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Current Status Bill Number:View additional legislative information at the LPITS web site.1025 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:20020219 Primary Sponsor:Land All Sponsors:Land, Hutto, Short and Saleeby Drafted Document Number:l:\council\bills\bbm\10731htc02.doc Residing Body:Senate Current Committee:Finance Committee 06 SF Subject:Retirement systems and pensions; preretirement death benefit program renamed, new benefits and provisions History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 20020219 Introduced, read first time, 06 SF referred to Committee Versions of This Bill
TO AMEND SECTIONS 9-1-1770 AND 9-11-120, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PRERETIREMENT DEATH BENEFIT PROGRAM AND RETIREE LIFE INSURANCE FOR MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO RENAME THE PRERETIREMENT PROGRAM THE GROUP LIFE INSURANCE PROGRAM, ESTABLISH A NEW BENEFIT OF AN AMOUNT EQUAL TO FIVE TIMES EARNABLE COMPENSATION IN LIEU OF THE EXISTING BENEFIT PAYABLE AT THE IN-SERVICE DEATH OF A MEMBER WHO, WHILE PERFORMING HIS DUTY DIES AS A RESULT OF THE INTENTIONAL VIOLENT ACT OF ANOTHER PERSON, TO INCLUDE IN THE SOUTH CAROLINA RETIREMENT SYSTEM PROVISIONS FOR THESE BENEFITS THE EMPLOYER CONTRIBUTIONS TO SUPPORT THE PROGRAM, TO DELETE OBSOLETE PROVISIONS; AND TO REPEAL SECTION 9-1-1210, RELATING TO EMPLOYER CONTRIBUTIONS FOR THE GROUP LIFE INSURANCE PROGRAM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-1-1770 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:
"Section 9-1-1770. (A)(1) Effective July 1, 1968, there There shall be is created the Preretirement Death Benefit Group Life Insurance Program, which shall be effective as of that date to for all employers under the system except counties, municipalities, and other political subdivisions, as well as and those state departments, agencies, or other institutions which pay directly to the system the total employer contributions for the participating members in their employ.
(2) The program shall be is available to those employers exempted in the preceding paragraph item (1) of this subsection by written application of such the employer. Applications shall be An application is an irrevocable commitment to participate under in the program. For applications received by the System prior to October 1, 1968, the effective date of the coverage shall be July 1, 1968. For all other applications the effective date shall be of the coverage is July first next following the date of receipt by the system of the application.
(3) Upon receipt of proof, satisfactory to the board, of the death of a contributing member in service who had completed at least one full year of membership in the system or of the death of a contributing member as a result of an injury arising out of and in the course of the performance of his duties regardless of length of membership, as of the effective date of his employer's participation, there must be paid to the person he nominated for the refund of his accumulated contributions, unless he has nominated a different beneficiary by written designation filed with the board, in the event of his death pursuant to Section 9-1-1650, designated beneficiary or beneficiaries if the person is living at the time of the member's death, otherwise to the member's estate, a death life insurance benefit equal to the annual earnable compensation of the member at the time his of the member's death occurs. The death life insurance benefit is payable apart and separate from the payment of the member's accumulated contributions on his the member's death pursuant to Sections Section 9-1-1650 or 9-1-1660. For purposes of this section, a member is considered to be in service at the date of his death if the last day the member was employed in a continuous, regular pay status, while earning regular or unreduced wages and regular or unreduced retirement service credit, whether the member was physically working on that day or taking continuous accrued annual leave or sick leave while receiving a full salary, occurred not more than ninety days before the date of his death and he the member has not retired.
(4) In lieu of the group life insurance benefit provided in item (3) of this subsection, after June 30, 2002, if an active member of the system dies as a natural and proximate result of an intentional violent act of another person or persons during the member's performance of the member's duty, then a life insurance benefit equal to five times the member's annual earnable compensation at the time of death must be paid to the designated beneficiary or beneficiaries, if living at the time of the member's death, otherwise to the member's estate. The board or its designee shall determine eligibility for receipt of the life insurance benefit under the standards provided in this item, and the decision of the board or its designee is final.
The board is authorized to take such action as may be necessary to provide the death benefit under this section in the form of group life insurance upon a determination that to do so would guarantee a more favorable tax treatment of the benefit to beneficiaries to whom such benefit is payable.
(5) Contributions to support the Group Life Insurance Program must be made by participating employers to a separate account. Contributions begin on the July first following the effective date of coverage and equal one percent of the compensation of eligible members. However, the rate of contribution is subject to periodic adjustment on the basis of actual experience and the recommendation of the actuary. All death benefit payments made under this program are a charge against this account.
(B) Upon the death of a retired member after December 31 June 30, 2000, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a life insurance benefit of one two thousand dollars if the retired member had ten years of creditable service but less than twenty years, two four thousand dollars if the retired member had twenty years of creditable service but less than twenty-eight, and three six thousand dollars if the retired member had at least twenty-eight years of creditable service at the time of retirement, provided if the retired member's most recent employer prior to before retirement is covered by the Group Life Insurance Program.
Upon the death of a retired member after June 30, 2000, the life insurance benefit otherwise due the member's beneficiary, beneficiaries, or estate under the above paragraph is increased as follows: one thousand dollars is increased to two thousand dollars; two thousand dollars is increased to four thousand dollars; and three thousand dollars is increased to six thousand dollars."
SECTION 2. Section 9-11-120 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:
"Section 9-11-120. (A)(1) Effective July 1, 1968, there shall be There is created the Preretirement Death Benefit Group Life Insurance Program, which shall be effective as of that date to for `all employers under the system except counties, municipalities, and other political subdivisions, as well as and those state departments, agencies, or institutions which pay directly to the system the total employer contributions for the participating members in their employ.
(2) The program shall be is available to those employers exempted in the preceding paragraph item (1) of this subsection by written application of such the employer. Applications shall be An application is an irrevocable commitment to participate under in the program. For applications received by the System prior to October 1, 1968, the effective date of the coverage shall be July 1, 1968. For all other applications the effective date shall be of the coverage is July first next following the date of receipt by the system of the application.
(3) Upon proof satisfactory to the board of the death of a contributing member in service after completion of at least one full year of membership or of the death of a contributing member as a result of an injury arising out of and in the course of the performance of his the member's duties regardless of length of membership, whose employer is participating in the program, there must be paid to the person he nominated for the refund of his accumulated contributions, unless he has nominated a different beneficiary by written designation filed with the board, pursuant to Section 9-11-110, if the person is designated beneficiary or beneficiaries living at the time of the member's death, otherwise to the member's estate, a death life insurance benefit equal to the annual compensation of the member at the time his of the member's death occurs. The death life insurance benefit is payable apart and separate from the payment of the amount provided by Section 9-11-110. For purposes of this section, a member is considered to be in service at the date of his death if the last day the member was employed in a continuous, regular pay status, while earning regular or unreduced wages and regular or unreduced retirement service credit, whether the member was physically working on that day or taking continuous accrued annual leave or sick leave while receiving a full salary, occurred not more than ninety days before the date of his death and he the member has not retired.
(4) In lieu of the group life insurance benefit provided in item (3) of this subsection, after June 30, 2002, if an active member of the system dies as a natural and proximate result of an intentional violent act of another person or persons during the member's performance of the member's duty, then a life insurance benefit equal to five times the member's annual earnable compensation at the time of death must be paid to the designated beneficiary or beneficiaries, if living at the time of the member's death, otherwise to the member's estate. The board or its designee shall determine eligibility for receipt of the life insurance benefit under the standards provided in this item, and the decision of the board or its designee is final.
(5) Notwithstanding any other provision of law, Contributions to support the Preretirement Death Benefit Group Life Insurance Program shall must be made by participating employers to a separate account. The Contributions shall commence begin on the July first following the effective date of coverage and shall be equal to one percent of the compensation of eligible members., provided that such However, this rate of contribution shall be is subject to periodic adjustment on the basis of actual experience and the recommendation of the actuary. All death life insurance benefit payments made under this program shall be are a charge against this account.
The board is authorized to take such action as may be necessary to provide the death benefits under this section in the form of group life insurance upon a determination that to do so would guarantee a more favorable tax treatment of the benefit to beneficiaries to whom such benefit is payable.
(B) Upon the death of a retired member on or after July 1 June 30, 2000, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a life insurance benefit of two thousand dollars if the retired member had ten years of creditable service but less than twenty years, four thousand dollars if the retired member had twenty years of creditable service but less than twenty-five, and six thousand dollars if the retired member had at least twenty-five years of creditable service at the time of retirement, if the retired member's most recent employer prior to before retirement is covered by the Group Life Insurance Program."
SECTION 3. Section 9-1-1210 of the 1976 Code is repealed.
SECTION 4. This act takes effect upon approval by the Governor.
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