South Carolina General Assembly
107th Session, 1987-1988

Bill 1180


                    Current Status

Bill Number:               1180
Ratification Number:       562
Act Number                 500
Introducing Body:          Senate
Subject:                   Conversion of service
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A500, R562, S1180)

AN ACT TO AMEND SECTION 9-1-640, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CLASSES OF EMPLOYEES AND MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO PROVIDE THAT CLASS ONE SERVICE MAY BE CONVERTED TO CLASS TWO SERVICE AND TO PROVIDE A CONVERSION FORMULA; AND TO AMEND SECTIONS 9-1-1590 AND 9-11-90, AS AMENDED, RELATING TO THE RESTORATION OF BENEFICIARIES TO ACTIVE SERVICE UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO MAKE OPTIONAL RATHER THAN MANDATORY THE LOSS OF THE ALLOWANCE OF THE REEMPLOYED BENEFICIARIES.

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

Conversion of service

SECTION 1. The last paragraph of Section 9-1-640 of the 1976 Code is amended to read:

"Effective July 1, 1976, or any subsequent July first, a Class One employer may elect Class Two coverage on July 1, 1976, or as of July first of any year thereafter. It is mandatory for each Class One employee of any such employer to participate in Class Two coverage from the effective date of the employer election. Upon service retirement, a member shall receive a service retirement allowance equal to the sum of his benefit computed by the Class One formula for service credited under Class One membership and his benefit computed by the Class Two formula for service credited under Class Two membership. A Class One member may convert Class One service to Class Two by paying into the System two and one-half percent of his earnable compensation, or the average of the highest twelve consecutive quarters, whichever is greater, for each year prorated for periods of less than one year. A member who elects to convert from Class One to Class Two must convert all such service for which eligible."

Reemployment

SECTION 2. The third paragraph of Section 9-1-1590 of the 1976 Code is amended to read:

"Should any other beneficiary who has been restored to active employment continue in service for a period of forty-eight consecutive months and his annual compensation be equal to or greater than seventy-five percent of his average final compensation at retirement, then he may elect to cease his retirement allowance and become a contributing member again and void his election of an optional benefit. Any prior service certificate on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect and, in addition, upon his subsequent retirement he shall be credited with all his service as a member. Any such beneficiary may request the board to allow him to repay to the System all monies received by him as benefits during any periods subsequent to the date of his reentry into active service and make a contribution equal to the amount he would have contributed had he been a member during the period of his restoration to active service prior to his again becoming a member, together with the interest which would have been credited to the contributions on account of such period of restoration up to the date such contribution is made. Upon the completion of such payment, this period shall also be credited to him as membership service. In no event shall the retirement allowance payable upon subsequent retirement be less than the amount of his allowance previously payable plus any increases which would have been payable under Section 9-1-1810 had he not been restored to service."

Reemployment

SECTION 3. Section 9-11-90(3) of the 1976 Code is amended to read:

"(3) Should any other beneficiary who has been restored to active employment continue in service for a period of forty-eight consecutive months and his annual compensation be equal to or greater than seventy-five percent of his average final compensation at retirement, then he may elect to cease his retirement allowance and become a contributing member again and void his election of an optional benefit. Any credited service to which he was entitled when he retired must be restored to him, and upon subsequent retirement his allowance must be based on his compensation and credited service before and after the period of prior retirement. Any such beneficiary may request the Board to allow him to repay to the System all monies received by him as benefits during any periods subsequent to the date of his reentry into active service and make a contribution equal to the amount he would have contributed had he been a member during the period of his restoration to active service prior to his again becoming a member, together with the interest which would have been credited to the contributions on account of the period of restoration up to the date the contribution is made. Upon the completion of the payment, this period must also be credited to him as membership service. In no event must the retirement allowance payable upon subsequent retirement be less than the amount of his allowance previously payable plus any increases

which would have been payable under Section 9-11-310 had he not been restored to service."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.