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Current Status Bill Number:View additional legislative information at the LPITS web site.4351 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20000111 Primary Sponsor:Carnell All Sponsors:Carnell, Littlejohn, Riser, Seithel Drafted Document Number:l:\council\bills\pt\1739htc00.doc Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Retirement Systems and Pensions, Teacher and Employee Retention Incentive Program; S.C. Retirement System History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 20000317 Co-Sponsor added (Rule 5.2) by Rep. Seithel House 20000113 Co-Sponsor added (Rule 5.2) by Rep. Riser House 20000111 Introduced, read first time, 30 HWM referred to Committee House 19991215 Prefiled, referred to Committee 30 HWM Versions of This Bill
TO AMEND CHAPTER 1, TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM, BY ADDING ARTICLE 17 SO AS TO ENACT THE TEACHER AND EMPLOYEE RETENTION INCENTIVE PROGRAM AND PROVIDE FOR ITS OPERATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 1, Title 9 of the 1976 Code is amended by adding:
Section 9-1-2210. (A) An active contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article may elect to participate in the Teacher and Employee Retention Incentive Program (program). A member electing to participate in the program retires for purposes of the system and the member's normal retirement benefit is calculated on the basis of the member's average final compensation and service credit at the time the program period begins. The program participant shall agree to continue employment with an employer participating in the system for a specified program period, not to exceed five years. The member shall notify the system of the length of the program period before the beginning of the program period. Participation in the program does not guarantee employment for the specified program period.
(B) During the specified program period, receipt of the member's normal retirement benefit is deferred. The member's deferred monthly benefit must be placed in the system's trust fund on behalf of the member, and accrue interest at a rate of six percent a year.
(C) During the specified program period, the employer shall pay to the system the employer contribution for active members prescribed by law with respect to any program participant it employs, regardless of whether the program participant is a full-time or part-time employee, or a temporary or permanent employee. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.
(D) A program participant is considered to be retired as of the beginning of the program period. A program participant makes no further employee contributions to the system, accrues no service credit during the program period, and is not eligible to receive group life insurance benefits.
(E) A program participant is not subject to the earnings limitation of Section 9-1-1790 during the specified program period.
(F) Upon termination of employment either during or at the end of the program period, the member must receive the balance in the member's program account by electing one of the following distribution alternatives:
(1) a lump-sum distribution, paying appropriate taxes;
(2) a tax sheltered rollover into an eligible plan; or
(3) a monthly benefit.
The member also must receive the previously determined normal retirement benefits plus any applicable cost of living increases declared during the program period, based upon the member's average final compensation and service credit at the time the program period began.
(G) If a program participant dies during the specified program period, the member's designated program beneficiary must receive the balance in the member's program account by electing one of the following distribution alternatives:
(1) a lump-sum distribution, paying appropriate taxes;
(2) a tax sheltered rollover into an eligible plan; or
(3) a monthly benefit.
In accordance with the form of system benefit selected by the member at the time the program commenced, the member's designated system beneficiary must receive either a survivor benefit or a refund of contributions from the member's system account.
(H) If a program participant fails to terminate employment with an employer participating in the retirement system within one month after the end of the specified program period, the member:
(1) forfeits all deferred retirement benefits accumulated during the program period;
(2) is considered an active employee as of the end of the specified program period; and
(3) becomes an active member of the retirement system as of the end of the program period.
A member who failed to terminate employment at the end of the program period may establish service credit for the program period by paying the normal employee contribution required of active members, plus regular interest, for the period the member participated in the program based on the member's salary during the program period.
(I) A member is not eligible to participate in the program if the member has previously participated in a program in this retirement system or in any other retirement system under this title."
SECTION 2. This act takes effect upon approval by the Governor.
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