summary
Introduced
02/26/2025
02/26/2025
In Committee
02/26/2025
02/26/2025
Crossed Over
Passed
Dead
Introduced Session
126th General Assembly
Bill Summary
Amend The South Carolina Code Of Laws By Amending Sections 9-1-1085 And 9-11-225, Both Relating To Employer And Employee Contribution Rates Under The South Carolina Retirement System And The Police Officers Retirement System, Respectively, So As To Provide That An Employer, Up To Certain Limits, May Elect To Pay All Or A Portion Of Required Employee Contributions During A Fiscal Year; By Amending Sections 9-1-10 And 9-11-10, Both Relating To The South Carolina Retirement System Definitions And To The Police Officers Retirement System Definitions, Respectively, So As To Provide What Is Not Earnable Compensation And To Provide That Certain Contributions Paid By An Employer Are Accumulated Contributions Or Aggregate Contributions; By Amending Section 9-11-260, Relating To Deposit Of Assets In The System, So As To Provide For Certain Amounts Paid By The Employer In Lieu Of Employee Contributions; By Amending Sections 9-1-1020, 9-1-1160, And 9-11-210, All Relating To Contributions Of Members, So As To Provide That The Employer May Pick Up Certain Contributions In The Amount Designated As An Employee Contribution In Certain Circumstances.
AI Summary
This bill modifies the South Carolina Retirement System (SCRS) and Police Officers Retirement System (PORS) to allow employers more flexibility in how they handle employee retirement contributions. Specifically, employers can now elect, no later than July first, to pick up all or part of their employees' required retirement contributions without reducing employees' compensation. These picked-up contributions will be treated as employer contributions for federal tax purposes (under IRS Section 414(h)(2)) but will still be credited as employee contributions for retirement system purposes. The bill clarifies that these employer-paid contributions are not considered part of the employee's earnable compensation or compensation, and cannot be directly given to employees as cash. An employer's election to pick up contributions cannot be changed during a fiscal year but can be modified for future years. The bill also updates various technical definitions related to accumulated and aggregate contributions in the retirement systems. The changes aim to provide employers with more administrative flexibility while maintaining the overall structure of the retirement contribution system. The bill will take effect upon approval by the Governor.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Referred to Committee on Ways and Means (on 02/26/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.scstatehouse.gov/billsearch.php?billnumbers=4098&session=126&summary=B |
| BillText | https://www.scstatehouse.gov/sess126_2025-2026/prever/4098_20250226.htm |
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