South Carolina General Assembly
114th Session, 2001-2002

Download This Version in Microsoft Word format

Bill 3683


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)


Indicates Matter Stricken

Indicates New Matter

AMENDED

June 4, 2001

    H. 3683

Introduced by Rep. Kelley

S. Printed 6/4/01--S.

Read the first time April 17, 2001.

            

A BILL

TO AMEND SECTION 1-11-710, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE FOR STATE EMPLOYEES AND SCHOOL DISTRICT EMPLOYEES, SO AS TO REQUIRE ANNUAL STATE BUDGET AND CONTROL BOARD APPROVAL OF THE NEXT CALENDAR YEAR'S PLAN OF BENEFITS, ELIGIBILITY, AND CONTRIBUTIONS BY AUGUST FIFTEENTH PRECEDING THE CALENDAR YEAR RATHER THAN OCTOBER FIRST.

    Amend Title To Conform

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

SECTION    1.    Section 1-11-710(A)(2) of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

    "(2)    approve by October first August fifteenth of each year a plan of benefits, eligibility, and employer, employee, retiree, and dependent contributions for the next calendar year. The board shall devise a plan for the method and schedule of payment for the employer and employee share of contributions. Provided that the Budget and Control Board, by July 1 of the current fiscal year, shall develop and implement a plan increasing the employer contribution rates of the State Retirement System to a level adequate to cover the employer's share for the current fiscal year's cost of providing health and dental insurance to retired state and school district employees. The plan must include a method for the distribution of the funds appropriated as provided by law which are designated for retiree insurance and also must include a method for allocating to school districts, excluding EIA funding, sufficient general fund monies to offset the additional cost incurred by these entities in their federal and other fund activities as a result of this employer contribution charge.

    The amounts appropriated in this section shall constitute the state's pro rata contributions to these programs except the State shall pay its pro rata share of health and dental insurance premiums for retired state and public school employees for the current fiscal year."

SECTION    2.    Section 1-11-710(B) of the 1976 Code is amended to read:

    "(B)    The board may authorize the Insurance Reserve Fund to provide reinsurance, in an approved format with actuarially developed rates, for the operation of the group health insurance or cafeteria plan program, as authorized by Section 9-1-60, for active and retired employees of the State, and its public school districts and their eligible dependents. Premiums for reinsurance provided pursuant to this subsection must be paid out of state appropriated and other funds received for actual health insurance or cafeteria plan premiums due."

SECTION    3.    Section 9-1-60(B) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

    "(B)    Political subdivisions may develop and implement a program for the administration of a flexible benefits or "cafeteria" plan as defined by Section 125 of the Internal Revenue Code of 1986, as amended, for their employees. The plan may not decrease contributions paid to or benefits paid by the system. For political subdivisions that also participate in the plan adopted pursuant to subsection (A) of this section, any separate cafeteria plan adopted pursuant to this subsection may provide benefits in addition to, but shall not include, the specific types of benefits provided to employees under the plan adopted pursuant to subsection (A) of this section."

SECTION    4.    Section 9-1-60 of the 1976 Code, as last amended by Act 181 of 1993, is further amended by adding:

    "(C)    An employer or coalition of employers working in concert may develop and implement a program for the administration of a flexible benefits or 'cafeteria' plan as defined by Section 125 of the Internal Revenue Code of 1986, as amended, for their employees. The plan may not decrease contributions paid to or benefits paid by the system. For employers or coalition of employers working in concert, that also participate in the plan adopted pursuant to subsection (A) of this section, any separate cafeteria plan adopted pursuant to this subsection may provide benefits in addition to, but shall not include, the specific types of benefits provided to employees under the plan adopted pursuant to subsection (A) of this section."

SECTION    5.    The implementation of the "parallel" cafeteria plans authorized in Sections 3 and 4 of this act is contingent on a ruling from the Internal Revenue Service that such "parallel" plans may be tested alone for purposes of discrimination testing and not aggregated with the cafeteria plan maintained by the State.

SECTION    6.    This act takes effect upon approval by the Governor.

----XX----

This web page was last updated on Thursday, June 25, 2009 at 2:14 P.M.