Current Status Bill Number:3263 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19950117 Primary Sponsor:Walker All Sponsors:Walker, Allison, Anderson, Askins, Bailey, Beatty, G. Brown, J. Brown, Cain, Carnell, Chamblee, Cooper, Cromer, Dantzler, Davenport, Delleney, Elliott, Fair, Felder, Fleming, Govan, Hallman, Harrell, J. Harris, P. Harris, Harvin, Harwell, Haskins, Herdklotz, Huff, Hutson, Inabinett, Jaskwhich, Jennings, Kelley, Kennedy, Keyserling, Kinon, Klauber, Knotts, Law, Limbaugh, Littlejohn, Marchbanks, McAbee, McCraw, McElveen, McKay, McMahand, McTeer, Neal, Neilson, Phillips, Rhoad, Rice, Richardson, Riser, Sandifer, Scott, Sharpe, Shissias, R. Smith, Spearman, Stille, Stoddard, Thomas, Townsend, Tripp, Trotter, Waldrop, Wells, Whatley, Wilder, Wilkes, Witherspoon, Worley, Wright and A. Young Drafted Document Number:JIC\5174HTC.95 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Early retirement, twenty-five years
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19950117 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY YEARS TO TWENTY-FIVE YEARS THE CREDITED SERVICE REQUIRED FOR A MEMBER TO RETIRE AT ANY AGE WITHOUT A REDUCTION IN BENEFITS AND TO PHASE IN THIS REDUCTION OVER FIVE YEARS; TO AMEND SECTION 9-1-1020, AS AMENDED, RELATING TO EMPLOYEE CONTRIBUTIONS UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE EMPLOYEE CONTRIBUTIONS, TO AUTHORIZE THE STATE BUDGET AND CONTROL BOARD TO ADJUST RETIREMENT CONTRIBUTIONS TO PAY THE ACTUARIAL COST OF THIS EARLY RETIREMENT, AND TO REPEAL EFFECTIVE JULY 1, 1999, SECTIONS 9-1-1515 AND 9-1-1850 RELATING TO ANOTHER EARLY RETIREMENT OPTION AND THE PURCHASE OF ADDITIONAL SERVICE CREDIT BY A MEMBER WITH AT LEAST TWENTY-FIVE YEARS CREDITED SERVICE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The first paragraph of Section 9-1-1510 of the 1976 Code is amended to read:
"Any A member may retire upon written application to the board setting forth at what time, not more than ninety days prior before nor more than six months subsequent to after the execution and filing thereof of the application, he desires to be retired, if such the member at the time so specified for his service retirement shall have has attained the age of sixty years or shall have has thirty twenty-five or more years of creditable service and shall have has separated from service and, if the time so specified is subsequent to after the date of application, notwithstanding that, during such the period of notification, he may have separated from service."
SECTION 2. Subsections (A) and (B) of Section 9-1-1550 of the 1976 Code, as last amended by Act 189 of 1989, are further amended to read:
"(A) Upon retirement from service on or after July 1, 1964, a Class One member shall receive a service retirement allowance which shall consist of:
(1) An employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
(2) An employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and
(3) If he has a prior service certificate in full force and effect, an additional employer annuity which must be equal to the employee annuity which would have been provided at age sixty-five or at age of retirement, whichever is less, by twice the contributions which he would have made during his entire period of prior service had the system been in operation and had he contributed thereunder during such entire period. Upon retirement from service on or after July 1, 1989 1999, a Class One member shall receive a service retirement allowance computed as follows: If the member's service retirement date occurs on or after his sixty-fifth birthday, or after he has completed thirty twenty-five or more years of creditable service, the allowance must be equal to one and forty-five hundredths percent of his average final compensation multiplied by the number of years of his creditable service.
If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty twenty-five years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday.
Notwithstanding the foregoing provisions, any Class One member who retires on or subsequent to July 1, 1976, shall receive not less than the benefit provided under the formula in effect before July 1, 1976.
(B) Upon retirement from service on or after July 1, 1989 1999, a Class Two member shall receive a service retirement allowance computed as follows:
(1) If the member's service retirement date occurs on or after his sixty-fifth birthday or after he has completed thirty twenty-five or more years of creditable service, the allowance must be equal to one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his creditable service.
(2) If the member's service retirement date occurs before his sixty-fifth birthday and before he completes the thirty twenty-five years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.
(3) Notwithstanding the foregoing provisions, a Class Two member whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section."
SECTION 3. The third unnumbered paragraph of Section 9-1-1020 of the 1976 Code, as last amended by Act 475 of 1988, is further amended to read:
"The rates of the deductions must be, without regard to a member's coverage under the Social Security Act, as follows: in the case of Class One members five six and one-half percent of earnable compensation through June 30, 1999, and seven percent thereafter and, in the case of Class Two members, six seven and one-half percent of earnable compensation through June 30, 1999, and eight percent thereafter."
SECTION 4. (A) Notwithstanding the provisions of Sections 9-1-1510 and 9-1-1550 of the 1976 Code with respect to the number of years of credited service under the South Carolina Retirement System required for a member to retire at any age without a reduction in benefits, the following amounts of credited service are required for service retirement before age sixty-five without a reduction in benefits for members retiring before July 1, 1999:
Fiscal year of Required years of
Retirement Credited Service
1995-96 29
1996-97 28
1997-98 27
1998-99 26
(B) For members of the South Carolina Retirement System electing to purchase creditable service as provided in Section 9-1-1850 of the 1976 Code for retirement before July 1, 1999, the maximum amount that may be purchased pursuant to that section is the amount necessary to obtain the required years of credited service provided in subsection (A) of this section.
SECTION 5. The State Budget and Control Board may increase employer retirement contributions in an amount sufficient to offset the actuarial cost of the provisions of Sections 9-1-1510 and 9-1-1550 of the 1976 Code as amended by this act and the actuarial cost of Section 4 of this act.
SECTION 6. Sections 9-1-1515 and 9-1-1850 of the 1976 Code are repealed effective for members of the South Carolina Retirement System retiring after June 30, 1999.
SECTION 7. The amendments to Sections 9-1-1510 and 9-1-1550 of the 1976 Code in Sections 1 and 2 of this act apply with respect to members of the South Carolina Retirement System retiring after June 30, 1999. Except where otherwise stated, the remaining sections of this act take effect July 1, 1995.