Current Status Bill Number:4898 Ratification Number:522 Act Number:439 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980325 Primary Sponsor:Robinson All Sponsors:Robinson Drafted Document Number:jic\5432htc.98 Date Bill Passed both Bodies:19980604 Date of Last Amendment:19980415 Governor's Action:S Date of Governor's Action:19980616 Subject:Retirement Systems, military and national guard service credit; Adjutant General, Veterans' Affairs, Pensions
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19980804 Act No. A439
------ 19980616 Signed by Governor
------ 19980610 Ratified R522
Senate 19980604 Read third time, enrolled for
ratification
Senate 19980513 Read second time
Senate 19980421 Introduced, read first time,
placed on Calendar without reference
House 19980416 Read third time, sent to Senate
House 19980415 Amended, read second time
House 19980408 Committee report: Favorable with 30 HWM
amendment
House 19980325 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A439, R522, H4898)
AN ACT TO AMEND SECTIONS 9-1-1140, AS AMENDED, 9-9-50, AS AMENDED, AND 9-11-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CREDITED SERVICE FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO ALLOW MILITARY SERVICE TO BE ESTABLISHED AS CREDITABLE SERVICE ON THE BASIS OF ONE YEAR OF MILITARY SERVICE RATHER THAN TWO YEARS OF MILITARY SERVICE FOR EACH YEAR OF SERVICE ESTABLISHED AND TO REQUIRE THE EMPLOYER CONTRIBUTION FOR SUCH SERVICE TO BE PAID BY THE MEMBER'S CURRENT EMPLOYER, TO ALLOW NATIONAL GUARD SERVICE TO BE ESTABLISHED AND TO PROVIDE THE REQUIREMENTS FOR ESTABLISHING SUCH SERVICE AND TO CLARIFY PROVISIONS PROHIBITING THE DUPLICATION OF BENEFITS.
Be it enacted by the General Assembly of the State of South Carolina:
South Carolina Retirement System, establishing service credit
SECTION 1. The third unnumbered paragraph of Section 9-1-1140 of the 1976 Code, as last amended by Act 166 of 1993, 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 one year of his creditable service excluding any period of creditable military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another 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 before the commencement of his military leave during the period of the 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 before his employment by an employer the 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 member's current employer. No member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, 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. The prohibition on duplication of benefits applicable to credit established for federal employment also applies to credit established for service in the national guard, and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title. 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 twelve 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 may any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service."
Legislative Retirement Systems, establishing service credit
SECTION 2. Section 9-9-50(4) of the 1976 Code is amended to read:
"(4) Any member with two or more years of credited service shall receive additional credited service for the period of his military service, at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, provided he was discharged or separated from the military service under conditions other than dishonorable, and upon paying to the system, by a single payment before 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 before 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 before his becoming a member of the General Assembly the 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. No member shall receive credit for more than six years of military service. Military service includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment for each year of service credited. The prohibition on duplication of benefits applicable to credit established for federal employment pursuant to Section 9-1-1140 also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title."
Police Officers Retirement System, establishing service credit
SECTION 3. Subsections (4) and (6)(a) of Section 9-11-50 of the 1976 Code, as last amended by Act 420 of 1994, are further amended to read:
"(4) Any member with two or more years of credited service shall receive additional credited service for the period of his military service at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another 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 before the commencement of his military leave during the period of the 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 before his employment by an employer, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. However, no member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, 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. The prohibition on duplication of benefits applicable to credit established for federal employment as provided in subsection (6) of this section also applies to credit established for service in the national guard, and national guard service may not be established for periods of service credited or creditable in any retirement system under this title.
(a) A 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 must not be less than twelve 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 retirement system for the same period of service."
Time effective
SECTION 4. This act takes effect upon approval by the Governor and applies with respect to military service established in the state retirement systems on or after that date.
Approved the 16th day of June, 1998.