The bill H. 3551 proposes amendments to the South Carolina Code of Laws regarding the definitions applicable to the South Carolina Retirement System and the computation of South Carolina gross income. Specifically, it seeks to clarify that "earnable compensation" does not include amounts paid to managers and clerks of elections if those amounts are not subject to Federal Insurance Contribution Act (FICA) tax, as outlined in specific sections of the Internal Revenue Code. This change is intended to ensure that certain election-related payments are excluded from retirement calculations.

Additionally, the bill amends Section 12-6-1120 to similarly exclude these amounts from the computation of gross income for tax purposes. The amendments will take effect on June 30, 2025, and the provisions will apply to tax years beginning after 2024, following approval by the Governor.

Statutes affected:
12/05/2024: 9-1-10, 12-6-1120
Latest Version: 9-1-10, 12-6-1120