S.C. Code Regs. § § 19-929
The Group Life Insurance Plan for members of the South Carolina Retirement System, hereinafter referred to as the "Plan", is hereby established and created, for the purpose of providing group life insurance for the payment of the benefits provided by Section 9-1-1770 of the laws governing said System.
A separate fund, to be known as the Group Life Insurance Plan Reserve Fund, is hereby established within the South Carolina Retirement System, hereinafter referred to as the "Retirement System", to be held in trust by this Board. Such fund shall consist of all premiums paid by the employers and other moneys received and paid into the fund for group term life insurance purposes, and of the investment earnings upon such moneys, and shall be used only to pay the group term life insurance prescribed by section C hereof. Concurrent with the determination of the initial liability of the Plan for the balance of the fiscal year on and after the effective date of insurance, for the group term life insurance provided and to be paid for pursuant to this Plan, there shall be segregated and transferred from the Employer Annuity Accumulation Fund of the Retirement System to the reserve fund created by this section such amounts as shall be determined by the actuary to be necessary to pay anticipated group term life insurance claims. Subsequent segregations and transfers shall be made as shall be required to pay the insurance prescribed by section C hereof from the reserve fund provided by this section.
In the event of the death of a member who has met the eligibility requirements set forth in Section 9-1-1770 on or after the effective date of insurance, an amount of insurance equal to the death benefit provided by Section 9-1-1770 shall be paid to the person nominated by the member in accordance with the provisions of Section 9-1-1770 or to the member's estate.
The actuary shall investigate the claim experience of the Plan as provided by Section 9-1-250. On the basis of such investigations and upon the recommendation of the actuary, as provided in Section 9-1-1210, this Board shall certify the premium rates computed to be necessary to fund the group term life insurance authorized to be paid by the Plan. As soon as practicable after the close of each fiscal year, this Board shall determine the premium which the employers participating in the Plan are required to pay into the reserve fund to discharge the obligations of the Plan for the past fiscal year.
Each qualified member of the Retirement System is to be insured as provided herein effective commencing as of June 19, 1973 and while in effect this insurance coverage shall constitute a contractual relationship.
S.C. Code Regs. § 19-929