Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
AMENDED
May 19, 1999
S. 509
S. Printed 5/19/99--H.
Read the first time April 6, 1999.
EXPLANATION OF IMPACT:
The amendment affects so few people that the State Retirement System and the Police Officers Retirement System can absorb any cost associated with the bill within existing resources.
Approved By:
Les Boles
Office of State Budget
EXPLANATION OF IMPACT:
This bill, by requesting the specified payment which represents actuarial cost, has no fiscal impact on the General Fund of the State or the funds of the South Carolina Retirement System.
Approved By:
Don Addy
Office of State Budget
EXPLANATION OF IMPACT:
Since the bill requires the member to pay the actuarial cost as determined by the Budget and Control Board, there will be additional cost to the General Fund of the State if this bill is passed.
SPECIAL NOTES:
Based on more recent actuarial calculations of military service purchased, the average estimated costs of service is between 15% and 20% of salary per year of service purchased. Although the retirement system and the actuary are currently reviewing the appropriateness of the recently revised actuarial costs calculations, the retirement system currently requires the member to pay the minimum 12% as stated in the statute for each year of service purchased. This results in the system incurring an estimated loss on each year of service purchased to be between $1,925 and $2,475.
At this time the retirement system does not have any reliable estimates on the number of active members having service credit in the reserves that would be credible under this bill.
The following chart presents estimated costs to the systems if the retirement system continues to require the member to pay the minimum of 12% of current year salary.
Current salary $35,000 $45,000
Statutory costs 12% per year 4,200 5,400
Actuarial cost (Average 17.5%) per year 6,125 7,875
Costs to System per year purchased 1,925 2,475
Cost to System per thousand members for purchase of 1 year of service:
1 year of service $1,925,000 $2,475,000
3 years of service $5,775,000 $7,425,000
6 years of service 11,550,000 14,850,000
If 3% to 5% of the total membership has an average of 3 years of reserve service, the one time costs to the system would be between $38.1 million and $81.7 million. If the average number of years of reserve service were 6 years, the one time cost would increase to between $76.2 million and $163.4 million.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 9-1-1670, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EFFECT OF AN ERROR IN RECORDS OF THE STATE RETIREMENT SYSTEM, SO AS TO PROVIDE FOR CORRECTION OF AN ERROR WITHIN TWO YEARS OF ITS COMMISSION UPON WRITTEN CERTIFICATION OF THE ERROR AND CORRECTION OF ITS RECORDS BY THE EMPLOYER, AND TO PROVIDE THAT THE TWO-YEAR LIMIT DOES NOT APPLY TO PENDING REQUESTS FOR CORRECTION.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-1-1670 of the 1976 Code is amended to read:
"Section 9-1-1670. (A) Should any If a change or error in the records result results in any a member or beneficiary receiving from the system more or less than he would have been entitled to receive had the records been correct, the board shall correct such the error and, as so far as practicable, shall adjust the payment in such a manner so that the actuarial equivalent of the benefit to which such the member or beneficiary was correctly entitled shall be is paid.
(B) The system must correct its records relating to a member upon:
(1) written certification from the employer that the employer's records contained an error that affected the enrollment of the member; and
(2) a showing to the system that all other related records and accounts have been corrected and adjusted to correspond to the change requested of the system.
A correction of the records of the system takes effect only upon payment by the employer and employee to the system of costs as determined by the system.
(C) An employer's request to correct a member's record pursuant to subsection (B) must be made within two years of the commission of the error by the employer."
SECTION 2. A. Section 9-9-40(3) of the 1976 Code, as amended by Act 497 of 1994, is further amended to read:
"(3) As used in this item 'correlated system' shall mean one or more of the following:
(a) South Carolina Retirement System;
(b) South Carolina Police Officers' Retirement System;
(c) Retirement System for members of the General Assembly of the State of South Carolina.
If a member of a correlated system ceases to occupy a position covered under the system and if, within the protective period and under the conditions set forth in the correlated system for continuation of membership therein, he accepts a position covered by another correlated system, he shall notify the director of each system of the employment, and his membership in the first system is continued so long as his membership in the other system continues. Service credited to the members under the provisions of the first system is considered service credits for the purpose of determining eligibility for benefits, but not the benefit amount, under the other system. A benefit under any one of the correlated systems must be computed solely on the basis of service and contributions credited under that system, and is payable at the times and subject to the age and service conditions set forth. A member is not eligible to receive retirement payments so long as he is employed in a position covered by the South Carolina Retirement System or the South Carolina Police Officers' Retirement System. Notwithstanding the provisions of this paragraph, a member of the Retirement System for Members of the General Assembly who is (1) at least sixty-five sixty-two years of age, (2) not currently serving in the General Assembly, and (3) eligible to receive retirement benefits from the General Assembly System but for the member's current employment covered by a correlated system may elect to receive retirement benefits from the General Assembly System."
B. This section takes effect July 1, 1999.
SECTION 3. A. There is established a State Retirement Study Committee consisting of eleven members as follows: three members of the House of Representatives appointed by the Speaker, three members of the Senate appointed by the President Pro Tempore of the Senate, three members appointed by the Governor who represent the Retirement Benefit Plan Industry and who have experience and expertise in working with retirement benefit plans, the Executive Director of the South Carolina State Employees Association or his designee, who shall serve as a nonvoting member, and the Director of the South Carolina Retirement System of the State Budget and Control Board, who shall serve as a nonvoting member. Any vacancy shall be filled by appointment in the same manner of original appointment. All members except the gubernatorial appointees shall serve ex officio. Members shall serve without compensation.
The committee shall conduct a comprehensive study of new and existing retirement benefits for all state employees. The study shall include a review of defined contribution plans, benefit options and other states' retirement benefit plans. The study shall address these issues with respect to both state and local government employers under the system. The South Carolina Retirement System of the State Budget and Control Board shall report to the study committee its revised actuarial requirements for service purchase costs.
The committee's findings and conclusions must be reported to the General Assembly no later than October 15, 1999.
The committee may call upon the services and resources of the State Budget and Control Board in the preparation of the study. The committee is abolished on the date it reports to the General Assembly or October 15, 1999, whichever is earlier.
B. This section takes effect upon approval by the Governor.
SECTION 4. Subsections (A) and (B) of Section 9-1-1515 of the 1976 Code, as added by Act 559 of 1990, are amended to read:
"(A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement under this subsection shall apply in the manner provided in Section 9-1-1510. The benefits for a member electing early retirement under this subsection must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, the member's early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty.
(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, his early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty. In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty years and who has at least twenty-five years of creditable service, may elect to receive an early retirement allowance, if the member pays into the system, in a lump sum payment before the member's retirement, an amount equal to twenty percent of the member's earnable compensation or the average of the member's twelve highest consecutive fiscal quarters of compensation at the time of payment, whichever is greater, prorated for periods less than one year for each year of creditable service less than thirty. A member electing early retirement under this subsection shall apply in the manner provided in Section 9-1-1510. The benefits for a member electing early retirement under this subsection must be calculated in the manner provided in Section 9-1-1550, except that the retirement allowance is not reduced. The member's retirement must occur not more than ninety days after the date of payment."
SECTION 5. A. The third unnumbered paragraph of Section 9-1-1140 of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:
"Any member with two or more years of creditable service shall receive additional creditable service for the period of his military service at the rate of one year of military service for each one year of his creditable service excluding any period of creditable military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. No member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard or in the selected reserve of any of the reserve components of the armed forces of the United States; provided, however, that to establish creditable service for national guard or reserve service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment also applies to credit established for service in the national guard or reserve, and national guard or reserve service may not be established for periods of service credited or creditable in any retirement system provided in this title. Any former employee of the United States employed in this State by an employer covered by the system, and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment may not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event may any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service."
B. Section 9-9-50(4) of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:
"(4) Any member with two or more years of credited service shall receive additional credited service for the period of his military service, at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, provided he was discharged or separated from the military service under conditions other than dishonorable, and upon paying to the system, by a single payment before his retirement or death or by such other method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of such military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his becoming a member of the General Assembly, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. No member shall receive credit for more than six years of military service. Military service includes service in the national guard or in the selected reserve of any of the reserve components of the armed forces of the United States; provided, however, that to establish creditable service for national guard or reserve service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment for each year of service credited. The prohibition on duplication of benefits applicable to credit established for federal employment pursuant to Section 9-1-1140 also applies to credit established for service in the national guard or reserve, and national guard or reserve service may not be established for periods of service credited or creditable in any retirement system provided in this title."
C. Section 9-11-50(4) of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:
"(4) Any member with two or more years of credited service shall receive additional credited service for the period of his military service at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. However, no member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard or in the selected reserve of any of the reserve components of the armed forces of the United States; provided, however, that to establish creditable service for national guard or reserve service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment as provided in subsection (6) of this section also applies to credit established for service in the national guard or reserve, and national guard or reserve service may not be established for periods of service credited or creditable in any retirement system under this title."
D. This section takes effect upon approval by the Governor and apply with respect to military service established in the state retirement systems on or after that date.
SECTION 6 A. The last unnumbered paragraph of Section 9-1-1140 of the 1976 Code, as added by Act 87 of 1991, is amended to read:
"At retirement, after March 31, 1991, a member shall receive credit for not more than ninety one hundred eighty days of his unused sick leave at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement."
B. This section applies with respect to members of the South Carolina Retirement System retiring after June 30, 1999.
SECTION 7. Section 9-11-10(6) of the 1976 Code is amended to read:
"(6) 'Police officer' shall mean any means a person who receives his salary from an employer and who is:
(a) required by the terms of his employment, either by election or appointment, to give his time to the preservation of public order, the protection of life and property, and the detection of crimes in the State.; In all cases of doubt the Board shall determine whether any person is a police officer as defined herein.
(b) an employee after January 1, 2000, of the South Carolina Department of Corrections or the Department of Juvenile Justice and by the terms of his employment is a peace officer as defined by Section 24-1-280.
Notwithstanding prior duties performed by a person who is a police officer as defined in this item, the provisions of Section 9-11-40(9) apply to a person who is or who becomes a member of the Police Officers Retirement System."
SECTION 8. Section 24-1-280 of the 1976 Code is amended to read:
"Section 24-1-280. An Employees employee of the South Carolina Department of Corrections and the South Carolina Department of Juvenile Justice, while performing their his officially assigned duties duty relating to the custody, control, transportation, or recapture of any an inmate within the jurisdiction of the his department, or any an inmate of any jail, penitentiary, prison, public work, chain gang, or overnight lockup of the State or any political subdivision thereof of it not within the jurisdiction of the his department, shall have has the status of a peace officers officer anywhere in the State in any matter relating to the custody, control, transportation, or recapture of such the inmate."
SECTION 9. This act takes effect upon approval by the Governor, except that the provisions of Section 9-1-1670(C) in SECTION 1 do not apply to requests to the system to change its records which are pending on the effective date.
This web page was last updated on
Friday, June 26, 2009 at 3:08 P.M.