The bill H. 4098 aims to amend the South Carolina Code of Laws regarding 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 updates the definitions of "accumulated contributions" and "aggregate contributions" to include amounts paid by employers in lieu of employee contributions. The bill ensures that these contributions are managed consistently with existing laws and regulations, reinforcing the treatment of these contributions for tax purposes. The act will take effect upon approval by the Governor.

Statutes affected:
02/26/2025: 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