2003-2004 Bill 4523: Police Officers and State Retirement Systems, Disability, Returning

1 South Carolina General Assembly 2 115th Session, 2003-2004 3 4 H. 4523 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Rep. Cotty 10 Document Path: l:\council\bills\ggs\22340htc04.doc 11 12 Introduced in the House on January 13, 2004 13 Currently residing in the House Committee on Ways and Means 14 15 Summary: Police Officers and State Retirement Systems, disability, returning to work; provisions 16 17 18 HISTORY OF LEGISLATIVE ACTIONS 19 20 Date Body Action Description with journal page number 21 1/13/2004 House Introduced and read first time HJ-119 22 1/13/2004 House Referred to Committee on Ways and Means HJ-119 23 24 25 VERSIONS OF THIS BILL 26 27 1/13/2004 28 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTIONS 9-1-1580, 9-1-1590, AS AMENDED, 12 AND 9-11-90, AS AMENDED, CODE OF LAWS OF SOUTH 13 CAROLINA, 1976, RELATING TO DISABILITY 14 RETIREMENT UNDER THE SOUTH CAROLINA 15 RETIREMENT SYSTEM AND RETURNING TO SERVICE 16 AFTER RETIREMENT FOR PURPOSES OF THE SOUTH 17 CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO 18 AS TO PROVIDE THAT NO REDUCTION MAY BE MADE TO 19 THE DISABILITY RETIREMENT BENEFITS OF MEMBERS 20 OF THESE SYSTEMS WHO RETURN TO EMPLOYMENT 21 UNLESS THE MEMBER’S COMPENSATION EXCEEDS THE 22 GREATER OF THE MEMBER’S AVERAGE FINAL 23 COMPENSATION OR FIFTY THOUSAND DOLLARS A 24 YEAR AND TO PROVIDE THAT A DISABILITY RETIREE 25 RETURNING TO COVERED EMPLOYMENT DOES NOT 26 HAVE HIS BENEFIT TERMINATED AND BECOME AN 27 ACTIVE CONTRIBUTING MEMBER UNLESS THE 28 MEMBER’S COMPENSATION FROM COVERED 29 EMPLOYMENT EXCEEDS THE GREATER OF THE 30 MEMBER’S AVERAGE FINAL COMPENSATION OR LESS 31 THAN FIFTY THOUSAND DOLLARS A YEAR. 32 33 Be it enacted by the General Assembly of the State of South 34 Carolina: 35 36 SECTION 1. Section 9-1-1580 of the 1976 Code is amended to 37 read: 38 39 “Section 9-1-1580. Should the Medical Board report and certify 40 to the board that the A disability beneficiary is retiree engaged in 41 or is able to engage in a gainful occupation may earn up to fifty 42 thousand dollars a fiscal year without affecting the monthly

1 [4523] 1 1 retirement allowance the disability retiree receives. If paying more 2 than the difference between his a member’s disability retirement 3 allowance benefit and his the member’s average final 4 compensation is greater than fifty thousand dollars in a fiscal year 5 and should the board concur in the report, then the amount of his 6 the retiree’s disability retirement allowance must be reduced to an 7 amount which, together with the amount earnable by him, equals 8 the amount of his average final compensation. Should If his 9 earning capacity be is later changed, the amount of his disability 10 retirement allowance may be further modified. The new disability 11 retirement allowance shall must not exceed the amount of the 12 disability retirement allowance originally granted nor an amount 13 which, when added to the amount earnable by the beneficiary, 14 equals the amount of his average final compensation. 15 The average final compensation may be increased up to ten 16 percent annually to adjust for inflation. 17 If the disability retirement allowance is eliminated as a result of 18 this section retiree earns more than the greater of fifty thousand 19 dollars or the difference between the member’s average final 20 compensation and the member’s disability retirement allowance 21 for a period of five consecutive years, all rights in and to his 22 disability retirement allowance are revoked. The member then is 23 entitled to a deferred retirement allowance as provided in Section 24 9-1-1650 based upon his average final compensation and 25 creditable service at his date of disability retirement. 26 After age sixty-five, a disability retiree is subject to the same 27 earnings limitation as a service retiree.” 28 29 SECTION 2. The first two unnumbered paragraphs of Section 30 9-1-1590 of the 1976 Code are amended to read: 31 32 “A disability beneficiary restored to active service at a salary 33 less than the greater of his average final compensation or fifty 34 thousand dollars a year, shall does not become a member of the 35 system and his employer annuity shall must be adjusted in 36 accordance with the provisions of Section 9-1-1580. 37 Should If a disability beneficiary under the age of sixty-five 38 years be is restored to active service and his compensation then, or 39 at any time thereafter, be equal to or greater than exceeds the 40 greater of his average final compensation at retirement or fifty 41 thousand dollars a year, his retirement allowance shall cease ceases 42 and any election of an optional benefit shall become becomes void 43 and he shall again become becomes a member of the system and

1 [4523] 2 1 must contribute thereafter as provided in Section 9-1-1020. Any 2 prior service certificate on the basis of which his service was 3 computed at the time of his retirement shall must be restored to in 4 full force and effect and, in addition, upon his subsequent 5 retirement he shall must be credited with all his service as a 6 member. The average final compensation may be increased up to 7 ten percent annually to adjust for inflation.” 8 9 SECTION 3. Subsections (1) and (2) of Section 9-11-90 of the 10 1976 Code are amended to read: 11 12 “(1) A disability beneficiary restored to active service at a salary 13 less than his average final compensation or fifty thousand dollars a 14 year, whichever is greater shall does not become a an active 15 contributing member of the system and his the member’s 16 retirement allowance shall must be adjusted in accordance with the 17 provisions of Section 9-11-80(4). For purposes of that adjustment, 18 earning capacity means compensation less than the greater of the 19 member’s average final compensation or fifty thousand dollars a 20 year. 21 (2) Should If a disability beneficiary under the age of fifty-five 22 years be is restored to active service and his the member’s 23 compensation then, or at any time thereafter, be equal to or greater 24 than exceeds the greater of his average final compensation at 25 retirement or fifty thousand dollars a year, his retirement 26 allowance shall cease ceases, any election of an optional benefit 27 shall become becomes void, and he shall again becomes a an 28 active contributing member of the system and contribute 29 contributes thereafter as provided in Section 9-11-210(1). Any 30 credited service to which he was entitled when he retired shall 31 must be restored to him, and upon subsequent retirement his 32 allowance shall must be based on his compensation and credited 33 service before and after the period of prior retirement. The 34 average final compensation in subsections (1) and (2) of this 35 section may be increased up to ten percent annually to adjust for 36 inflation.” 37 38 SECTION 4. This act takes effect July 1, 2004. 39 ----XX---- 40

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