H 3757 Session 112 (1997-1998)
H 3757 General Bill, By Hinson, Allison, Altman, Chellis, Dantzler, Gourdine,
Howard , Limehouse, Seithel, Simrill and Woodrum
A BILL TO AMEND SECTION 9-1-1790, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO THE LIMITATION ON THE AMOUNT WHICH MAY BE EARNED BY A
RETIREE UNDER THE STATE RETIREMENT SYSTEM UPON RETURN TO COVERED EMPLOYMENT;
AND TO AMEND SECTION 9-11-90, AS AMENDED, RELATING IN PART TO THE LIMITATION
ON THE AMOUNT WHICH MAY BE EARNED BY A RETIREE UNDER THE POLICE RETIREMENT
SYSTEM UPON RETURN TO COVERED EMPLOYMENT, SO AS TO PROVIDE THAT CONSULTING
FEES PAID TO RETIRED MEMBERS OF THESE SYSTEMS BY AN EMPLOYER COVERED BY THESE
SYSTEMS ALSO ARE CONSIDERED EARNINGS WITHIN THE MEANING OF SUCH EARNING
LIMITATIONS.
04/01/97 House Introduced and read first time HJ-13
04/01/97 House Referred to Committee on Ways and Means HJ-13
04/24/97 House Committee report: Favorable with amendment Ways
and Means HJ-10
04/29/97 House Amended HJ-97
04/30/97 House Debate interrupted
04/30/97 House Objection by Rep. Moody-Lawrence, & Govan HJ-43
04/30/97 House Requests for debate-Rep(s). Whipper, Breeland, J.
Brown, Young-Brickell, Lanford, Hinson, Webb, R.
Smith, Dantzler & Chellis HJ-43
04/30/97 House Amended HJ-92
04/30/97 House Read second time HJ-96
04/30/97 House Roll call Yeas-84 Nays-13 HJ-96
05/01/97 House Read third time and sent to Senate HJ-36
05/06/97 Senate Introduced and read first time SJ-9
05/06/97 Senate Referred to Committee on Finance SJ-9
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 30, 1997
H. 3757
Introduced by Reps. Hinson, Altman, Chellis, Woodrum, Gourdine,
Seithel, Simrill, Dantzler, Howard, Allison and Limehouse
S. Printed 4/30/97--H.
Read the first time April 1, 1997.
STATEMENT OF ESTIMATED FISCAL
IMPACT
1. Estimated Cost to State-First Year$ - 0 -
2. Estimated Cost to State-Annually Thereafter$ - 0 -
Since this bill only limits the earnings of a retiree and does not
affect the amount of funds an employer may pay for any consulting
fees, there will be no impact on the General Fund of the State. The
House amendment could result in minimal savings for employer
contributions pending the number of persons electing not to
participate.
It should be noted that the sections of the code referenced in the bill
establish an earnings limitation at $9,500. However, temporary
provisions in the annual Appropriation Act have been amended in the
past several years to increase the limits by $500 each year. The
1997-98 Appropriation Bill as passed by the House of
Representatives changes the limit from $13,000 to $13,500.
Approved By:
Michael L. Shealy
Office of State Budget
A BILL
TO AMEND SECTION 9-1-1790, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
LIMITATION ON THE AMOUNT WHICH MAY BE EARNED
BY A RETIREE UNDER THE STATE RETIREMENT SYSTEM
UPON RETURN TO COVERED EMPLOYMENT; AND TO
AMEND SECTION 9-11-90, AS AMENDED, RELATING IN
PART TO THE LIMITATION ON THE AMOUNT WHICH MAY
BE EARNED BY A RETIREE UNDER THE POLICE
RETIREMENT SYSTEM UPON RETURN TO COVERED
EMPLOYMENT, SO AS TO PROVIDE THAT CONSULTING
FEES PAID TO RETIRED MEMBERS OF THESE SYSTEMS BY
AN EMPLOYER COVERED BY THESE SYSTEMS ALSO ARE
CONSIDERED EARNINGS WITHIN THE MEANING OF SUCH
EARNINGS LIMITATIONS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 9-1-1790 of the 1976 Code, as last amended
by Part II, Section 50A, Act 189 of 1989, is further amended to read:
"Section 9-1-1790. A retired member of the system may return
to employment covered by the system and earn up to nine thousand
five hundred 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 nine thousand five
hundred 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. The
provisions of this section do not apply to an employee or member of
the system who has retired mandatorily because of age pursuant to
Section 9-1-1530.
Consulting fees paid to a retired member of the system, or to a
corporation or partnership in which the retired member or a member
of his immediate family individually or in the aggregate are the
controlling shareholders or partners, by an employer covered by the
system also are considered earnings within the earnings limitation of
this section."
SECTION 2. Section 9-11-90(4) of the 1976 Code, as last
amended by Part II, Section 50B, Act 189 of 1989, is further
amended to read:
"(4) Notwithstanding the provisions of subsections (1) and (2) of
this section, a retired member of the system may return to
employment covered by the system and earn up to nine thousand five
hundred 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 nine thousand five hundred
dollars in a fiscal year, his retirement allowance must be discontinued
during the 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. The provisions of this section
do not apply to an employee or member of the system who has retired
mandatorily because of age pursuant to Section 9-1-1530.
Consulting fees paid to a retired member of the system, or to a
corporation or partnership in which the retired member or a member
of his immediate family individually or in the aggregate are the
controlling shareholders or partners, by an employer covered by the
system also are considered earnings within the earnings limitation of
this section."
SECTION 3. Section 9-1-1600 of the 1976 Code is amended by
adding a new paragraph at the end to read:
"Only teachers who are certified in areas of critical need may be
temporarily employed pursuant to the provisions of this section."
SECTION 4. A. Article 5, Chapter 1, Title 9 of the 1976 Code
is amended by adding:
"Section 9-1-655. Notwithstanding any other provision of law, a
member in covered employment in more than one correlated system
as defined in Sections 9-1-650, 9-9-40, and 9-11-40 may elect not to
participate in the system in which the member receives the lowest
earnable compensation. This election must be made by written notice
filed with the covered employer not later than sixty days after a
member first begins employment covered by a correlated system.
Failure to make this election or failure to make the election within the
defined allowable period for election constitutes an irrevocable
election to become a contributing member of each correlated system.
The covered employer shall forward the written notice to the board
and the date of receipt by the board is the date the member's
participation ceases in the correlated system. This election is
irrevocable and controlling for so long as the member is in covered
employment and without regard to subsequent changes in the status
or conditions of the member's future employment. A member
making this election thereafter accrues no service credit in a
correlated system by virtue of continued employment and is forever
ineligible to establish this service as creditable service."
B. Notwithstanding the time limit on filing the written notice
required pursuant to Section 9-1-655 of the 1976 Code as added by
this section, a member who, on the effective date of this act, is in
covered employed employment in more than one of the correlated
state retirement systems may make the election allowed pursuant to
Section 9-1-655 by filing the notice of election within one hundred
days of the effective date of this act.
SECTION 5. This act takes effect upon approval by the Governor.
-----XX----- |