Signed by Governor Nikki Haley

Vote Smart's Synopsis:

Vote to pass a bill that amends the South Carolina Retirement System, effective July 1, 2012.

Highlights:

• Increases contributions to the retirement system for members joining prior to June 30, 2012 as follows (Sec. 3):
• From 5.5 percent of salary to 6 percent of salary, beginning June 30, 2012; and
• From 6 percent of salary to 6.5 percent of salary, beginning June 30, 2013.

• Increases contributions to the retirement system for members joining after June 30, 2012 as follows (Sec. 3):
• From 6.5 percent of salary to 7 percent of salary, beginning June 30, 2012; and
• From 7 percent of salary to 7.5 percent of salary, beginning June 30, 2013.

• Increases the amount that members of the legislature are required to contribute to the retirement system from 10 percent to 11 percent of salary, beginning in 2013 (Sec. 13).

• Increases the amount that police officers are required to contribute to the retirement system as follows (Sec. 18):
• From 6.5 percent to 7 percent of salary until June 30, 2013; and
• From 7 percent to 7.5 percent after June 30, 2013.

• Limits employer contributions to the retirement system to 12.3 percent of employee compensation, effective June 30, 2012, whereas existing law does not specify a limit (Sec. 19).

• Increases the number of years of service required for retirement from 28 years to 30 years for members who joined the retirement system after June 30, 2012 (Sec. 6).

• Repeals the requirement that unused sick leave be paid to members of the retirement system upon retirement, effective for members retiring on or after July 1, 2012 (Sec. 5).

• Repeals overtime pay for overtime that was not required by the employer from the definition of earnable compensation used to calculate average final compensation for members retiring after June 30, 2012 (Sec. 2).

• Authorizes a 2.5 percent increase in the retirement allowance received by retirees if the difference of the annual investment rate of return on the assets in the retirement system subtracted from the 5 year average investment return is a positive number (Sec. 1).

• Increases the number of years used to calculate average final compensation for members retiring after June 30, 2012 from the 3 consecutive highest-earning years to the 5 consecutive highest-earning years (Sec. 2).

• Prohibits members who joined the retirement system after June 30, 2012 from participating in the Teacher and Employee Retention Incentive Program (Sec. 10).

Full Bill Text