South Carolina General Assembly
113th Session, 1999-2000

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Bill 1113


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      1113
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  20000203
Primary Sponsor:                  Setzler
All Sponsors:                     Setzler, Land, Passailaigue, Rankin, 
                                  Reese, Moore, Short, O'Dell, McGill, Saleeby, 
                                  Peeler, Giese, Courson and Martin
Drafted Document Number:          l:\council\bills\bbm\9204htc00.doc
Residing Body:                    House
Current Committee:                Ways and Means Committee 30 HWM
Subject:                          Retirement Systems and Pensions, Optional 
                                  Retirement Program for Teachers, School 
                                  District Administrators


                        History

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

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

COMMITTEE REPORT

March 22, 2000

S. 1113

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.

            

THE COMMITTEE ON FINANCE

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

REPORT:

That they have duly and carefully considered the same, and recommend that the same do pass:

JOHN DRUMMOND, for Committee.

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

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.

Approved By:

Don Addy

Office of State Budget

A BILL

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:

"CHAPTER 20

Optional Retirement Program for Teachers

and School Administrators

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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