South Carolina S 420: Retirement system, earning limitations return to work to covered employment in SCRS and SCPORS

Bill Text

2025-2026 Bill 420 Text of Previous Version (May. 13, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 420

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Amended

May 13, 2026

S. 420

Introduced 
by Senator Young 

S. Printed 5/13/26--H.

Read the first time February 26, 2026

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 6-5-10, RELATING TO AUTHORIZED INVESTMENTS BY POLITICAL SUBDIVISIONS SO 
AS TO ALLOW A QUALIFIED RETIREE POST-EMPLOYMENT BENEFIT TRUST MAINTAINED FOR 
THE BENEFIT OF POLITICAL SUBDIVISION RETIREES TO INVEST IN CERTAIN CORPORATE 
DEBT ISSUED BY UNITED STATES CORPORATIONS.

 Amend Title To Conform

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 6-5-10 of the S.C. Code is amended by adding:

 (9)(a) 
A qualified retiree post-employment benefits trust may invest in notes, bonds, 
debentures, or other debt instruments issued by a United States corporation, 
provided that the instruments are rated investment grade by at least two of the 
following nationally recognized statistical rating organizations: S&P 
Global Ratings, Moody's Investors Service, and Fitch Ratings. The lowest rating 
assigned by any of the rating organizations shall control. Further, if an 
instrument held pursuant to this item is subsequently downgraded below 
investment grade by any such rating organization, the governing body of the 
political subdivision shall take prudent action within a reasonable period of 
time to address such downgrade, consistent with its fiduciary duties.

 (b) 
Assets invested pursuant to this item must be separately accounted for and 
shall not be commingled with other funds of the political subdivision for 
purposes of investment authority under this section.

 (c) 
Notwithstanding any other provision of this section, the investment authority 
provided in this item applies exclusively to assets held in a qualified retiree 
post-employment benefits trust and shall not apply to any other funds of a 
political subdivision.

 (d) 
For purposes of this item, a qualified retiree post-employment benefits trust 
means a trust to provide for the employer costs of retiree post-employment 
benefits for retired employees of political subdivisions of the State.

SECTION 2. If any section, subsection, 
paragraph, subparagraph, sentence, clause, phrase, or word of this act is for 
any reason held to be unconstitutional or invalid, such holding shall not 
affect the constitutionality or validity of the remaining portions of this act, 
the General Assembly hereby declaring that it would have passed this act, and 
each and every section, subsection, paragraph, subparagraph, sentence, clause, 
phrase, and word thereof, irrespective of the fact that any one or more other 
sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, 
or words hereof may be declared to be unconstitutional, invalid, or otherwise 
ineffective.

SECTION 3. This act takes effect upon approval 
by the Governor.

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This web page was last updated on May 13, 2026 at 10:58 PM