Basic Information
You contribute a tax-deferred 6.5 percent of gross pay into your PORS retirement account. If you have not retired, your account earns 4 percent interest compounded annually on your balance as of the previous June 30.
To learn more about PORS, you may choose from the following topics:
- Correlated Systems
- Leaving Before Retirement
- Beneficiaries
- Retirement Eligibility
- Your Average Final Compensation
- Unused Leave at Retirement
- Payment Plans at Retirement
- Calculating Your Benefit
Correlated Systems
PORS, the South Carolina Retirement System (SCRS), and the General Assembly Retirement System (GARS) are correlated systems. If you have contributions in more than one of these retirement systems, your service credit is maintained separately within each system; however, your service credit is added together to determine your eligibility for retirement benefits.
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Leaving Before Retirement
If you leave your job and terminate all employment covered by the South Carolina Retirement Systems before you are eligible to retire, you have two options concerning your contributions:
- Request a refund of your contributions and interest; or
- Leave your funds in the Retirement Systems. Your account will continue to accrue interest at 4 percent compounded annually.
Request a Refund
To receive a refund of your accumulated contributions and interest, you must complete a Refund Request (Form 4101) and return it to the Retirement Systems. You may submit your refund request immediately upon termination; however, by law, there is a minimum 90-day waiting period from your date of termination before a refund can be made.
If you receive a refund, you forfeit your rights to any future service retirement or disability benefit. Employer contributions are not refunded. If you are working for two or more covered employers and/or contributing to more than one retirement account (i.e., working two jobs and paying into a PORS and an SCRS account), you must stop working in all correlated systems to request a refund from any account.
Instead of having the refund paid directly to you, you may choose to roll over the funds into an Individual Retirement Account (IRA), a 401(k) plan, a 401(a) eligible plan, a 403(b) plan, or some 457 plans (the South Carolina Deferred Compensation Program's 457 plan does not accept rollovers from your Retirement Systems account).
The Retirement Systems is required to withhold federal taxes of 20 percent on the taxable portion of any refund that is eligible for a rollover but is not transferred directly into another qualified retirement plan. Other taxes or penalties may apply as well.
Under the federal Pension Protection Act of 2006 (PPA), the 10 percent withdrawal penalty is waived for public safety members who separate from service after age 50, and for military reservists and national guardsmen who are called to active duty for at least 180 days.
Be sure to check with an accountant or tax advisor regarding your tax liability.
Leave Funds on Deposit
When you leave your money on deposit with the Retirement Systems, your account continues to accrue interest and you retain your years of service credit, which may be added to any future service you may accrue should you later be employed in a position covered by the Retirement Systems.
You may apply for a refund at a later date or apply for a service retirement annuity upon reaching eligibility. No action is required if you wish to retain your membership and leave the funds on deposit, but it is your responsibility to keep the Retirement Systems informed of your current address as well as any name or beneficiary changes.
Beneficiaries
Active PORS members may designate three types of beneficiaries:
- Primary beneficiaries for your in-service death benefit or refund of contributions. Multiple beneficiaries share equally in survivor monthly benefits;
- Contingent beneficiaries in case of death of the primary beneficiaries. All primary beneficiaries must be deceased before any contingent beneficiaries are paid; and
- Incidental death benefit beneficiaries.
You may name your estate as beneficiary; however, monthly benefits cannot be paid to an estate.
Generally, you may change your beneficiaries at any time before retirement. To do so, download the appropriate beneficiary designation form. The Retirement Systems provides you with an annual member statement that lists your beneficiaries. These statements are distributed each fall through your employer. You may also verify your designated beneficiaries by contacting Customer Services at 803-737-6800, toll free at 800-868-9002 (within SC only), or by using our online contact form.
Service Retirement Eligibility
If you meet the following requirements, you are considered eligible to retire (see Correlated Systems if you have an account in more than one retirement system):*
- 25 years of service on the date of retirement, five years of which must be earned service; or
- Age 55 or older on the date of retirement with at least five years of earned service.
*If your membership began before January 1, 2001, you may also retire if you have 25 years of service credit on the date of retirement, five years of which must be combined creditable service accrued as of December 31, 2000; or if you are age 55 or older on the date of retirement with at least five years of combined creditable service accrued as of December 31, 2000.
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Your Average Final Compensation
Your average final compensation (AFC) is an important part of the formula used to calculate your retirement benefit. When you retire, your benefit checks will be based on information received up to that point and will be considered an estimated amount.
After your employer submits your final earnable compensation information, retirement contributions for your 12 highest consecutive quarters of earnable compensation will be audited. Your AFC may be adjusted after the audit if any of the contributions included in the AFC calculation were for any payments not considered a part of your regular earnable compensationbase. Your AFC also will be adjusted according to statute to include payment for your unused annual leave.
As a result of the information received from your employer and the audit of the contributions for your 12 highest consecutive quarters of earnable compensation, your retirement benefit will be finalized. The final amount may be less than, or more than, your estimated benefit.
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Unused Leave at Retirement
Annual Leave
Only an amount up to and including 45 days' pay for unused annual leave from your last termination payment may be included before averaging your 12 highest consecutive quarters of earnable compensation.
Sick Leave
At retirement, you may receive service credit for up to 90 days of unused sick leave from your last employer at no cost to you. This service credit cannot be used to establish retirement eligibility. Sick leave is reported by your employer after retirement. One month of service is granted for each 20 days of sick leave.
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Payment Options at Retirement
There are three monthly benefit payment options available to you at retirement. Select the option that best suits your needs. Your payment option may not be changed once benefits are first payable.
Option A (Maximum Retiree Only Monthly Benefit)
This option provides the maximum monthly benefit available and will pay you a lifetime benefit based on your average final compensation, years of service, and a multiplier (.0214 for Class II service or $10.97 for each year of Class I service). After your death, the Retirement Systems will return, through a lump-sum payment to your beneficiary or your estate, the remaining balance of any member contributions and interest, including any working retiree contributions, not exhausted through receipt of benefits during your retirement.
Option B (100% - 100% Joint Retiree-Survivor Monthly Benefit)
You will receive a reduced (from Option A) monthly benefit for life. After your death, the same benefit (100 percent of your reduced monthly benefit, including granted cost-of-living adjustments) will continue throughout your beneficiary’s lifetime. If all of your designated beneficiaries predecease you, your benefit will revert to Option A and include any cost-of-living adjustments granted since your retirement date.
You may select Option B only if your designated beneficiary is your spouse, or you designate multiple beneficiaries or a sole beneficiary who is not your spouse and who is within the 10-year age difference limits allowed by an Internal Revenue Code (IRC) formula. The non-spousal limits do not apply if the non-spousal beneficiary is older than you, or in the case of disability retirement or death benefits.
If, based on the IRC formula, the adjusted age difference for you and a non-spousal beneficiary exceeds the IRC limits, Option B would not be available to you. You would be able to select Option C, however, with no IRC restrictions.
Option C (100% - 50% Joint Retiree-Survivor Monthly Benefit)
You will receive a reduced (from Option A) monthly benefit for life. After your death, one-half of the benefit (50 percent of your reduced monthly benefit, including granted cost-of-living adjustments) will continue throughout your beneficiary’s lifetime. If all of your designated beneficiaries predecease you, your benefit will revert to Option A and include any cost-of-living adjustments granted since your retirement date.
If You Choose Option B or Option C
If you choose Option B or Option C and name multiple beneficiaries, afer your death your benefit will be divided equally among thse beneficiaries. The benefit will not change for the remaining beneficiaries if one beneficiary dies, either before or after the member dies. If you select Option B or Option C and all of your designated beneficiaries predecease you, your benefit will revert to Option A effective on the date the last beneficiary died. You must notify the Retirement Systems upon the death of a beneficiary.
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