S.C. Code Ann. § 9-11-310 – Cost-of-living adjustment to be based on Consumer Price Index

(A) As of the end of each calendar year, the increase in the ratio of the Consumer Price Index to the index as of the prior December thirty-first must be determined.
(B)
1. (1) If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by no more than two percent, the retirement allowance of each beneficiary in receipt of an allowance must be increased by a percentage equal to the increase in the index.
2. (2) If the Consumer Price Index as determined pursuant to subsection (A) of this section increases by more than two percent, then:
  1. (a) the retirement allowance of each beneficiary in receipt of an allowance must be increased by two percent; and
  2. (b) the retirement allowance may be further increased beyond two percent up to the lesser of the total percentage increase in the Consumer Price Index or four percent, but only to the extent all of the following conditions are met:
    1. (i) the amortization period for unfunded liability as reported in the annual valuation by the actuary for the most recently concluded fiscal year is at twenty-five years or below;
    2. (ii) the estimated funded ratio in the current year, after an increase pursuant to this subitem, does not decrease from the actuary's reported funded ratio for the most recently completed fiscal year;
    3. (iii) the estimated amortization period in the current year, after the increase pursuant to this subitem, is reduced by at least one year from that reported by the actuary for the most recently completed fiscal year; and
    4. (iv) no increased employer contribution is required to support the increase pursuant to this subitem.
(C) The increase in retirement allowances commences the July first immediately following the December thirty-first that the increase in ratio was determined, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowance granted pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.
(D) The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section, when and if payable, must be increased by the same percent.
(E) For purposes of this section, "Consumer Price Index" means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics.
(F) For purposes of paying a portion of the increase in the retirement allowance provided pursuant to subsection (B)(1) of this section, the employer contribution rate for the system must be increased by an amount required to maintain the system's amortization period to liquidate the unfunded actuarial accrued liability at thirty years or one-half percent of the earnable compensation of all members employed by an employer participating in the system, whichever is less. The increase in the employer contribution rate must be effective July 1, 2009. The employer rate provided in this section also applies to payments for unused annual leave under the circumstances provided in Section 9-11-210. The employer rate provided in this section includes the system's normal contribution rate and accrued liability contribution rate, but does not include contributions for group life insurance, the accidental death benefit program, or other benefits that are remitted to the retirement systems. Contributions for group life insurance, the accidental death benefit program, or other benefits are in addition to the applicable employer contribution rate.