Panel approves amendment letting special purpose districts opt into state Optional Retirement Program for new hires

The subcommittee advanced H 45 76 after adopting an amendment that would allow special purpose districts that already participate in the South Carolina Retirement System to elect to offer the state Optional Retirement Program (ORP) to new hires.

Rebecca West, chief executive officer of Renewable Water Resources, said her Upstate special purpose district provides wastewater services to five counties and has roughly 230 employees. She told the committee that offering ORP as an option would give newer employees portability and choice between defined‑benefit plans and 401(k)-style accounts and could improve recruitment and retention.

West said the effective date in the bill would apply to new hires after the specified date so existing employees would remain in their current defined‑benefit plans; she also said any implementation cost would be borne by the utility that elects the option.

Peggy Boykin of the Public Employee Benefit Authority (PEBA) said PEBA supports the bill as amended if the change remains voluntary for employers and applies only to new hires. Boykin explained differences between ORP and the defined‑benefit plan (ORP does not include disability retirement) and outlined how employer contributions affect the system’s unfunded liability. PEBA’s actuarial view was that, limited to new hires in a small population of special purpose districts, the amendment would produce minimal fiscal impact; broader expansion or including current employees would require further actuarial analysis.

The subcommittee adopted the amendment by roll call and then voted 4–0 to report H 45 76 favorably as amended.