South Carolina General Assembly
117th Session, 2007-2008

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H. 3303

STATUS INFORMATION

General Bill
Sponsors: Reps. Simrill, Williams, Bowen and Bingham
Document Path: l:\council\bills\bbm\9677ssp07.doc
Companion/Similar bill(s): 207

Introduced in the House on January 17, 2007
Currently residing in the House Committee on Ways and Means

Summary: S.C. Retirement System

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   1/17/2007  House   Introduced and read first time HJ-35
   1/17/2007  House   Referred to Committee on Ways and Means HJ-35
   1/31/2007  House   Member(s) request name added as sponsor: Williams
    3/7/2007  House   Member(s) request name added as sponsor: Bowen
   3/15/2007  House   Member(s) request name added as sponsor: Bingham

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

1/17/2007

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

A BILL

TO AMEND SECTIONS 9-1-1590, 9-1-1790, AND 9-11-90, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RETURNING TO ACTIVE SERVICE AND THE RESTORATION TO THE STATUS OF ACTIVE CONTRIBUTING MEMBERS TO RETIREES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, WHO HAVE RETURNED TO ACTIVE SERVICE IN COVERED EMPLOYMENT, SO AS TO REDUCE FROM FORTY-EIGHT TO TWELVE THE CONSECUTIVE MONTHS THE TIME AFTER WHICH A BENEFICIARY RETURNED TO ACTIVE SERVICE IN COVERED EMPLOYMENT MAY BE RESTORED TO THE STATUS OF ACTIVE CONTRIBUTING MEMBER AND TO EXEMPT REEMPLOYED RETIREES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM WHO RETURNED TO EMPLOYMENT BEFORE JULY 1, 2005, FROM THE PAYMENT OF EMPLOYEE CONTRIBUTIONS OTHERWISE DUE THESE SYSTEMS, TO PROVIDE THAT THIS EXEMPTION CONTINUES WHILE A REEMPLOYED RETIREE REMAINS EMPLOYED IN THE POSITION HELD BEFORE JULY 1, 2005, AND TO PROVIDE FOR THE REFUND WITH INTEREST OF THE EMPLOYEE CONTRIBUTIONS MADE BY THESE EMPLOYEES WITH RESPECT TO EMPLOYMENT AFTER JUNE 30, 2005.

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

SECTION    1.    The third undesignated paragraph of Section 9-1-1590 of the 1976 Code, as last amended by Act 500 of 1988, is further amended to read:

"Should any other beneficiary who has been restored to active employment continue in service for a period of forty-eight consecutive months and his annual compensation be equal to or greater than seventy-five percent of his average final compensation at retirement, then he may elect to cease his retirement allowance and become a contributing member again and void his election of an optional benefit. Any prior service certificate on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect and, in addition, upon his subsequent retirement he shall be credited with all his service as a member. Any such beneficiary may request the board to allow him to repay to the System all monies received by him as benefits during any periods subsequent to the date of his reentry into active service and make a contribution equal to the amount he would have contributed had he been a member during the period of his restoration to active service prior to his again becoming a member, together with the interest which would have been credited to the contributions on account of such period of restoration up to the date such contribution is made. Upon the completion of such payment, this period shall also be credited to him as membership service. In no event shall the retirement allowance payable upon subsequent retirement be less than the amount of his allowance previously payable plus any increases which would have been payable under Section 9-1-1810 had he not been restored to service. If any other beneficiary who has been restored to active employment continues in service for at least twelve consecutive months and his annual compensation is at least seventy-five percent of his average final compensation at retirement, then he may elect to cease his retirement allowance and become an active contributing member again and void his election of an optional benefit. Any credited service to which he was entitled when he retired must be restored to him, and upon subsequent retirement his allowance must be based on his compensation and credited service before and after the period of prior retirement. This beneficiary may request the board to allow him to repay to the System all monies received by him as benefits during any periods after the date of his reentry into active service and make a contribution equal to the amount he would have contributed had he been a member during the period of his restoration to active service before his again becoming a member, together with the interest which would have been credited to the contributions on account of the period of restoration up to the date the contribution is made. There must be credited against this amount the total of contributions made by the member after returning to active employment. Upon the completion of the payment, this period must also be credited to him as membership service. The retirement allowance payable upon subsequent retirement must not be less than the amount of his allowance previously payable plus any increases which would have been payable under Section 9-11-310 had he not been restored to service."

SECTION    2.    Section 9-1-1790(A) of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:

"(A)    A retired member of the system who has been retired for at least fifteen consecutive calendar days may be hired and return to employment covered by this system or any other system provided in this title without affecting the monthly retirement allowance he is receiving from the system. If the employment continues for at least forty- eight twelve consecutive months, the provisions of Section 9-1-1590 apply. If a retired member of the system returns to employment covered by this system or any other system provided in this title sooner than fifteen 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    3.    Section 9-11-90(3) of the 1976 Code, as last amended by Act 658 of 1988 and Section 9-11-90(4)(a) of the 1976 Code, as last amended by Act 356 of 2002, are further amended to read:

"(3)    Should If any other beneficiary who has been restored to active employment continue continues in service for a period of forty-eight at least twelve consecutive months and his annual compensation be equal to or greater than is at least seventy-five percent of his average final compensation at retirement, then he may elect to cease his retirement allowance and become a an active contributing member again and void his election of an optional benefit. Any credited service to which he was entitled when he retired must be restored to him, and upon subsequent retirement his allowance must be based on his compensation and credited service before and after the period of prior retirement. Any such This beneficiary may request the board to allow him to repay to the system all monies received by him as benefits during any periods subsequent to after the date of his reentry into active service and make a contribution equal to the amount he would have contributed had he been a member during the period of his restoration to active service prior to before his again becoming a member, together with the interest which would have been credited to the contributions on account of the period of restoration up to the date the contribution is made. There must be credited against this amount the total of contributions made by the member after returning to active employment. Upon the completion of the payment, this period must also be credited to him as membership service. In no event must the The retirement allowance payable upon subsequent retirement must not be less than the amount of his allowance previously payable plus any increases which would have been payable under Section 9-11-310 had he not been restored to service.

(4)(a)    Notwithstanding the provisions of subsections (1) and (2) of this section, a retired member of the system who has been retired for at least fifteen consecutive calendar days may be hired and return to employment covered by this system or any system provided in this title without affecting the monthly retirement allowance he is receiving from this system. If the employment continues for at least forty-eight twelve consecutive months, the provisions of Section 9-11-90(3) apply. If a retired member of the system returns to employment covered by the South Carolina Police Officers Retirement System or any other system provided in this title sooner than fifteen consecutive calendar days after retirement, the member's retirement allowance is suspended while the member remains employed by a participating employer of any of these systems. 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    4.    Notwithstanding the provisions of Sections 9-1-1790 and 9-11-90(4), of the 1976 Code, persons who were reemployed retirees who returned to employment of employers covered under the South Carolina Retirement System (SCRS) or the South Carolina Police Officers Retirement System (SCPORS) before July 1, 2005, are exempt from the payment of employee contributions otherwise due SCRS or SCPORS with respect to employment after June 30, 2005. The exemption continues for these employees while a reemployed retiree remains employed in the position held before July 1, 2005. SCRS and SCPORS shall refund with interest the employee contributions made by the reemployed retirees receiving the exemption allowed pursuant to this act.

SECTION    5.    This act takes effect upon approval by the Governor.

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