Senate subcommittee advances bill allowing Catawba Nation to join police officers retirement system

The Senate retirement subcommittee for Finance voted to give a favorable report to S.127, a bill that would allow the Catawba Nation to join the state police officers retirement system if the Nation applies to the retirement board and complies with existing rules.

The bill, summarized to the committee by staff member Olivia, would add the Catawba Nation "upon its admission to the system" to the statutory definition of an employer for the police officers retirement system and requires that any dispute arising from participation "will be resolved in the tribunal, notwithstanding any sovereign immunity" as a condition of joining. Olivia told the panel the act would take effect upon approval by the governor.

Sponsor Senator Johnson framed the measure as a recruitment and retention tool. "Imagine if you can for a second living in an area that every time you hire law enforcement because you can't give them benefits... they can't get in any retirement system," he said, arguing membership would make it easier for the Nation to attract and keep officers.

A Catawba Nation representative told the subcommittee the Nation has about 4,200 members living in South Carolina and described a long negotiation over the legal terms needed for participation. "We have 4,200 members of the Catawba Nation as far as populous housed within the state of South Carolina," the representative said, and confirmed the Nation agreed to a limited waiver of sovereign immunity to enable entry into the retirement system.

Justin Warner, general counsel at PEBA, told senators the mechanics would mirror how a small municipality joins the system: prior public service would count where applicable and service accrual would begin from the Nation's chosen date of admission. "This just allows them to join the system like any other municipality... If either officers had prior time in the system, they would start adding to that old time," Warner said.

Committee members sought and received clarifications that the waiver of sovereign immunity being discussed is narrowly limited to enforcement and administration of the retirement system and does not constitute a blanket surrender of sovereign status for the Nation. The Nation's representative emphasized the waiver was a carefully negotiated concession "siloed in this venue of the law" to enable retirement benefits for its officers.

The subcommittee chair then entertained a motion for a favorable report. The motion passed by voice vote and was reported favorably to the full committee; the chair noted Senators Gambrell and Hembry had sent proxies. The measure will proceed to the next committee stage; under the bill language the act would take effect only after the governor signs it.

What happens next: S.127 now goes to the full committee for consideration. If it is enacted, the Catawba Nation would need to apply to the retirement board and comply with the board's rules to finalize admission to the police officers retirement system.