FY 2010-2011 Employer Contribution Rates

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Date Posted: June 25, 2010
Category: Employers

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.

Effective July 1, 2010, the base rate for employer contributions will be as follows:

 

Fiscal Year 2011 (7/1/10 – 6/30/11)

South Carolina Retirement System (SCRS)

9.24

Police Officers Retirement System (PORS)

11.13

State Optional Retirement Program (State ORP)

4.24*

*Plus 5.00 percent to member’s account

Following is a breakdown of employer rates for fiscal year 2011.


Type of Employer

Retirement

Insurance Surcharge

Employer Rate

Incidental Death Benefit

Accidental Death

SCRS - public schools, state agencies, and other political subdivisions

9.24%

  3.90%

13.14%

0.15%

N/A

PORS - Class II coverage

11.13%

  3.90%

15.03%

0.20%

0.20%

State Optional Retirement Program

4.24%

  3.90%

  8.14%

0.15%

N/A

PORS Rate Increase
Act 311, passed in 2008 by the South Carolina General Assembly, provided for a guaranteed cost-of-living adjustment for PORS retirees and an increase in the PORS employer contribution rate. The rate increase was slated to begin July 1, 2009, but a proviso passed by the General Assembly in May 2009 delayed the increase until July 1, 2010.

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

REV. 06/11/10

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