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Committee carries over bill that would strip retirement, health benefits for employees convicted in crimes involving minors
Summary
S734 would require forfeiture of state retirement and health benefits for state employees convicted or pleading guilty/no contest to crimes involving minors or possession/distribution of child sexual‑abuse material (including AI‑generated material); the subcommittee carried the bill over to obtain more information about dependent coverage, implementation, pardons/exonerations and related processes.
The Senate Finance Subcommittee considered S734, a proposal to add a forfeiture provision to the South Carolina Retirement System that would require refund of employee contributions and could bar state retirement and health benefits for employees convicted or pleading guilty or no contest to crimes involving misconduct with a minor or possession or distribution of child sexual‑abuse material, including material generated with artificial intelligence.
Staff summarized the bill’s main elements and said the proposed language would add a new section to the retirement‑system chapter and take effect upon approval of the governor. Under the draft, an affected employee would forfeit retirement and health benefits and the retirement system would be required to refund that employee’s contributions; the draft also included a provision that could allow a former employee to receive 25% of the lost benefit if they move to a state that does not border South Carolina.
Committee members pressed staff and witnesses on implementation details. One question asked whether any existing code authorized clawbacks for other misconduct; staff noted a lien provision in code cited in the hearing (transcribed as 8‑1‑115) related to embezzlement. Members asked whether other states have similar laws; staff identified New Jersey and Florida as having comparable provisions in a prior scan. Committee members also raised concerns about the treatment of innocent dependents and whether survivor or ERISA rules might limit the state’s options; Heather Young, identified on the record as director of external affairs, said she would need to "do a little more digging" and that "we can certainly look into that and get that information."
Committee members also asked about the effect of later exoneration, appeal reversals or pardons; staff and witnesses said the draft does not contemplate a restoration process and implementation rules would need to be developed. Several senators cautioned against moving the bill forward without additional detail on scope and operations. The chair accepted a motion to carry the bill over so staff can return with requested information.
