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Current Status Bill Number:View additional legislative information at the LPITS web site.1173 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20000223 Primary Sponsor:Bauer All Sponsors:Bauer, Leatherman, Reese, Waldrep, Jackson, Elliott, Hutto, McGill, Peeler, Courson, Giese, Leventis, Russell, Glover, Grooms, Ravenel, O'Dell, Branton, Anderson, Washington and Wilson Drafted Document Number:l:\council\bills\swb\5063djc00.doc Companion Bill Number:3790 Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Police Officers Retirement System, optional forms of retirement, employee contributions History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20000303 Companion Bill No. 3790 Senate 20000223 Introduced, read first time, 06 SF referred to Committee Versions of This Bill
TO AMEND SECTION 9-11-150, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OPTIONAL FORMS OF RETIREMENT ALLOWANCES UNDER THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO ALLOW A MEMBER UNDER PARTICULAR OPTIONS TO RECEIVE A FULL RETIREMENT ALLOWANCE RATHER THAN A REDUCED ALLOWANCE UNDER CERTAIN CONDITIONS; AND TO AMEND SECTION 9-11-210, AS AMENDED, RELATING TO CONTRIBUTIONS TO THE SYSTEM, SO AS TO INCREASE THE EMPLOYEE CONTRIBUTIONS OF CLASS ONE AND CLASS TWO MEMBERS BY EIGHTY-NINE HUNDREDTHS OF ONE PERCENT TO OFFSET THE ACTUARIAL COST OF THE ABOVE PROVISION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-11-150 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:
"Section 9-11-150. Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent value under one of the optional forms named below, the retirement allowance under the option selected being due and payable on the date of retirement:
Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that the reduced allowance continues after his death to and for the life of the beneficiary, or to the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;. To the extent the actuarial cost of the beneficiary's allowance under this option exceeds the cost of the member's benefit under Option 2, the member's retirement allowance must be reduced to offset the actuarial cost in excess of the member's benefit as provided in Option 2;
Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;. The retirement allowance of the member under this option must be the allowance payable to him on his account without reduction, except to the extent the actuarial cost of the beneficiary's allowance provided under this option exceeds fifteen percent of the member's maximum benefit, the member's retirement allowance must be reduced to offset the cost in excess of fifteen percent of the member's maximum benefit;
Option 3. Effective July 1, 1990, a retirement allowance of the amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount a year before and after the earliest age at which he becomes eligible, upon application therefor, to receive a Social Security benefit. Cost-of-living and other special increases in benefits are not applied to the amount advanced under this option;
Option 4. A member may elect either Option 1 or 2 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;
Option 5. A member may elect Option 1 or 2 with the added provision that the reduced retirement allowance after his death must be payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so long as the beneficiary survives him. The benefit reduction factor must be based on the average age of the beneficiaries.
A member having elected Option 1, 2, or 4 and nominated his or her spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his or her spouse, a divorce, or other change in the member's marital status. This change may be accomplished only by filing with the system: (a) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires, or (b) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form. The revocation and election of a new option is effective on the first day of the month in which the new option is elected. The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.
A member who retired after the provisions of Option 3 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992."
SECTION 2. Section 9-11-210(1) of the 1976 Code, as last amended by Act 424 of 1988, is further amended to read:
"(1) Each Class One member shall contribute to the system twenty-one dollars and eighteen cents a month during his service after becoming a member. Each Class Two member shall contribute to the system six and one-half seven and thirty-nine hundredths percent of his compensation."
SECTION 3. Section 1 of this act takes effect upon approval by the Governor and applies with respect to persons retiring on or after the effective date of this act. Section 2 of this act takes effect upon approval by the Governor and applies with respect to contributions made after June 30, 2000.
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