Bill 814

                    Current Status

Bill Number:               814
Ratification Number:       452
Act Number                 368
Introducing Body:          Senate
Subject:                   Relating to the South Carolina Retirement
                           System and the South Carolina Police Officers
                           Retirement System, so as to reduce the maximum
                           waiting

(A368, R452, S814)

AN ACT TO AMEND SECTIONS 9-1-1810, AS AMENDED, AND 9-11-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO REDUCE THE MAXIMUM WAITING PERIOD FOR COST OF LIVING INCREASES FOR FUTURE RETIREES FROM THIRTY MONTHS TO TWENTY-FOUR MONTHS IF IT IS FIRST DETERMINED THAT FUNDING FOR SUCH PURPOSE HAS BEEN PROVIDED.

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

Maximum waiting period reduced

Section 1. Section 9-1-1810 of the 1976 Code, as last amended by Act 407 of 1980, is further amended by inserting on line fourteen between "determined." and "Any": "Beginning with the calendar year ending December 31, 1981, all increases in retirement allowances shall be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase." When amended the section shall read:

"Section 9-1-1810. As of the end of each calendar year commencing with the year ending December 31, 1969, the increase in the ratio of the Consumer Price Index to such Index as of December 31, 1968, or the most recent December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, shall be determined, and if such increase equals or exceeds three percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance as of December 31, 1968, or the most recent December thirty-first subsequent thereto as of which an increase was granted, shall be increased by four percent. Such increase in retirement allowances shall commence the July first immediately following the December thirty-first that such increase in ratio was determined. Beginning with the calendar year ending December 31, 1981, all increases in retirement allowances shall be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any such increase in allowances after June 30, 1981, shall become effective only if sufficient assets are available in the post-retirement increase special fund created under Section 9-1-1820 to meet that year's required payment. Any increase in allowance granted hereunder shall be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.

The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section shall, when and if payable, be increased by the same percent.

For purposes of this section, 'Consumer Price Index' shall mean the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics."

Further

Section 2. Section 9-11-310-of the 1976 Code is amended by striking ", provided that any" on line fourteen and inserting ". Beginning with the calendar year ending December 31, 1981, all increases in retirement allowances shall be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any". When amended the section shall read:

"Section 9-11-310. As of the end of each calendar year commencing with the year ending December 31, 1974, the increase in the ratio of the Consumer Price Index to such Index as of December 31, 1973, or the most recent December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, shall be determined, and if such increase equals or exceeds three percent, the retirement allowance, exclusive of any part thereof derived from accumulated additional contributions, of each beneficiary in receipt of an allowance as of December 31, 1973, or the most recent December thirty-first subsequent thereto as of which an increase was granted, shall be increased by four percent. Such increase in retirement allowances shall commence the July first immediately following the December thirty-first that such increase in ratio was determined. Beginning with the calendar year ending December 31, 1981, all increases in retirement allowances shall be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Such increase in allowances after the first five such increases shall become effective only if the additional liabilities on account of such increase in allowances do not require an increase in the employer rate of contribution. Any increase in allowance granted hereunder shall be permanent, irrespective of any subsequent decrease in the Consumer Price Index, and shall be included in determining any subsequent increase.

The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section shall, when and if payable, be increased by the same percent.

For purposes of this section, 'Consumer Price Index' shall mean the Consumer Price Index (all items--United States city average), as published by the United States Department of Labor, Bureau of Labor Statistics."

Funding to be on sound actuarial basis

Section 3. The provisions of this act shall not take effect unless the governing bodies of the South Carolina Retirement System and the South Carolina Police Officers Retirement System shall first determine that funding for such purpose on a sound actuarial basis has been provided or is concurrently provided.

Time effective

Section 4. This act shall take effect upon the approval by the Governor.