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Bill 14

                    Current Status

Bill Number:                      14
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  20010110
Primary Sponsor:                  Leventis
All Sponsors:                     Leventis, Ford, Reese, Rankin
Drafted Document Number:          l:\s-res\ppl\004reti.whb.doc
Residing Body:                    Senate
Current Committee:                Finance Committee 06 SF
Subject:                          Retirement System, administration of; 
                                  permissive service credit purchase with 
                                  unlawfully obtained funds; Public Employee


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  20010110  Introduced, read first time,           06 SF
                  referred to Committee


              Versions of This Bill

TO AMEND ARTICLE 1, CHAPTER 1, TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ADMINISTRATION OF STATE RETIREMENT SYSTEMS, BY ADDING SECTION 9-1-110 SO AS TO PROVIDE THAT A PURCHASE OF PERMISSIVE SERVICE CREDIT WITH FUNDS UNLAWFULLY OBTAINED FROM PUBLIC EMPLOYMENT SHALL CAUSE THOSE FUNDS TO BE FORFEITED AND TO PROVIDE FOR THE PROCEDURES FOR COLLECTION OF THOSE FUNDS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 1, Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-110. (A) Notwithstanding any other provision of law except Section 9-1-1680, prior to accepting a permissive service purchase in excess of the required payment to any retirement system, the retirement division must obtain a sworn and notarized affidavit from the employee attesting that no portion of the funds used for the purchase has been obtained as the result of any of the offenses referenced in subsection (C) or any other illegal activity relating to the employee's duties or responsibilities. Prior to execution of the affidavit required herein, the division must provide the employee a copy of this code section and have the employee sign a statement indicating receipt of the law and acknowledgement of the opportunity to have the law reviewed and explained by an attorney.

(B) The person seeking to make a permissive service purchase must be informed in writing that any funds derived from illegal conduct relating to the employee's duties or responsibilities with the State or any political subdivision are subject to:

(1) forfeiture and withdrawal from the applicable retirement system; and

(2) return to the entity that employed the individual at the time the illegal conduct occurred.

The person must also be informed that upon determination that the funds are derived from illegal conduct relating to the employee's duties or responsibilities with the State or any political subdivision will result in a reduction of monthly retirement benefits by an appropriate amount in relation to the amount of the forfeiture.

For purposes of this section, `political subdivision' is defined to include any entity which has employees that make contributions to any retirement system of the State.

(C) Upon conviction of misappropriation of funds, breach of trust, embezzlement, obtaining funds under false pretenses, or a similar offense relating to the employee's employment with the State or any political subdivision, the division or agency or political subdivision that was the entity subject to the crime may institute a civil action seeking a determination that all or a portion of any permissive service purchase was derived from the proceeds of illegal conduct relating to his or her employment. Evidence of the criminal conviction as described in this subsection establishes a rebuttable presumption that may be refuted by the employee, retiree, or any beneficiary of the individual in the civil action that a permissive service purchase was derived from proceeds of the crime. Upon exhaustion of the civil action, the division shall remit to the State or political subdivision any portion of the permissive service purchase judged to be obtained illegally from conduct associated with or relating to employment with the State or a political subdivision.

(D) The division is granted the discretion to create forms or procedures to effectuate the intent of this provision.

(E) If the amount of the permissive service purchase is five thousand dollars or less, a person who knowingly files a false affidavit required by this section is guilty of a misdemeanor and, upon conviction, may be fined not less than one hundred dollars or imprisoned not more than six months, or both.

If the amount of the permissive service purchase is more than five thousand dollars, or, irrespective of the amount of the permissive service purchase, more than one affidavit is filed by a person who knowingly submits false information, the person is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both."

SECTION 2. This act takes effect upon approval by the Governor.

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