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787Ratification Number: 436Act Number: 383Introducing Body: SenateSubject: Relating to the South Carolina Retirement System and the Police Officers Retirement System
(A383, R436, S787)
AN ACT TO AMEND SECTIONS 9-1-1580 AND 9-11-80, BOTH AS AMENDED, AND 9-1-1570, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO CHANGE THE PROCEDURE WHEN A DISABILITY RETIREE RETURNS TO GAINFUL EMPLOYMENT UNDER THESE SYSTEMS BY STOPPING ALL BENEFITS WHEN THE RETIREE'S COMPENSATION REACHES A PREDETERMINED LEVEL; AND TO PROVIDE THAT THE TERM "DISABILITY RETIREMENT ALLOWANCE" REPLACE "EMPLOYER ANNUITY" AND THAT WHEN A RETIREMENT ALLOWANCE IS DISCONTINUED AFTER FIVE YEARS THE MEMBER WILL BE ENTITLED TO A DEFERRED EARLY RETIREMENT ALLOWANCE.
Be it enacted by the General Assembly of the State of South Carolina:
Beneficiary to undergo medical examination
SECTION 1. Section 9-1-1570 of the 1976 Code is amended to read:
"Section 9-1-1570. Once each year during the first five years following the retirement of a member on a disability retirement allowance and once in every three-year period thereafter the Board may, and upon his application, require any disability beneficiary who has not yet attained the age of sixty-five years to undergo a medical examination to be made at the place of residence of the beneficiary or other place mutually agreed upon by a physician designated by the Board. Should any disability beneficiary who has not yet attained the age of sixty-five years refuse to submit to at least one medical examination in any such year by a physician designated by the Board his disability retirement allowance may be discontinued until his withdrawal of refusal and should his refusal continue for one year all his rights in and to his disability retirement allowance may be revoked by the Board."
Amount of disability retirement allowance reduced under certain
SECTION 2. Section 9-1-1580 of the 1976 Code, as last amended by Act 32 of 1981, is further amended to read:
"Section 9-1-1580. Should the Medical Board report and certify to the Board that the disability beneficiary is engaged in or is able to engage in a gainful occupation paying more than the difference between his retirement allowance and his average final compensation and should the Board concur in the report, then the amount of his disability retirement allowance must be reduced to an amount which, together with the amount earnable by him, equals the amount of his average final compensation. Should his earning capacity be later changed, the amount of his disability retirement allowance may be further modified. The new disability retirement allowance shall not exceed the amount of the disability retirement allowance originally granted nor an amount which, when added to the amount earnable by the beneficiary, equals the amount of his average final compensation.
The average final compensation may be increased up to ten percent annually to adjust for inflation.
If the disability retirement allowance is eliminated as a result of this section for a period of five consecutive years, all rights in and to his disability retirement allowance are revoked. The member then is entitled to a deferred retirement allowance as provided in Section 9-1-1650 based upon his average final compensation and creditable service at his date of disability retirement."
Disability retirement allowance discontinued under certain
SECTION 3. Subsection (4) of Section 9-11-80 of the 1976 Code is amended to read:
"(4) If the medical board certifies that the member's disability has been removed and that he has regained his earning capacity, his disability retirement allowance may be discontinued, or if the disability has been partly removed and his earning capacity regained in part, the disability retirement allowance may be reduced proportionately. The determination of the Board as to any disputed question, after due consideration accorded to the member, is conclusive. Should the retirement allowance of any member retired for disability be discontinued or reduced, and should he again suffer disability within five years of the date of his recovery and again lose his earning capacity, he shall be entitled to apply to the Board for a restoration of his original retirement allowance, and the Board may restore all or part of his original retirement allowance. At the expiration of the five-year period, if the retirement allowance has not been restored, all rights in and to the member's disability retirement allowance are revoked. The member then is entitled to a deferred early retirement allowance as provided in Section 9-11-70 based upon his average final compensation and credited service at his date of disability retirement."
SECTION 4. This act shall take effect upon approval by the Governor.