May Camden offer municipal employees a voluntary deferred-compensation plan separate from the state plan?

Plain-English summary

The Attorney General said Camden could offer its employees a voluntary deferred-compensation plan independent of the State Deferred Compensation Commission. Section 8-23-70 expressly allowed municipalities and other political subdivisions to participate in eligible independent plans. The opinion did not certify any specific vendor's current plan; it advised Camden to consult its city attorney about whether a particular plan met statutory requirements.

Currency note

This opinion was issued in 2003. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Historical summary

Municipal employers

The AG read the statute as allowing independent deferred-compensation arrangements and as giving political subdivisions the contract authority needed for participation. The statutory conditions still applied.

Employees and plan providers

The opinion referred to an earlier AG opinion discussing an ICMA plan, but left the compliance of any present plan to the city and its attorney.

Common questions

Must a city use only the state deferred-compensation program?
No. The opinion identified an express statutory route for independent plans.

Did the AG approve a particular plan for Camden?
No. It called for legal review of the plan's compliance.

Background and statutory framework

Camden asked whether it could offer a separate voluntary option. The opinion cited S.C. Code Ann. §§ 8-23-10 et seq., 8-23-20, and 8-23-70.

Citations and references

The opinion discussed S.C. Code Ann. §§ 8-23-10 et seq., 8-23-20, and 8-23-70.

Official title

Questioning whether there is any legal prohibition to prevent the City of Camden from offering its employees the voluntary option of a deferred compensation plan separate from the South Carolina Deferred Compensation Plan.

Requester

G. F. Broom, Jr., City Manager, City of Camden

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/august-26-2003/
• Original PDF: https://www.scag.gov/wp-content/uploads/2013/03/03aug-26-Broom.pdf

Original opinion text

The State of South Carolina

OFFICE OF THE ATTORNEY GENERAL
HENRY McMAsTER

August 26, 2003

ATIORNEY GENERAL

G. F. Broom, Jr., City Manager
City of Camden
P. 0 . Box 7002
Camden, South Carolina 29020
Dear Mr. Broom:
In a letter to this office you questioned whether there is any legal prohibition to prevent the City of Camden from offering its employees the voluntary option of a deferred compensation plan separate from the South Carolina Deferred Compensation Plan. S.C. Code Ann. Sections 8-23-10 et seq. (1986) authorize the participation of employees of the State, its agencies and political subdivisions in authorized deferred compensation programs. Pursuant to Section 8-23-20, the South Carolina Deferred Compensation Commission was established. That Commission was authorized to implement and administer the State Deferred Compensation Program. However, Section 8-23-70 expressly provides that Nothing contained in this chapter shall be construed to prohibit counties, municipalities, school districts, and other political subdivisions of the State and their employees from participation in deferred compensation plans or programs offered independently of the State Deferred Compensation Commission by building and loan or savings and loan associations, banks, trust companies and credit unions chartered by the state or federal governments, and all such political subdivisions shall be empowered with such contractual authority as may be necessary or incident to such participation. Further provisions provide for additional requirements of such accounts. Prior opinions ofthis office have recognized the authority of political subdivisions and schools to participate pursuant to Section 8-23-70 in deferred compensation programs offered by entities other than the State Deferred Compensation Commission provided they meet statutory requirements. See: Ops. Atty. Gen. dated February 26, 1996; December 8, 1993; June 26, 1981 . 1 am enclosing a copy of the December 8, 1993 opinion which expressly indicated that the firm referenced in your letter, International City Managers Association (ICMA), may provide investments under its deferred compensation plans to employees of the State, its agencies and

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P OST OFFICE Box 11 549

• CoLUMBlA, S.C. 29211 -1549 • TELEPHONE: 803-734-3970 •

fACSIMD..E: 803-253-6283

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Mr. Broom
Page2
August 26, 2003

political subdivisions provided certain requirements are met. As to any participation by Camden city employees with ICMA or any other particular deferred compensation plan, you should consult with your city attorney to determine whether such plan presently meets statutory requirements for deferred compensation plans which would enable it to offer plans in this State. Sincerely,

~~ill~
Charles H. Richardson
Senior Assistant Attorney General

Enclosure

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