Current Status Bill Number:4777 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960320 Primary Sponsor:J. Hines All Sponsors:J. Hines, Inabinett, Neilson, Breeland, Cave, Clyburn, Townsend, J. Brown, M. Hines, Lloyd, Byrd, Lee, Kinon and McTeer Drafted Document Number:bbm\10683htc.96 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Retirement System, twenty-five years credited service
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19960320 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
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, TO AUTHORIZE THE STATE BUDGET AND CONTROL BOARD TO ADJUST RETIREMENT CONTRIBUTIONS TO PAY THE ACTUARIAL COST OF THIS EARLY RETIREMENT; TO REPEAL 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, AND TO AMEND SECTION 59-20-50, AS AMENDED, RELATING TO SCHOOL TEACHERS' AND ADMINISTRATORS' MINIMUM SALARY SCHEDULES UNDER THE EDUCATION FINANCE ACT, SO AS TO REQUIRE THE DEPARTMENT OF EDUCATION TO DEVELOP A MINIMUM SALARY SCHEDULE WHICH MUST INCLUDE MINIMUM SALARIES FOR TEACHERS WITH ZERO TO TWENTY-FIVE YEARS' EXPERIENCE AND PROVIDE THAT THIS SCHEDULE BE PHASED IN BASED ON A DETERMINATION MADE EACH YEAR IN THE ANNUAL GENERAL APPROPRIATIONS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. 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."
B. 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 1996, 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 1996, 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."
C. The State Budget and Control Board may increase employee or employer retirement contributions, or both, 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.
D. Sections 9-1-1515 and 9-1-1850 of the 1976 Code are repealed with respect to members of the South Carolina Retirement System retiring after June 30, 1996.
SECTION 2. Section 59-20-50(4)(b) of the 1976 Code, as last amended by Section 15H, Part II, Act 497 of 1994, is further amended to read:
"(b) The state minimum salary schedule must be based on the state minimum salary schedule index in effect as of July 1, 1984. However, the department shall develop a minimum salary schedule which must include minimum salaries for teachers with zero to twenty-five years' experience. The twenty-five-year experience scale must be phased in based on a determination made each year in the Annual General Appropriations Act. During the phase-in period the additional experience increments must not have the effect of reducing any existing pay increments. In fiscal year 1985, the 1.000 figure in the index is $14,172. (This figure is based on a 10.27% percent increase pursuant to the South Carolina Education Improvement Act of 1984.) Beginning with fiscal year 1986, the 1.000 figure in the index must be adjusted on a schedule to stay at the southeastern average as projected by the Division of Research and Statistical Services and provided to the Budget and Control Board and General Assembly during their deliberations on the annual appropriations bill. The southeastern average teacher salary is the average of the average teachers' salaries of the southeastern states. In projecting the southeastern average, the division shall include in the South Carolina base teacher salary all local teacher supplements and all incentive pay. Under this schedule, school districts are required to maintain local salary supplements per teacher no less than their prior fiscal level. In fiscal year 1986 and thereafter teacher pay raises through adjustments in the state's minimum salary schedule may be provided only to teachers who demonstrate minimum knowledge proficiency by meeting one of the following criteria:
(1) holding a valid professional certificate;
(2) having a score of 425 or greater on the Commons Examination of the National Teachers Examinations; (3) meeting the minimum qualifying score on the appropriate area teaching examination; or
(4) meeting the minimum standards on the basic skills examinations as prescribed by the State Board of Education provided in Section 59-26-20."
SECTION 3. Except where otherwise provided, this act takes effect upon approval of the Governor.