South Carolina Retirement Systems - SCRS Installment Loan Program

SCRS - Active Members

Installment Service Purchase Program
The Retirement Systems’ Installment Service Purchase program offers two options for active members who wish to purchase additional service credit without remitting a lump-sum payment.

One option allows active members to purchase additional service credit with pre-tax dollars. The other option lets an active member use after-tax money to purchase additional service credit. Making an installment service purchase with pre-tax dollars could reduce your cost to purchase service by about 20 percent (compared to after-tax purchases).

When you elect to participate in this program, the Retirement Systems credits your account for the total cost of the service and the total service credit being purchased. Your employer then payroll deducts the payments each pay period from your salary. You must pay your installment service purchase in full prior to your retirement date or termination. Service will be prorated if the full balance is not received.

Members who are currently making payments through payroll deduction through the Installment Service Purchase program’s after-tax option may take advantage of the pre-tax treatment of payments. Contact the Retirement Systems for more information.

Interest Rate

A fixed rate of interest applies to the unpaid balance of an installment service purchase for the duration of the installment. The interest rate for new participants in this program is adjusted every July 1 to the prime rate plus 2 percent. The interest rate for new installment accounts activated July 1, 2008, through June 30, 2009, is 7 percent. The interest rate is fixed for the term and does not change for members who are already purchasing service through the Installment Service Purchase program.

Eligibility Criteria

To participate in the Installment Service Purchase program:

You must be an active contributing member;
The total cost of service must be at least $500 or the period of service being established must be at least six months; and
The maximum installment payment period is two years for each year of service purchased.

For More Information
For more information about installment service purchases, contact the Retirement Systems.