Current Status Bill Number:4744 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980303 Primary Sponsor:Hinson All Sponsors:Hinson Drafted Document Number:jic\5191htc.98 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Retirement Systems, S.C.; twenty-five years credited service without reduction in benefits; Early Retirement
Body Date Action Description Com Leg Involved
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House 19980303 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 SERVICE RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY TO TWENTY-FIVE THE YEARS OF CREDITABLE SERVICE TO RETIRE AT ANY AGE WITHOUT PENALTY FOR PERSONS FIRST BECOMING MEMBERS OF THE SOUTH CAROLINA SYSTEM AFTER JUNE 30, 1998; AND TO REQUIRE THE STATE BUDGET AND CONTROL BOARD TO INCREASE BOTH EMPLOYER AND EMPLOYEE CONTRIBUTIONS ON PERSONS FIRST BECOMING MEMBERS AFTER JUNE 30, 1998, IN AN AMOUNT SUFFICIENT TO OFFSET THE INCREASED ACTUARIAL COST OF THESE PROVISIONS.
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 or more years of creditable service, or, in the case of a person first becoming a member after June 30, 1998, has 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 1998, 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 or more years of creditable service, or, in the case of a person first becoming a member after June 30, 1998, has completed 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 years of creditable service, or, in the case of a person first becoming a member after June 30, 1998, before completing 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 1998, 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 or more years of creditable service, or, in the case of a person first becoming a member after June 30, 1998, has completed 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 years of creditable service, or, in the case of a person first becoming a member after June 30, 1998, before completing 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 State Budget and Control Board shall increase employer and employee contributions for persons first becoming members after June 30, 1998, in an amount sufficient to offset the additional actuarial cost of the amendments to Sections 9-1-1510 and 9-1-1550 of the 1976 Code as amended by this act.
SECTION 4. This act takes effect July 1, 1998.