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COMMITTEE REPORT
May 26, 2004
S. 855
Introduced by Senators Knotts, Cromer, McConnell Verdin, Richardson, Giese, Leatherman, Peeler, Branton, Ravenel, Glover, Kuhn, Waldrep and Mescher
S. Printed 5/26/04--S. [SEC 5/27/04 3:49 PM]
Read the first time January 22, 2004.
To whom was referred a Bill (S. 855) to amend the Code of Laws of South Carolina, 1976, by adding Sections 9-1-1675 and 9-11-165 so as to provide that no more, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1675. If a retired member receives overpayment of retirement benefits through no fraudulent act or misrepresentation of the member, the system may not recoup from the retiree's benefit more than the total of overpayments received by the member in the thirty-six months preceding the date the system provides notice in writing to the member of the overpayment. Benefits received by members under the previously existing Social Security Advance Option do not constitute overpayments under this section. Therefore, these benefits are exempt from this provision. The Social Security Advance Option includes cost of living and other special increases applied to the amount of the advance or reduction in allowance under Section 9-1-1620."
SECTION 2. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-165. If a retired member receives overpayment of retirement benefits through no fraudulent act or misrepresentation of the member, the system may not recoup from the retiree's benefit more than the total of overpayments received by the member in the thirty-six months preceding the date the system provides notice in writing to the member of the overpayment. Benefits received by members under the previously existing Social Security Advance Option do not constitute overpayments under this section. Therefore, these benefits are exempt from this provision. The Social Security Advance Option includes cost of living and other special increases applied to the amount of the advance or reduction in allowance under Section 9-11-150."
SECTION 3. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
EXPLANATION OF IMPACT:
Since the bill addresses the recovery of overpayments from retirees, there will be no cost on the General Fund of the State or on federal and/or other funds. At this time, the amount that may be recovered by the retirement systems is still to be determined.
SPECIAL NOTES:
As the bill is currently written, there could be a significant cost to the Retirement Systems if overpayments are interpreted to include benefits received by members under the previously existing Social Security Advance Option, including cost of living and other special increases applied to the amount of the advance or reduction in allowance under Section 9-1-1620 and Section 9-11-150.
Approved By:
Don Addy
Office of State Budget
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 9-1-1675 AND 9-11-165 SO AS TO PROVIDE THAT NO MORE THAN THIRTY-SIX MONTHS OF OVERPAYMENTS MAY BE RECOUPED FROM THE RETIREMENT BENEFITS OF RETIREES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM WHO RECEIVED OVERPAYMENTS THROUGH NO FRAUDULENT ACT OF THE RETIREE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1675. If a retired member receives overpayment of retirement benefits through no fraudulent act of the member, the system may not recoup from the retiree's benefit more than the total of overpayments received by the member in the thirty-six months preceding the date the system provides notice in writing to the member of the overpayment."
SECTION 2. Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:
"Section 9-11-165. If a retired member receives overpayment of retirement benefits through no fraudulent act of the member, the system may not recoup from the retiree's benefit more than the total of overpayments received by the member in the thirty-six months preceding the date the system provides notice in writing to the member of the overpayment."
SECTION 3. This act takes effect upon approval by the Governor.
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