South Carolina H 3867: Annuity Contracts for Employees of Schools and Educational Institutions

Bill Text

2025-2026 Bill 3867 Text of Previous Version (Jan. 30, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3867

Indicates Matter Stricken
Indicates New Matter

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

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS 
BY AMENDING SECTION 9-15-10, RELATING TO SCHOOL DISTRICTS AND STATE-SUPPORTED 
INSTITUTIONS OF HIGHER LEARNING AUTHORIZED TO PURCHASE ANNUITY CONTRACTS, SO AS 
TO PROVIDE THAT CERTAIN CONTRACTS MUST OFFER CERTAIN INVESTMENT OPTIONS.

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

SECTION 1. Section 9-15-10 of the S.C. 
Code is amended to read:

 Section 
9-15-10. (A) The various school districts of this State and State state-supported 
institutions of higher learning are authorized to enter into agreements to pay, 
at the request of their employees, a part of the incomes of such employees, not 
to exceed the exclusion allowance provided in Section 403(b)(2) of the Internal 
Revenue Code of the United States, for the purchase of annuity or other 
contracts which meet the requirements of Section 403(b) of the Internal Revenue 
Code.

 (B) School districts and state-supported 
institutions of higher learning can only enter contracts allowed pursuant to 
subsection (A) with vendors providing investment options that:

 (1) do not impose an administrative 
asset-based fee in excess of 0.5%;

 (2) do not impose front-end sales or 
advisory charges;

 (3) do not impose surrender charges;

 (4) offer access to all of the following 
types of funds:

 (a) a target-based index fund with an 
expense ratio that is less than or equal to 0.25%;

 (b) a broad-based domestic index fund 
with an expense ratio that is less than or equal to 0.10%;

 (c) a broad-based bond index fund with 
an expense ratio that is less than or equal to 0.10%; and

 (d) an international index fund with an 
expense ratio that is less than or equal to 0.10%; and

 (e) provide employees with a one-page 
summary of all administrative fees.

 (C) In the event a district or 
state-supported institution of higher learning has entered into a contract with 
a vendor that does not meet the requirements of this section before July 1, 
2026, a participant contributing to a 403(b) retirement savings plan account 
through a salary reduction agreement may continue to make contributions under 
the terms of the previous contract.

SECTION 
2. This act takes effect on July 1, 2026.

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This web page was last updated on January 30, 2025 at 12:23 PM