Bill 786

                    Current Status

Bill Number:               786
Ratification Number:       435
Act Number:                382
Introducing Body:          Senate
Subject:                   Relating to the South Carolina Retirement
                           System and the Police Officers Retirement
                           System

(A382, R435, S786)

AN ACT TO AMEND SECTIONS 9-1-1810 AND 9-11-310, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE THAT IF THE CONSUMER PRICE INDEX INCREASES LESS THAN THREE PERCENT THE RETIREMENT ALLOWANCE WILL BE EQUAL TO THE INCREASE OF THE CONSUMER PRICE INDEX 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:

Retirement allowance

SECTION 1. Section 9-1-1810 of the 1976 Code, as last amended by Act 368 of 1982, is further amended to 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, must be determined, and if the 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, must be increased by four percent. If the increase in the index is less than three percent, the retirement allowance, inclusive of supplemental allowances, all as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances shall commence the July first immediately following the December thirty-first that the increase in ratio was determined. Beginning with the calendar year ending December 31, 1981, all increases in retirement allowances must be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any 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 must 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' means 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, as last amended by Act 368 of 1982, is further amended to 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, must be determined, and if the 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, must be increased by four percent. If the increase in the index is less than three percent, the retirement allowances, as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances must commence the July first immediately following the December thirty-first that the increase in ratio was determined.

Beginning with the calendar year ending December 31, 1981, all increases in retirement allowances must be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. The increase in allowances after the first five such increases shall become effective only if the additional liabilities on account of the increase in allowances do not require an increase in the employer rate of contribution. Any increase in allowance granted hereunder is permanent, irrespective of any subsequent decrease in the Consumer Price Index, and must be included in determining any subsequent increase.

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

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

Funding of increases

SECTION 3. The provisions of this act shall not take effect unless the appropriate governing body of the South Carolina Retirement System and the Police Officers Retirement System first determines that funding for the increase on a sound actuarial basis has been provided or is concurrently provided.

Time effective

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