The bill S. 297 amends various sections of the South Carolina Code of Laws concerning employer and employee contribution rates under the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS). It allows employers to elect to pay all or a portion of the required employee contributions during a fiscal year without reducing the employees' compensation. This election must be made by July 1st for the upcoming fiscal year and cannot be changed during that year. The contributions picked up by the employer will be treated as employer contributions for federal tax purposes but credited as employee contributions for the retirement system.

Additionally, the bill clarifies definitions related to compensation and contributions, specifying that employee contributions picked up by employers without a reduction in compensation are not considered earnable compensation. It also outlines how these contributions will be recorded and treated within the retirement systems, ensuring that they are credited to individual accounts and comply with federal tax regulations. The act will take effect upon approval by the Governor.

Statutes affected:
01/30/2025: 9-1-1085, 9-1-10, 9-11-260, 9-1-1020
02/10/2025: 9-1-1085, 9-1-10, 9-11-260, 9-1-1020
Latest Version: 9-1-1085, 9-1-10, 9-11-260, 9-1-1020