South Carolina General Assembly
114th Session, 2001-2002

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Bill 3718


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)


COMMITTEE REPORT

April 19, 2001

    H. 3718

Introduced by Reps. Kelley, Allison, Barfield, Barrett, Edge, Frye, Keegan, Kirsh, Knotts, Koon, Leach, Loftis, Riser, Robinson, Sandifer, Snow, Trotter, Vaughn, Walker, Webb, Whatley, White, A. Young and Bowers

S. Printed 4/19/01--H.

Read the first time March 15, 2001.

            

THE COMMITTEE ON WAYS AND MEANS

    To whom was referred a Bill (H. 3718) to amend the Code of Laws of South Carolina, 1976, by adding Article 5 so as to enact the Law Enforcement Officer Retention Incentive Program and provide for its operation, etc., respectfully

REPORT:

    That they have duly and carefully considered the same and recommend that the same do pass with amendment:

    Amend the bill, as and if amended, in Section 9-11-810(A) as contained in SECTION 1, page 1, by inserting before /who/ on line 31 /, other than an elected official, / so that when amended, Section 9-11-810(A) reads:

    / (A)    An active contributing member, other than an elected official, who is eligible for service retirement under this chapter and complies with the requirements of this article may participate in the Law Enforcement Officer Retention Incentive Program (program) when offered this employment program by an employer participating in the system. Eligibility for participation occurs upon mutual agreement of the employee and employer. A member participating in this program retires for the 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. A member is ineligible to participate in the program after receiving a normal retirement benefit from the system. The program participant shall agree to continue employment with an employer or employers participating in the system for a specified program period, but the total program period regardless of the number of employers may not exceed five years from the time the program begins. A break in service while participating in the program ends the program for the participant. The member shall notify the system of the length of the program period before the beginning of the program period and of any change in employer while in the program. Participation in the program does not guarantee employment for the specified program period. /

    Renumber sections to conform.

    Amend title to conform.

ROBERT W. HARRELL, JR. for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

    A review of this bill by the State Retirement Division and its actuaries has determined that since this bill provides for the continued payment of the employer contributions on an employee's salary there is no negative fiscal impact on the Police Officers Retirement System.

    Approved By:

    Don Addy

    Office of State Budget

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 SO AS TO ENACT THE LAW ENFORCEMENT OFFICER RETENTION INCENTIVE PROGRAM AND PROVIDE FOR ITS OPERATION; AND TO AMEND SECTION 8-17-370, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE EMPLOYEE GRIEVANCE PROCEDURE, SO AS TO EXEMPT PARTICIPANTS IN THE LAW ENFORCEMENT OFFICER RETENTION INCENTIVE PROGRAM.

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

SECTION    1.    Chapter 11, Title 9 of the 1976 Code is amended by adding:

"Article 5

Law Enforcement Officer Retention Incentive Program

    Section 9-11-810.    (A)    An active contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article may participate in the Law Enforcement Officer Retention Incentive Program (program) when offered this employment program by an employer participating in the system. Eligibility for participation occurs upon mutual agreement of the employee and employer. A member participating in this program retires for the 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. A member is ineligible to participate in the program after receiving a normal retirement benefit from the system. The program participant shall agree to continue employment with an employer or employers participating in the system for a specified program period, but the total program period regardless of the number of employers may not exceed five years from the time the program begins. A break in service while participating in the program ends the program for the participant. The member shall notify the system of the length of the program period before the beginning of the program period and of any change in employer while in the program. 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. No interest is paid on the member's deferred monthly benefit placed in the system's trust fund during the specified program period.

    (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 in a temporary or permanent position. 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 retired from the retirement system 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 or disability retirement benefits. Accrued annual leave and sick leave used in any manner in the calculation of the program participant's retirement benefit is deducted from the amount of such leave accrued by the participant, and the balance, if any, transfers to the program employment in accordance with the employer's leave policies. A program employee accrues leave as a regular employee. Participants must not be paid for any annual leave when they terminate from the program, but program participants shall accrue and are allowed to use sick and annual leave while participating in the program.

    (E)    A program participant is not subject to the earnings limitation imposed by Section 9-11-90(4)(a) on reemployed retirees 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 either:

        (1)    a lump-sum distribution, paying appropriate taxes; or

        (2)    to the extent permitted under law, a tax sheltered rollover into an eligible plan.

    The member also must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program period began, plus any applicable cost of living increases declared during the program period. The program participant thereafter is subject to the earnings limitation of Section 9-11-90(4)(a).

    (G)    If a program participant dies during the specified program period, the member's designated beneficiary must receive the balance in the member's program account by electing either:

        (1)    a lump-sum distribution, paying appropriate taxes; or

        (2)    to the extent permitted under law, a tax sheltered rollover into an eligible plan.

    (H)    A member is not eligible to participate in the program if the member has previously participated in and received a benefit under this program or any other state retirement system."

SECTION    2.    Section 8-17-370 of the 1976 Code, as last amended by Act 264 of 2000, is further amended by adding an appropriately numbered item at the end to read:

    "( )    Participants in the Law Enforcement Officer Retention Incentive Program established pursuant to Article 5, Chapter 11 of Title 9."

SECTION    3.    This act takes effect January 1, 2002.

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