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Attention Retirees: Your Benefit Check Net Amount May Have Changed
Date Posted: January 12, 2012
Category: General, Employer
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 800-868-9002, 803-737-6800 or http://retirement.sc.gov.
Open Enrollment for State Optional Retirement Program Participants
Date Posted: December 15, 2011
Category: General, Employer
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:
These forms, the guide, and video are available on our website at http://retirement.sc.gov/newhires. Since any changes made during the 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 800-868-9002, 803-737-6800 or http://retirement.sc.gov.
The Retirement Systems and the Employee Insurance Program Work Together to Help Prospective Retirees
Date Posted: December 14, 2011
Category: General, Employer
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' office December 28-30 during normal business hours (8:30 a.m. - 5 p.m.) to meet with prospective retirees. During these individual counseling sessions, 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:
New Video Added to Website
Date Posted: December 13, 2011
Category: General, Employer
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.
Retirement Systems Launches New Video Series
Date Posted: November 28, 2011
Category: General, Employer
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://www.retirement.sc.gov/video/videos/whiteboard/default.htm.
Legislative Page Updates
Date Posted: November 17, 2011
Category: General, Employer
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
Date Posted: November 10, 2011
Category: General, Employer
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
Date Posted: November 3, 2011
Category: General, Employer
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. See table below for current and scheduled contribution rates.
|
FY12 Contribution Rate | Already Scheduled FY13 Contribution Rate | FY13 Contribution Rate Approved 11/3/11 | Incidental Death Benefit | Accidental Death Benefit | Total |
| SCRS | 9.385% | 9.530% | 10.45% | .15% | N/A | 10.60% |
| PORS | 11.363% | 11.595% | 11.90% | .20% | .20% | 12.30% |
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 annuitants and beneficiaries to the law as amended in 2005, which provided for an automatic 1 percent COLA for eligible SCRS annuitants and beneficiaries. The statute governing the provision of COLAs to PORS members and beneficiaries 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 Office Hours
Date Posted: October 12, 2011
Category: General
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
Date Posted: October 3, 2011
Category: General
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.
Public Policy Discussion about Retirement Plan Funding Has Begun
Date Posted: September 19, 2011
Category: General
Recent news articles and opinion editorials have focused on the funded status of the South Carolina Retirement System (SCRS), which is the largest of our state’s retirement plans for public workers. SCRS is underfunded and public policy makers began discussion about the plan’s funding situation in Senate and House subcommittee meetings held September 14 and 15, respectively. Public policy makers will most likely consider possible changes to the plan, including benefit structure and contribution rates, in an effort to put the plan on more solid fiscal ground.
Regardless of what appears in the media, please know that SCRS does not face a 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 accrued benefits in the future. The target funding rate for plans like SCRS is 80 percent. While the funding issue needs to be addressed with due deliberation with necessary changes made to contribution levels and benefits, it is too early in the public policy discussion process to speculate on what changes will be made. There are numerous options for public policy makers’ consideration. The Retirement Systems’ staff and its actuary have provided and will continue to provide information to the members of the Senate and House subcommittees that will help them make informed decisions about the plan.
For more information about the Senate and House subcommittee meetings, visit the South Carolina General Assembly’s website at http://www.scstatehouse.gov/html-pages/citizen.html.
Accounting and Financial Reporting Resource Center
Date Posted: July 21, 2011
Category: General
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.
