South Carolina General Assembly
107th Session, 1987-1988

Bill 3833


                    Current Status

Bill Number:               3833
Ratification Number:       740
Act Number                 632
Introducing Body:          House
Subject:                   Optional method for purchase of
                           additional service credit
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A632, R740, H3833)

AN ACT TO AMEND SECTION 9-1-1850, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PURCHASES OF ADDITIONAL SERVICE CREDIT BY MEMBERS OF THE STATE RETIREMENT SYSTEM WITH AT LEAST TWENTY-FIVE YEARS' CREDITABLE SERVICE, SO AS TO PROVIDE AN ALTERNATIVE OPTIONAL METHOD UNDER WHICH THESE MEMBERS ARE AUTHORIZED TO PURCHASE ADDITIONAL SERVICE CREDIT; AND TO AMEND ARTICLE 1, CHAPTER 11, TITLE 9, RELATING TO THE POLICE OFFICERS' RETIREMENT SYSTEM, BY ADDING SECTION 9-11-65 SO AS TO MAKE THE ABOVE OPTION ALSO AVAILABLE TO MEMBERS OF THIS SYSTEM UNDER SPECIFIED CONDITIONS.

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

Optional method for purchase of additional service credit

SECTION 1. Section 9-1-1850 of the 1976 Code is amended to read:

"Section 9-1-1850.

(A) For any retirement system provided for by law in this State the member of the retirement system, if he has at least twenty-five years of creditable service, may elect to receive up to five years of additional service credit as though the additional service credit were rendered by him as an employee or member upon his paying into his retirement system the actuarial cost as determined by regulation promulgated by the governing or administering board of his retirement system, provided the actuarial cost must be determined on the basis of current salary or the highest fiscal year salary in the work career, whichever is greater. The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased. Any service credit purchased under this section qualifies the member for retirement and the member must retire within ninety days subsequent to the purchase.

(B) As an alternative to the option provided in subsection (A) the member, if he has at least twenty-five years of creditable service, may elect to receive up to five years of additional service credit as though the additional service credit were rendered by him as an employee or member upon paying into his retirement system, during the ensuing number of years he wishes to purchase in the manner the Comptroller General shall direct, the employer and employee contributions that would be due for the position that he presently holds at the salary level in effect during those years. If the position is consolidated or eliminated after the member's retirement, he shall pay the employer and employee contributions during the remaining required years at a level equal to what these contributions were for the position before its consolidation or elimination. The member also shall pay the employer and employee cost for health and dental insurance in effect during the ensuing years the member wishes to purchase. The additional service credit qualifies the member for retirement and the member must retire within ninety days subsequent to electing the option provided by subsection (B). The salary level of the position the member presently holds, during the ensuing years the member pays the employer and employee contributions, is attributable to the member for purposes determining the member's average final compensation.

The retirement benefits of the member shall not commence until the time benefits would have been paid when the member had completed thirty years of service."

Optional method for purchase of additional service credit

SECTION 2. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:

"Section 9-11-65. The options available to a member of the State Retirement System under Section 9-1-1850(B) are also available under the same terms and conditions to a member of the Police Officers' Retirement System, except that the member of the Police Officers' Retirement System must be less than fifty-five years of age with at least twenty-five years of creditable service. The benefits due the member after electing this option do not commence until the time benefits would have been paid when the member had completed thirty years of service."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.