Current Status Bill Number:3757 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970401 Primary Sponsor:Hinson All Sponsors:Hinson, Altman, Chellis, Woodrum, Gourdine, Seithel, Simrill, Dantzler, Howard, Allison and Limehouse Drafted Document Number:gjk\20239sd.97 Residing Body:Senate Current Committee:Finance Committee 06 SF Date of Last Amendment:19970430 Subject:S.C. Retirement System, Police Officers; consulting fees paid to; Retirement Systems and Pensions
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
Senate 19970506 Introduced, read first time, 06 SF
referred to Committee
House 19970501 Read third time, sent to Senate
House 19970430 Amended, read second time
House 19970430 Request for debate by Representative Whipper
Breeland
J.Brown
Lanford
Hinson
R.Smith
Dantzler
Webb
Young-
Brickell
Chellis
House 19970430 Objection by Representative Moody-
Lawrence
Govan
House 19970429 Amended
House 19970424 Committee report: Favorable with 30 HWM
amendment
House 19970401 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 30, 1997
H. 3757
Introduced by Reps. Hinson, Altman, Chellis, Woodrum, Gourdine, Seithel, Simrill, Dantzler, Howard, Allison and Limehouse
S. Printed 4/30/97--H.
Read the first time April 1, 1997.
1. Estimated Cost to State-First Year$ - 0 -
2. Estimated Cost to State-Annually Thereafter$ - 0 -
Since this bill only limits the earnings of a retiree and does not affect the amount of funds an employer may pay for any consulting fees, there will be no impact on the General Fund of the State. The House amendment could result in minimal savings for employer contributions pending the number of persons electing not to participate.
It should be noted that the sections of the code referenced in the bill establish an earnings limitation at $9,500. However, temporary provisions in the annual Appropriation Act have been amended in the past several years to increase the limits by $500 each year. The 1997-98 Appropriation Bill as passed by the House of Representatives changes the limit from $13,000 to $13,500.
Approved By:
Michael L. Shealy
Office of State Budget
TO AMEND SECTION 9-1-1790, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LIMITATION ON THE AMOUNT WHICH MAY BE EARNED BY A RETIREE UNDER THE STATE RETIREMENT SYSTEM UPON RETURN TO COVERED EMPLOYMENT; AND TO AMEND SECTION 9-11-90, AS AMENDED, RELATING IN PART TO THE LIMITATION ON THE AMOUNT WHICH MAY BE EARNED BY A RETIREE UNDER THE POLICE RETIREMENT SYSTEM UPON RETURN TO COVERED EMPLOYMENT, SO AS TO PROVIDE THAT CONSULTING FEES PAID TO RETIRED MEMBERS OF THESE SYSTEMS BY AN EMPLOYER COVERED BY THESE SYSTEMS ALSO ARE CONSIDERED EARNINGS WITHIN THE MEANING OF SUCH EARNINGS LIMITATIONS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-1-1790 of the 1976 Code, as last amended by Part II, Section 50A, Act 189 of 1989, is further amended to read:
"Section 9-1-1790. A retired member of the system may return to employment covered by the system and earn up to nine thousand five hundred dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the system. If the retired member continues in service after having earned nine thousand five hundred dollars in a fiscal year, his retirement allowance must be discontinued during his period of service in the remainder of the fiscal year. If the employment continues for at least forty-eight consecutive months, the provisions of Section 9-1-1590 apply. The provisions of this section do not apply to an employee or member of the system who has retired mandatorily because of age pursuant to Section 9-1-1530.
Consulting fees paid to a retired member of the system, or to a corporation or partnership in which the retired member or a member of his immediate family individually or in the aggregate are the controlling shareholders or partners, by an employer covered by the system also are considered earnings within the earnings limitation of this section."
SECTION 2. Section 9-11-90(4) of the 1976 Code, as last amended by Part II, Section 50B, Act 189 of 1989, is further amended to read:
"(4) Notwithstanding the provisions of subsections (1) and (2) of this section, a retired member of the system may return to employment covered by the system and earn up to nine thousand five hundred dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the system. If the retired member continues in service after having earned nine thousand five hundred dollars in a fiscal year, his retirement allowance must be discontinued during the period of service in the remainder of the fiscal year. If the employment continues for at least forty-eight consecutive months, the provisions of Section 9-1-1590 apply. The provisions of this section do not apply to an employee or member of the system who has retired mandatorily because of age pursuant to Section 9-1-1530.
Consulting fees paid to a retired member of the system, or to a corporation or partnership in which the retired member or a member of his immediate family individually or in the aggregate are the controlling shareholders or partners, by an employer covered by the system also are considered earnings within the earnings limitation of this section."
SECTION 3. Section 9-1-1600 of the 1976 Code is amended by adding a new paragraph at the end to read:
"Only teachers who are certified in areas of critical need may be temporarily employed pursuant to the provisions of this section."
SECTION 4. A. Article 5, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-655. Notwithstanding any other provision of law, a member in covered employment in more than one correlated system as defined in Sections 9-1-650, 9-9-40, and 9-11-40 may elect not to participate in the system in which the member receives the lowest earnable compensation. This election must be made by written notice filed with the covered employer not later than sixty days after a member first begins employment covered by a correlated system. Failure to make this election or failure to make the election within the defined allowable period for election constitutes an irrevocable election to become a contributing member of each correlated system. The covered employer shall forward the written notice to the board and the date of receipt by the board is the date the member's participation ceases in the correlated system. This election is irrevocable and controlling for so long as the member is in covered employment and without regard to subsequent changes in the status or conditions of the member's future employment. A member making this election thereafter accrues no service credit in a correlated system by virtue of continued employment and is forever ineligible to establish this service as creditable service."
B. Notwithstanding the time limit on filing the written notice required pursuant to Section 9-1-655 of the 1976 Code as added by this section, a member who, on the effective date of this act, is in covered employed employment in more than one of the correlated state retirement systems may make the election allowed pursuant to Section 9-1-655 by filing the notice of election within one hundred days of the effective date of this act.
SECTION 5. This act takes effect upon approval by the Governor.