South Carolina General Assembly
112th Session, 1997-1998

Bill 280


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       280
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19970130
Primary Sponsor:                   Anderson 
All Sponsors:                      Anderson 
Drafted Document Number:           res1261.ra
Companion Bill Number:             3344
Residing Body:                     Senate
Current Committee:                 Finance Committee 06 SF
Subject:                           Early retirement, twenty-five
                                   years credited service,
                                   employee-paid insurance premiums;
                                   Retirement Systems and
                                   Pensions



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19970130  Introduced, read first time,             06 SF
                  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.)

A BILL

TO AMEND SECTION 9-1-1515, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EARLY RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REVISE THE REQUIREMENTS AND ALLOW PERSONS WHO HAVE ATTAINED AGE FIFTY AND HAVE AT LEAST TWENTY-FIVE YEARS OF CREDITABLE SERVICE TO RETIRE WITHOUT PENALTY; TO AMEND SECTION 9-1-1020, AS AMENDED, RELATING TO EMPLOYEE CONTRIBUTIONS TO THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO RAISE THE CONTRIBUTION BY 1.38 PERCENT; AND TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-760 SO AS TO REQUIRE THE STATE BUDGET AND CONTROL BOARD TO INCREASE EMPLOYEE-PAID PREMIUMS UNDER THE STATE HEALTH INSURANCE AND DENTAL PLANS IN AN AMOUNT SUFFICIENT TO OFFSET THE ADDITIONAL INSURANCE COSTS RESULTING FROM EARLY RETIREMENTS.

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

SECTION 1. Section 9-1-1515 of the 1976 Code, as added by Act 559 of 1990, is amended to read:

"Section 9-1-1515. (A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.

(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, his early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty.

(C) A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the second July first after the date the member attains age sixty; or the second July first after the date the member would have thirty years' creditable service had he not retired, whichever is earlier.

(D) (1) Except as provided in item (2) of this subsection, a member who elects early retirement under this section is not covered by the State Insurance Benefits Plan until the earlier of:

(a) the date the member attains age sixty, or

(b) the date the member would have thirty years' creditable service had he not retired.

(2) A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner provided by the Division of Insurance Services of the State Budget and Control Board.

(A) Notwithstanding the provisions of Section 9-1-1510 and 9-1-1550, a member who has attained the age of fifty years and who has less than thirty but twenty-five or more years of creditable service may elect service retirement as provided in this section. A member electing service retirement shall apply in the manner provided in Section 9-1-1510.

(B) The benefits for a member electing to retire under this section must be calculated in the manner provided in Section 9-1-1550, except that in the case of a member retiring pursuant to this section, the reduction factor provided in that section does not apply."

SECTION 2. 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 6.38 percent of earnable compensation and, in the case of Class Two members, six 7.38 percent of earnable compensation."

SECTION 3. Article 5, Chapter 11, Title 1 of the 1976 Code is amended by adding:

"Section 1-11-760. In setting the rates of state employee contributions for state health and dental insurance programs, the State Budget and Control Board shall add an amount sufficient to offset in each fiscal year additional health and dental insurance costs incurred by the State as a result of retirements pursuant to Section 9-1-1515."

SECTION 4. This act takes effect July 1, 1997, and the amendment to Section 9-1-1515 of the 1976 Code contained in this act applies with respect to members of the South Carolina Retirement System retiring after June 30, 1997.

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