South Carolina General Assembly
108th Session, 1989-1990

Bill 3609


                    Current Status

Bill Number:               3609
Ratification Number:       687
Act Number                 559
Introducing Body:          House
Subject:                   Early retirement
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A559, R687, H3609)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 9-1-1515 SO AS TO ALLOW MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM WHO HAVE ATTAINED AGE FIFTY-FIVE AND WHO HAVE AT LEAST TWENTY-FIVE YEARS' CREDITABLE SERVICE TO ELECT EARLY RETIREMENT, TO PROVIDE THAT MEMBERS ELECTING EARLY RETIREMENT MUST RECEIVE REDUCED BENEFITS AND ARE INELIGIBLE FOR A TIME FOR COST-OF-LIVING ADJUSTMENTS AND THE STATE INSURANCE BENEFIT PLAN, AND TO PROVIDE A METHOD FOR A PERSON ELECTING EARLY RETIREMENT TO MAINTAIN HIS INSURANCE BENEFITS; AND TO AMEND THE 1976 CODE BY ADDING SECTION 9-1-80 SO AS TO DIRECT THE RETIREMENT SYSTEM TO ESTABLISH A PLAN TO ALLOW MEMBERS TO ESTABLISH CREDIT FOR OUT-OF-STATE AND FEDERAL CIVILIAN SERVICE BY MEANS OF PAYROLL-DEDUCTED INSTALLMENTS AND TO PROVIDE THE TERMS AND CONDITIONS OF THE INSTALLMENT PAYMENTS.

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

Early retirement

SECTION 1. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-1515. (A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.

(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, his early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty.

(C) A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the second July first after the date the member attains age sixty; or the second July first after the date the member would have thirty years' creditable service had he not retired, whichever is earlier.

(D) (1) Except as provided in item (2) of this subsection, a member who elects early retirement under this section is not covered by the State Insurance Benefits Plan until the earlier of:

(a) the date the member attains age sixty, or

(b) the date the member would have thirty years' creditable service had he not retired.

(2) A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner provided by the Division of Insurance Services of the State Budget and Control Board."

Credit established by installments

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

"Section 9-1-80. The Retirement System shall implement a plan enabling members who are eligible to establish credit for out-of-state service or federal civilian service to establish that credit by means of payroll deducted installment payments. Interest must be paid on the unpaid balance of the amount due at the rate of the prime rate plus two percent. For purposes of this section, the prime rate is the average of the prime rate charged by the five largest banks in this State measured by deposits. The Retirement System shall prescribe other terms and conditions of the installment payment plan as necessary for its operation, including, but not limited to, the duration of payment plans, minimum payments, and the method of adjusting the interest rate."

Time effective

SECTION 3. This act takes effect July 1, 1990.

Approved the 11th day of June, 1990.