the 1976 Code after June 30, 1994. The remaining sections apply with respect to payments made after June 30, 1995, to establish retirement system service credit.

Approved the 25th day of May, 1994.