South Carolina H 4576: Special Purpose Districts Retirement

Bill Text

2025-2026 Bill 4576 Text of Previous Version (Apr. 23, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4576

Indicates Matter Stricken
Indicates New Matter

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

Indicates Matter Stricken

Indicates New Matter

Amended

April 23, 2026

H. 4576

Introduced 
by Reps. Bannister and Clyburn 

S. Printed 4/23/26--H.

Read the first time January 13, 2026

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 9-20-10, RELATING TO STATE OPTIONAL RETIREMENT PROGRAM DEFINITIONS, SO 
AS TO INCLUDE SPECIAL PURPOSE DISTRICTS IN THE DEFINITION OF "EMPLOYER."

 Amend Title To Conform

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

SECTION 1. Section 9-20-10(1) and (2) of the S.C. Code is amended 
to read:

 (1) "Employer" means:

 (a) 
a school district that receives funding from the State from the annual 
appropriation to the Department of Education for Aid to School 
Districts-Employer Contributions in the annual general appropriations act;

 (b) 
a four-year and postgraduate institution of higher education supported and 
under the control of the State;

 (c) 
a technical college supported and under the control of the State;

 (d) 
the State or any of its departments, agencies, bureaus, commissions, and 
institutions, provided that such entity does not meet the definition of item 
(1)(a), (b), or (c) of this section.; or

 (e) a special purpose district or 
commission of public works that has made an election to participate in the 
State Optional Retirement Program pursuant to Section 9-20-15.

 (2) 
"Eligible employee" means:

 (a) 
a person hired on or after July 1, 2001, by an employer as defined in Section 
9-20-10(1)(a) to fill a permanent full-time position;

 (b) 
a person hired on or after July 1, 2002, by an employer as defined in Section 
9-20-10(1)(b), (c), or (d) to fill a permanent full-time position;

 (c) 
a person hired on or after July 1, 2003, by an employer as defined in Section 
9-20-10(1)(a), (b), (c), or (d) to fill a temporary 
position or a part-time permanent position;

 (d) 
a person employed by an employer as defined in Section 9-20-10(1) who, as of 
June 30, 2001, was a participant of the Optional Retirement Program for 
Teachers and School Administrators or who, as of June 30, 2002, was a 
participant of the Optional Retirement Program for Publicly Supported Four-Year 
and Postgraduate Institutions of Higher Education; or

 (e) 
an employee, hired on or after January 1, 2003, by the State or any of its 
departments, agencies, bureaus, commissions, or institutions who is not covered 
by the State Employee Grievance Procedure but who is eligible to participate in 
either the South Carolina Retirement System or the Police Officers Retirement 
System.; or

 (f) an employee hired by an employer as 
defined in Section 9-20-10(1)(e) after the employer's effective date of 
participation in the State Optional Retirement Program pursuant to Section 
9-20-15.

 However, an employee 
who exercises an option to not participate in the South Carolina Retirement 
System under Section 9-1-550 is not eligible to participate in the State 
Optional Retirement Program.

SECTION 2. Chapter 20, Title 9 of the S.C. Code is amended by 
adding:

 Section 
9-20-15. A special purpose district, as defined in Section 6-11-1610, or a 
commission of public works, established pursuant to Article 3, Chapter 31 of 
Title 5, that participates as an employer in the South Carolina Retirement 
System, in its discretion, also may become a participating employer in the 
State Optional Retirement Program by applying to the board to participate in 
the program and by complying with the requirements and regulations of the 
board. The application must be filed at least six months prior to the requested 
effective date of participation, which must be July 1, 2027, or any subsequent 
July first, next following receipt by the board of such application.

SECTION 3. Section 9-1-1085 of the S.C. Code is amended by adding:

 (E) In lieu of the deductions from 
compensation required by Sections 9-1-1020 and 9-1-1160, an employer may elect, 
no later than July first, to pick up all or a portion of the employee 
contributions required by this section for the following fiscal year without a 
reduction or offset from its employees' compensation. Employee contributions 
picked up without such reduction or offset from the employee's compensation 
must be treated as employer contributions in determining federal tax treatment 
under Section 414(h)(2) of the United States Internal Revenue Code but must be 
credited as employee contributions for the purposes of the system. An employer 
making the election provided by this subsection is considered to have taken 
formal action to provide that the contributions on behalf of its employees, 
although design