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1113Type of Legislation: General Bill GBIntroducing Body: SenateIntroduced Date: 20000203Primary Sponsor: SetzlerAll Sponsors: Setzler, Land, Passailaigue, Rankin, Reese, Moore, Short, O'Dell, McGill, Saleeby, Peeler, Giese, Courson and MartinDrafted Document Number: l:\council\bills\bbm\9204htc00.docResiding Body: HouseCurrent Committee: Ways and Means Committee 30 HWMSubject: Retirement Systems and Pensions, Optional Retirement Program for Teachers, School District AdministratorsHistory Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20000329 Introduced, read first time, 30 HWM referred to Committee Senate 20000328 Read third time, sent to House ------ 20000324 Scrivener's error corrected Senate 20000323 Read second time Senate 20000322 Committee report: Favorable 06 SF Senate 20000203 Introduced, read first time, 06 SF referred to Committee Versions of This Bill Revised on March 22, 2000 - Word format Revised on March 24, 2000 - Word format
March 22, 2000
Introduced by Senators Setzler, Land, Passailaigue, Rankin, Reese, Moore, Short, O'Dell, McGill, Saleeby, Peeler, Giese, Courson and Martin
S. Printed 3/22/00--S. [SEC 3/24/00 10:17 AM]
Read the first time February 3, 2000.
To whom was referred a Bill (S. 1113), to amend Title 9, Code of Laws of South Carolina, 1976, relating to the various state retirement systems, by adding Chapter 20 to enact the Optional Retirement Program for Teachers and School Administrators, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass:
JOHN DRUMMOND, for Committee.
EXPLANATION OF IMPACT:
The bill provides that each participant and employer shall contribute to the program the same amount that would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Based on information received from the retirement system actuary there will be no negative fiscal impact on the South Carolina Retirement System. Since there will be no adjustments in the current retirement contribution rate, there will be no fiscal impact on the General Fund of the State.
Office of State Budget
TO AMEND TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VARIOUS STATE RETIREMENT SYSTEMS, BY ADDING CHAPTER 20 TO ENACT THE OPTIONAL RETIREMENT PROGRAM FOR TEACHERS AND SCHOOL ADMINISTRATORS AND PROVIDE FOR ITS OPERATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 9 of the 1976 Code is amended by adding:
Section 9-20-10. As used in this chapter:
(1) 'Employer' means a school district;
(2) 'Employee' means a person employed full time by a public school district who is:
(a) certified and teaching in the classroom;
(b) assisting a certified classroom teacher;
(c) a professional specialist having direct contact with students;
(d) an academic subject, or specialty area coordinator or director working in a school or school district;
(e) a principal, vocational center director, assistant principal or vocational center assistant director, district assistant, county or area superintendent;
(3) 'Participant' means an employee who participates in the optional retirement program provided by this chapter.
Section 9-20-20. There is established an optional retirement program for public school (kindergarten through grade twelve) teachers, specialists, coordinators, and administrators. An employee is not eligible to participate in the optional retirement program unless the employee is eligible for membership in the South Carolina Retirement System. Retirement and death benefits must be provided for a participant in the optional retirement program through individual annuity contracts or individual certificates issued for group annuity contracts, fixed or variable in nature, or a combination of them, which must be issued to, and become the property of, the participant, or through mutual fund companies, or through state or national banking institutions. The employer and the participant shall contribute toward the purchase of the contract or investment under this program. In accordance with the definition provided in Section 9-20-10(2), the State Department of Education annually shall provide to the South Carolina Retirement System a listing of positions that qualify an employee for the optional retirement program.
Section 9-20-30. The South Carolina Retirement System shall provide for the administration of the optional retirement program under this chapter. The Director of the South Carolina Retirement System shall designate no fewer than four companies to provide annuity contracts, mutual fund accounts, or similar investment products offered through state or national banking institutions, or a combination of them, under the program. In making the designation the director shall consider:
(1) the nature and extent of the rights and benefits to be provided by the contracts or accounts, or both, of participants and their beneficiaries;
(2) the relation of the rights and benefits to the amount of contributions to be made;
(3) the suitability of these rights and benefits to the needs of the participants;
(4) the ability and experience of the designated companies in providing suitable rights and benefits under the contracts or accounts, or both;
(5) the ability and experience of the designated companies to provide suitable education and investment options.
Section 9-20-40. Employees first employed in an eligible position or job classification within each school district after June 30, 2000, shall elect either to join the South Carolina Retirement System or to participate in the optional retirement program under this chapter on or before December 1, 2000, or within ninety days after the entry into service, whichever is later, or failing to make the initial election within the required time, the employee is considered to have elected membership in the South Carolina Retirement System. An election made pursuant to this section must be made in writing and filed with the retirement system and the appropriate officer of the employee's participating employer and is effective on the date of employment.
The election to participate in the optional retirement program is irrevocable. However, an employee who participates in the optional retirement program may irrevocably elect to join the South Carolina Retirement System upon the passage of five consecutive calendar years after initial enrollment in the optional retirement program. The optional retirement participant must make this election to participate in the South Carolina Retirement System within ninety days after the expiration of five consecutive calendar years after the employee's initial enrollment in the optional retirement program, or failing to make the election with the allotted time, the employee is considered to have irrevocably elected to participate in the optional retirement program. Upon joining the system, the employee may establish up to five years of credit in the system for service earned while participating in the optional retirement program, by making a payment to the system in an amount determined by the board.
Section 9-20-50. Each participant shall contribute monthly to the program the same amount he would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Participant contributions may be made by payroll deduction, by a reduction in salary, or by employer pick up in accordance with any applicable provisions of the Internal Revenue Code of 1986. Each employer shall contribute on behalf of each participant the same amount it would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Each employer shall remit to the designated companies, for application to participants' contracts or accounts, or both, an amount equal to the participant's contribution plus that percentage of each employer's contribution which would have been used to fund all retirement system benefits for future service if the participants had been members of the retirement system, but the employer's contribution may not be less than four and one-quarter percent of compensation. The employer shall remit the remainder of its required contribution to the retirement system, but the contribution to the retirement system must not be less than two and fifty-five hundredths percent of the employee's compensation.
Section 9-20-60. No retirement benefit or preretirement death benefit may be paid by the State for service rendered while participating in the optional retirement program. The benefits are payable to optional retirement program participants or their beneficiaries by the designated companies in accordance with the terms of the contracts issued to participants."
SECTION 2. This act takes effect July 1, 2000.
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