Current Status Introducing Body:
SenateBill Number: 539Ratification Number: 157Act Number: 166Primary Sponsor: DrummondType of Legislation: GBSubject: Retirement systems, disability benefitDate Bill Passed both Bodies: 19930518Computer Document Number: JIC/5514HC.93Governor's Action: SDate of Governor's Action: 19930616Introduced Date: 19930311Date of Last Amendment: 19930513Last History Body: ------Last History Date: 19930616Last History Type: Act No. 166Scope of Legislation: StatewideAll Sponsors: DrummondType of Legislation: General Bill
Bill Body Date Action Description CMN Leg Involved ---- ------ ------------ ------------------------------ --- ------------ 539 ------ 19930616 Act No. 166 539 ------ 19930616 Signed by Governor 539 ------ 19930610 Ratified R 157 539 House 19930518 Concurred in Senate amendment, enrolled for ratification 539 Senate 19930513 House amendments amended, returned to House 539 House 19930511 Read third time, returned with amendment 539 House 19930506 Amended, read second time 539 House 19930422 Committee Report: Favorable 30 539 House 19930317 Introduced, read first time, 30 referred to Committee 539 Senate 19930316 Read third time, sent to House 539 Senate 19930312 Read second time 539 Senate 19930311 Unanimous consent for second and third reading on the next two consecutive Legislative days 539 Senate 19930311 Introduced, read first time, placed on Calendar without referenceView additional legislative information at the LPITS web site.
(A166, R157, S539)
AN ACT TO AMEND SECTIONS 9-1-1560 AND 9-11-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISABILITY RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICER'S RETIREMENT SYSTEM, SO AS TO PROVIDE THAT MEMBERS RETIRING FROM THOSE SYSTEMS AFTER OCTOBER 15, 1992, AT ANY AGE AS A RESULT OF DISABILITY MUST RECEIVE A BENEFIT EQUAL TO AT LEAST FIFTEEN PERCENT OF AVERAGE FINAL COMPENSATION; TO AMEND SECTION 9-1-1140, AS AMENDED, RELATING TO ESTABLISHING PRIOR SERVICE CREDIT FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE THE COST OF ESTABLISHING FEDERAL CIVILIAN SERVICE AND CERTAIN GRADUATE SCHOOL TIME, AND TO ALLOW A MEMBER TO RECEIVE SERVICE CREDIT FOR UP TO TWO YEARS OF UNDERGRADUATE SCHOOL UNDER CERTAIN CONDITIONS; TO AMEND SECTION 9-1-1710, AS AMENDED, RELATING TO ESTABLISHING OUT-OF-STATE SERVICE FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE THE COST OF ESTABLISHING SUCH SERVICE; TO AMEND SECTION 9-1-1850, AS AMENDED, RELATING TO THE OPTION ALLOWING A MEMBER OF THE SOUTH CAROLINA RETIREMENT SYSTEM WITH AT LEAST TWENTY-FIVE YEARS' SERVICE CREDIT TO PURCHASE UP TO FIVE ADDITIONAL YEARS OF SERVICE CREDIT, SO AS TO PROVIDE THAT PERSONS EXERCISING THE OPTION ARE ELIGIBLE FOR EMPLOYER-PAID HEALTH INSURANCE AT AGE SIXTY; AND TO REPEAL SECTION 9-1-1840, RELATING TO A REDUNDANT SERVICE CREDIT OPTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-1-1560 of the 1976 Code is amended by adding at the end:
"(D) Notwithstanding any other provision of this section, upon retirement for disability after October 15, 1992, at any age, a member must receive a disability retirement allowance equal to at least fifteen percent of his average final compensation."
SECTION 2. Section 9-11-80 of the 1976 Code is amended by adding at the end:
"(6) Notwithstanding any other provision of this section, upon retirement for disability after October 15, 1992, at any age, a member must receive a disability retirement allowance equal to at least fifteen percent of his average final compensation."
SECTION 3. A. Section 9-1-1850(A) of the 1976 Code, as last amended by Act 632 of 1988, is further amended to read:
"(A) For any retirement system provided for by law in this State the member of the retirement system, if he has at least twenty-five years of creditable service, 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 must be determined on the basis of current salary or the highest fiscal year salary in the work career, whichever is greater. 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. Any service credit purchased under this section qualifies the member for retirement and the member must retire within ninety days subsequent to the purchase."
B. (A) This section takes effect upon approval by the Governor and applies with respect to payments made after December 31, 1992.
(B) Employer share payments made by employees after December 31, 1992, must be refunded upon application to the Division of Insurance Services of the State Budget and Control Board.
SECTION 4. The third and fourth paragraphs of Section 9-1-1140 of the 1976 Code are amended to read:
"Any 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 two years 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 prior to 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 prior to 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 prior to 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 State. No member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Any 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 ten percent and effective July 1, 1994, 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 other retirement system for the same period of service.
A member who leaves employment to attend undergraduate or graduate school and returns directly to employment may establish up to two years' retirement credit by paying the actuarial cost as determined by the board. However, the member contribution must not be less than ten percent and effective July 1, 1994, twelve percent of current salary or the average of the three highest consecutive fiscal years, whichever is greater, for each year prorated for periods of less than a year."
SECTION 5. Section 9-1-1710(2) of the 1976 Code, as last amended by Act 64 of 1991, is further amended to read:
"(2) On or after July 1, 1975, any member may elect to become entitled to creditable service on account of his out-of-state service by making a special lump-sum contribution equal to ten percent and effective July 1, 1994, twelve percent of his annual earnable compensation at the time of payment for each year of out-of-state service and a proportionate part thereof for a fraction of a year, provided that the earnable compensation used as a basis for the special lump-sum contribution must not be less than his earnable compensation in any one of the three preceding fiscal years. A member who elects to receive creditable service for out-of-state service may establish a portion of the service on a one-time basis except the balance may be established in accordance with Section 9-1-80. The out-of-state service must be matched on a one-for-one basis with in-state service. Out-of-state service may not exceed the total creditable service, exclusive of out-of-state service which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. A member who elects to receive creditable service for his out-of-state service shall establish credit for all service for which he is eligible, except that the service shall not exceed the total creditable service, exclusive of out-of-state service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. The contribution thereafter must be treated in the same way as the regular contributions required of a member hereunder."
SECTION 6. Section 9-1-1840 of the 1976 Code is repealed.
SECTION 7. This act takes effect upon approval of the Governor.
Approved the 16th day of June, 1993.