Cost-of-Living Adjustments
SCRS Members
Under current statute, each July 1, eligible South Carolina Retirement System (SCRS) retirees should receive an automatic cost-of-living adjustment (COLA) equal to the percentage of the annual increase in the CPI-W as of the previous December 31, up to an increase of 1 percent.
If the CPI-W is less than 1 percent, the COLA should equal the percentage of the actual increase in the CPI-W. COLAs are awarded only during periods of inflation, so no COLA will be awarded if the CPI-W is negative.
In addition, the SC Budget and Control Board is allowed to grant a COLA in excess of 1 percent if the CPI increase exceeded 1 percent and if the unfunded liability amortization period for SCRS does not exceed 30 years. The total increase, including the guaranteed 1 percent, cannot exceed 4 percent.
If you are an SCRS member who retires under the early retirement provisions at age 55 with 25 years of service, you are not eligible for COLAs until the second July 1 after you reach age 60 or the second July 1 after the date you would have attained 28 years of service credit had you not retired.
PORS Members
Under current statute, COLAs for eligible Police Officers Retirement System (PORS) retirees are not automatic. The Retirement Systems' actuary must first determine whether funding requirements have been met, then the SC Budget and Control Board may approve the COLA. If approved, a COLA is effective July 1. Your retirement must have been in effect the previous July to be eligible for an approved COLA.
If a COLA is approved, your annuity will increase by no more than 4 percent if the CPI-W increased by 4 percent or more during the prior calendar year. If the CPI-W increase for the prior calendar year is less than 4 percent, your annuity will increase by the actual percentage increase in the CPI-W.
GARS Members
Generally, if the General Assembly approves an increase in earnable compensation for active GARS members, benefits for GARS retirees and beneficiaries will increase by the same percentage on the effective date of the earnable compensation increase.
JSRS Members
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Standard Annuity Payment Plan
A member who elects the Standard Annuity Payment Plan or the member’s surviving spousal beneficiary will receive a cost-of-living adjustment (COLA) when the current salary for the member’s respective active position increases.
Optional Survivor Annuity Payment Plan
A member who elects the Optional Survivor Annuity Payment Plan receives a COLA when the current salary for the respective active position increases. COLAs for a non-spousal beneficiary or for a spouse designated as one of multiple beneficiaries under the Optional Survivor Annuity Payment Plan are based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers as published by the United States Department of Labor. If the CPI increase equals or exceeds 3 percent, a 4 percent COLA is granted.