Bill 163

                    Current Status

Bill Number:               163
Ratification Number:       57
Act Number                 32
Introducing Body:          Senate
Subject:                   Projection for disability retirement
                           with a four percent interest

(A32, R57, S163)

AN ACT TO AMEND SECTIONS 9-1-1140 AND 9-1-1560, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO COMPUTE THE PROJECTION FOR DISABILITY RETIREMENT WITH A FOUR PERCENT INTEREST RATE INSTEAD OF A SIX PERCENT RATE, AND TO REQUIRE THE RECALCULATION OF EMPLOYEES RETIRED ON DISABILITY SUBSEQUENT TO JULY 1, 1982, USING THE SIX PERCENT INTEREST RATE.

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

Contributions of members on military leave of absence

SECTION 1. The first paragraph of Section 9-1-1140 of the 1976 Code is amended to read:

"Subject to the approval of the Board, any member who is on leave of absence on account of military service or for any other purpose which might tend to increase the efficiency of the services of the member to his employer may make monthly contributions to the System on the basis of the earnable compensation of such member at the time such leave of absence was granted. Any person on leave of absence in the armed forces of the United States who would otherwise have qualified for prior service credit shall be entitled to prior service credit if he returns to the service of teaching or any other employment covered by or coming within the meaning hereof within a period of two years after he has been honorably discharged."

Allowance

SECTION 2. Item (1) of subsection (A) of Section 9-1-1560 of the 1976 Code, as last amended by Act 32 of 1981, is further amended to read:

"(1) Such allowance shall be equal to the service retirement allowance which would have been payable had he continued in service to age sixty-five based on the average final compensation, minus the actuarial equivalent of the contribution the member would have made during such continued service, with an interest rate of four percent per annum."

Further

SECTION 3. Item (1) of subsection (B) of Section 9-1-1560 of the 1976 Code, as last amended by Act 32 of 1981, is further amended to read:

"(1) Such allowance shall be equal to the service retirement allowance which would have been payable had he continued in service to age sixty-five based on the average final compensation, minus the actuarial equivalent of the contribution the member would have made during such continued service, with an interest rate of four percent per annum."

Employees retired on disability--benefits recalculated

SECTION 4. Employees retired on disability subsequent to July 1, 1982, must have their benefits recalculated in accordance with the provisions of Sections 2 and 3 of this act.

Time effective

SECTION 5. This act shall take effect upon approval by the Governor.