The bill H. 4098 aims to amend 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). Key provisions include allowing employers to elect to pay all or a portion of required employee contributions without reducing the employees' compensation, effective from July 1 of the fiscal year. This change is designed to treat these contributions as employer contributions for federal tax purposes while still crediting them as employee contributions within the retirement systems. The bill also clarifies definitions related to earnable compensation and accumulated contributions, ensuring that contributions picked up by employers are not considered earnable compensation.

Additionally, the bill modifies existing definitions and provisions to ensure consistency across the retirement systems. It specifies that employee contributions picked up by employers will be treated as employer contributions for tax purposes and outlines the process for how these contributions should be managed. The amendments also emphasize that employees cannot opt to receive the contributed amounts directly, reinforcing the employer's responsibility to manage these contributions. 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