South Carolina General Assembly
115th Session, 2003-2004

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A249, R334, H4963

STATUS INFORMATION

General Bill
Sponsors: Reps. Harrell, Mack and Neilson
Document Path: l:\council\bills\ggs\22473htc04.doc
Companion/Similar bill(s): 1001

Introduced in the House on March 17, 2004
Introduced in the Senate on April 20, 2004
Last Amended on April 14, 2004
Passed by the General Assembly on May 12, 2004
Governor's Action: May 24, 2004, Signed

Summary: Judges and solicitors, retirement benefits and provisions

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/17/2004  House   Introduced and read first time HJ-4
   3/17/2004  House   Referred to Committee on Ways and Means HJ-5
   3/31/2004  House   Member(s) request name added as sponsor: Neilson
    4/1/2004  House   Committee report: Favorable with amendment Ways and 
                        Means HJ-11
    4/5/2004          Scrivener's error corrected
   4/14/2004  House   Amended HJ-48
   4/14/2004  House   Read second time HJ-50
   4/15/2004  House   Read third time and sent to Senate HJ-17
   4/20/2004  Senate  Introduced and read first time SJ-13
   4/20/2004  Senate  Referred to Committee on Finance SJ-13
    5/4/2004  Senate  Committee report: Favorable Finance SJ-10
   5/11/2004  Senate  Read second time SJ-3
   5/11/2004  Senate  Ordered to third reading with notice of amendments SJ-3
   5/12/2004  Senate  Read third time and enrolled SJ-26
   5/19/2004          Ratified R 334
   5/24/2004          Signed By Governor
   5/27/2004          Copies available
   5/27/2004          Effective date 07/01/04
   6/10/2004          Act No. 249

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/17/2004
4/1/2004
4/5/2004
4/14/2004
5/4/2004


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

(A249, R334, H4963)

AN ACT TO AMEND SECTIONS 9-8-10, 9-8-50, 9-8-60, AS AMENDED, AND 9-8-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS, CREDITED SERVICE, RETIREMENT AND RETIREMENT ALLOWANCES, AND MEMBERS' CONTRIBUTIONS FOR PURPOSES OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO DEFINE "EARNED SERVICE" FOR PURPOSES OF THIS SYSTEM, PROVIDE THE TYPE AND AMOUNT OF SERVICE CREDIT THAT MAY BE ESTABLISHED IN THIS SYSTEM AND THE COST REQUIRED TO ESTABLISH SERVICE CREDIT, PROVIDE THE OPTIONS AVAILABLE TO A MEMBER WHO TERMINATES SERVICE BEFORE RETIREMENT, PROVIDE THE AMOUNT OF EARNED SERVICE NECESSARY FOR A MEMBER OF THIS SYSTEM TO VEST AND RECEIVE A MONTHLY RETIREMENT BENEFIT, CONFORM THE SERVICE REQUIREMENTS FOR RECEIVING A MONTHLY RETIREMENT ALLOWANCE TO THESE REVISIONS, AND INCREASE MEMBER CONTRIBUTIONS FROM SEVEN TO TEN PERCENT OF COMPENSATION PHASED IN OVER THREE YEARS.

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

Judicial retirement; definitions

SECTION    1.    Section 9-8-10 of the 1976 Code is amended by adding a new item at the end to read:

"(18)    'Earned service' means paid employment as a judge or solicitor where the judge or solicitor makes regular contributions to the system."

Service credit; vesting

SECTION    2.    Section 9-8-50 of the 1976 Code is amended to read:

"Section 9-8-50.    (A)    An active contributing member of the system may establish service credit in the system for the same types of service, and under the same conditions, that members of the South Carolina Retirement System may establish service credit in the South Carolina Retirement System pursuant to Section 9-1-1140. With the exception of nonqualified service, as defined in Section 9-1-10(20), an active contributing member may establish service credit under this section by making a payment to the system equal to the current member contribution required for earned service pursuant to Section 9-8-130 for each year of service purchased, prorated for periods of less than a year. The cost to establish nonqualified service under this section is the same as the cost for a member to establish nonqualified service in the South Carolina Retirement System pursuant to Section 9-1-1140. A member may not establish more than sixteen years of service credit in the system under this section. A judge may not establish additional service credit under this section after attaining twenty-five years of creditable service. A solicitor may not establish additional service credit under this section after attaining twenty-four years of creditable service.

(B)    An active contributing member of the system may transfer to the system nonconcurrent credited service under the South Carolina Retirement System, the South Carolina Police Officers Retirement System, or the Retirement System for Members of the General Assembly, by withdrawing the member's employee contributions and accumulated interest in the South Carolina Retirement System, the South Carolina Police Officers System, or the Retirement System for Members of the General Assembly, and by making a payment to the system equal to the member contribution required for earned service under Section 9-8-130 for each year of service transferred, prorated for periods of less than a year.

(C)    When membership in the system ceases for any reason other than death or retirement, the service previously credited to the member of the system must be cancelled and if the person again becomes a member of the system, the person enters the system as a new member not entitled to credit for previous service, unless the person's accumulated contributions were left in the system or the person repays any amounts previously withdrawn, with interest to the date of repayment.

(D)    A member upon termination may either:

(1)    elect to receive a refund of the member's employee contributions and accumulated interest; or

(2)    elect to leave the member's employee contributions and interest on deposit in the system. Regular interest must continue to be credited to the member's account in the same manner that interest is credited to the accounts of active members. At a later date, the member may either:

(a)    return to employment as a judge or solicitor and once again become an active contributing member of the system;

(b)    receive a refund of the member's accumulated contributions and interest;

(c)    if vested, receive a deferred annuity in accordance with subsection (E) of this section; or

(d)    if the member has been hired or elected to a position covered by the South Carolina Retirement System, the Police Officers Retirement System, or the Retirement System for Members of the General Assembly, and becomes a member of one of these systems, the member may transfer the member's nonconcurrent service credit to the retirement system in which the member has become an active participant, by taking a refund of the member's employee contributions and accumulated interest in the system and by purchasing the nonconcurrent service as public service in the other system in which the member is an active participant.

(E)(1)    A judge is vested in the system after attaining ten years of earned service in the position of judge and a solicitor is vested in the system after attaining eight years of earned service as a solicitor.

(2)    If a vested member who began service as a judge or solicitor before July 1, 2004, has terminated service and left contributions on deposit with the system, the member is eligible for a monthly benefit beginning at age fifty-five. The member's benefit under this section is calculated by multiplying the member's monthly benefit determined in accordance with Section 9-8-60 or 9-8-70, by a fraction in which the member's total credited service in the system is the numerator and twenty-four is the denominator. The monthly benefit under this section may not exceed the member's benefit as calculated pursuant to Section 9-8-60 or 9-8-70.

(3)    If a vested member who began service as a judge or solicitor after June 30, 2004, has terminated service and left contributions on deposit with the system, the member is eligible for a monthly benefit beginning at age sixty-five. The member's benefit under this section is calculated by multiplying the member's monthly benefit determined in accordance with Section 9-8-60 or 9-8-70, by a fraction in which the member's total credited service in the system is the numerator and twenty-four is the denominator. The monthly benefit under this section may not exceed the member's benefit as calculated pursuant to Section 9-8-60 or 9-8-70."

Retirement eligibility; benefits

SECTION    3.    Section 9-8-60 of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:

"Section 9-8-60.    (1)    A member of the system may retire upon written application to the board setting forth at what time, not later than the end of the calendar year in which the member attains age seventy-two and not more than ninety days prior nor more than six months subsequent to the execution and filing thereof, the member desires to be retired, if the member at the time so specified for retirement is no longer in the service of the State, except as a member of the General Assembly, and has completed ten years of earned service as a judge or eight years of earned service as a solicitor or was in service as a judge or solicitor on July 1, 1984, and has either:

(a)    attained the age of sixty-five and completed at least twenty years of credited service; or

(b)    attained age seventy and completed at least fifteen years of credited service; or

(c)    completed at least twenty-five years of credited service in the system for a judge, or twenty-four years of credited service in the system for a solicitor, regardless of age. A member may retire under this section if the member was a member of this system as of June 30, 2004; attained age sixty-five with at least four years' earned service in the position of judge or solicitor; and, as of June 30, 2004, had a total of twenty-five years of credited service with the State in the South Carolina Retirement System, the Police Officers Retirement System, or the Retirement System for Members of the General Assembly.

A person is not eligible to receive a retirement allowance under this system while under employment covered by the South Carolina Retirement System and the South Carolina Police Officers Retirement System except as provided in Section 9-8-65.

A person receiving retirement allowances under this system who is elected to the General Assembly continues to receive the retirement allowances while serving in the General Assembly and must also be a member of the General Assembly Retirement System unless the person files a statement with the State Budget and Control Board on a form prescribed by the board electing not to participate in the General Assembly Retirement System while a member of the General Assembly. A person making this election shall not make contributions to the General Assembly Retirement System nor shall the State make contributions on the member's behalf and the person is not entitled to benefits from the General Assembly Retirement System after ceasing to be a member of the General Assembly.

(2)    A retired member shall receive a monthly retirement allowance which is equal to one-twelfth of seventy-one and three-tenths percent of the current active salary of the respective position.

(3)    No member shall be permitted to retire and resign on account of being totally and permanently disabled and to receive the retirement benefit herein provided for until it is proven to the satisfaction of the Supreme Court, or a majority of the justices thereof, that the member is totally and permanently disabled, physically or mentally, or both, from further rendering useful and efficient service in the position. Upon the finding of the Supreme Court that any member is totally and permanently disabled, the Supreme Court shall notify the director of its findings. A member shall have a minimum of five years of earned service to qualify for disability retirement.

(4)    Any beneficiary receiving a retirement allowance under any other system of the State providing retirement benefits for judges or from the Solicitors' Retirement Program established pursuant to Article 4 of Chapter 7 of Title 1 shall become a beneficiary under this System as of July 1, 1979, and shall receive a retirement allowance under this section adjusted in accordance with the provisions of this section or Section 9-8-90, whichever is applicable, in lieu of any retirement allowance under such other system. The full amount of any accumulated contributions or assets held by that system on behalf of the beneficiary shall be transferred to this system promptly pursuant to the provisions of this chapter. Notwithstanding anything herein to the contrary, no beneficiary under this section shall receive an allowance which is less than the allowance he would have received under such other system as of July 1, 1979.

(5)    A member who retires, who has completed at least twenty-five years of credited service, or twenty-four years in the case of a solicitor, shall receive a monthly retirement allowance which must be equal to one-twelfth of seventy-one and three-tenths percent of the current active salary of the respective position plus one-twelfth of two and sixty-seven hundredths percent of the current active salary of the respective position for each additional year of earned service over twenty-five, or twenty-four in the case of a solicitor. The monthly retirement allowance may not exceed one-twelfth of ninety percent of the current active salary of the respective position.

(6)    A member retiring after 2003 shall receive an additional benefit, paid at retirement, equal to the member's employee contributions, plus interest, paid to the system after the member attains sufficient creditable service to become eligible to receive the maximum benefit of ninety percent of the current active salary of the respective position under this section."

Member contributions

SECTION    4.    Section 9-8-130(1) of the 1976 Code is amended to read:

"(1)(a)    Each member of the system shall contribute a percentage of each installment of compensation, as provided in item (b) of this subsection. These contributions must be made through payroll deductions and remitted within thirty days after the close of each month to the system.

(b)    Percentage of Compensation                Beginning

8 percent                                        July 1, 2004

9 percent                                        July 1, 2005

10 percent                                        July 1, 2006."

Time effective

SECTION    5.    This act takes effect July 1, 2004.

Ratified the 19th day of May, 2004.

Approved the 24th day of May, 2004.

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