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Current Status Bill Number:View additional legislative information at the LPITS web site.738 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20010606 Primary Sponsor:Verdin All Sponsors:Verdin Drafted Document Number:l:\council\bills\bbm\10449htc01.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Retirement Systems and Pensions, S.C., Police Officers: disability retirement benefits; beneficiaries who return to work History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20010606 Introduced, read first time, 06 SF referred to Committee Versions of This Bill
TO AMEND SECTION 9-1-650, 9-1-1580, 9-1-1590, AS AMENDED, 9-11-40, AS AMENDED, 9-11-80, AS AMENDED, AND 9-11-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CORRELATION OF MEMBERSHIP IN THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, DISABILITY RETIREMENT UNDER THESE SYSTEMS, AND RETURN TO ACTIVE SERVICE WHEN RETIRED UNDER THESE SYSTEMS, SO AS TO ALLOW A MEMBER TO RECEIVE DISABILITY RETIREMENTS WHILE WORKING IN THESE CORRELATED SYSTEMS, TO ELIMINATE THE EARNINGS LIMITATION APPLICABLE TO DISABILITY RETIREMENT UNDER THESE SYSTEMS AND EXEMPT DISABILITY RETIREMENT BENEFICIARIES WHO RETURN TO COVERED EMPLOYMENT FROM THE SERVICE RETIREMENT EARNINGS LIMITATIONS, TO PROVIDE THAT DISABILITY BENEFITS ARE DISCONTINUED OR REDUCED ONLY IF THE MEDICAL BOARDS FIND THAT THE BENEFICIARIES ARE ABLE TO RETURN TO GAINFUL EMPLOYMENT IN THE SAME OR A SUBSTANTIALLY SIMILAR OCCUPATION TO THE ONE FOR WHICH THEY WERE DETERMINED TO BE DISABLED, AND TO PROVIDE THAT THESE BENEFICIARIES WHEN RETURNING TO COVERED EMPLOYMENT IN THIS SYSTEM FROM WHICH THEY RETIRED ARE NOT MEMBERS OF THE SYSTEM AND TO PROVIDE AN EXCEPTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The second unnumbered paragraph of Section 9-1-650 of the 1976 Code is amended to read:
"If a member of any correlated system ceases to occupy a position covered under the system and if, within the protective period and under such conditions as are 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 must be continued so long as his membership in the other system continues. Service credited to the member under the provisions of the first system must be considered service credits for the purpose of determining eligibility for benefits, but not the amount thereof, under the other system. Any benefit under any one of the correlated systems must be computed solely on the basis of service and contributions credited under that system, and must be payable at such times and subject to such age and service conditions as are set forth therein, except the average final salary under either the South Carolina Retirement System or the Police Officers Retirement System may be used for the benefit calculation under both systems for consecutive earned service credit. A member shall is not be 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, but this prohibition does not extend to disability retirement benefits."
SECTION 2. Section 9-1-1580 of the 1976 Code is amended to read:
"Section 9-1-1580. Should If the Medical Board report reports and certify certifies to the board that the disability beneficiary is engaged in or is able to engage in a gainful occupation paying more than the difference between his retirement allowance and his average final compensation which is the same or substantially similar to the occupation for which the person was determined disabled and should if the board concur concurs in the report, then the amount of his disability retirement allowance must be reduced to an amount which, together with the amount earnable by him, equals the amount of his average final compensation. Should his earning capacity be later changed, the amount of his disability retirement allowance may be further modified. The new disability retirement allowance shall not exceed the amount of the disability retirement allowance originally granted nor an amount which, when added to the amount earnable by the beneficiary, equals the amount of his average final compensation or the entire benefit discontinued based on his capability to work full time in this occupation.
The average final compensation may be increased up to ten percent annually to adjust for inflation.
If the disability retirement allowance is eliminated as a result of this section for a period of five consecutive years, all rights in and to his disability retirement allowance are revoked. The member then is entitled to a deferred retirement allowance as provided in Section 9-1-1650 based upon his average final compensation and creditable service at his date of disability retirement.
After age sixty-five, a disability retiree is subject to the same earnings limitation as a service retiree A disability retiree is not subject to any earnings limitation whether on returning to covered employment or otherwise."
SECTION 3. The first two unnumbered paragraphs of Section 9-1-1590 of the 1976 Code are amended to read:
"A disability beneficiary restored to active service at a salary less than his average final compensation shall does not become a member of the system and his employer annuity shall be adjusted in accordance with the provisions of Section 9-1-1580.
Should If a disability beneficiary under the age of sixty-five years be is restored to active service and his compensation then, or at any time thereafter, be equal to or greater than his average final compensation at retirement, his disability retirement allowance shall cease ceases, then and any election of an optional benefit shall become becomes void and he shall again become a member of the system and contribute thereafter as provided in Section 9-1-1020. Any prior service certificate on the basis of which his service was computed at the time of his retirement shall must be restored to full force and effect and, in addition, upon his subsequent retirement he shall must be credited with all his service as a member. The average final compensation may be increased up to ten percent annually to adjust for inflation."
SECTION 4. The second unnumbered paragraph of Section 9-11-40 of the 1976 Code is amended to read:
"If a member of any correlated system ceases to occupy a position covered under the system and if, within the protective period and under such conditions as are 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 such employment, and his membership in the first system must be continued so long as his membership in the other system continues. Service credited to the member under the provisions of the first system must be considered service credits for the purpose of determining eligibility for benefits, but not the amount thereof, under the other system. Any benefit under any one of the correlated systems must be computed solely on the basis of service and contributions credited under that system, and must be payable at such times and subject to such age and service conditions as are set forth therein, except the average final salary under either the South Carolina Retirement System or the Police Officers Retirement System may be used for the benefit calculation under both systems for consecutive earned service credit. A member is not eligible to receive retirement payments so long as while he is employed in a position covered by the South Carolina Retirement System or the South Carolina Police Officers Retirement System, but this prohibition does not extend to disability retirement benefits."
SECTION 5. Subsections (4) and (5) of Section 9-11-80 of the 1976 Code are amended to read:
"(4) If the medical board certifies that the member's disability has been removed and that he has regained his earning capacity in the same or a similar occupation for which the person was determined disabled, his disability retirement allowance may be discontinued, or if the disability has been partly removed and his earning capacity regained in part, the disability retirement allowance may be reduced proportionately. The determination of the board as to any disputed question, after due consideration accorded to the member, is conclusive. Should the retirement allowance of any member retired for disability be discontinued or reduced, and should he again suffer disability within five years of the date of his recovery and again lose his earning capacity, he shall be entitled to apply to the board for a restoration of his original retirement allowance, and the board may restore all or part of his original retirement allowance. At the expiration of the five-year period, if the retirement allowance has not been restored, all rights in and to the member's disability retirement allowance are revoked. The member then is entitled to a deferred early retirement allowance as provided in Section 9-11-70 based upon his average final compensation and credited service at his date of disability retirement.
(5) After age fifty-five, a disability retiree is subject to the same earnings limitation as a service retiree A disability retiree is not subject to any earnings limitation whether returning to covered employment or otherwise."
SECTION 6. Subsections (1) and (2) of Section 9-11-90 of the 1976 Code are amended to read:
"(1) A disability beneficiary restored to active service at a salary less than his average final compensation shall does not become a member of the system and his retirement allowance shall be adjusted in accordance with the provisions of Section 9-11-80(4).
(2) Should If a disability beneficiary under the age of fifty-five years be is restored to active service and his compensation then, or at any time thereafter, be equal to or greater than his average final compensation at retirement, his disability retirement allowance shall cease ceases, any election of an optional benefit shall become becomes void, and he shall again become a member of the system and contribute thereafter as provided in Section 9-11-210(1). Any credited service to which he was entitled when he retired shall must be restored to him, and upon subsequent retirement his allowance shall must be based on his compensation and credited service before and after the period of prior retirement. The average final compensation in subsections (1) and (2) of this section may be increased up to ten percent annually to adjust for inflation."
SECTION 7. This act takes effect January 1, 2002.
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