Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
AMENDED
May 18, 2005
S. 618
Introduced by Senators Alexander, Setzler, Short, Drummond Verdin and Knotts
S. Printed 5/18/05--H.
Read the first time April 13, 2005.
TO ENACT THE STATE RETIREMENT SYSTEM PRESERVATION AND INVESTMENT REFORM ACT BY AMENDING SECTION 9-1-1790, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EARNING LIMIT APPLICABLE TO RETIRED MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM WHO RETURN TO COVERED EMPLOYMENT, SO AS TO REQUIRE THESE MEMBERS TO PAY THE EMPLOYEE CONTRIBUTION FOR ACTIVE MEMBERS; BY AMENDING SECTION 8-11-620, AS AMENDED, RELATING TO LUMP SUM PAYMENTS FOR ANNUAL LEAVE FOR STATE EMPLOYEES, SO AS TO POSTPONE THIS LUMP SUM FOR TERI PARTICIPANTS UNTIL THE EMPLOYEE ENDS TERI PARTICIPATION; BY AMENDING SECTION 9-1-2210, RELATING TO THE TERI PROGRAM, SO AS TO REQUIRE TERI PROGRAM PARTICIPANTS TO PAY THE EMPLOYEE CONTRIBUTION FOR ACTIVE MEMBERS, TO DELAY UNTIL A MEMBER ENDS PARTICIPATION THE INCLUSION OF THE APPLICABLE AMOUNT OF THE MEMBERS UNUSED ANNUAL LEAVE IN THE CALCULATION OF AVERAGE FINAL COMPENSATION, TO PROVIDE FOR THE RECALCULATION OF AVERAGE FINAL COMPENSATION WHEN THE MEMBER ENDS PARTICIPATION IN TERI FOR PURPOSES OF THE MEMBERS' FUTURE RETIREMENT BENEFITS OR OF A BENEFICIARY OF FUTURE BENEFITS ON THE DEATH OF A TERI PARTICIPANT WHO ELECTED A SURVIVOR OPTION, TO PROVIDE THAT A TERI PARTICIPANT UPON ENDING TERI PARTICIPATION MUST LEAVE COVERED EMPLOYMENT AND IS NOT ELIGIBLE TO RETURN TO COVERED EMPLOYMENT WITH THE SOUTH CAROLINA RETIREMENT OR THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, AND TO PROVIDE EXCEPTIONS FOR CERTAIN TEACHERS AND PRINCIPALS; BY ADDING SECTIONS 9-1-490 AND 9-1-1520 SO AS TO ESTABLISH TWO CLASSES OF SERVICE FOR PERSONS BECOMING SOUTH CAROLINA RETIREMENT SYSTEM MEMBERS AFTER 2005 AND PROVIDE A RETIREMENT OPTION FOR THESE PERSONS AT ANY AGE WITH TWENTY-EIGHT YEARS OF CREDITABLE SERVICE WITH A PENALTY FACTOR FOR THEIR EARLY RETIREMENT, BY AMENDING SECTIONS 9-1-10, 9-1-1020, 9-1-1140, 9-1-1510, 9-1-1515, 9-1-1550, AND 9-1-1660, ALL AS AMENDED, RELATING TO DEFINITIONS, CONTRIBUTIONS, SERVICE CREDIT, RETIREMENT AND EARLY RETIREMENT, AND CALCULATION OF BENEFITS FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO CLOSE TWENTY-EIGHT YEARS OF CREDITABLE SERVICE RETIREMENT AT ANY AGE FOR PERSONS BEGINNING PARTICIPATION IN THE SOUTH CAROLINA RETIREMENT SYSTEM AFTER 2005, TO PROVIDE EXCEPTIONS, TO DESIGNATE THOSE PERSONS "GRANDFATHERED" AS SCRS28 PARTICIPANTS, TO DESIGNATE PARTICIPANTS AFTER 2005 AS SCRS30 PARTICIPANTS AND PROVIDE FOR THEIR RETIREMENT QUALIFICATIONS, SERVICE REQUIREMENTS, INCLUDING THE ELECTION OF CLASS B SERVICE WITH A HIGHER MULTIPLIER, HIGHER EMPLOYEE CONTRIBUTIONS, AND PENALTY FOR RETIREMENT BEFORE THIRTY YEARS OF CREDITABLE SERVICE AND TO MAKE CONFORMING AMENDMENTS; BY AMENDING 9-1-1310, AS AMENDED, RELATING TO THE STATE BUDGET AND CONTROL BOARD AS TRUSTEE OF THE STATE RETIREMENT SYSTEM, SO AS TO CONFORM THIS REFERENCE TO THE RETIREMENT SYSTEM INVESTMENT COMMISSION ESTABLISHED IN THIS ACT AND ALLOW EQUITY INVESTMENTS AS PERMITTED IN THE CONSTITUTION OF THIS STATE; BY AMENDING SECTIONS 9-16-10, 9-16-80, AND 9-16-90, RELATING TO DEFINITIONS, MEETINGS, AND REPORTING FOR PURPOSES OF INVESTMENTS OF RETIREMENT SYSTEM FUNDS BY THE STATE BUDGET AND CONTROL BOARD, SO AS TO CONFORM THESE PROVISIONS TO THE ROLE OF THE RETIREMENT SYSTEM INVESTMENT COMMISSION ESTABLISHED IN THIS ACT; BY AMENDING ARTICLE III, CHAPTER 9 OF THE 1976 CODE, SO AS TO REVISE THE DUTIES OF THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL, ESTABLISH THE RETIREMENT SYSTEM INVESTMENT COMMISSION AND PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES AS TRUSTEE OF THE ASSETS AND INVESTOR OF THE FUNDS OF THE STATE RETIREMENT SYSTEM, CONFORM THE INVESTMENT REQUIREMENTS TO THE ROLE OF THIS COMMISSION INCLUDING THE VESTING IN IT OF ALL INVESTMENT AUTHORITY AND THE ELIMINATION OF A MAXIMUM LIMIT ON EQUITY INVESTMENTS AND ESTABLISH ADDITIONAL STANDARDS OF CONDUCT FOR FIDUCIARIES; BY AMENDING SECTION 8-17-310, AS AMENDED, RELATING TO EXEMPTIONS FROM THE STATE EMPLOYEE GRIEVANCE PROCEDURE ACT, SO AS TO EXEMPT EMPLOYEES OF THE RETIREMENT SYSTEM INVESTMENT COMMISSION; BY AMENDING SECTION 30-4-70, AS AMENDED, RELATING TO MEETINGS EXEMPT FROM THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE PROVISIONS OF THIS ACT, TO PROVIDE FOR AN ASSUMED INVESTMENT RETURN ON RETIREMENT SYSTEM ASSETS OF NOT LESS THAN EIGHT PERCENT A YEAR, AND TO PROVIDE TRANSITION PROVISIONS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 8-11-40 of the 1976 Code, as last amended by Act 295 of 2004, is further amended by adding a new subsection at the end to read:
"(D) A retired member of the South Carolina Retirement System who is hired after June 30, 2005, by an agency to fill all or some fraction of a full-time equivalent (FTE) position is only allowed a maximum of fifteen working days sick leave each calendar year for use during the calendar year. Such an employee hired after the beginning of a calendar year is allowed a pro-rata share of sick leave at the rate of one and one-fourth working days leave for each full month remaining in the calendar year. A retired member of the South Carolina Retirement System who is granted sick leave according to this subsection may not carry over sick leave into future years. The State Budget and Control Board may prescribe policies for the implementation of this subsection, including, but not limited to, policies defining the use and accrual of leave, including prorating leave accrual for fractional FTE positions."
SECTION 2. Section 8-11-610 of the 1976 Code is amended by adding a new paragraph at the end to read:
"A retired member of the South Carolina Retirement System who is hired by an agency after June 30, 2005, to fill all or some fraction of a full-time equivalent (FTE) position is only allowed a maximum of fifteen working days annual leave each calendar year for use during the calendar year. Such an employee who is hired after the beginning of a calendar year is allowed a pro-rata share of annual leave at the rate of one and one-fourth working days leave for each full month remaining in the calendar year. An employee allowed annual leave pursuant to this paragraph may not carry over annual leave into future years and must not be compensated for any unused leave. The State Budget and Control Board may prescribe policies for the implementation of this section, including, but not limited to, policies defining the use and accrual of leave, including prorating leave accrual for fractional FTE positions. "
SECTION 3. Section 8-11-620(A) of the 1976 Code, as last amended by Act 356 of 2002, is further amended to read:
"(A)(1) Upon termination from state employment, an employee may take both annual leave and a lump-sum payment for unused leave, but in no event shall such this combination may not exceed forty-five days in a calendar year except as provided for in Section 8-11-610. If an employee dies, his the employee's legal representative shall be is entitled to a lump-sum payment for his the employee's unused leave, not to exceed forty-five working days, except as provided for in Section 8-11-610.
(2) Upon retirement from state employment, or upon the death of an employee if the member does not elect to participate in the Teacher and Employee Retention Incentive Program, a lump-sum payment will be made must be paid for unused leave, not to exceed forty-five days, unless a higher maximum is approved under the provisions of pursuant to Section 8-11-610, and without regard to the earned leave taken during the calendar year in which the employee retires.
(3) Upon retirement from state employment, if the employee participates in the Teacher and Employee Retention Incentive Program, the employee shall not receive payment for unused annual leave until the employee terminates from state employment and ends participation in the Teacher and Employee Retention Incentive Program. Upon termination of state employment and participation in the Teacher and Employee Retention Incentive Program, a lump-sum must be paid for unused leave, not to exceed forty-five days, unless a higher maximum is approved pursuant to Section 8-11-610, and without regard to the earned leave taken during the calendar year in which the employee retires."
SECTION 4. A. Items (14), (15), and (16) of Section 8-17-370 of the 1976 Code, as last amended by Act 356 of 2002, are further amended to read:
"(14) employees of the Medical University Hospital Authority, provided the Medical University Hospital Authority has promulgated an employee grievance plan in accordance with its enabling provision; and
(15) presidents of the South Carolina Technical College System.;
(16) a retired member of the South Carolina Police Officers Retirement System or a retired member of the South Carolina Retirement System who is hired by an agency to fill all or some fraction of a full-time equivalent (FTE) position covered by the State Employee Grievance Procedure Act; and"
B. Section 8-17-370 of the 1976 Code, as last amended by Act 356 of 2002, is further amended by adding a new item at the end to read:
"(17) notwithstanding the provisions of Section 9-1-2210(E), any participant in the Teacher and Employee Retention Incentive Program."
SECTION 5. The third undesignated paragraph of Section 9-1-1020 of the 1976 Code, as last amended by Act 475 of 1988, is further amended to read:
"The rates of the deductions must be, without regard to a member's coverage under the Social Security Act, as follows: in the case of Class One members, five percent of earnable compensation and, in the case of Class Two members, six percent of earnable compensation. The rates of the deductions, without regard to a member's coverage under the Social Security Act, must be the percentage of earnable compensation as provided in the following schedule:
Class One Class Two
Before July 1, 2005 5 6
July 1, 2005 through
June 30, 2006 5.25 6.25
After June 30, 2006 5.50 6.50"
SECTION 6. A. Article 9, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1175. Effective July 1, 2006, the board shall increase the employer contribution rate for the system by one-half percent of the earnable compensation of all members employed by an employer participating in the system. The board shall further increase the employer contribution rate by one-half percent effective July 1, 2007. The employer rate provided in this section also applies to payments for unused annual leave under the circumstances provided in Section 9-1-1020. The employer rate provided in this section includes the system's normal contribution rate and accrued liability contribution rate, but does not include contributions for group life insurance or other benefits that are remitted to the Retirement Systems. Contributions for group life insurance or other benefits are in addition to the applicable employer contribution rate. After June 30, 2007, the board, in its discretion, may increase or decrease the employer contribution rate set by this section based on the actuarial valuation provided to the board by the system's actuaries and considering the normal contribution rate determined pursuant to Section 9-1-1060 and the accrued liability contribution rate determined pursuant to Section 9-1-1070."
B. Section 9-20-50 of the 1976 Code, as amended by Act 54 of 2001, is further amended to read:
"Section 9-20-50. Each participant shall contribute monthly to the program the same amount he would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Participant contributions must be made by employer pick up in accordance with Section 9-1-1160(B) and any applicable provisions of the Internal Revenue Code of 1986. Each employer shall contribute on behalf of each participant five percent of compensation. Deductions must not be made from this five percent contribution. Each employer shall remit to the designated companies, for application to participants' contracts or accounts, or both, an amount equal to the participant's contribution plus the employer's contribution in accordance with the guidelines established by the Internal Revenue Service for payroll tax remittance. The employer shall remit to the retirement system two and fifty-five hundredths percent the percentage of the employee's compensation that is the difference between the system employer contribution rate set in Section 9-1-1175 and the five percent allocated to member accounts in this section, in accordance with the guidelines established for remitting retirement contributions to the South Carolina Retirement System. The South Carolina Retirement System may retain from this employer contribution an amount as determined by the director to defray any reasonable expenses incurred in performing services regarding the plan. These services may include, but are not limited to:
(1) participant education regarding the merits and risks associated with selection of defined contribution plans versus defined benefit plans;
(2) on-going investment education, where appropriate;
(3) recordkeeping; and
(4) monitoring contract compliance."
C. Sections 9-1-1200 and 9-1-1220 of the 1976 Code are repealed.
SECTION 7. 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) Effective July 1, 1968, There shall be is created the Preretirement Death Benefit 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 those 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.
(B) The program shall be is available to those employers exempted in the preceding paragraph subsection (A) by written application of such the employer. An application shall be is an irrevocable commitment to participate under 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 Applications are effective date shall be July first next following the date of receipt by the system of the application.
(C)(1) Upon receipt of proof, satisfactory to the board, of the death of: (a) 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, or (b) a retired contributing member of the system, 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, if the person is living at the time of the member's death, otherwise to the member's estate, a death benefit equal to the annual earnable compensation of the member at the time his death occurs. The death benefit is payable apart and separate from the payment of the member's accumulated contributions on his death pursuant to Sections 9-1-1650 or 9-1-1660.
(2) For purposes of this section subsection, a member described in item (1)(a) 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 has not retired.
(3) For purposes of this subsection, a member described in (1)(b) is considered a retired contributing member if the last day the member was employed in a continuous, regular pay status, while earning regular or unreduced wages and paying retirement system contributions 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.
(D) The board is authorized to may take such the 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 the benefit is payable.
(E) Upon the death of a retired member who is not a retired contributing member after December 31, 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 the member's 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 8. Section 9-1-1790 of the 1976 Code, as last amended by Act 25 of 2001, is further amended to read:
"Section 9-1-1790. (A) A retired member of the system who has been retired for at least sixty fifteen consecutive calendar days may be hired and return to employment covered by the this system or any other system provided in this title and earn up to fifty thousand 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 fifty thousand 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. If a retired member of the system returns to employment covered by the this system or any other system provided in this title sooner than sixty fifteen days after retirement, the member's retirement allowance is suspended while the member remains employed by the participating employer. If an employer fails to notify the system of the engagement of a retired member to perform services, the employer shall reimburse the system for all benefits wrongly paid to the retired member.
(B) An employer shall pay to the system the employer contribution for active members prescribed by law with respect to any retired member engaged to perform services for the employer, regardless of whether the retired member is a full-time or part-time employee or a temporary or permanent employee. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.
(C) A retired member shall pay to the system the employee contribution as if the member were an active contributing member if an employer participating in the system employs the retired member. The retired member does not accrue additional service credit in the system by reason of the contributions required pursuant to this subsection and subsection (B) of this section."
SECTION 9. Section 9-1-1810 of the 1976 Code, as last amended by Act 1 of 2001, is further amended to read:
"Section 9-1-1810. (A) As of the end of each calendar year, the increase in the ratio of the Consumer Price Index to the index as of the prior December thirty-first must be determined,. and
(B)(1) If the increase equals or exceeds four Consumer Price Index as determined pursuant to subsection (A) of this section increases by no more than one percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance must be increased by four percent. If the increase in the index is less than four percent, the retirement allowance, inclusive of supplemental allowances, all as determined above, must be increased by a percentage equal to the increase in the index.
(2) If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by more than one percent, then:
(a) the retirement allowance of each beneficiary in receipt of an allowance, inclusive of the supplement allowances payable under the provisions of Section 9-1-1910, 9-1-1920, and 9-1-1930, must be increased by one percent; and
(b) the retirement allowance may be further increased beyond one percent up to the lesser of the total percentage increase in the Consumer Price Index or four percent, to the extent that the additional liabilities because of the increase in allowances would not extend the amortization period to liquidate the unfunded actuarial accrued liability of the South Carolina Retirement System beyond thirty years.
(C) The increase in retirement allowances commences the July first immediately following the December thirty-first that the increase in ratio was determined, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowances is effective only if the additional liabilities because of the increase in allowances do not require an increase in the total employer rate of contribution. Any increase in allowance granted pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.
(D) The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section must, when and if payable, be increased by the same percent.
(E) For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics."
SECTION 10. Section 9-1-2210 of the 1976 Code, as added by Act 1 of 2001, is further amended to read:
"Section 9-1-2210. (A) An active contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article may elect to participate in the Teacher and Employee Retention Incentive Program (program). A member electing to participate in the program retires for purposes of the system, and the member's normal retirement benefit is calculated on the basis of the member's average final compensation and service credit at the time the program period begins. The program participant shall agree to continue employment with an employer participating in the system for a program period, not to exceed five years. The member shall notify the system before the beginning of the program period. Participation in the program does not guarantee employment for the specified program period.
(B) After June 30, 2005, and notwithstanding the provisions of Section 9-1-10(4), a payment for unused annual leave is not included in calculating a member's deferred program benefit during the program period. The member's average final compensation for the purpose of calculating the deferred program retirement benefit must be solely the average of the member's highest twelve consecutive quarters of earnable compensation at the time the member enters the program. During the specified program period, receipt of the member's normal retirement benefit is deferred. The member's deferred monthly benefit must be placed in the system's trust fund on behalf of the member. No interest is paid on the member's deferred monthly benefit placed in the system's trust fund during the specified program period.
(C) During the specified program period, the employer shall pay to the system the employer contribution for active members prescribed by law with respect to any program participant it employs, regardless of whether the program participant is a full-time or part-time employee, or a temporary or permanent employee. The program participant shall pay to the system the employee contribution as if the program participant were an active contributing member, but the program participant does not accrue additional service credit in the system for these employer and employee contributions. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.
(D) A program participant is retired from the retirement system as of the beginning of the program period. A program participant makes no further employee contributions to the system, accrues no service credit during the program period, and is not eligible to receive group life insurance benefits or disability retirement benefits. Accrued annual leave and sick leave used in any manner in the calculation of the program participant's retirement benefit is deducted from the amount of such leave accrued by the participant.
(E) A program participant is retired for retirement benefit purposes only. For employment purposes, a program participant is considered to be an active employee, retaining all other rights and benefits of an active employee except for grievance rights pursuant to Section 8-17-370, and is not subject to the earnings limitation of Section 9-1-1790 during the program period.
(F) Upon termination of employment either during or at the end of the program period, the member must receive the balance in the member's program account by electing one of the following distribution alternatives:
(1) a lump-sum distribution, paying appropriate taxes; or
(2) to the extent permitted under law, a tax sheltered rollover into an eligible plan.
For members who began participation in the program before July 1, 2005, the member also must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program period began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790.
Upon termination of employment of members who began participation in the program after June 30, 2005, the Retirement Systems shall recalculate the average final compensation of the member to determine the benefit the member receives after participation in the program. the average final compensation calculated at the commencement of the program must be increased by an amount up to and including forty-five days' termination pay for unused annual leave received by the member at termination of employment, divided by three. The member's benefit after participation in the program must be calculated in accordance with Section 9-1-1550, utilizing the recalculated average final compensation determined in this subsection, and the member's service credit, including sick leave, as of the date the member began participation in the program, plus any cost-of-living increases declared during the program period with respect to the amount of the member's deferred program benefit.
(G) If a program participant dies during the specified program period, the member's designated beneficiary must receive the balance in the member's program account by electing one of the following distribution alternatives:
(1) a lump-sum distribution, paying appropriate taxes; or
(2) to the extent permitted under law, a tax sheltered rollover into an eligible plan.
In accordance with the form of system benefit selected by the member at the time the program commenced, the member's designated beneficiary must receive either a survivor benefit or a refund of contributions from the member's system account.
If a program participant who began participation in the program before July 1, 2005, elected either Option B or Option C under Section 9-1-1620, the average final compensation calculated when the member commenced the program must be used in determining the survivor benefit.
If a program participant who began participation in the program after June 30, 2005, elected either Option B or C under Section 9-1-1620, then the designated survivor beneficiary shall receive a survivor benefit based on a recalculated average final compensation. The average final compensation calculated at the commencement of the program must be increased by an amount up to and including forty-five days termination pay for unused annual leave received by the member's legal representative at the member's death, divided by three. The survivor benefit must be calculated in accordance with Section 9-1-1550, utilizing the recalculated average final compensation determined in this subsection, and the member's service credit, including sick leave, as of the date the member began participation in the program, plus any cost-of-living increases declared during the program period with respect to the amount of the member's deferred program benefit.
(H) If a program participant fails to terminate employment with an employer participating in the retirement system within one month after the end of the specified program period, the member must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790. The program participant also must receive the balance in the member's program account by selecting one of the following alternatives:
(1) a lump-sum distribution, paying appropriate taxes; or
(2) to the extent permitted under law, a tax sheltered rollover into an eligible plan.
A program participant shall terminate employment no later than the day before the fifth annual anniversary of the date the member commenced participation in the program.
(I) A member is not eligible to participate in the program if the member has participated previously in and received a benefit under this program or any other state retirement system. "
SECTION 11. Section 9-16-90 of the 1976 Code, as added by Act 371 of 1998, is amended by adding a new subsection at the end to read:
"(C) the panel and the Office of the State Treasurer jointly and not less than quarterly shall report to the board on the status of the investments of the retirement system."
SECTION 12. A. Section 9-16-320(A) of the 1976 Code, as added by Act 371 of 1998, is amended to read:
"(A) The panel shall develop an annual investment plan for the retirement systems for the next fiscal year. The panel shall submit a draft of the annual investment plan to the State Treasurer for review and comment no later than April thirtieth of each year. The comments of the State Treasurer must be delivered directly to the other board members on or before the date the approval of the annual investment plan is on the board's agenda. The panel shall meet no later than May first fifteenth of each year to adopt the proposed annual investment plan for the retirement systems for the next fiscal year. The annual investment plan must be developed by the panel. No later than June first of each year, the panel shall submit the proposed plan to the board. Amendments may be made to the plan by the panel during the fiscal year with the approval of the board."
B. Section 9-16-340(C)(1) of the 1976 Code, as added by Act 371 of 1998, is amended to read:
"(1) the target allocation of system assets between equity investments and fixed-income investments. The target allocation to either equity or fixed-income investments may not exceed sixty percent of system assets. Appreciation of either the equity or fixed-income assets above sixty percent of system assets does not require an immediate reduction in allocation; however, the actual allocation to either equity or fixed income may not exceed the target allocation by more than five percent at the start of any fiscal year; the minimum and maximum portions of system assets that may be allocated to equity investments on an ongoing basis not to exceed forty percent and the minimum and maximum portions of system assets not to exceed ten percent that may be allocated to additional equity investment during the plan fiscal year. When investments in equities attain the maximum allocation allowed by this item, up to forty percent of current member and employer contributions to the retirement system may be invested in equities. If, due to growth in value of equity investments, equity investments exceed forty percent of the total assets of the retirement system, this subsection does not require the sale of equities to reduce the percentage of equities to forty percent;"
C. Notwithstanding the general effective date of this act, this section takes effect upon approval of this act by the Governor. Following the effective date of this section, the State Retirement Systems Investment Panel shall develop an amendment to the annual investment plan for submission to the State Budget and Control Board for implementing the revised limits provided pursuant to this section.
SECTION 13. Article 3, Chapter 16, Title 9 of the 1976 Code is amended by adding:
"Section 9-16-315. The Retirement and Pre-Retirement Advisory Board shall elect from its membership a retired member of the South Carolina Retirement System to serve as an advisor to the State Retirement Systems Investment Panel. In addition, the State budget and Control Board shall select an active member of the South Carolina Retirement System to serve as an advisor to the panel. Before making its selection, the board shall solicit input from those organizations representing public employees as the board considers appropriate. These advisors may participate in all panel discussions and deliberations and have access to any information available to the panel; however, these advisors are not authorized to vote or otherwise make any decisions on behalf of the panel."
SECTION 14. Article 3, Chapter 16, Title 9 of the 1976 Code is amended by adding:
"Section 9-16-345. In hiring and procurement in the implementation and administration of this chapter, and consistent with its duties as trustee and fiduciary under this title, the board shall strive to assure that minorities and minority-owned businesses are represented."
SECTION 15. A. Section 9-1-10(17) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(17) [Reserved] 'Medical board' means the board of physicians provided for in Section 9-1-220."
B. Section 9-9-10 of the 1976 Code is amended by deleting item (16) which reads:
"(16) 'Medical board' shall mean the board of physicians provided for in Section 9-9-35. "
C. Section 9-11-10(18) of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"(18) [Reserved] 'Medical board' means the board provided for in Section 9-11-30(2)."
D. Section 9-11-30(2) of the 1976 Code is amended to read:
"(2) [Reserved] The Board shall designate a medical board to be composed of three physicians who are not members of the System. If required, other physicians who are not members of the System may be employed to report on special cases. The medical board shall arrange for and pass upon all medical examinations required under the System, shall investigate all essential statements and certificates by or on behalf of a member in connection with an application for disability retirement, and shall report in writing to the Board its conclusions and recommendations upon all matters referred to it."
E. Sections 9-1-220 and 9-9-35 of the 1976 Code are repealed.
F. In Title 9 of the 1976 Code, wherever the phrase 'medical board' or any variant of 'medical board' appears, it must be construed to mean the 'system' unless the context clearly requires otherwise. The Code Commissioner shall replace the reference in future code supplements and replacement volumes as the Code Commissioner determines appropriate.
SECTION 16 This act takes effect July 1, 2005.
This web page was last updated on Tuesday, June 23, 2009 at 2:49 P.M.