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531 by dandanhuanghuang

VIEWS: 6 PAGES: 7

									                                   South Carolina General Assembly
                                       119th Session, 2011-2012

S. 531

STATUS INFORMATION

General Bill
Sponsors: Senators Campsen, Ryberg, Grooms, Bryant, Rose, Campbell, Shoopman, Davis, Bright,
Massey and Verdin
Document Path: l:\council\bills\bbm\9982htc11.docx
Companion/Similar bill(s): 3568

Introduced in the Senate on February 9, 2011
Currently residing in the Senate Committee on Finance

Summary: State Retirement System


HISTORY OF LEGISLATIVE ACTIONS

    Date   Body Action Description with journal page number
  2/9/2011 Senate Introduced and read first time (Senate Journal-page 7)
  2/9/2011 Senate Referred to Committee on Finance (Senate Journal-page 7)
  5/9/2011        Scrivener's error corrected

View the latest legislative information at the LPITS web site


VERSIONS OF THIS BILL

2/9/2011
5/9/2011
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 9                              A BILL
10
11   TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
12   1976, BY ADDING SECTIONS 9-1-5, 9-8-5, 9-9-5, 9-11-5, AND
13   9-20-5 SO AS TO CLOSE THE SOUTH CAROLINA
14   RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR
15   JUDGES AND SOLICITORS, THE RETIREMENT SYSTEM
16   FOR MEMBERS OF THE GENERAL ASSEMBLY OF THE
17   STATE OF SOUTH CAROLINA, THE SOUTH CAROLINA
18   POLICE OFFICERS RETIREMENT SYSTEM, AND THE
19   STATE     OPTIONAL    RETIREMENT       PROGRAM         TO
20   EMPLOYEES HIRED OR OFFICERS TAKING OFFICE AFTER
21   JUNE 30, 2012, AND TO PROVIDE THAT OFFICERS OR
22   EMPLOYEES HIRED OR TAKING OFFICE AFTER JUNE 30,
23   2012 MUST BE ENROLLED IN THE SOUTH CAROLINA
24   RETIREMENT INVESTMENT PLAN; BY ADDING CHAPTER
25   22 TO TITLE 9 SO AS TO ESTABLISH THE SOUTH
26   CAROLINA RETIREMENT INVESTMENT PLAN AS A
27   DEFINED CONTRIBUTION PLAN AND PROVIDE FOR ITS
28   ADMINISTRATION AND OPERATIONS; AND TO REPEAL,
29   EFFECTIVE JULY 1, 2017, CHAPTER 22, TITLE 9 RELATING
30   TO THE STATE OPTIONAL RETIREMENT PROGRAM.
31
32   Be it enacted by the General Assembly of the State of South
33   Carolina:
34
35   SECTION 1. Article 1, Chapter 1, Title 9 of the 1976 Code is
36   amended by adding:
37
38     “Section 9-1-5. (A) Notwithstanding any other provision of
39   law, and except as provided pursuant to Section 9-20-40, after June
40   30, 2012, the South Carolina Retirement System established
41   pursuant to this chapter is closed to nonmembers and persons who
42   otherwise would have been required or been eligible to become

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 1   members of the South Carolina Retirement System instead must be
 2   or are eligible to be enrolled in the South Carolina Retirement
 3   Investment Plan established pursuant to Chapter 22 of this title.
 4     (B) For purposes of this section, a ‘nonmember’ is an
 5   individual who does not have employee contributions and
 6   applicable interest on account with the system established by this
 7   chapter.
 8     (C) Nothing in this section may be construed to alter or
 9   otherwise diminish the rights of persons who are active
10   contributing members of the South Carolina Retirement System as
11   of June 30, 2012, or who are retired members or beneficiaries of
12   deceased retirees of that system as of the same date.”
13
14   SECTION 2. Chapter 8, Title 9 of the 1976 Code is amended by
15   adding:
16
17      “Section 9-8-5. (A) Notwithstanding any other provision of
18   law, after June 30, 2012, the Retirement System for Judges and
19   Solicitors of the State of South Carolina, established pursuant to
20   this chapter is closed to nonmembers and persons who otherwise
21   would have been required to become members instead must be
22   enrolled in the South Carolina Retirement Investment Plan
23   established pursuant to Chapter 22 of this title.
24      (B) For purposes of this section, a ‘nonmember’ is an
25   individual who does not have employee contributions and
26   applicable interest on account with the system established by this
27   chapter.
28      (C) Nothing in this section may be construed to alter or
29   otherwise diminish the rights of persons who are active
30   contributing members of the Retirement System for Judges and
31   Solicitors as of June 30, 2012, or who are retired members or
32   beneficiaries of deceased retirees of that system as of the same
33   date.”
34
35   SECTION 3. Chapter 9, Title 9 of the 1976 Code is amended by
36   adding:
37
38     “Section 9-9-5. (A) Notwithstanding any other provision of
39   law, after June 30, 2012, the Retirement System for Members of
40   the General Assembly of the State of South Carolina established
41   pursuant to this chapter is closed to nonmembers and persons who
42   otherwise would have been required or eligible to become
43   members of that system instead must be enrolled or are eligible to

     [531]                           2
 1   be enrolled in the South Carolina Retirement Investment Plan
 2   established pursuant to Chapter 22 of this title.
 3      (B) For purposes of this section, a ‘nonmember’ is an
 4   individual who does not have employee contributions and
 5   applicable interest on account with the system established by this
 6   chapter.
 7      (C) Nothing in this section may be construed to alter or
 8   otherwise diminish the rights of persons who are active
 9   contributing members or special contributing members of the
10   Retirement System for Members of the General Assembly of the
11   State of South Carolina as of June 30, 2012, or who are retired
12   members or beneficiaries of deceased retirees of that system as of
13   the same date.”
14
15   SECTION 4. Article 1, Chapter 11, Title 9 of the 1976 Code is
16   amended by adding:
17
18      “Section 9-11-5. (A) Notwithstanding any other provision of
19   law, and except as provided pursuant to Section 9-20-40, after June
20   30, 2012, the South Carolina Police Officers Retirement System
21   established pursuant to this chapter is closed to nonmembers and
22   persons who otherwise would have been required or been eligible
23   to become members of the South Carolina Police Officers
24   Retirement System instead must be enrolled or are eligible to be
25   enrolled in the South Carolina Retirement Investment Plan
26   established pursuant to Chapter 22 of this title.
27      (B) For purposes of this section, a ‘nonmember’ is an
28   individual who does not have employee contributions and
29   applicable interest on account with the system established by this
30   chapter.
31      (C) Nothing in this section may be construed to alter or
32   otherwise diminish the rights of persons who are active
33   contributing members of the South Carolina Police Officers
34   Retirement System as of June 30, 2012, or who are retired
35   members or beneficiaries of deceased retirees of that system as of
36   the same date.”
37
38   SECTION 5. Chapter 20, Title 9 of the 1976 Code is amended by
39   adding:
40
41      “Section 9-20-5. Notwithstanding any other provision of law,
42   after June 30, 2012, the State Optional Retirement Program
43   established pursuant to this chapter is closed to new enrollees.

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 1   Nothing in this section may be construed to alter or diminish the
 2   rights of persons who are active or retired enrollees in the State
 3   Optional Retirement Program as of June 30, 2012. Nothing in this
 4   section prohibits an enrollee in the State Optional Retirement
 5   Program as of June 30, 2012, from becoming a member of the
 6   South Carolina Retirement System in the manner and subject to the
 7   limitations provided pursuant to Section 9-20-40(B).”
 8
 9   SECTION 6. Title 9 of the 1976 Code is amended by adding:
10
11                             “CHAPTER 22
12
13              South Carolina Retirement Investment Plan
14
15      Section 9-22-10. As used in this chapter:
16      (1) ‘Director’ means the director of the system.
17      (2) ‘Employer’ has the meaning provided pursuant to Section
18   9-1-10(14).
19      (3) ‘Employee’ means an individual hired or taking office after
20   June 30, 2012, who, but for the provisions of Sections 9-1-5, 9-8-5,
21   9-9-5, and 9-11-5, if not already a member, would be required or
22   eligible to become be a member of one of the systems established
23   pursuant to those chapters. Employee includes an officer elected
24   or appointed to an office in this State.
25      (4) ‘Participant’ means an officer or employee who participates
26   in SCRIP.
27      (5) ‘SCRIP’ or ‘plan’ means the South Carolina Retirement
28   Investment Plan established pursuant to this chapter.
29      (6) ‘System’ means the South Carolina Retirement System
30   established pursuant to Chapter 1 of this title.
31
32      Section 9-22-20. (A) The system shall establish SCRIP, a
33   defined contribution plan, for employees as defined in Section
34   9-22-10(3). The following retirement and death benefit payment
35   options may be provided for a participant in the plan: annuities,
36   lump-sum distributions, partial distributions, or periodic
37   withdrawals, whether through individual annuity contracts or
38   mutual funds or individual certificates issued for group annuity
39   contracts, fixed, or variable in nature, or a combination of them.
40   Eligibility is determined solely by the South Carolina Retirement
41   System. In addition and consistent with federal law, the plan must
42   allow a participant to borrow from the participant’s account and
43   repay the loan by payroll deduction or otherwise.

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 1      (B) Persons enrolled in the State Optional Retirement Plan may
 2   transfer their accounts to SCRIP before July 1, 2017. However, by
 3   this transfer, the person waives the option of becoming a member
 4   of the system as allowed pursuant to Section 9-20-40(B).
 5
 6      Section 9-22-30. The system shall provide for the administration
 7   of the plan pursuant to this chapter. The director shall designate no
 8   fewer than four companies to provide annuity contracts, mutual
 9   fund accounts, or similar investment products offered through state
10   or national banking institutions, or a combination of them, under
11   the program. There must be included in the array of options a
12   fixed income option and a ROTH option. In making the
13   designation, selection criteria must include:
14      (1) the nature and extent of the rights and benefits to be
15   provided by the contracts or accounts, or both, of participants and
16   their beneficiaries;
17      (2) the relation of the rights and benefits to the amount of
18   contributions to be made;
19      (3) the suitability of these rights and benefits to the needs of
20   the participants;
21      (4) the ability and experience of the designated companies in
22   providing suitable rights and benefits under the contracts or
23   accounts, or both;
24      (5) the ability and experience of the designated companies to
25   provide suitable education and investment options.
26      Companies participating in the State Optional Retirement
27   Program established pursuant to Chapter 20 of this title as of July
28   1, 2012, may participate in this program by extending the
29   provisions of existing contracts, mutatis mutandis.
30
31      Section 9-22-40. (A) Each participant shall contribute monthly
32   to the program six and one-half percent of compensation
33   determined as if the participant were a member of the system.
34   Participant contributions must be made by employer pick up in
35   accordance with Section 9-1-1160(B) and any applicable
36   provisions of the Internal Revenue Code of 1986. Each employer
37   shall contribute on behalf of each participant six percent of the
38   employee’s compensation. Deductions must not be made from this
39   six percent contribution. Each employer shall remit to the
40   designated companies for application to participants’ contracts or
41   accounts, or both, an amount equal to the participant’s contribution
42   plus the employer’s contribution in accordance with the guidelines
43   established by the Internal Revenue Service for payroll tax

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 1   remittance. The State Budget and Control Board may impose and
 2   the system may retain an additional employer contribution for the
 3   purposes provided in subsection (B) of this section. This
 4   additional employer contribution must be remitted to the system in
 5   accordance with the guidelines established for remitting retirement
 6   contributions to this system.
 7      (B) The additional employer contribution must be used to
 8   defray any reasonable expenses incurred in performing services
 9   regarding the plan. These services may include, but are not limited
10   to:
11        (1) participant education regarding the merits and risks
12   associated with selection of defined contribution plans versus
13   defined benefit plans;
14        (2) on-going investment education, where appropriate;
15        (3) recordkeeping; and
16        (4) monitoring contract compliance.
17      (C) To the extent the provisions of this chapter adversely
18   impact the actuarial soundness of the system, and the systems
19   established pursuant to Chapters 8, 9, and 11 of this title, employer
20   and employee contributions to the system must be adjusted by the
21   State Budget and Control Board as necessary to maintain the
22   actuarial soundness of those systems.
23
24     Section 9-22-50. A death benefit may be paid by the State for
25   service rendered while participating in the plan under the same
26   requirements set out for system members pursuant to Section
27   9-1-1770. However, a postretirement death benefit must not be
28   paid by the State for service rendered while participating in the
29   plan. Employers shall remit the same contribution for the death
30   benefit that employers would have contributed had the participant
31   been a member of the system.”
32
33   SECTION 7. Chapter 20, Title 9 of the 1976 Code is repealed
34   effective July 1, 2017. On that date, all persons enrolled in the
35   State Optional Retirement Program and their respective accounts
36   are transferred to SCRIP established pursuant to Chapter 22, Title
37   9 of the 1976 Code.
38
39   SECTION 8. This act takes effect upon approval by the Governor.
40                            ----XX----
41



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