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TO AMEND SECTION 9-1-1790, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EARNINGS LIMIT APPLICABLE TO RETIREES OF THE SOUTH CAROLINA RETIREMENT SYSTEM WHO RETURN TO COVERED EMPLOYMENT AND THE MINIMUM TIME THE RETIREE MUST BE RETIRED BEFORE RETURNING TO COVERED EMPLOYMENT WITHOUT AFFECTING THE RETIREE'S RETIREMENT BENEFIT, SO AS TO ELIMINATE THE EARNINGS LIMITATION AND REDUCE THE MINIMUM RETIREMENT PERIOD THAT A RETIREE MUST BE RETIRED BEFORE RETURNING TO COVERED EMPLOYMENT WITHOUT AFFECTING THE RETIREE'S RETIREMENT BENEFIT FROM SIXTY DAYS TO FIFTEEN CONSECUTIVE CALENDAR DAYS, TO AMEND SECTION 9-1-2210, RELATING TO THE TEACHER AND EMPLOYEE RETENTION INCENTIVE PROGRAM (TERI), SO AS TO CLOSE THE PROGRAM FOR PERSONS RETIRING AFTER JUNE 30, 2004, AND CLARIFY THAT PERSONS MUST TERMINATE EMPLOYMENT AT THE END OF THE TERI PERIOD, AND TO REPEAL ARTICLE 17, CHAPTER 1, TITLE 9 OF THE 1976 CODE, THE TERI PROGRAM, EFFECTIVE JULY 1, 2009.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-1-1790(A) of the 1976 Code, as last amended by Act 25 of 2001, is further amended to read:
"(A) A retired member of the system who has been retired for at least sixty fifteen consecutive calendar days may return to employment covered by the this system or any system provided in this title and earn up to fifty thousand dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the system. If the retired member continues in service after having earned fifty thousand dollars in a fiscal year, his retirement allowance must be discontinued during his period of service in the remainder of the fiscal year. If the employment continues for at least forty-eight consecutive months, the provisions of Section 9-1-1590 apply. If a retired member of the system returns to employment covered by the system sooner than sixty days after retirement, the member's retirement allowance is suspended while the member remains employed by the participating employer. If an employer fails to notify the system of the engagement of a retired member to perform services, the employer shall reimburse the system for all benefits wrongly paid to the retired member."
SECTION 2. Subsections (A) and (H) of Section 9-1-2210 of the 1976 Code, as added by Act 1 of 2001, are amended to read:
"(A) An active contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article and whose date of retirement is before July 1, 2004, 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 program period, not to exceed five years. The member shall notify the system before the beginning of the program period. Participation in the program does not guarantee employment for the specified program period.
(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 must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790. The program participant also must receive the balance in the member's program account by selecting one of the following alternatives:
(1) a lump-sum distribution, paying appropriate taxes; or
(2) to the extent permitted under law, a tax sheltered rollover into an eligible plan. A program participant must terminate employment no later than the fifth annual anniversary of the date the member commenced participation in the program."
SECTION 3. Article 17, Chapter 1, Title 9 of the 1976 Code, the Teacher and Employee Retention Incentive Program is repealed effective July 1, 2009, for all purposes except winding up the program.
SECTION 4. Except where otherwise stated, this act takes effect upon approval by the Governor.
This web page was last updated on Thursday, June 25, 2009 at 9:59 A.M.