Bill 784

                    Current Status

Bill Number:               784
Ratification Number:       437
Act Number:                384
Introducing Body:          Senate
Subject:                   Relating to the State Retirement System
                           and the Police Officers Retirement

(A384, R437, S784)

AN ACT TO AMEND SECTIONS 9-1-1550, 9-1-1650, 9-9-100, 9-11-70, AND 9-11-110, ALL AS AMENDED, RELATING TO THE STATE RETIREMENT SYSTEM, SO AS TO PRORATE THE EARLY RETIREMENT PENALTY IN MONTHS AND DAYS INSTEAD OF ONLY IN MONTHS FOR THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE POLICE OFFICERS RETIREMENT SYSTEM AND TO GUARANTEE THAT UPON THE DEATH OF A RETIRED MEMBER OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE POLICE OFFICERS RETIREMENT SYSTEM, OR THE GENERAL ASSEMBLY RETIREMENT SYSTEM HIS BENEFICIARY OR HIS ESTATE WILL RECEIVE THE REMAINDER OF THE MEMBER'S CONTRIBUTION TO THE SYSTEM IF IT IS FIRST DETERMINED THAT FUNDING FOR THE INCREASE HAS BEEN PROVIDED.

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

Service retirement allowance

SECTION 1. The third paragraph of item (3) of subsection (A) of Section 9-1-1550 of the 1976 Code, added by Act 587 of 1976, is amended to read:

"If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday."

Further

SECTION 2. Item (2) of subsection (B) of Section 9-1-1550 of the 1976 Code, as last amended by Act 16 of 1979, is further amended to read:

"(2) If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday."

Lump sum payment

SECTION 3. The last paragraph of Section 9-1-1650 of the 1976 Code is amended to read:

"Upon the death of a retired member who has not elected either Option 1 or Option 4 under Section 9-1-1620, a lump sum amount must be paid to the person as he has last nominated by written designation, duly acknowledged and filed with the board; otherwise, it must be paid to his estate. The amount must be equal to the excess, if any, of his total accumulated contributions at the time his retirement allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 2, 3, and 5 of Section 9-1-1620, during their lifetimes."

Further

SECTION 4. Subsection (2) of Section 9-9-100 of the 1976 Code is amended to read:

"(2) Upon the death of a retired member a lump sum amount must be paid to the person he has last nominated by written designation, duly acknowledged and filed with the Board, otherwise to his estate. The lump sum must be equal to the excess, if any, of his total accumulated contributions at the time his allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 1, 2, and 3 of Section 9-9-70, during their lifetimes."

Deferred early retirement allowance

SECTION 5. Subsection (2) of Section 9-11-70 of the 1976 Code, as last amended by Act 42 of 1977, is further amended to read:

"(2) Upon early retirement, the member is entitled to a deferred early retirement allowance commencing upon the attainment of age fifty-five, which is equal to a service retirement allowance computed as provided in Section 9-11-60(2) on the basis of the member's average final compensation and credited service at his date of early retirement. If the member's early retirement date occurs after he has twenty-five completed years of credited service and has attained age fifty, however, he may elect to receive, in lieu of the deferred allowance, a reduced allowance commencing immediately which is equal to the deferred allowance computed under (a) and (b) of Section 9-11-60(2) reduced by five-twelfths of one percent for each month, prorated for periods less than a month, by which his age at early retirement precedes his fifty-fifth birthday, plus the actuarial equivalent of his accumulated additional contributions. A member with thirty or more years of credited service is eligible for a service retirement allowance without a reduction."

Lump sum payment

SECTION 6. Subsection (2) of Section 9-11-110 of the 1976 Code, as last amended by Act 29 of 1977, is further amended to read:

"(2) Upon the death of a retired member a lump sum amount must be paid to the person he has last nominated by written designation, duly acknowledged and filed with the Board, otherwise to his estate. The lump sum amount must be equal to the excess, if any, of his total accumulated contributions at the time his allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 1, 2, and 4 of Section 9-11-150, during their lifetimes."

Increases must be on sound actuarial basis

SECTION 7. The provisions of this act may not take effect unless the governing body of the South Carolina Retirement System, the Police Officers Retirement System, or the General Assembly Retirement System first determines that funding for the increase on a sound actuarial basis has been provided or is concurrently provided.

Time effective

SECTION 8. This act shall take effect upon approval by the Governor.