South Carolina Retirement Systems

Electronic Employer Services Enhancement

With the latest enhancement to the South Carolina Retirement Systems' Electronic Employer Services (EES) platform, you will now be able to certify employer information for the payment of annuity claims. This online process will replace the Employer Certification of Last Day Paid (Form 6201). You will no longer receive paper copies of this form.

To ensure a smooth transition, please complete all the paper Employer Certification of Last Day Paid forms that you have already received and return these forms to the Retirement Systems for processing.

For future annuity claims, you will receive an email when you are required to certify information for payment. These items will be available in your task list on EES. To view this list, log on to EES with your user ID and password. Provided you have the required access, you should see the task list as one of your available options.

If you currently have authorization to complete Form 6201, you will automatically receive access to certify information for annuity applicants on EES. If someone else in your organization needs EES access or needs to have access to complete the Employer Certification of Last Day Paid, please have your EES authorizing contact complete an Electronic Employer Services (EES) Designated Agent Confidentiality Agreement (Form 6505) and fax it to Joyce McDonald at 803-737-6810.

If you are not responsible for certifying information for the payment of annuity claims, please forward this message to the appropriate person in your organization.

If you have questions about this new certification process for annuity claims or need assistance using EES to certify annuity information, please contact Customer Services at 803-737-6800, toll free at 800-868-9002 (within S.C. only), or at www.retirement.sc.gov/contact/email.htm.

New Video Added to Website

Premiering on the South Carolina Retirement Systems's website today is a new video in our Retirement Tips Series. This five-minute video provides a glance at the State Optional Retirement Program (State ORP). Check it out! - http://retirement.sc.gov/video/videos/tips/orpoverview.htm.

1099-R Forms to be Mailed Today

The South Carolina Retirement Systems is mailing 1099-R forms today to recipients of payments from the Systems.

Attention Retirees: Your Benefit Check Net Amount May Have Changed

The South Carolina Retirement Systems withholds state and federal income taxes from all taxable distributions in accordance with the rules and guidelines set forth by the Internal Revenue Service (IRS). As a result of recent changes to the federal tax withholding tables required for calendar year 2012, the net amount of the monthly benefit that is deposited into your bank account or issued to you in the form of a paper check may have changed from the prior month. If you wish to make changes to your income tax withholdings, please complete and submit a Withholding Certificate for Monthly Annuity Payments (Form 7202) which is available on our website. If you have any questions or need additional information, please contact our office at 803-737-6800, toll free at 800-868-9002, or http://retirement.sc.gov.

Open Enrollment Reminder for State ORP Eligible Employers

The enrollment period for all State Optional Retirement Program (State ORP) participants is January 1 through March 1 of each year. During the open enrollment period, State ORP participants may change vendors or, if eligible, may irrevocably elect to join the South Carolina Retirement System (SCRS). Any State ORP participant who wishes to change vendors should complete a State ORP Notice of Termination or Change (Form 1162). State ORP participants are eligible to switch from the State ORP to SCRS during the 2012 open enrollment period if at any point during the open enrollment period they have a minimum of 12 months, but no more than a maximum of 60 months, participation from their initial enrollment in the State ORP (initial enrollment between January 1, 2007 and March 1, 2011).

Employers are responsible for notifying all State ORP participants of the open enrollment period. The enrollment period offers significant choices for State ORP participants so we encourage you to consider providing an opportunity for the four State ORP vendors, VALIC, Hartford, MetLife Resources, and TIAA CREF, to meet with interested, eligible employees at your worksite to answer any questions they may have. The vendors may contact you to arrange a meeting with your eligible employees. The Select a Retirement Plan Guide and the It's Your Choice Video are available in order to assist them in making this important retirement decision.

Any State ORP participant who decides to irrevocably join SCRS must complete and sign:
• A Retirement Plan Enrollment (Form 1100), and
• A Beneficiary Designation (Form 1102).

These forms, the guide, and the video are available on our website at www.retirement.sc.gov/newhires.

Since any changes made during the upcoming open enrollment period are not effective until April 1, 2012, do not make any applicable payroll changes until the first payroll on or after April 1, 2012.

If you have any questions, please contact Customer Services at 803-737-6800, toll free at 800-868-9002, or www.retirement.sc.gov.

The Retirement Systems and the Employee Insurance Program Work Together to Help Prospective Retirees

If you are considering retirement, the Employee Insurance Program (EIP) and the South Carolina Retirement Systems are working together to help you explore your options in retirement. As part of a pilot project, a benefits counselor from EIP will be available at the South Carolina Retirement Systems's office December 28-30 during normal business hours (8:30 a.m. - 5 p.m.) to meet with prospective retirees. During these meetings, representatives from both divisions will help you determine your eligibility for retirement and for insurance. No appointment is required. For more information, contact the Retirement Systems at 803-737-6800 or 800-868-9002 (within S.C. only).

Please bring a completed Employment Verification Record with you to the meeting, along with:

• A loss of coverage letter with effective and termination dates if you are not currently covered under an EIP program;

• Documentation to verify the eligibility of any family members you plan to add to your insurance coverage when you retire. A list of acceptable documents can be found here;

• A copy of your Medicare card if you will be enrolling in Medicare within the next 90 days;

• Your Social Security card;

• Your birth certificate; and

• Birth certificates for anyone you plan to name as a beneficiary of your retirement benefit.

New Video Added to Website

Premiering on the South Carolina Retirement Systems's website today is a new video in our Retirement Tips Series. This four-minute video provides a glance at the Police Officers Retirement System (PORS). Check it out! - http://retirement.sc.gov/video/videos/tips/porsbenefits.htm

2012 Employer Training Dates Now Online

The dates for the 2012 Employer Training classes have been added to the Retirement Systems' website. You can view the schedule at http://www.retirement.sc.gov/events/events.asp.

Each month, the Retirement Systems conducts a comprehensive, one and one-half day employer training seminar for benefits administrators, payroll personnel, and human resource officials. Our Field Education staff conducts this training in small, informal sessions that encourage group participation and welcome any questions or comments. Although the seminar is designed for beginners, it also covers new procedures and updates mandated by legislation and policy changes. The following topics are covered on day one: Enrollment, Employer Reporting, Service Purchase, and an overview of the South Carolina Deferred Compensation Program. Topics covered on day two include: the retirement process, a demonstration of the Electronic Employer Services (EES) system, leaving covered employment and death claims.

Electronic Employer Services Enhancement Debuts December 1, 2011

With the latest enhancement to the South Carolina Retirement Systems' Electronic Employer Services platform, you will now be able to certify employer information for the payment of refund claims, with the exception of death claims, through the Electronic Employer Services (EES). This online process will replace the Certification of Final Retirement Deductions (Form 4201). You will no longer receive paper copies of this form.

To ensure a smooth transition, please complete all the paper Certification of Final Retirement Deductions that you have already received and return these forms to the Retirement Systems for processing.

For future refund claims, you will receive an email when you are required to certify information for payment. These items will be available in your task list on EES. To view this list, log on to EES with your user ID and password. Provided you have the required access, you should see the task list as one of your available options.

If you currently use EES to submit final payroll certification for service and disability retirement claims, you will automatically receive access to certify information for payment of refund claims. If someone else in your organization needs EES access or needs to have refund certification access added, please have your EES authorizing contact complete an Electronic Employer Services (EES) Designated Agent Confidentiality Agreement (Form 6505) and fax it to Joyce McDonald at 803-737-6810.

If you are not responsible for certifying information for the payment of refund claims, please forward this message to the appropriate person in your organization.

If you have questions about the new refund certification process or need assistance using EES to certify refund information, please contact Customer Services at 803-737-6800 or 800-868-9002.

Retirement Systems Launches New Video Series

In a recent poll a few of our fans let us know that they would like to see more information regarding retirement calculation factors covered in our next video. We appreciate your input!

Premiering today on our website is the first video in a new series we have launched called whiteboard videos. These short, educational videos will provide an overview of some key terms related to retirement. The first video is a description of "average final compensation" and provides an overview of one of the factors used to calculate a member's AFC. http://retirement.sc.gov/video/videos/whiteboard/default.htm

Legislative Page Updates

The Retirement Systems' website has been updated with the latest information we have provided to the House Retirement Ad Hoc Study Committee. To view this information, please visit http://www.retirement.sc.gov/legislative/default.htm.

Public Policy Discussion about Retirement Plan Funding Underway

In February 2011, public policy makers in South Carolina began discussion about the funding status of the state's largest retirement plan for its public workforce, the South Carolina Retirement System (SCRS), as well as the four other systems (the Police Officers Retirement System, the General Assembly Retirement System, the Judges and Solicitors Retirement System, and the National Guard Retirement System. Special retirement subcommittees in both the House of Representatives and the Senate continue to meet and hold public hearings to solicit input and discuss the options available to put the plans on more solid fiscal ground, both now and in the future.

SCRS does not face an immediate liquidity crisis; the plan is currently funded at approximately 65 percent. This means that the plan has on hand 65 percent of the funds it needs to pay future benefits for service already earned. There are numerous options for public policy makers' consideration. As part of the process, legislators are reviewing fiscal impact analyses provided by the Retirement Systems' retained actuary, Gabriel, Roeder Smith and Company (GRS). The Retirement Systems' staff and GRS will continue to provide information to the members of the Senate and House subcommittees so that they may make informed decisions about the plans. To view the documents which have been presented to policy makers as well as responses to their requests for information, please visit http://www.retirement.sc.gov/legislative/default.htm.

Board Takes Action on Retirement Issues

At its November 3, 2011, meeting, the SC Budget and Control Board adopted the July 1, 2010, actuarial valuations prepared by Cavanaugh Macdonald for the South Carolina Retirement Systems' five defined benefit plans.

The valuations for the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) included employer contribution rate increases to maintain the recommended funding periods for the plans. Effective July 1, 2012, the SCRS employer contribution rate will increase to 10.45 percent of covered payroll and the PORS employer contribution rate will increase to 11.90 percent of covered payroll. View the current and scheduled contribution rates at http://www.retirement.sc.gov/news/default.htm.

Also adopted by the Board was an experience study of SCRS and PORS completed by Gabriel Roeder Smith and Company, which included actuarial assumption recommendations to strengthen the plans. As a result of the Board's adoption of the experience study, the actuarial assumed rate of return will be reduced to 7.5 percent from the current 8 percent rate. This action reverts the statute governing the provision of cost-of-living adjustments (COLAs) to SCRS retirees to the law as amended in 2005, which provided for an automatic 1 percent COLA for eligible SCRS retirees. The statute governing the provision of COLAs to PORS members reverts to the pre-2008 law, which provided for ad hoc COLAs only.

For information about the other actuarial assumptions that were adopted by the Board, please review the Gabriel Roeder Smith and Company experience study here.

Retirement Systems' Website Gets New Look, Organization

We have completed a redesign and content reorganization of our website. It is our hope that these tabs will better help our members, employers and the public navigate our site to find the information they need. Along the right side of the page you will find some of our most frequently used resources and links. We are always looking for ways to improve and better serve our customers, so if you have any suggestions please let us know! http://www.retirement.sc.gov/

Retirement Systems Office Hours

The South Carolina Retirement Systems’ office hours are 8:30 a.m. to 5:00 p.m. Members needing retirement consultations are asked to arrive at our office no later than 4:15 p.m. to ensure ample time is available for our consultants to provide a comprehensive consultation. Members needing to change their addresses, complete direct deposit forms, apply for refunds, etc., will be seen until the close of business each day.

New Web Look, Member Access

Today, you’ll notice a new look and a new feature on the Retirement Systems’ home page. In addition to making our home page easier to use, we launched the initial phase of our member access project. This new program allows our members to view and print their annual statement. To learn more, please select the Member Login button at the top of our website, or visit https://online.retirement.sc.gov/MemberAccess/welcome .

We Need Your Input

We need your input. You may have read or heard that the South Carolina Retirement Systems is now on Facebook→ (http://www.facebook.com/SCRetirementSystems) and Twitter → (http://twitter.com/scretirement). Periodically we will be asking polling questions through both Facebook and Twitter to find ways that we can improve the services we offer. If you are a member of Facebook, please check out our most recent polling question regarding your favorite resources to use for your employees.

Retirement Plan Enrollment (Form 1100) Revised

The Retirement Plan Enrollment (Form 1100) has been revised. The language requiring a copy of an employee’s Social Security card to be submitted along with the form has been removed. Now a copy of the member’s Social Security card is only required when the member is correcting or changing his Social Security number.

Enrollment Forms and Copies of Social Security Cards

When enrolling a new employee into one of the retirement plans administered by the South Carolina Retirement Systems, employers who use the South Carolina Enterprise Information System (SCEIS) for this transaction do not need to send an enrollment form or a copy of the new member’s Social Security card to the Retirement Systems. However, to add beneficiaries to the newly hired employee’s account, the Retirement Systems still requires a notarized Beneficiary Designation (Form 1102) or Beneficiary/Trustee Designation (Form 1103) from all employers.

If you are an employer who does NOT use SCEIS, you must complete a Retirement Plan Enrollment (Form 1100) and send it to the Retirement Systems in order to enroll a new employee in a retirement plan. However, you are no longer required to send a copy of the Social Security card with the enrollment form.

Form 5202 and Publications

Beginning this fiscal year, the Retirement Systems will no longer print the Covered Employer Procedures Manual or the SCRS and PORS member handbooks. The electronic versions of the manual and handbooks will be updated each fiscal year and published on our website. We are in the process of revising our website to make it easier for you to direct your employees to the publications that they need or to print your own copies of the handbooks and manual (if you so desire). We will continue to print the tri-fold brochures which contain an overview of each system.

To order a supply of the brochures, please email your request to supplies@retirement.sc.gov. The brochures may also be viewed and printed from our website at http://www.retirement.sc.gov/publications/default.htm. We will notify you when we update current publications or add new ones to our website.

Accounting and Financial Reporting Resource Center

The Governmental Accounting Standards Board (GASB) recently released two proposals for revised accounting and financial reporting standards related to public pension plans. These “exposure drafts” would change the way public pension plans calculate and report the costs and obligations of the plans and would require employers participating in the plans to report in their financial statements their share of the pension plan costs and obligations. Retirement Systems staff is reviewing the exposure drafts and will be prepared to provide education and guidance to its participating employers to ensure smooth implementation of the proposed standards if approved by GASB. Visit our GASB Resource Center at http://www.retirement.sc.gov/gasb/ for more information about these proposals.

Accounting and Financial Reporting Resource Center

New Covered Employer Procedures Manual Now Online

The July 2011 edition of the Covered Employer Procedures Manual is now available on the Retirement Systems’ website. You can find the manual at http://retirement.sc.gov/publications/manual.pdf.

Voice Your Opinion!

Time is running out to voice your opinion! Be sure to take a moment to complete our customer satisfaction survey and let us know what you think about the services the South Carolina Retirement Systems provides.

The survey is located on our website at http://www.retirement.sc.gov/survey/customersatisfaction.htm. This survey is completely anonymous. Your responses will be used for the sole purpose of improving the services we provide.

The South Carolina Retirement Systems is committed to providing our customers with the best service possible. We believe that our effectiveness can best be measured through your satisfaction with our services. Thank you for taking a few moments to complete our survey.

FY 2011-2012 Employer Contribution Rates

Note: The insurance surcharge referred to in this article applies only to those organizations that provide retiree insurance through the State Health and Dental plans. If your organization does not provide retiree insurance through the state plans, please disregard this section of the article.

The South Carolina Retirement Systems is required to collect and forward to the SC Budget and Control Board Employee Insurance Program the employer contribution rate necessary to cover the costs of providing health and dental insurance to retirees covered by the State Health and Dental plans. Effective July 1, 2011, the insurance surcharge rate will increase from 3.90 percent to 4.30 percent.

Visit our website for the contribution rates effective July 1, 2011, by clicking the link above or copying/pasting http://www.retirement.sc.gov/employers/news/2012rates.htm into your browser.

Be Sure to Print Your Employer Training Materials!

If you have registered to attend one of our employer training seminars, you need to print your own classroom materials and bring them with you to the seminar. We have posted all of the files you will need on our website at http://www.retirement.sc.gov/employers/resources/. We have included a PDF version of each segment of the seminar for those of you who do not have Microsoft PowerPoint. Also included on the website are all the appendix materials. We hope you find the training informative and useful.

Customer Satisfaction Survey

The South Carolina Retirement Systems is committed to providing our customers with the best service possible. We believe that our effectiveness can best be measured through your satisfaction with our services. To that end, we would like to get your unique perspective in evaluating the services we provide.

We ask that you please take a moment to complete our customer satisfaction survey which is located on our website at http://www.retirement.sc.gov/survey/customersatisfaction.htm. This survey is completely anonymous. Your responses will be used for the sole purpose of improving the services we provide.

Thank you for taking a few moments to complete this survey.

Retirees expected to receive 1.7 percent COLA

Eligible retirees of the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) are expected to receive a 1.7 percent cost-of-living adjustment (COLA) in their benefit checks effective July 1, 2011.

Current state law provides that each July 1, eligible SCRS and PORS retirees will receive an automatic COLA equal to the percentage of the annual increase in the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W) as of the previous December 31, up to an increase of 2 percent. As of December 31, 2010, the CPI-W increased by 1.7 percent from December 2009 to December 2010.

Retired PORS members are eligible for COLAs the second July 1 after their date of retirement. Retired SCRS members who retired with 28 years of service or on or after their 60th birthday are eligible for COLAs the second July 1 after their date of retirement. However, SCRS members who retired under early retirement provisions at age 55 with 25 years of service are not eligible for COLAs until the second July 1 after they reach age 60 or the second July 1 after the date they would have attained 28 years of service credit had they not retired.

Automatic COLAs are triggered only during periods of inflation.

SC Retirement Systems Now on Facebook!

The South Carolina Retirement Systems is now on Facebook at http://www.facebook.com/SCRetirementSystems ! "Like" us on Facebook for all of the latest updates. - Don't forget to follow us on Twitter too at http://www.twitter.com/scretirement .

Fall 2011 Regional Retirement Seminars

If you are one year or less away from being eligible to apply for retirement, the South Carolina Retirement Systems wants to help make sure you have all of the information you need to make the decisions that are best for you. We offer a one day seminar designed to answer all of your questions and more. Presenters from the Retirement Systems, the South Carolina Deferred Compensation Program, the Social Security Administration, and the Employee Insurance Program will provide you with the information needed to successfully navigate the retirement process. Go to www.retirement.sc.gov/events to see the list of the fall 2011 regional retirement seminars. Scroll through the list until you find a seminar that is near your area and then click “register” to enroll.

Supreme Court issues ruling in Ahrens/Arnold vs. SCRS/PORS

Today, May 2, 2011, the Supreme Court of South Carolina issued a ruling in the Ahrens/Arnold vs. SCRS/PORS law suit in which working retirees who retired and returned to work prior to July 1, 2005 challenged the requirement that they make employee contributions to the Retirement Systems. The Supreme Court determined that the statutes which initially allowed retired members to return to work without making contributions did not create a contract and could therefore be amended to require the working retirees to make such contributions. As such, the Court also determined that the Legislature was not estopped or prohibited from changing the law in 2005 to provide that retired members employed in positions covered by the Retirement Systems must make the same employee contributions as active members occupying the same or similar positions. As a result, the Retirement Systems will continue to collect and retain employee contributions from working retirees. The plaintiffs have fifteen days to seek reconsideration or rehearing and the decision will not be final until the time for rehearing or reconsideration ends.

Annual Summary Report FY 2010 Now Available Online

The Annual Summary Report for Fiscal Year 2010 is now available in the publications area of our website. http://www.retirement.sc.gov/publications/

Open Enrollment Reminder for State ORP Eligible Employers

The enrollment period for all State Optional Retirement Program (State ORP) participants is January 1 through March 1 of each year. During the open enrollment period, State ORP participants may change vendors or, if eligible, may irrevocably elect to join the South Carolina Retirement System (SCRS). Any State ORP participant who wishes to change vendors should complete a State ORP Notice of Termination or Change (Form 1162). State ORP participants who have a minimum of 12 months of participation but no more than 60 months of participation by March 1, 2011, (hired between January 1, 2006 and March 1, 2010) are eligible to switch from State ORP to SCRS during the 2011 open enrollment period.

Employers are responsible for notifying all State ORP participants of the open enrollment period. The enrollment period offers significant choices for State ORP participants so we encourage you to consider providing an opportunity for the four State ORP vendors, VALIC, Hartford, MetLife, and TIAA CREF, to meet with interested, eligible employees at your worksite to answer any questions they may have. The vendors may contact you to arrange a meeting with your eligible employees. Also, please provide your employees with the Select Your Retirement Plan guide, or have them view “It’s Your Choice: SCRS vs. State ORP” in order to assist them in making this important retirement decision.

Any State ORP participant who decides to irrevocably join SCRS must complete and sign:
• A new Retirement Plan Enrollment (Form 1100)
• A Beneficiary Designation (Form 1102)

These forms, the guide, and the video are available on our Web site at www.retirement.sc.gov.

Since any changes made during the upcoming open enrollment period are not effective until April 1, 2011, do not make any applicable payroll changes until the first payroll on or after April 1, 2011.

If you have any questions, please contact Customer Services toll free at 800-868-9002, or at 803-737-6800 or www.retirement.sc.gov.

2011 Employer Training Dates Now Online

The dates for the 2011 Employer Training classes have been added to the Retirement Systems’ Web site. You can view the classes and dates available at http://www.retirement.sc.gov/events/ or by clicking the link above.

Latest EES Enhancement Is Here

Latest EES Enhancement Is Here
The South Carolina Retirement Systems is pleased to announce that the latest enhancement to the Electronic Employer Services (EES) system is now available. We hope this new feature will allow for an easier and more secure method of exchanging information and will help us provide better customer service to both our members and covered employers.

The final payroll certification process will now be completed through EES unless it involves a death claim. In those instances, the Retirement Systems will continue to mail the paper forms 6202/6203 that are currently used in the final payroll certification process.

What Should I Do?
To ensure a smooth transition, all paper 6202 and 6203s that you have received must be completed and sent back to the Retirement Systems for processing. These forms will not be available on EES for completion. You will receive an email notice if items have been added to the Task List. You may also log onto the EES system using your user id and password to check for items in your Task List. Once you are logged in to EES, if you have the proper access, you should see Task List as one of the options available to you for action.

If this information does not pertain to you, please forward this message to the appropriate person at your organization.

New Look, Same Great Mission
The Electronic Employer Services system will soon have a new look. EES users will be greeted by an updated look and feel to the site, however, the functionality will remain the same.

Need Access or Assistance?
If you or someone else within your organization needs EES access or needs to have 6202/6203 access added for existing users, please have your organization’s EES Authorizing Contact complete Form 6505 and submit it by facsimile to Joyce McDonald at 803-737-6810.

If you have any questions about the new final payroll certification process or Form 6505, please contact Joyce McDonald at 803-737-3725.

Quick Reference Card for Publications Available Online

In our continuing effort to provide enhanced service to our members and employers, the South Carolina Retirement Systems has created an improved method of submission by employers of member installment service purchase remittances. The previous paper form 3229 has been replaced by an online interactive version which provides real-time information concerning members’ installment accounts through the use of color coding and informational text. Click the link above to view the memorandum or visit http://www.retirement.sc.gov/employers/news/EESmemorandum.htm .

Quick Reference Card for Publications Available Online

Have you ever wondered which Retirement Systems publications you should give to your employees and when? Well, wonder no more! This quick reference card provides the who, what, when, and where so that you can distribute our publications to your employees with confidence. You can find this quick reference card in the employer area of our website under the "Employer Resources" right hand menu at http://www.retirement.sc.gov/employers or by clicking the title link above.

Furlough Program for Members of SCRS or PORS

The General Assembly recently passed legislation that authorizes a county governing body to institute a furlough program that allows, among other things, the county to make employer and employee retirement contributions on behalf of furloughed employees during the furlough period. Should a county opt to institute such a furlough program, certain restrictions and guidelines established by the new legislation must be followed. Attached to this memorandum is a copy of the Act creating the furlough program for your review. It should be noted that county governing bodies are also authorized to implement employee furloughs in any other manner authorized by law without participating in this furlough program. A county should not, however, remit any retirement contributions for a furloughed employee unless the county is participating in this furlough program and following all of the guidelines set out in the attached legislation at http://www.retirement.sc.gov/employers/news/furloughmemo.htm .

Revised Publications and New Video Available Online

Redesigned and updated Select Your Retirement Plan handbook as well as SCRS, PORS, and TERI brochures have been added to the Retirement Systems' website. You can find these publications at http://www.retirement.sc.gov/publications/. We have also added a new “Retirement Tips” video, “Your SCRS Benefits at a Glance.” You can find the video at http://www.retirement.sc.gov/video/.

New SCRS Member Handbook and Audit Disclosure Now Online

The July 2010 edition of the SCRS Member Handbook and the 2010 Pension Fund Audit Disclosure has been added to the Retirement Systems’ website. These publications can be found http://www.retirement.sc.gov/publications/ and http://www.retirement.sc.gov/financial/.

Fall 2010 Regional Retirement Seminars

If you are one year or less away from being eligible to apply for retirement, the South Carolina Retirement Systems wants to help make sure you have all of the information you need to make the decisions that are best for you. We offer a one day seminar designed to answer all of your questions and more. Presenters from the Retirement Systems, the South Carolina Deferred Compensation Program, the Social Security Administration, and the Employee Insurance Program will provide you with the information needed to successfully navigate the retirement process. Click the link above or go to http://www.retirement.sc.gov/events and click on "Employee Events" to see the list of the fall 2010 regional retirement seminars. Scroll through the list until you find a seminar that is near your area and then click “register” to enroll. Be sure to share this information with your employees.

Updated SCRS and PORS Tri-Fold Brochures Available Online

The July 2010 editions of the SCRS and PORS Your Plan at a Glance tri-fold brochures are available online. These brochures have been updated to reflect any legislative and other changes that have occurred since July 1, 2009. A paper supply of the these brochures will be available within the next two to three weeks and may be requested at that time by contacting Customer Services at 803-737-6800, toll free at 800-868-9002, or by completing our e-mail contact form. Employers may also complete and submit to the Retirement Systems by mail a Employer Supply Request (Form 5202).

You can access the brochures by clicking the link above or by copying/pasting http://www.retirement.sc.gov/publications/default.htm into your browser.

Latest Edition of Employer Update Now Available

The July 2010 edition of the South Carolina Retirement Systems’ Employer Update is now available on our website. This online edition of Employer Update has the most recent information concerning issues affecting the Retirement Systems and, quite possibly, you. The July edition includes our annual legislative update as well. You can access the latest edition by clicking the link above or by copying/pasting http://www.retirement.sc.gov/eunewsletter/vol2issue2/default.htm into your browser.

Online Employer Training Modules Now Available

The South Carolina Retirement Systems is pleased to announce the addition of an online employer training area to our website. Here you will find a set of computer-based-training modules that contain the same information covered in our onsite and regional employer training classes. Topics include membership and enrollment, the reporting process, leaving covered employment, the service purchase process, and the death claims process.

These training modules are available to you 24 hours a day, seven days a week, and are a great way to learn at your own pace and when your schedule permits. You’ll also save money by not having to travel to Columbia or an area closer to you for our onsite training seminar.

FY 2010-2011 Employer Contribution Rates

Note: The insurance surcharge referred to in this article applies only to those organizations that provide retiree insurance through the State Health and Dental plans. If your organization does not provide retiree insurance through the state plans, please disregard this section of the article.

The South Carolina Retirement Systems is required to collect and forward to the SC Budget and Control Board Employee Insurance Program the employer contribution rate necessary to cover the costs of providing health and dental insurance to retirees covered by the State Health and Dental plans. Effective July 1, 2010, the insurance surcharge rate will increase from 3.50 percent to 3.90 percent.

Visit our website for the contribution rates effective July 1, 2010, by clicking the link above or copying/pasting http://www.retirement.sc.gov/employers/news/2011rates.htm into your browser.

Customer Satisfaction Survey

Important Information about Disability Retirement Applications

Legislation has been enacted to allow the South Carolina Retirement Systems to accept a disability retirement application from an otherwise eligible member if the application is received by the Retirement Systems within 90 days of the member’s date of termination from employment.

Active contributing members of the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) may apply for disability retirement if they meet certain eligibility requirements, one of which is that they still be in service with an employer covered by the South Carolina Retirement Systems. For disability application purposes, a member is considered to be in service on the date the application is received by the Retirement Systems if he is not retired and the last day he was employed by an employer covered by the Retirement Systems occurred not more than 90 days prior to the date of filing.

The Retirement Systems historically accepted disability applications from members if the application was received within 90 days of the member’s date of termination from employment until a May 12, 2008, decision handed down by the South Carolina Supreme Court decision eliminated the 90-day window.

Senate bill 1145, which was ratified by the South Carolina General Assembly May 6, 2010, and signed by Governor Mark Sanford May 12, 2010, provides that the 90-day window applies to any disability application received by the Retirement Systems on or after May 12, 2008.

A member’s disability retirement application will be rejected if it is received by the Retirement Systems more than 90 days after the member’s last day of employment with an employer covered by the Retirement Systems.

Incidental Death Benefit Notice

The South Carolina General Assembly recently passed legislation that modifies the group life insurance benefit provided by the Retirement Systems. The legislation removes all references within the statute to “insurance” and “premiums,” and replaces them with “benefit” and “contributions.”

The most significant change, however, involves the treatment of the death benefit payment to beneficiaries. This benefit will no longer be considered life insurance proceeds. The benefit will now be treated like any other lump-sum distribution paid by the Retirement Systems. This means that the distribution paid to a beneficiary of an active or retired member who dies on or after July 1, 2010, will be subject to state and federal taxes. It also means that the death benefit payment will be eligible for a tax-deferred rollover into another qualified retirement plan.

These changes were necessary to not only keep the Retirement Systems in compliance with the IRC regulations, but to also ensure that our members are not taxed on the premiums paid by their employers for the death benefit. In other words, if the death benefit continued to be considered life insurance proceeds, then certain members would have to pay income taxes annually on the premiums paid by their employer.

If you have any questions about this change, please contact the Retirement Systems’ Call Center at 803-737-6800, toll-free at 800-868-9002 (within SC only), or at www.retirement.sc.gov.

New 2010 Employer Training PowerPoints Now Available Online

Employers now have access to the new 2010 Employer PowerPoints used in our classroom training. You can view these presentations in PowerPoint or PDF format by visiting the Employers area of our Web site under the "Come Train With Us!" headline, http://www.retirement.sc.gov/employers. Coming soon we will have interactive employer training modules for you!

Important Information for SC Deferred Compensation Program Participants

To Employers Participating in the South Carolina Deferred Compensation Program,

If you have employees who participate in the South Carolina Deferred Compensation Program, please pass this important notice along to them as soon as possible. If your entity does not participate in the Program, please disregard this notice. The full notice can be found by clicking the title link above, or at http://www.retirement.sc.gov/news/headlines/gwrsbeneficiary.htm

Legislature Taking Action on TERI Program

A bill to close the Teacher and Employee Retention Incentive (TERI) program to new participants was passed out of the Senate Finance Committee Tuesday, April 13. Senate bill 242 will next go before the full Senate for a vote. To become law, a bill must pass both houses of the South Carolina General Assembly and be signed by the governor.

The annual appropriations bill introduced earlier this year by the House of Representatives, House bill 4657, contains similar language relative to the closure of TERI as Senate bill 242. The House passed a version of its budget bill on March 18 that included the TERI proviso.

While there is no way to know if either of these legislative measures will be passed by both the House and the Senate, and enacted into law, members of the South Carolina Retirement System (SCRS) may wish to follow the South Carolina General Assembly’s actions on these bills. For more information about these bills and their status, go to www.scstatehouse.gov.

Form 5202, Employer Supply Request Form, Revised

Form 5202 is the Employer Supply Request Form. The form has been revised to remove an education item (Investing for Your Retirement Guide) and to update the area concerning Forms 7202 and 7204. Forms can be found at http://www.retirement.sc.gov/forms/ .

Also, don't forget that the latest Employer Update is now online at http://retirement.sc.gov/eunewsletter/vol1issue3/.

February 2010, Volume 1, Issue 3 Employer Update Now Online!

Employers can now view the latest Employer Update at http://retirement.sc.gov/eunewsletter/vol1issue3/ .

Open Enrollment Reminder for State ORP Eligible Employers

The open enrollment period for all State Optional Retirement Program (ORP) participants is from January 1 through March 1 of each year. During the open enrollment period State ORP participants may change vendors or, if eligible, may irrevocably elect to join the South Carolina Retirement System (SCRS). Any State ORP participant who wishes to change vendors should complete a State ORP Notice of Termination or Change (Form 1162). State ORP participants who have a minimum of 12 months of participation but no more than 60 months of participation by March 1, 2010, (hired between January 1, 2005 and March 1, 2009) are eligible to switch from State ORP to SCRS during the 2010 open enrollment period.

Employers are responsible for notifying all State ORP participants of the open enrollment. The enrollment period offers significant choices for State ORP participants so we encourage you to consider providing an opportunity for the four State ORP vendors—The Hartford, MetLife Resources, VALIC and TIAA CREF—to meet with interested eligible employees at your worksite to answer any questions they may have. The vendors may contact you to arrange a meeting with your eligible employees. Also, please provide your employees with the “Select Your Retirement Plan” guide, or have them view our new video “It’s Your Choice: SCRS vs. State ORP” in order to assist them in making this important retirement decision.

Any State ORP participant who decides to irrevocably join SCRS must complete and sign:
• A new Retirement Plan Enrollment (Form 1100)
• A Beneficiary Designation (Form 1102)

These forms, the guide, and the video are available on our Web site at www.retirement.sc.gov.

Since any changes made during the upcoming open enrollment period are not effective until April 1, 2010, please do not make any applicable payroll changes until the first payroll on or after April 1, 2010.

If you have any questions, please contact Customer Services toll free at 800-868-9002, or at 803- 737-6800 or www.retirement.sc.gov.

Reduction-in-Force Presentation Now Available Online

The South Carolina Retirement Systems has created a presentation for members of the South Carolina Retirement System (SCRS) who have been affected by a reduction-in-force. This presentation was designed to acquaint members with the options available to them with regard to their retirement account.

You can view this presentation at http://www.retirement.sc.gov/accountoptions/

2010 Employer Training Dates Now Online

The dates for the 2010 Employer Training classes have been added to the Retirement Systems’ Web site. You can view the classes and dates available at http://www.retirement.sc.gov/events/ .

Regional employer training will also return in 2010! In the fall of 2010 the Retirement Systems will offer regional retirement seminars around the state for those employees who are nearing retirement. We will not be conducting these regional retirement seminars in the spring since attendance last year did not warrant continuing them.

You will receive more information on the regional retirement seminars soon.

Forms 6302 and 6505 Revised

Form 6302 is the Retiring Member’s Service Application Checklist. It has been revised to reflect the current practice for authorizing tax withholding and electronic deposit previously both authorized on 7202. Now, withholding on 7202 and EFT authorization on 7204.

Form 6505 is the EES Designated Agent Confidentiality Agreement. The form has been revised to update the section regarding authorization for access and instructions.

Both forms are available on our Web site. Click the link above or visit http://www.retirement.sc.gov/forms/numberforms.asp

Form 6504 Revised

Form 6504 is the EES Authorizing Contact Designation/Agreement. It has been revised to add contact information (e-mail address and telephone number) for EES reference. The revised form is now available on the internet and can be reviewed at the following link: https://forms.retirement.sc.gov/formGenericGet.do?formNum=web6504.xdp

Employer Update Issues Now Online!

Two new issues of the Employer Updates have been added to our Web site. These issues are available on our Employer and Publications pages. http://www.retirement.sc.gov/employers/

New Employer Feed

Welcome to the South Carolina Retirement Systems' Employer news feed.