Bill
H 4098
Public employers may elect to pay all or part of employees’ SCRS and PORS contributions for a year, with pretax treatment for employees but credit to their accounts as employee con
Note on source text
- The materials provided contain two different bills combined: (A) a Massachusetts local act titled “An Act relative to ranked choice voting in the city of Northampton” (House No. 4098 / HD 630) and (B) a South Carolina statutory amendment that would change employer/employee contribution treatment under the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS). The metadata you supplied identifies the title as relating to SCRS/PORS; below I summarize both briefly and clearly note the likely substantive focus (SCRS/PORS).
Purpose and intent
- Allow public employers to elect to “pick up” (pay on behalf of) all or part of employees’ required retirement contributions for a fiscal year, and clarify how such picked‑up amounts are treated for plan accounting and federal tax purposes.
Key provisions
- Adds a new subsection to SCRS (S.C. Code §9‑1‑1085) and to PORS (§9‑11‑225) authorizing an employer, by election no later than July 1, to pay all or a portion of employee contributions for the upcoming fiscal year without reducing employee pay.
- Picked‑up contributions are treated as employer contributions for federal tax treatment under IRC §414(h)(2) (i.e., remain pretax to employees) but are credited to the member’s account as employee contributions for plan purposes.
- Employers must pay these amounts from the same fund used to pay employee earnings; employees may not elect to receive the equivalent cash instead.
- The employer’s election is irrevocable for that fiscal year (but may be changed for subsequent fiscal years).
- Amendment clarifies that employer‑paid (picked‑up) contributions are not “earnable compensation” or “compensation” for certain plan calculation purposes.
- Definitions amended to include employer‑paid amounts in members’ “accumulated contributions” or “aggregate contributions” and to ensure they are reflected in members’ accounts (S.C. Code §§9‑1‑10, 9‑11‑10, 9‑11‑260).
- Conforming changes to sections governing the Employee Annuity Savings Fund and contribution rates (§§9‑1‑1020, 9‑1‑1160, 9‑11‑210) to permit employer pick‑up in specified circumstances.
Who is affected
- Public employers and employees participating in SCRS and PORS (state agencies, counties, municipalities, and other political subdivisions covered by the systems).
- Pension plan administrators (to record and credit picked‑up contributions).
- Potential fiscal/actuarial impacts for employers who elect to pay employee shares.
Potential impacts and considerations
- Short‑term: employers who elect pick‑ups incur higher employer cash outlays (though employees’ net pay is unchanged).
- Long‑term: picked‑up contributions still count toward members’ accumulated contributions (benefit crediting/vesting), but not toward “earnable compensation” calculations where the bill so specifies — this could affect final‑average‑pay or benefit accrual calculations depending on statutory definitions and implementing rules.
- Maintains pretax federal treatment under IRC §414(h)(2).
- Fiscal effects depend on how many employers adopt the option and whether local budgets absorb or offset the cost.
Procedural/status (from provided file)
- Filed (text repeated) — no statewide legislative action timeline for the SC measure included in the excerpt.
Purpose and intent
- Authorize and set rules for ranked choice voting (RCV) for all municipal offices in Northampton; revise local charter articles to implement RCV.
Key provisions (selected)
- Establishes RCV as the method for all city offices, defines terms (transfer value, election threshold, batch elimination, etc.), and sets tabulation rules for single‑seat and multi‑seat contests.
- Sets regular city election timing (first Tuesday following first Monday in November of odd‑numbered years), nonpartisan ballots, warding, and drawing procedures for ballot order.
- Details rounds, surplus transfer calculations, batch elimination rules, handling of overvotes and ties, and how concluded ballots are treated.
Who is affected
- Voters and candidates in Northampton; city election administrators; city clerk and election officials responsible for RCV tabulation.
Procedural/status (from provided actions)
- Introduced 02/26/2025; referred to Committee on Ways and Means 02/26/2025; Referred to Committee on Election Laws 05/08/2025; Senate concurred 05/12/2025; hearing scheduled 11/13/2025 (A‑2).
If you want, I can:
- Produce a focused, longer fiscal and legal analysis of the SCRS/PORS pick‑up option (actuarial/fiscal consequences, implementation steps), or
- Produce a plain‑language guide explaining how Northampton’s RCV tabulation would work step‑by‑step for voters and election staff.
Compiled from official sources — confirm details with the bill’s official record.
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