Earnings limitation

2025-2026 Regular Session Introduced by William Bailey and 7 co-sponsors

Exempts earnings for SCRS retirees who return as public school bus drivers from the earnings limit, if they retired before 2025.

Member(s) request name added as sponsor: Hayes, Yow, Schuessler, Bailey, Haddon, Burns, Willis

Bill summary — H 3434: Earnings limitation (amendment to S.C. Code §9-1-1790)

Note: The packet provided contains material from two different states (a Massachusetts docket regarding uniform procurement and a South Carolina bill amending retirement law). This summary focuses on the substantive retirement-language (South Carolina) titled “Earnings limitation,” which amends S.C. Code §9-1-1790.

Main purpose

To create an additional exception to the earnings limitation that can reduce or suspend retirement benefits for members of the South Carolina Retirement System (SCRS) who return to “covered employment.” Specifically, the bill exempts certain retired members who return to work as public school bus drivers from the earnings limitation.

Key provisions

Amends S.C. Code §9-1-1790(A)(2) by adding new subparagraph (d):

The earnings limitation does not apply to compensation received for employment as a school bus driver for a public school district by a member who retired from the system before January 1, 2025.

Existing exceptions in (A)(2) are retained: the limitation already does not apply to members who (a) retired before January 2, 2013; (b) were age 62 at retirement; or (c) return to certain appointed or elected public offices.

Effective date: the act “takes effect upon approval by the Governor.”

Who is affected

Directly affected: SCRS retirees who retired before January 1, 2025 and who return to covered employment as school bus drivers for public school districts in South Carolina. Under the bill, these persons may earn bus driver wages without triggering the normal earnings limitation that can reduce pension benefits.

Indirectly affected: public school districts that employ bus drivers (may be able to hire experienced retirees), and the SCRS/State budget (potential actuarial/fiscal effects).

Procedural status and timeline

Bill text shows enactment language and an effective-upon-approval clause.

Legislative actions in the provided record include introductions and dates (e.g., filed 12/05/2024 and text dated 12/05/2024), and a note that the act takes effect on governor approval.

A hearing was scheduled (07/15/2025 per provided actions); sponsors and further committee actions appear in the record.

Potential impacts and considerations

Workforce: May increase the pool of eligible bus drivers by enabling some retirees to return without pension penalties.

Fiscal: Could modestly increase pension payouts if retirees work without earnings offsets; the magnitude depends on how many retirees return and salary levels. It could also reduce payroll costs for districts if retired drivers are used in lieu of hiring others, but any net state-level pension liability impact would need actuarial analysis.

Scope limits: The exemption is narrowly drawn (only bus drivers and only retirees who left SCRS before 1/1/2025).

If you want, I can: draft a one-paragraph explainer for district HR directors, outline estimated fiscal questions to send to the retirement system, or extract the exact statutory text change for legislative tracking.