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, once made, cannot be changed during that fiscal year. The bill also clarifies that contributions picked up by employers in lieu of employee contributions will be treated as employer contributions for federal tax purposes but credited as employee contributions for the retirement system.

Additionally, the bill revises definitions related to compensation and contributions, specifying that certain employer-paid contributions are not considered earnable compensation. It also updates the language regarding accumulated contributions and aggregate contributions to reflect the new provisions. The changes aim to provide more flexibility for employers while ensuring compliance 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