Bill 970

                    Current Status

Bill Number:               970
Ratification Number:       426
Act Number                 349
Introducing Body:          Senate
Subject:                   Relating to the South Carolina Retirement
                           System, the Police Officers Retirement System,
                           and the retirement systems for members of the
                           General Assembly, judiciary, and
                           solicitors

(A349, R426, S970)

AN ACT TO AMEND SECTIONS 9-1-1020, 9-1-1160, 9-9-120, AND 9-11-210, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, AND ACT 150 OF 1979, AS AMENDED, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM, THE POLICE OFFICERS RETIREMENT SYSTEM, AND THE RETIREMENT SYSTEMS FOR MEMBERS OF THE GENERAL ASSEMBLY, JUDICIARY, AND SOLICITORS, SO AS TO PROVIDE THAT THE SALARY REDUCTION PLAN FOR THE PURPOSE OF DEFERRING FEDERAL INCOME TAXES SHALL BE PICKED UP BY THE EMPLOYER FOR ALL COMPENSATION PAID ON OR AFTER JULY 1, 1982, INSTEAD OF FOR ALL COMPENSATION EARNED AFTER JULY 1, 1982.

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

Department and political subdivisions shall pick up employee contributions

Section 1. The last paragraph of Section 9-1-1020 of the 1976 Code, as added by an act of 1982 bearing ratification number 372, is amended by striking "earned" at the beginning of line three and inserting "paid on or". The paragraph when amended shall read:

"Each department and political subdivision shall pick up the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 2. The last paragraph of Section 9-1-1160 of the 1976 Code, as added by an act of 1982 bearing ratification number 372, is amended by striking "earned" at the beginning of line three and inserting "paid on or". The paragraph when amended shall read:

"Each department and political subdivision shall pick up the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 3. Subsection (6) of Section 9-9-120 of the 1976 Code, as added by an act of 1982 bearing ratification number 372, is amended by striking "earned" beginning on line three and inserting "paid on or". When amended subsection (6) shall read:

"(6) Each department and political subdivision shall pick up the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 4. Subsection (11) of Section 9-11-210 of the 1976 Code, as added by an act of 1982 bearing ratification number 372, is amended by striking "earned" on line three and inserting "paid on or". When amended subsection (11) shall read:

"(11) Each department and political subdivision shall pick up the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Further

Section 5. Subsection (4) of Section 13 of Act 150 of 1979, as added by an act of 1982 bearing ratification number 372, is amended by striking "earned" beginning on line three and inserting "paid on or". When amended subsection (4) shall read:

"(4) Each department and political subdivision shall pick up the employee contributions required by this section for all compensation paid on or after July 1, 1982, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the United States Internal Revenue Code; however, each department and political subdivision shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service, or the federal courts, rule that, pursuant to Section 414(h) of the United States Internal Revenue Code, these contributions shall not be included as gross income of the employee until such time as they are distributed or made available. The department and political subdivision shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee. The department and political subdivision may pick up these contributions by a reduction in the cash salary of the employee. Employee contributions picked up shall be treated for all purposes of this section in the same manner and to the extent as employee contributions made prior to the date picked up."

Time effective

Section 6. This act shall take effect upon the approval by the Governor.