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South Carolina Retirement System (SCRS)

Service Retirement - General Information

Service Retirement Annuity Formula

Class Two Membership

The four-step formula below is used to calculate your Class Two monthly annuity based on the Option A payment option.

Step 1

Total your 12 highest consecutive quarters of earnable compensation and divide by 3.

 

The dollar amount of payment for up to 45 days of unused annual leave paid by your last employer at retirement may be included before averaging your 12 highest consecutive quarters of earnable compensation. The result of Step 1 is your average final compensation (AFC).

Step 2

Multiply the result of Step 1 by 1.82 percent (.0182).

Step 3

Multiply the result of Step 2 by years, months, and days of creditable service.


Convert months to days and divide the total days by 360 to determine a decimal equivalent for partial years. For example, 25 years, 2 months and 10 days equals 25 years, 70 days (60 + 10). 70 ÷ 360 = .19. This amounts to 25.19 years of service.

Step 4

Divide the result of Step 3 by 12.

Example

For a Class Two member with 28 years of service credit, and an AFC of $30,000:
$30,000 multiplied by 1.82 percent (.0182) equals $546
$546 multiplied by 28 equals $15,288
$15,288 divided by 12 = $1,274 (Option A monthly annuity)

If your retirement is considered early based on either your age or years of creditable service, your annuity will be reduced.

If you are a Teacher and Employee Retention Incentive (TERI) program participant, during your TERI deferral period your unused annual leave will not be included in your monthly annuity calculation. However, your annuity will be recalculated prospectively upon termination of employment at the end of your TERI period and may include up to 45 days of unused annual leave paid at termination (end of TERI).

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Class Three Membership

The four-step formula below is used to calculate your Class Three monthly annuity based on the Option A payment plan.

Step 1

Total your 20 highest consecutive quarters of earnable compensation and divide by 5.

Step 2

Multiply the result of Step 1 by 1.82 percent (.0182).

Step 3

Multiply the result of Step 2 by years, months, and days of creditable service.


Convert months to days and divide the total days by 360 to determine a decimal equivalent for partial years. For example, 25 years, 2 months and 10 days equals 25 years, 70 days (60 + 10). 70 ÷ 360 = .19. This amounts to 25.19 years of service.

Step 4

Divide the result of Step 3 by 12.

Example

For a Class Three member who is age 60 with 30 years of service credit (satisfying the Rule of 90) and an AFC of $30,000:

$30,000 multiplied by 1.82 percent (.0182) equals $546
$546 multiplied by 30 equals $16,380
$16,380 divided by 12 = $1,365 (Option A monthly annuity)

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Approximate Amount of Option A Monthly Annuity at Retirement

The information in the table below is based on the standard monthly benefit payment plan (Option A). Choosing options B or C to provide a future benefit for beneficiaries (or retiring with SCRS early retirement reductions*) will reduce the amount of your monthly benefit.

 

AFC

Years of Service

Additional Monthly Benefit for Each Additional Year
20 25 28 30 35 40
$20,000 607 758 849 910 1,062
1,213 $30
25,000 758 948 1,062 1,138 1,327 1,517 38
30,000 910 1,138 1,274 1,365 1,593 1,820 46
35,000 1,062 1,327 1,486 1,593 1,858 2,123 53
40,000 1,213 1,517 1,699 1,820 2,123
2,427 61
45,000 1,365 1,706 1,911 2,048 2,389 2,730 68
50,000 1,517 1,896 2,123 2,275 2,654 3,033 76
55,000 1,668
2,085 2,336 2,503 2,920 3,337 83
60,000 1,820
2,275 2,548 2,730 3,185 3,640 91
65,000 1,972
2,465 2,760 2,958 3,450 3,943 99
70,000 2,123 2,654 2,973 3,185 3,716 4,247 106
75,000 2,275 2,844 3,185 3,413 3,981 4,550 114
80,000 2,427
3,033 3,397 3,640 4,247 4,853 121
85,000 2,578
3,223 3,610 3,868 4,512 5,157 129
90,000 2,730
3,413 3,822 4,095 4,778 5,460 137
95,000 2,882
3,602 4,034 4,323 5,043 5,460 144
100,000 3,033 3,792 4,247 4,550 5,308 6,067 152
110,000 3,337
4,171 4,671 5,005 5,308 6,673 167

*SCRS early retirement deductions apply if you retire with fewer than 28 years of service credit for Class Two members or at age 60 with at least eight years of earned service for Class Three members.

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