Bill 985

                    Current Status

Bill Number:               985
Ratification Number:       512
Act Number:                461
Introducing Body:          Senate
Subject:                   Relating to lump-sum contributions by a
                           member of the South Carolina Retirement System
                           to become entitled to creditable service for
                           out-of-state service

(A461, R512, S985)

AN ACT TO AMEND SECTIONS 9-1-1140, AS AMENDED, 9-1-1710, AND 9-11-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LUMP-SUM CONTRIBUTIONS BY A MEMBER OF THE SOUTH CAROLINA RETIREMENT SYSTEM TO BECOME ENTITLED TO CREDITABLE SERVICE FOR OUT-OF-STATE SERVICE, SO AS TO PROVIDE THAT A MEMBER WHO ELECTS TO RECEIVE CREDITABLE OUT-OF-STATE SERVICE MAY ESTABLISH A PORTION OF THE SERVICE ON A ONE-TIME BASIS.

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

Credible service

SECTION 1. Subsection (2) of Section 9-1-1710 of the 1976 Code is amended to read:

"(2) On or after July 1, 1975, any member may elect to become entitled to creditable service on account of his out-of-state service by making a special lump-sum contribution equal to ten percent of his annual earnable compensation at the time of payment for each year of out-of-state service and a proportionate part thereof for a fraction of a year, provided that the earnable compensation used as a basis for the special lump-sum contribution must not be less than his earnable compensation in any one of the three preceding fiscal years. A member who elects to receive creditable service for out-of-state service may establish a portion of the service on a one-time basis. The out-of-state service must be matched on a one-for-one basis with in-state service. Out-of-state service may not exceed the total creditable service, exclusive of out-of-state service which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. A member who elects to receive creditable service for his out-of-state service shall establish credit for all service for which he is eligible, except that the service shall not exceed the total creditable service, exclusive of out-of-state service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. The contribution thereafter must be treated in the same way as the regular contributions required of a member hereunder."

Further

SECTION 2. The next to the last paragraph of Section 9-1-1140 of the 1976 Code, as last amended by Act 486 of 1984, is further amended to read:

" Any member with two or more years of creditable service shall receive additional creditable service for the period of his military service, at the rate of one year of military service for each two years of his creditable service excluding any period of creditable military service, provided he was discharged or separated from the military service under conditions other than dishonorable, and provided that he shall pay to the System, by a single payment prior to his retirement or death or by such other method of payment as may be prescribed from time to time by the Board, all payments to the System he would have been required to make for the period to be so credited had he been employed in the position he held immediately prior to the commencement of his military leave during the period of such military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered prior to his employment by an employer such payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the System. The required employer contribution must be assumed by the State. No member shall receive credit for more than six years of military service. Active military duty performed subsequent to July 1, 1974, may not be considered creditable service. Any former employee of the United States employed in this State by an employer covered by the System, and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the System the actuarial cost as determined by the Board. The member payment may not be less than ten percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment whichever is greater for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event shall any benefits payable under the System duplicate benefits being paid under any other retirement system for the same period of service."

Prior service

SECTION 3. Item (6) of Section 9-11-50 of the 1976 Code, added by Act 76 of 1985, is amended to read:

"(6) Any former employee of the United States employed in this State by an employer covered by the System, and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the System the actuarial cost as determined by the Board. The member payment may not be less than ten percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event shall any benefits payable under the System duplicate benefits being paid under any other retirement system for the same period of service."

Time effective

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