H*4898 Session 112 (1997-1998)
H*4898(Rat #0522, Act #0439 of 1998) General Bill, By Robinson
A BILL TO AMEND SECTIONS 9-1-1140, AS AMENDED, 9-9-50, AS AMENDED, AND
9-11-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
CREDITED SERVICE FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE
RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY AND THE POLICE OFFICERS
RETIREMENT SYSTEM, SO AS TO ALLOW MILITARY SERVICE TO BE ESTABLISHED AS
CREDITABLE SERVICE ON THE BASIS OF ONE YEAR OF MILITARY SERVICE RATHER THAN
TWO YEARS OF MILITARY SERVICE FOR EACH YEAR OF SERVICE ESTABLISHED AND TO
REQUIRE THE EMPLOYER CONTRIBUTION FOR SUCH SERVICE TO BE PAID BY THE MEMBER'S
CURRENT EMPLOYER, TO ALLOW NATIONAL GUARD SERVICE TO BE ESTABLISHED AND TO
PROVIDE THE REQUIREMENTS FOR ESTABLISHING SUCH SERVICE AND TO CLARIFY
PROVISIONS PROHIBITING THE DUPLICATION OF BENEFITS .-AMENDED TITLE
03/25/98 House Introduced and read first time HJ-74
03/25/98 House Referred to Committee on Ways and Means HJ-75
04/08/98 House Committee report: Favorable with amendment Ways
and Means HJ-11
04/15/98 House Amended HJ-28
04/15/98 House Read second time HJ-31
04/16/98 House Read third time and sent to Senate HJ-11
04/21/98 Senate Introduced, read first time, placed on calendar
without reference SJ-27
05/13/98 Senate Read second time SJ-45
06/04/98 Senate Read third time and enrolled SJ-29
06/10/98 Ratified R 522
06/16/98 Signed By Governor
06/23/98 Effective date 6/16/98 and applies to military
service established in the state retirement
sytems on or after that date
06/23/98 Copies available
08/05/98 Act No. 439
(A439, R522, H4898)
AN ACT TO AMEND SECTIONS 9-1-1140, AS AMENDED,
9-9-50, AS AMENDED, AND 9-11-50, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO CREDITED
SERVICE FOR PURPOSES OF THE SOUTH CAROLINA
RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR
MEMBERS OF THE GENERAL ASSEMBLY, AND THE POLICE
OFFICERS RETIREMENT SYSTEM, SO AS TO ALLOW MILITARY
SERVICE TO BE ESTABLISHED AS CREDITABLE SERVICE ON
THE BASIS OF ONE YEAR OF MILITARY SERVICE RATHER
THAN TWO YEARS OF MILITARY SERVICE FOR EACH YEAR OF
SERVICE ESTABLISHED AND TO REQUIRE THE EMPLOYER
CONTRIBUTION FOR SUCH SERVICE TO BE PAID BY THE
MEMBER'S CURRENT EMPLOYER, TO ALLOW NATIONAL
GUARD SERVICE TO BE ESTABLISHED AND TO PROVIDE THE
REQUIREMENTS FOR ESTABLISHING SUCH SERVICE AND TO
CLARIFY PROVISIONS PROHIBITING THE DUPLICATION OF
BENEFITS .
Be it enacted by the General Assembly of the State of South Carolina:
South Carolina Retirement System, establishing service
credit
SECTION 1. The third unnumbered paragraph of Section
9-1-1140 of the 1976 Code, as last amended by Act 166 of 1993, is
further amended to read:
"Any member with two or more years of creditable service
shall receive additional creditable service for the period of his military
service at the rate of one year of military service for each one year of his
creditable service excluding any period of creditable military service, as
long as he was discharged or separated from the military service under
conditions other than dishonorable, and as long as he pays to the system,
by a single payment before his retirement or death or by another method
of payment as may be prescribed from time to time by the board, all
payments to the system he would have been required to make for the
period to be so credited had he been employed in the position he held
immediately before the commencement of his military leave during the
period of the military service, together with the regular interest which
would have been credited thereon from the date the contributions would
have been made to the date of payment. In the case of a member whose
military service was rendered before his employment by an employer the
payments by the member, as described in the foregoing sentence, must be
determined on the basis of his earnable compensation at the time he first
became a member of the system. The required employer contribution
must be assumed by the member's current employer. No member may
receive credit for more than six years of military service. Active military
duty performed subsequent to December 31, 1975, may not be considered
creditable service. Active military duty includes service in the national
guard; provided, however, that to establish creditable service for national
guard service, the member must pay the actuarial cost as determined by
the board, but the payment may not be less than twelve percent of the
member's earnable compensation at the time of payment, or the average
of the three highest consecutive fiscal years of compensation at the time
of payment, whichever is greater, for each year of service prorated for
periods of less than one year. The prohibition on duplication of benefits
applicable to credit established for federal employment also applies to
credit established for service in the national guard, and national guard
service may not be established for periods of service credited or creditable
in any retirement system provided in this title. Any former employee of
the United States employed in this State by an employer covered by the
system, and who is currently a contributing member, may elect to receive
prior service credit for service rendered as an employee of the United
States upon his paying into the system the actuarial cost as determined by
the board. The member payment may not be less than twelve percent of
the earnable compensation, or the average of the three highest consecutive
fiscal years of compensation at the time of payment, whichever is greater,
for each year of service prorated for periods of less than one year. A
member who elects to receive creditable service for federal employment
may establish a portion of the service on a one-time basis. This service
may not exceed the total creditable service, exclusive of federal service,
which he would have if he remained in service until completion of the
eligibility requirements for an unreduced service retirement allowance. In
no event may any benefits payable under the system duplicate benefits
being paid under any retirement system for the same period of
service."
Legislative Retirement Systems, establishing service credit
SECTION 2. Section 9-9-50(4) of the 1976 Code is amended to
read:
"(4) Any member with two or more years of credited service
shall receive additional credited service for the period of his military
service, at the rate of one year of military service for each one year of his
credited service excluding any period of credited military service,
provided he was discharged or separated from the military service under
conditions other than dishonorable, and upon paying to the system, by a
single payment before his retirement or death or by such other method of
payment as may be prescribed from time to time by the board, all
payments to the system he would have been required to make for the
period to be so credited had he been employed in the position he held
immediately before the commencement of his military leave during the
period of such military service, together with the regular interest which
would have been credited thereon from the date the contributions would
have been made to the date of payment. In the case of a member whose
military service was rendered before his becoming a member of the
General Assembly the payments by the member, as described in the
foregoing sentence, must be determined on the basis of his earnable
compensation at the time he first became a member of the system. No
member shall receive credit for more than six years of military service.
Military service includes service in the national guard; provided, however,
that to establish creditable service for national guard service, the member
must pay the actuarial cost as determined by the board, but the payment
may not be less than twelve percent of the member's earnable
compensation at the time of payment for each year of service credited.
The prohibition on duplication of benefits applicable to credit established
for federal employment pursuant to Section 9-1-1140 also applies to credit
established for service in the national guard and national guard service
may not be established for periods of service credited or creditable in any
retirement system provided in this title."
Police Officers Retirement System, establishing service credit
SECTION 3. Subsections (4) and (6)(a) of Section 9-11-50 of the
1976 Code, as last amended by Act 420 of 1994, are further amended to
read:
"(4) Any member with two or more years of credited service
shall receive additional credited service for the period of his military
service at the rate of one year of military service for each one year of his
credited service excluding any period of credited military service, as long
as he was discharged or separated from the military service under
conditions other than dishonorable, and as long as he pays to the system,
by a single payment before his retirement or death or by another method
of payment as may be prescribed from time to time by the board, all
payments to the system he would have been required to make for the
period to be so credited had he been employed in the position he held
immediately before the commencement of his military leave during the
period of the military service, together with the regular interest which
would have been credited thereon from the date the contributions would
have been made to the date of payment. In the case of a member whose
military service was rendered before his employment by an employer, the
payments by the member, as described in the foregoing sentence, must be
determined on the basis of his compensation at the time he first became
a member of the system. The required employer contribution must be
assumed by the member's current employer. However, no member may
receive credit for more than six years of military service. Active military
duty performed subsequent to December 31, 1975, may not be considered
creditable service. Active military duty includes service in the national
guard; provided, however, that to establish creditable service for national
guard service, the member must pay the actuarial cost as determined by
the board, but the payment may not be less than twelve percent of the
member's earnable compensation at the time of payment, or the average
of the three highest consecutive fiscal years of compensation at the time
of payment, whichever is greater, for each year of service prorated for
periods of less than one year. The prohibition on duplication of benefits
applicable to credit established for federal employment as provided in
subsection (6) of this section also applies to credit established for service
in the national guard, and national guard service may not be established
for periods of service credited or creditable in any retirement system
under this title.
(a) A former employee of the United States employed in this State
by an employer covered by the system and who is currently a contributing
member, may elect to receive prior service credit for service rendered as
an employee of the United States upon his paying into the system the
actuarial cost as determined by the board. The member payment must not
be less than twelve percent of the earnable compensation, or the average
of the three highest consecutive fiscal years of compensation at the time
of payment, whichever is greater, for each year of service prorated for
periods of less than one year. A member who elects to receive creditable
service for federal employment may establish a portion of the service on
a one-time basis. This service may not exceed the total creditable service,
exclusive of federal service, which he would have if he remained in
service until completion of the eligibility requirements for an unreduced
service retirement allowance. In no event shall any benefits payable under
the system duplicate benefits being paid under any retirement system for
the same period of service."
Time effective
SECTION 4. This act takes effect upon approval by the Governor
and applies with respect to military service established in the state
retirement systems on or after that date.
Approved the 16th day of June, 1998.
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