Returning to Covered Employment
View our publication entitled What Retired Members Should Know About Returning to Work.
SCRS and PORS Service Retirees
If you return to work after retirement, there is no limit on the dollar amount that you may earn as compensation; however, you must first have a complete, bona fide severance or termination from employment. After 15 days of retirement, you may be hired by an employer covered by the Retirement Systems to return to work.
Any retired member who is employed by an agency that adheres to state personnel policies will be exempt from the State Employee Grievance Procedure Act (employment is at will). If, as a retired member, you return to work for an employer that is not governed by state personnel policies, you would be subject to your employer's policies regarding employment status and rights.
Working 48 Continuous Months
If a retiree returns to employment and works 48 continuous months for a covered employer with an annual earnable compensation of at least 75 percent of the AFC used to calculate his retirement benefit, the retiree may elect to cease his retirement benefit and become an active member of the Retirement Systems.
If a member becomes active again, he has another option available to him. He may repay all retirement benefits and make a payment equal to the amount he would have contributed during the period he would have been an active member plus interest to receive service credit for the 48-month period. If the member has made the required contributions during his employment as a working retired member, he would not have to make this additional payment. If the member chooses this option, when the member subsequently retires, his retirement benefit will be calculated as if he were retiring for the first time. TERI participation does not count toward the 48-month period.
SCRS TERI Participants
TERI participants who are employed by an agency that is covered by the State Employee Grievance Procedure Act will be exempt from the requirements of that Act (employment is at will). If a TERI participant works for an employer that is not governed by state personnel policies, the member would be subject to his employer's policies regarding employment status and rights. Any member having questions regarding his employment status and rights upon becoming a TERI participant should contact his employer for clarification.
Incidental Death Benefit
If you are a TERI participant, or a retired contributing member of SCRS or PORS whose employer participates in the incidental death benefit program, after your death, a payment equal to your current annual earnable compensation will be paid to your beneficiary or trustee in lieu of the standard $2,000, $4,000, or $6,000 retired member benefit.
Working Retiree Contribution Rate
Retired members who return to covered employment contribute a tax-deferred 6.5 percent of gross pay into their retirement account; however, as a retiree, they will not earn additional service credit or receive interest on their account.
SCRS and PORS Disability Retirees
SCRS and PORS disability retirees should report earnings from any gainful employment to the Retirement Systems annually until they reach age 65 (SCRS) or age 55 (PORS). There is an earnings limitation for all public and private employment which is applied on a calendar-year basis. A disability retiree may earn the difference between his adjusted average final compensation at retirement and his disability retirement benefit without affecting his retirement benefits. At age 65 (SCRS) or age 55 (PORS), there is no earnings limitation for public or private employment.
Example
AFC at retirement (adjusted for inflation) Annual disability retirement annuity Disability retiree can earn difference (for the calendar year) |
$35,000 - $14,950 $20,050 |
A disability retiree's average final compensation may be adjusted each year for inflation for earnings limitation purposes only. This increase generally matches the percentage increase of the Consumer Price Index for Wage Earners and Clerical Workers. These adjustments affect the amount a disability retiree can earn while receiving a disability retirement benefit; however, they do not affect the amount of the disability retiree's benefit.Disability retirees will receive a letter each January advising them on how much they can earn and requesting confirmation of their prior year earnings. Disability retirees will have to repay any benefits that they received to which they were not entitled.
If a disability retiree earns more than the difference between his adjusted average final compensation and his disability retirement benefit, his monthly benefit will be reduced or possibly canceled. If a disability retiree returns to work with an employer covered by the Retirement Systems and hisannual earnable compensation is equal to or greater than his adjusted average final compensation, his disability retirement benefit ceases and he must become an active member of the system.
GARS Retirees
If you return to work after retirement, there is no limit on the dollar amount you may earn as compensation; however, certain conditions apply for members who return to work for an employer covered by SCRS, PORS, or JSRS.
JSRS Retirees
9-8-60(7)
A JSRS member, who is over age 60 and under age 72, and eligible to retire and receive the 90 percent maximum JSRS annuity, may retire and receive a retirement benefit while continuing to serve as a judge, solicitor, or circuit defender.
A JSRS member who has not reached age 60, but is eligible to retire and receive the 90 percent maximum JSRS annuity may retire and continue to serve as a judge, solicitor, or circuit defender. However, the annuity will be deferred, without interest, until the member reaches age 60. Payout of the deferred annuity is not automatic. If your annuity is deferred, please contact the Retirement Systems prior to turning age 60 for your payout options and any applicable tax liability information. You may also wish to consult with your tax advisor or financial planner prior to entering the JSRS DROP or prior to receiving a payout from a DROP.
The employee and employer contributions must continue to be paid while participating in the JSRS DROP, but no additional service is earned. The maximum continuous employment period is until the end of the calendar year after you reach age 72 and is contingent upon re-appointment or re-election.
Election within 30 Days of Retirement
9-8-120(3)(4)
Within 30 days of a member’s retirement, a justice or judge must notify the Chief Justice and the South Carolina Supreme Court of his election to either engage in the practice of law or be eligible for appointment by the Chief Justice as a justice or a judge in the courts of South Carolina. An election to practice law is irrevocable.
Engaging in the Practice of Law
9-8-120(4)
A justice or judge who is receiving a JSRS annuity and is engaged in the practice of law may not serve as a justice or judge in any court in the state of South Carolina. If, within 30 days of retirement, a member elects to be eligible for appointment by the Chief Justice to serve as a justice or judge in the courts of this state and to not practice law, the member may irrevocably change his election at any time if the member decides to engage in the practice of law.
Return to State Service as a Justice or a Judge
9-8-120(3)
Subject to the limitations contained in Section 14-1-215, a retired justice or judge may be called upon and appointed by the Chief Justice of the Supreme Court to perform judicial duties in the Supreme Court, Court of Appeals, circuit courts, and family courts. A retired justice or judge serving as an acting associate justice or as a judge shall serve without pay except for his actual expenses while serving. If a retired justice or judge has performed full judicial duties as an acting associate justice or as a judge for a period of three or more consecutive months, his retirement pay for each full month during this period must be increased by an amount equal to the difference between the member’s retirement payment and current active pay for the respective position. This difference is not paid by the Retirement Systems. Upon certification by the Chief Justice of the number of full months of the service, the State Treasurer shall make payment accordingly.
Return to State Service as a Solicitor
9-8-120(1)
If a JSRS member returns to state service as a solicitor, the member’s retirement annuity ceases, he shall again be a contributing member of JSRS, and the member shall be credited with all service credit as of his date of retirement. The retirement allowance payable upon the member’s subsequent retirement shall be based on the total service rendered before and after his return to service.
Member of General Assembly
9-8-60(1)
A retired JSRS member who is elected to the General Assembly may continue to receive his JSRS retirement annuity while serving in the General Assembly. The JSRS member may elect non-membership in GARS by completing an Election of Non-Membership (Form 1104) and returning it to the Retirement Systems. By electing non-membership in GARS, the JSRS member will neither contribute to GARS nor be entitled to any GARS benefits upon leaving the General Assembly. Likewise, no employer contributions to GARS will be made on the JSRS member’s behalf.
Return to State Service in a Position other than as a Solicitor
9-8-120(2)
If a JSRS member returns to state service in a position other than as a solicitor, the member’s retirement annuity ceases. Upon cessation of service in the position, the member is entitled to apply for a retirement annuity at the same rate to which he was previously entitled, disregarding any reduction resulting from a previous payment plan election. A JSRS retiree may not receive his retirement annuity while an active member of PORS or SCRS (unless the member is employed as an SCRS non-member under 9-8-65). Upon termination, the member may once again apply for retirement.
Employed by Public Institution of Education
(Retired Justice or Judge Only)
9-8-65
Notwithstanding any other provision of law, a retired justice or judge may still receive his JSRS annuity while employed by a public institution of education (grades kindergarten through 12, college or university, technical college, or Department of Juvenile Justice school) provided he elects non-membership while employed in the position. The retired justice or judge may not contribute to nor receive service credit in SCRS while so employed.