S 420

South Carolina General Assembly
126th Session, 2025-2026
Bill 420
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
Amended
May 13, 2026
S. 420
Introduced
by Senator Young
S. Printed 5/13/26--H.
Read the first time February 26, 2026
________
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING
SECTION 6-5-10, RELATING TO AUTHORIZED INVESTMENTS BY POLITICAL SUBDIVISIONS SO
AS TO ALLOW A QUALIFIED RETIREE POST-EMPLOYMENT BENEFIT TRUST MAINTAINED FOR
THE BENEFIT OF POLITICAL SUBDIVISION RETIREES TO INVEST IN CERTAIN CORPORATE
DEBT ISSUED BY UNITED STATES CORPORATIONS.
    Amend Title To Conform
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Section 6-5-10 of the S.C. Code is amended by adding:
    (9)(a)
A qualified retiree post-employment benefits trust may invest in notes, bonds,
debentures, or other debt instruments issued by a United States corporation,
provided that the instruments are rated investment grade by at least two of the
following nationally recognized statistical rating organizations: S&P
Global Ratings, Moody's Investors Service, and Fitch Ratings. The lowest rating
assigned by any of the rating organizations shall control.  Further, if an
instrument held pursuant to this item is subsequently downgraded below
investment grade by any such rating organization, the governing body of the
political subdivision shall take prudent action within a reasonable period of
time to address such downgrade, consistent with its fiduciary duties.
  (b)
Assets invested pursuant to this item must be separately accounted for and
shall not be commingled with other funds of the political subdivision for
purposes of investment authority under this section.
  (c)
Notwithstanding any other provision of this section, the investment authority
provided in this item applies exclusively to assets held in a qualified retiree
post-employment benefits trust and shall not apply to any other funds of a
political subdivision.
  (d)
For purposes of this item, a qualified retiree post-employment benefits trust
means a trust to provide for the employer costs of retiree post-employment
benefits for retired employees of political subdivisions of the State.
SECTION 2.  If any section, subsection,
paragraph, subparagraph, sentence, clause, phrase, or word of this act is for
any reason held to be unconstitutional or invalid, such holding shall not
affect the constitutionality or validity of the remaining portions of this act,
the General Assembly hereby declaring that it would have passed this act, and
each and every section, subsection, paragraph, subparagraph, sentence, clause,
phrase, and word thereof, irrespective of the fact that any one or more other
sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases,
or words hereof may be declared to be unconstitutional, invalid, or otherwise
ineffective.
SECTION 3.  This act takes effect upon approval
by the Governor.
----XX----
This web page was last updated on May 13, 2026 at 10:58 PM