Service Credit
Earned Service
9-8-10(18)
Earned service is defined as paid employment as a justice, judge, solicitor, or circuit public defender, from which regular JSRS contributions were deducted.
Service Purchases
9-8-50(A)(B), 9-1-1140
While you are an active contributing JSRS member, you may establish service credit for various types of previous employment, leaves of absence, and up to five years of non-qualified service as allowed under the South Carolina Retirement System (SCRS) pursuant to Section 9-1-1140. You may purchase service credit by a lump-sum payment, an installment service purchase (pre- or post-tax, plus interest), or a tax-deferred rollover from an Individual Retirement Account (IRA), a 401(k) plan, a 401(a) eligible plan, a 403(b) plan, or a 457 plan. You also have the option to purchase service through a pre-tax installment purchase program which should reduce the overall cost of your purchase by eliminating taxes on your payment. However, under a pre-tax installment service purchase, you may neither make additional principal payments nor payoff the installment early unless termination occurs or you are retiring. You may purchase each type of service credit once within a fiscal year. If you are purchasing service to meet retirement eligibility, please contact Customer Services at 803-737-6800 or toll free at 800-868-9002 (within S.C. only) for more information. Payment for service purchases must be remitted in full prior to your retirement date or date of termination from your employer’s payroll.
Some types of purchased service may not be used in determining insurance eligibility. If you are covered by state health insurance, contact the Employee Insurance Program at 803-734-0678 or toll free at 888-260-9430 for eligibility information.
16-Year Service Purchase Maximum
9-8-50(A)
Section 9-8-50(A) provides that a Justice or Judge may not purchase more than 16 years of service credit in JSRS. Additionally, the purchase of service credit under this section may not result in a Justice or Judge exceeding 25 years total service credit in JSRS.
For example, if a judge has 10 years of service in JSRS, he may purchase up to 15 years of additional service credit, not to exceed 25 years of total service credit at the time of the service purchase.
Under Section 9-8-50(A), Solicitors and Circuit Public Defenders may not purchase more than 16 years of service credit in JSRS and the purchase of service credit under this section may not result in the Solicitor or Circuit Public Defender exceeding 24 years of total service credit at the time of the service purchase. For example, if a solicitor has 10 years of service credit in JSRS, he may purchase up to 14 years of additional service credit, not to exceed 24 years of total service credit at the time of the service purchase.
In determining your service purchase options, please keep in mind any applicable JSRS earned service requirements for a deferred annuity or JSRS service retirement.
Types of Service Purchases
9-8-50, 9-1-1140
Transfer from SCRS, PORS, or GARS
9-8-50(B)
If you are a former member of SCRS, the Police Officers Retirement System (PORS), or the General Assembly Retirement System (GARS), you may transfer your non-concurrent service to your JSRS account by making a payment equal to 10 percent of current earnable compensation for each year of service transferred. The amount of contributions and interest in the account from which you are transferring service for the applicable period of service being established in JSRS will be transferred directly to your JSRS account to offset the total payment required. Generally contributions and interest associated with service credit not transferred to JSRS will remain on deposit in SCRS, PORS, or GARS, unless you file for a refund.
Public Service
You may establish service credit for any period of paid public service for which you do not already have service credit in another defined benefit plan. This is service as an employee of the government of the United States, a state, or political subdivision of the United States. The cost is 10 percent of current earnable compensation for each year purchased. You may not purchase service for a period of public service for which you may receive a retirement annuity from another defined benefit retirement plan or which would violate Section 415 or any other provision of the Internal Revenue Code.
Educational Service
You may establish service credit for any period of paid classroom teaching consisting of grades kindergarten through 12 in a public, private, or sectarian school for which you do not already have service credit in another defined benefit plan. The cost is 10 percent of current earnable compensation for each year purchased. You may not purchase service for a period of educational service for which you may receive a retirement annuity from another defined benefit retirement plan or which would violate Section 415 or any other provision of the Internal Revenue Code.
Military Service
You may establish up to six years of service credit for any period of military service for which you do not already have service credit. This includes service in the United States Army, Navy, Marine Corps, Air Force, Coast Guard, Select Reserves, and Army or Air National Guard. The cost is 10 percent of current earnable compensation for each year purchased. Your discharge from service must be under conditions other than dishonorable. Under guidelines set forth by the Uniformed Services Employment and Reemployment Rights Act (USERRA), you may also arrange in advance with your employer to continue contributing to your account while on active duty military leave, or you may make contributions for your period of military service after you return from active duty for a period three times longer than your military service but not longer than five years.
Leave of Absence
Active contributing members on an employer-approved leave of absence who return to covered employment within four years may purchase service credit for the employer-approved leave period for which they do not already have service credit, up to a maximum of two years per leave of absence. The leave of absence must be with an employer covered by the Retirement Systems. The cost is 10 percent of current earnable compensation for each year purchased.
Workers’ Compensation
You may establish service credit for a period while on leave of absence and receiving Workers’ Compensation benefits. The cost is based on contributions plus interest using your earnable compensation at the time of injury. You may also arrange in advance with your employer to continue contributing to your account while you are receiving Workers’ Compensation benefits.
Previously Withdrawn Service
If you left JSRS-covered employment and received a refund of your contributions plus interest, you may re-establish this service upon returning to active membership. You must repay the amount you withdrew plus interest to the date your request is received. Previously withdrawn earned service that is re-established in JSRS through the service purchase process is considered earned service for the determination of the minimum service requirement for benefit eligibility.
Non-Qualified Service
9-8-50(A) and 9-1-10(200)
After you have reached five or more years of earned service credit as an active, contributing member, you may then establish up to five years of non-qualified service. The cost is 35 percent of current earnable compensation for each year purchased.
State Optional Retirement Program (State ORP) Service
Active contributing members may purchase service credit for their years of participation in the State ORP administered by the South Carolina Retirement Systems. The cost is 10 percent of current earnable compensation for each year of service purchased. You may not purchase service for a period of State ORP participation for which you may receive a retirement annuity from another defined benefit retirement plan or which would violate Section 415 or any other provision of the Internal Revenue Code.