2005-2006 Bill 617: Public Employee Pension Plans, State Retirement - South Carolina Legislature

South Carolina General Assembly

116th Session, 2005-2006

A401, R225, S617

STATUS INFORMATION

Joint Resolution

Sponsors: Senators Alexander, Setzler, Short, Verdin, Ryberg, Knotts, Campsen and Ritchie

Document Path: l:\council\bills\ggs\22015htc05.doc

Companion/Similar bill(s): 4070

Introduced in the Senate on March 15, 2005

Introduced in the House on January 26, 2006

Passed by the General Assembly on February 2, 2006

Governor's Action: No signature required

Summary: Public employee pension plans, state retirement

HISTORY OF LEGISLATIVE ACTIONS

Date Body Action Description with journal page number

3/15/2005 Senate Introduced and read first time SJ7

3/15/2005 Senate Referred to Committee on Finance SJ7

3/16/2005 Senate Committee report: Favorable Finance SJ22

3/17/2005 Scrivener's error corrected

1/24/2006 Senate Read second time SJ16

1/24/2006 Senate Unanimous consent for third reading on next legislative day SJ16

1/25/2006 Senate Read third time and sent to House SJ13

1/26/2006 House Introduced, read first time, placed on calendar without reference HJ5

2/1/2006 House Read second time HJ29

2/1/2006 House Roll call Yeas101 Nays2 HJ32

2/2/2006 House Read third time and enrolled HJ15

2/15/2006 Ratified R 225

2/15/2006 No signature required

2/21/2006 Copies available

2/21/2006 Effective date 02/15/06

10/17/2006 Act No.401

VERSIONS OF THIS BILL

3/15/2005

3/17/2005

1/26/2006

(A401, R225, S617)

A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 16, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO BENEFITS AND FUNDING OF PUBLIC EMPLOYEE PENSION PLANS IN THIS STATE, INVESTMENTS ALLOWED FOR FUNDS OF THE VARIOUS STATEOPERATED RETIREMENT SYSTEMS, AND THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL, SO AS TO DELETE THE RESTRICTIONS LIMITING SUCH INVESTMENTS TO AMERICANBASED CORPORATIONS REGISTERED ON AN AMERICAN NATIONAL EXCHANGE AS PROVIDED IN THE SECURITIES EXCHANGE ACT OF 1934 OR QUOTED THROUGH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATIC QUOTATION SYSTEM; AND TO PROPOSE A FURTHER AMENDMENT TO SECTION 16, ARTICLE X, SO AS TO ELIMINATE THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL.

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

Restrictions deleted

SECTION 1. It is proposed that the first sentence of the fourth paragraph, Section 16, Article X of the Constitution of this State be amended to read:

“Notwithstanding the provisions of Section 11 of this article, the funds of the various stateoperated retirement systems may be invested and reinvested in equity securities.”

Question

SECTION 2. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

“Must the first sentence of the fourth paragraph of Section 16, Article X of the Constitution of this State relating to the equity securities investments allowed for funds of the various stateoperated retirement systems be amended so as to delete the restrictions limiting investments in equity securities to those of Americanbased corporations registered on an American national exchange as provided in the Securities Exchange Act of 1934 or any successor act, or quoted through the National Association of Securities Dealers Automatic Quotations System or similar service?

Yes p

No p

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word ‘Yes’, and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word ‘No’.”

State Retirement Systems Investment Panel deleted

SECTION 3. It is proposed that Section 16, Article X of the Constitution of this State be amended by deleting the second through the seventh sentences of the fourth paragraph which read:

“Upon the enactment of the implementing legislation required by this paragraph, there is established the State Retirement Systems Investment Panel. The panel shall consist of five members, one each appointed by the Governor, the State Treasurer, the Comptroller General, and the chairmen of the respective committees of the Senate and House of Representatives having subject matter jurisdiction over appropriations. The appointee of the Governor shall serve as chairman. All persons appointed must possess substantial financial investment experience and no person may be appointed or continue to serve who is an elected or appointed officer or employee of the State or any of its political subdivisions, including school districts. The General Assembly shall implement this paragraph by enacting legislation establishing the panel and providing for the terms, duties, and compensation of its members, and which specifically authorizes the investments allowed by this paragraph, and may provide limitations on investments in equity securities as it considers prudent. The panel established by this paragraph shall not exist until it is established in the implementing legislation required pursuant to this paragraph.”

Question

SECTION 4. The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

“Must the second through the seventh sentences of the fourth paragraph of Section 16, Article X of the Constitution of this State relating to the establishment and membership of the State Retirement Systems Investment Panel be amended by deleting these sentences thereby abolishing this constitutionally established panel?

Yes p

No p

Ratified the 15th day of February, 2006.

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