South Carolina Retirement Systems - SCRS Basic Information

SCRS - Basic Plan Information

Your Contributions
Correlated Systems
Leaving before Retirement
Beneficiaries
Retirement Eligibility
Teacher and Employee Retention Incentive (TERI) Program
Unused Leave at Retirement
Your Average Final Compensation
Payment Plans at Retirement
Calculating Your Benefit

Your average final compensation (AFC) is an important part of the formula used to calculate your retirement benefit. When you retire, your first several benefit checks will be based on information received up to that point. This is called estimated status.

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 salary base. Your AFC also will be adjusted accordingly to include payment for your unused annual leave according to statute.

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.

TERI Participants with Retirement Dates on or

after July 1, 2005
The first several annuity benefits posted to your TERI account will be based on information received up to that point because your account is considered to be in an estimated status.

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 accordingly after the audit and to include unused sick leave only. This is called finalized without annual leave status. Your account will remain in this status for the duration of your TERI period.

Upon termination of employment at the end of your TERI participation, your annuity will be recalculated to include payment for up to 45 days of unused annual leave paid at termination. This is post finalized status with annual leave.

School District and Higher Education Employees
To calculate an appropriate AFC, adjustments may be required so that you receive credit for three full years of earnings. Adjustments may be needed for changes in payroll cycles, contract payouts, and any other occurrence that could potentially cause the AFC to include more or less than three full years of earnings.