Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 14, 2004
H. 4963
S. Printed 4/14/04--H.
Read the first time March 17, 2004.
TO AMEND SECTIONS 9-8-10, 9-8-50, 9-8-60, AS AMENDED, AND 9-8-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS, CREDITED SERVICE, RETIREMENT AND RETIREMENT ALLOWANCES, AND MEMBERS' CONTRIBUTIONS FOR PURPOSES OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO DEFINE "EARNED SERVICE" FOR PURPOSES OF THIS SYSTEM, PROVIDE THE TYPE AND AMOUNT OF SERVICE CREDIT THAT MAY BE ESTABLISHED IN THIS SYSTEM AND THE COST REQUIRED TO ESTABLISH SERVICE CREDIT, PROVIDE THE OPTIONS AVAILABLE TO A MEMBER WHO TERMINATES SERVICE BEFORE RETIREMENT, PROVIDE THE AMOUNT OF EARNED SERVICE NECESSARY FOR A MEMBER OF THIS SYSTEM TO VEST AND RECEIVE A MONTHLY RETIREMENT BENEFIT, CONFORM THE SERVICE REQUIREMENTS FOR RECEIVING A MONTHLY RETIREMENT ALLOWANCE TO THESE REVISIONS, AND INCREASE MEMBER CONTRIBUTIONS FROM SEVEN TO TEN PERCENT OF COMPENSATION PHASED IN OVER THREE YEARS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-8-10 of the 1976 Code is amended by adding a new item at the end to read:
"(18) 'Earned service' means paid employment as a judge or solicitor where the judge or solicitor makes regular contributions to the system."
SECTION 2. Section 9-8-50 of the 1976 Code is amended to read:
"Section 9-8-50. (1) The credited service of a member shall include all service as a judge or solicitor since he last became a member of the System and in respect of which he makes contributions to the System. It shall also include, in the case of a member of the System who remained a member continuously until his death or his retirement under the System, service which he was, or would be, entitled to claim as creditable service under any other retirement system of the State of South Carolina, notwithstanding that he may not have been a member of such retirement system if, within twelve months of the date he becomes a member of the System, the full amount of his contributions required to be made under the other system in respect of such service shall be paid to this System by transfer or otherwise. Such amount shall not be less than the amount that the member would have contributed with respect to his position had he been a member of this System for the same period of time, plus interest.
On or after July 1, 1980, the Board may determine the contributions required by this section but it shall not be less than four percent of the annual compensation of the position at the time of payment for each year of service.
(A) An active contributing member of the system may establish service credit in the system for the same types of service, and under the same conditions, that members of the South Carolina Retirement System may establish service credit in the South Carolina Retirement System pursuant to Section 9-1-1140. With the exception of nonqualified service, as defined in Section 9-1-10(20), an active contributing member may establish service credit under this section by making a payment to the system equal to the current member contribution required for earned service pursuant to Section 9-8-130 for each year of service purchased, prorated for periods of less than a year. The cost to establish nonqualified service under this section is the same as the cost for a member to establish nonqualified service in the South Carolina Retirement System pursuant to Section 9-1-1140. A member may not establish more than sixteen years of service credit in the system under this section. A judge may not establish additional service credit under this section after attaining twenty-five years of creditable service. A solicitor may not establish additional service credit under this section after attaining twenty-four years of creditable service.
(B) An active contributing member of the system may transfer to the system nonconcurrent credited service under the South Carolina Retirement System, the South Carolina Police Officers Retirement System or the Retirement System for Members of the General Assembly, by withdrawing the member's employee contributions and accumulated interest in the South Carolina Retirement System, the South Carolina Police Officers System or the Retirement System for Members of the General Assembly, and by making a payment to the system equal to the member contribution required for earned service under Section 9-8-130 for each year of service transferred, prorated for periods of less than a year.
(2)(C) When membership in the system ceases for any reason other than death or retirement, the service previously credited to the member of the system shall must be cancelled and, should he if the person again become becomes a member of the system, he shall enter the person enters the system as a new member not entitled to credit for previous service, unless he left his the person's accumulated contributions were left in the system or the person repays any amounts previously withdrawn, with interest to the date of repayment.
(3) Any member with two or more years of credited service shall receive additional credited service for the period of his active military service, at the rate of one year of military service for each two years of his credited service excluding any period of credited military service, if he was discharged or separated from the military service under conditions other than dishonorable, and pays to the System, by a single payment prior to his retirement or death or by such other method 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 credited had he been employed in the position he held immediately prior to 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 prior to his becoming a member of the System, such payments shall be determined on the basis of what a member in the position contributed for the same period of time plus interest. No member shall receive credit for more than six years of military service and such duty performed subsequent to July 1, 1974, shall not be creditable.
(D) A member upon termination may either:
(1) elect to receive a refund of the member's employee contributions and accumulated interest; or
(2) elect to leave the member's employee contributions and interest on deposit in the system. Regular interest must continue to be credited to the member's account in the same manner that interest is credited to the accounts of active members. At a later date, the member may either:
(a) return to employment as a judge or solicitor and once again become an active contributing member of the system;
(b) receive a refund of the member's accumulated contributions and interest;
(c) if vested, receive a deferred annuity in accordance with subsection (E) of this section; or
(d) if the member has been hired or elected to a position covered by the South Carolina Retirement System, the Police Officers Retirement System, or the Retirement System for Members of the General Assembly, and becomes a member of one of these systems, the member may transfer the member's nonconcurrent service credit to the retirement system in which the member has become an active participant, by taking a refund of the member's employee contributions and accumulated interest in the system and by purchasing the nonconcurrent service as public service in the other system in which the member is an active participant.
(4) Any member upon termination who does not qualify for a monthly benefit may elect to transfer his service credit to the South Carolina Retirement System or other applicable system. Upon such election, the director must transfer to the receiving system the required employee and employer contributions. A member is vested after twelve years of service in the position as judge or solicitor and if he terminates services and leaves his contributions on deposit with the System, he is eligible for a monthly benefit beginning at age fifty-five which is a pro-rata proportion his total credited service is to the benefit payable with twenty-four years of service credit.
(E)(1) A judge is vested in the system after attaining ten years of earned service in the position of judge and a solicitor is vested in the system after attaining eight years of earned service as a solicitor.
(2) If a vested member who began service as a judge or solicitor before July 1, 2004, has terminated service and left contributions on deposit with the system, the member is eligible for a monthly benefit beginning at age fifty-five. The member's benefit under this section is calculated by multiplying the member's monthly benefit determined in accordance with Section 9-8-60 or 9-8-70, by a fraction in which the member's total credited service in the system is the numerator and twenty-four is the denominator. The monthly benefit under this section may not exceed the member's benefit as calculated pursuant to Section 9-8-60 or 9-8-70.
(3) If a vested member who began service as a judge or solicitor after June 30, 2004, has terminated service and left contributions on deposit with the system, the member is eligible for a monthly benefit beginning at age sixty-five. The member's benefit under this section is calculated by multiplying the member's monthly benefit determined in accordance with Section 9-8-60 or 9-8-70, by a fraction in which the member's total credited service in the system is the numerator and twenty-four is the denominator. The monthly benefit under this section may not exceed the member's benefit as calculated pursuant to Section 9-8-60 or 9-8-70."
SECTION 3. Section 9-8-60 of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"Section 9-8-60. (1) A member of the system may retire upon written application to the board setting forth at what time, not later than the end of the calendar year in which the member attains age seventy-two and not more than ninety days prior nor more than six months subsequent to the execution and filing thereof, the member desires to be retired, if the member at the time so specified for retirement is no longer in the service of the State, except as a member of the General Assembly, and has completed ten years of credited earned service as a judge or eight years of credited earned service as a solicitor or was in service as a judge or solicitor on July 1, 1984, and has either:
(a) attained the age of sixty-five and completed at least twenty years of credited service, or
(b) attained age seventy and completed at least fifteen years of credited service, or
(c) attained age sixty-five with at least four years' service in the position and has completed at least twenty-five years' other service with the State, or completed at least twenty-five years of credited service regardless of age of credited service in the system for a judge, or twenty-four years of credited service in the system for a solicitor, regardless of age. A solicitor is eligible to retire upon completion of twenty-four years of credited service regardless of age.
A member may retire under this section if the member was a member of this system as of June 30, 2004; attained age sixty-five with at least four years' earned service in the position of judge or solicitor; and, as of June 30, 2004, had a total of twenty-five years of credited service with the State in the South Carolina Retirement System, the Police Officers Retirement System, or the Retirement System for Members of the General Assembly.
A person is not eligible to receive a retirement allowance under this system while under employment covered by the South Carolina Retirement System and the South Carolina Police Officers Retirement System except as provided in Section 9-8-65.
A person receiving retirement allowances under this system who is elected to the General Assembly continues to receive the retirement allowances while serving in the General Assembly and must also be a member of the General Assembly Retirement System unless the person files a statement with the State Budget and Control Board on a form prescribed by the board electing not to participate in the General Assembly Retirement System while a member of the General Assembly. A person making this election shall not make contributions to the General Assembly Retirement System nor shall the State make contributions on the member's behalf and the person is not entitled to benefits from the General Assembly Retirement System after ceasing to be a member of the General Assembly.
(2) A retired member shall receive a monthly retirement allowance which is equal to one-twelfth of seventy-one and three-tenths percent of the current active salary of the respective position.
(3) No member shall be permitted to retire and resign on account of being totally and permanently disabled and to receive the retirement benefit herein provided for until it is proven to the satisfaction of the Supreme Court, or a majority of the justices thereof, that the member is totally and permanently disabled, physically or mentally, or both, from further rendering useful and efficient service in the position. Upon the finding of the Supreme Court that any member is totally and permanently disabled, the Supreme Court shall notify the director of its findings. A member shall have a minimum of five years of credited earned service to qualify for disability retirement.
(4) Any beneficiary receiving a retirement allowance under any other system of the State providing retirement benefits for judges or from the Solicitors' Retirement Program established pursuant to Article 4 of Chapter 7 of Title 1 shall become a beneficiary under this System as of July 1, 1979, and shall receive a retirement allowance under this section adjusted in accordance with the provisions of this section or Section 9-8-90, whichever is applicable, in lieu of any retirement allowance under such other system. The full amount of any accumulated contributions or assets held by that system on behalf of the beneficiary shall be transferred to this System promptly pursuant to the provisions of this Chapter. Notwithstanding anything herein to the contrary, no beneficiary under this section shall receive an allowance which is less than the allowance he would have received under such other system as of July 1, 1979.
(5) A member who retires, who has completed at least twenty-five years of credited service, or twenty-four years in the case of a solicitor, shall receive a monthly retirement allowance which must be equal to one-twelfth of seventy-one and three-tenths percent of the current active salary of the respective position plus one-twelfth of two and sixty-seven hundredths percent of the current active salary of the respective position for each additional year of active earned service over twenty-five, or twenty-four in the case of a solicitor. The monthly retirement allowance may not exceed one-twelfth of ninety percent of the current active salary of the respective position.
(6) A member retiring after 2003, shall receive an additional benefit, paid at retirement, equal to the member's employee contributions, plus interest, paid to the system after the member attains sufficient creditable service to become eligible to receive the maximum benefit of ninety percent of the current active salary of the respective position under this section."
SECTION 4. Section 9-8-130(1) of the 1976 Code is amended to read:
"(1)(a) Each member of the system shall contribute seven percent a percentage of each installment of compensation, as provided in item (b) of this subsection commencing with July 1, 1979. Such These contributions shall must be made through payroll deductions and remitted within thirty days after the close of each month to the system.
(b) Percentage of Compensation Beginning
8 percent July 1, 2004
9 percent July 1, 2005
10 percent July 1, 2006."
SECTION 5. This act takes effect July 1, 2004.
This web page was last updated on Thursday, June 25, 2009 at 10:00 A.M.