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State employee update Expect more pay, higher mileage reimbursement  by Mary Helen Yarborough Public Relations MUSC employees and retirees affected by the recent S.C. Supreme Court ruling will not have their settlement amounts reduced by fees for attorneys that represented the pension participants of the Teacher and Employee Retention Income Program (TERI), according to Broadus Jamerson, the S.C. State Employees Association (SCSEA) executive director.   On June 1 the state Supreme Court affirmed its earlier ruling on May 4 (Layman et al v. South Carolina Retirement System and the State of South Carolina) that employees that participated in the TERI program prior to July 1, 2005, will have their contributions returned to them plus 6 percent interest on the money if the state dispenses the money by July 1. Otherwise, the state must pay 11 percent interest on the contributions if the funds are dispersed after July 1.   The question was whether lawyers’ fees, which could be as high as $50 million, would be deducted from the contributions. Jamerson told SCSEA Charleston chapter members during an annual lunch June 9 that lawyers representing SCSEA and TERI pension-holders would be paid separately. Other changes in benefits and reimbursements The state also will change the amount of money it will reimburse to state employees who use their personal vehicles to conduct state business.   The previous per-mile reimbursement rate, based on the Internal Revenue Service (IRS) rate of 34.5 cents per mile will increase to the IRS rate of 44.5 cents per mile effective July 1.   Employees also should expect a little more in their paychecks, which should show a 3 percent cost-of-living increase effective July 1. Retirement contribution rates to increase The state legislature has approved a measure changing the base employer retirement contribution rate for employers covered by the South Carolina Retirement System (SCRS) to 8.05 percent from 7.55 percent effective July 1.   The increase, which resulted in passage of Act 153, also increased the SCRS employee contribution rate to 6.50 percent from 6.25 percent effective July 1. Employee contribution rate changes required by Act 153 are applicable when compensation is earned, not paid. Act 153 also increased the employer contribution rate by an additional .50 percent effective July 1, 2007. These rate changes were made by the South Carolina General Assembly to help fund an annual guaranteed cost of living adjustment (COLA) of up to 1 percent for eligible SCRS retirees and a portion of the 2.4 percent ad hoc COLA eligible SCRS retirees received July 1, 2005.   In addition to the contribution rate changes required by Act 153, at its May 16 meeting, the State Budget and Control Board approved a further increase of .51 percent in the employer contribution rate effective July 1, 2007. Therefore, the employer contribution rate will increase to 9.06 percent effective July 1, 2007. The board’s action allowed it to fund an additional 2.5 percent ad hoc COLA effective July 1 for eligible SCRS retirees without exceeding the 30-year recommended limit for a pension plan’s unfunded actuarial accrued liability amortization period.   The additional .51 percent increase in the employer contribution rate also funds the possible negative impact of the South Carolina Supreme Court’s recent decision in TERI  pension case which could result in a loss of $125 million in contributions.   For information, contact customer service at (800) 868-9002, (803) 737-6800, or cs@retirement.sc.gov.     Friday, June 16, 2006 Catalyst Online is published weekly, updated as needed and improved from time to time by the MUSC Office of Public Relations for the faculty, employees and students of the Medical University of South Carolina. Catalyst Online editor, Kim Draughn, can be reached at 792-4107 or by email, catalyst@musc.edu. Editorial copy can be submitted to Catalyst Online and to The Catalyst in print by fax, 792-6723, or by email to catalyst@musc.edu. To place an ad in The Catalyst hardcopy, call Island Publication at 849-1778, ext. 201.