Bill Text: SC H5230 | 2023-2024 | 125th General Assembly | Comm Sub
Bill Title: Retirement System for Judges and Solicitors
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2024-04-10 - Referred to Committee on Finance [H5230 Detail]
Download: South_Carolina-2023-H5230-Comm_Sub.html
South Carolina General Assembly
125th Session, 2023-2024
Bill 5230
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
Indicates Matter Stricken
Indicates New Matter
Committee Report
March 27, 2024
H. 5230
Introduced by Rep. Wooten
S. Printed 03/27/24--H.
Read the first time March 06, 2024
________
The committee on House Ways and Means
To whom was referred a Bill (H. 5230) to amend the South Carolina Code of Laws by amending Section 9-8-10, relating to definitions pertaining to the retirement system for judges and solicitors, so as, etc., respectfully
Report:
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, SECTION 2, Section 9-8-40(1), by adding an item to read:
(b) All full-time masters-in-equity on July 1, 2024, who have not retired may elect to become a member of the system. Masters-in-equity making that election may transfer prior service into the system as provided in Section 9-8-50, and to the extent the service thus transferred occurred after the member took office as a master-in-equity, that service is deemed earned service in the system.
Amend the bill further, by adding an appropriately numbered SECTION to read:
SECTION X. Section 9-8-10(16) of the S.C. Code is amended to read:
(16) "Judge" means a justice of the Supreme Court or a judge of the court of appeals, circuit or family court of the State of South Carolina. Subject to the provisions of Section 9-8-40, "judge" also means an administrative law judge or a full-time master-in-equity.
Renumber sections to conform.
Amend title to conform.
GILDA COBB-HUNTER for Committee.
statement of estimated fiscal impact
Explanation of Fiscal Impact
State Expenditure
This bill defines the AG as a solicitor of the state and specifies that the AG may elect to become a member of JSRS. Additionally, for purposes of calculating retirement or other benefits, the AG's salary is the higher of the salary provided by law for the AG or a circuit solicitor. Currently, the AG is a member of the SC Retirement System (SCRS) as established under Section 9-1-20. This bill allows the AG to transition from SCRS to JSRS. For purposes of this analysis, the actuarial report anticipates the AG will choose to become a member of JSRS and transfer prior years of service to JSRS. Section 9-8-50(B) allows members in JSRS who have earned service in SCRS, the Police Officers Retirement System (PORS), or the General Assembly Retirement System (GARS) to transfer that service to JSRS by making a payment to JSRS equal to the current required member contribution for each year of serviced transferred. Currently the member contribution requirement is 10 percent of pay for each year of service. However, the increase in the value of the member's benefit, or actuarial cost, in JSRS is three to five times greater than the member's contribution requirement to transfer service from the other system.
The calculations to determine the AG's retirement benefits under this bill are based on a solicitor's salary, which is $212,787, rather than the AG's salary of $208,000. The following estimates are based on the assumption of 28 years of service credited and may vary depending on actual service.
Comparison of Retirement Benefits for the AG
SCRS JSRS
Salary Base Salary Base Increase
$208,000 $212,787
Employee Employer Employee Employer Employee Employer
Contribution Contribution Contribution Contribution Increase Increase
9.00% 18.56% 10.00% 62.94% 1.00% 44.38%
$19,000 $39,000 $21,000 $134,000 $2,000 $95,000
This bill will result in an increase in General Fund expenditures totaling approximately $95,000 beginning in FY 2024-25 for the Attorney General's Office to cover the difference in the employer contribution to the different retirement funds.
Additionally, the AG will also have to increase employee contributions by $2,000. However, this will have no expenditure impact on the agency. The change will result in an increase of annual retirement benefits for the AG of $68,000.
Further, based on the actuarial report provided by PEBA, this bill will result in an increase in the unfunded liability of $1,142,000. The actuarial report recommends that the General Assembly fund this increase in unfunded liability due to the relatively low funded ratio of 46.4 percent that will decrease to 46.3 percent under this bill. If the General Assembly chooses to fund the increase, this bill will result in an additional one-time expenditure increase of $1,142,000 in FY 2024-25.
Frank A. Rainwater, Executive Director
Revenue and Fiscal Affairs Office
________
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 9-8-10, RELATING TO DEFINITIONS PERTAINING TO THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO INCLUDE THE ATTORNEY GENERAL OF THIS STATE IN THE DEFINITION OF "SOLICITOR" AND TO MAKE THE NECESSARY PROVISIONS FOR THE ATTORNEY GENERAL TO BECOME A MEMBER OF THE SYSTEM; AND BY AMENDING SECTION 9-8-40, RELATING TO MEMBERSHIP IN THE SYSTEM, SO AS TO ALLOW THE ATTORNEY GENERAL SERVING ON JULY 1, 2024, TO ELECT TO BECOME A MEMBER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 9-8-10(17) of the S.C. Code is amended to read:
(17) "Solicitor" means the person holding office as described under Section 1-7-310 of the 1976 S.C. Code. Subject to the provisions of Section 9-8-40, "solicitor" also means the Attorney General of this State as the chief prosecuting officer of the State. For all purposes of this chapter including, but not limited to, employer and employee contributions, calculation of a retirement or other benefits, and adjustment of benefits paid to a retiree or beneficiary, wherever mention is made of the salary of a circuit solicitor, in the case of the Attorney General of this State, the salary referred to is the higher of the salary provided by law for the Attorney General of this State or a circuit solicitor of this State.
SECTION 2. Section 9-8-40(1) of the S.C. Code is amended to read:
(1) All persons who are judges or solicitors on July 1, 1979, and who have not attained age seventy-two shall become members of the system as of that date.
(a) All administrative law judges on July 1, 2014, who have not retired may elect to become a member of the system. Administrative law judges making that election may transfer prior service into the system as provided in Section 9-8-50, and to the extent the service thus transferred occurred after the member took office as an administrative law judge, that service is deemed earned service in the system.
(b) The Attorney General of this State on July 1, 2024, may elect to become a member of the system. If the Attorney General makes that election, he may transfer prior service into the system as provided in Section 9-8-50, and to the extent the service thus transferred occurred after he took office as the Attorney General of this State, that service is deemed earned service in the system.
(c) All other persons become members of the system on taking office as judge, solicitor, or circuit public defender before attaining age seventy-two.
SECTION 3. This act takes effect upon approval by the Governor.
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This web page was last updated on March 27, 2024 at 07:30 PM
