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PEBA Is Serious about Protecting Member Information
Date Posted: February 25, 2013
Category: General, Employer
The S.C. Public Employee Benefit Authority (PEBA) is committed to preventing cyber attacks of its information systems. We have multiple lines of defense in place to help ensure that your personal information is safe. We use a variety of hardware and software solutions, as well as vigilant monitoring of our systems, to mitigate security risks.
We don’t leave it all up to the machines, though. Our employees are involved in the process as well. Each year, all of our employees attend mandatory security training, through which they are made aware of the various tactics being used to gain unauthorized access to our systems and are advised of the latest strategies to protect against these threats.
PEBA is serious about preventing cyber attacks, and you should be, too. Here are some tips you can use to help prevent unauthorized access to the information stored on your personal electronic devices:
PEBA Implements New IRS Withholding Tables
Date Posted: January 17, 2013
Category: General, Employer
The Internal Revenue Service (IRS) released updated income-tax withholding tables for calendar year 2013 that reflect legislative changes passed by Congress and signed into law by President Obama. The tables show the new rates in effect for 2013 and supersede the tables that the IRS originally issued December 31, 2012.
The S.C. Public Employee Benefit Authority (PEBA) has implemented the new withholding tables, which will be reflected in benefit payments issued from PEBA Retirement Benefits beginning in January 2013. Payees typically should not need to take any additional action, such as filling out a new withholding form, but please contact our Customer Service Department at 803-737-6800 or toll free at 800-868-9002 (within S.C. only) if you have specific questions.
Open Enrollment for State Optional Retirement Program Participants
Date Posted: January 9, 2013
Category: General, Employer
The open enrollment period for all State Optional Retirement Program (State ORP) participants is January 1 through March 1 of each year. During this period, State ORP participants may change vendors or, if eligible, may irrevocably elect to join the South Carolina Retirement System (SCRS). Any State ORP participant who wishes to change vendors should complete a State ORP Notice of Termination or Change (Form 1162). State ORP participants are eligible to switch from the State ORP to SCRS during the 2013 open enrollment period if at any point during the open enrollment period they have at least 12 months, but no more than 60 months, of participation from their initial enrollment in the State ORP (initial enrollment between January 1, 2008, and March 1, 2012).
Employers are responsible for notifying all State ORP participants of the open enrollment period. The enrollment period offers significant choices for State ORP participants. We encourage you to consider providing an opportunity for the four State ORP vendors (MassMutual, MetLife Resources, TIAA-CREF, and VALIC) to meet with interested, eligible employees at your worksite to answer any questions they may have. The vendors may contact you to arrange a meeting with your eligible employees. The Select a Retirement Plan Guide and the It’s Your Choice Video are available to assist them in making this important retirement decision.
Any State ORP participant who decides to irrevocably join SCRS must complete and sign:
These forms, the guide, and video are available on our website at www.retirement.sc.gov/newhires.
Since any changes made during the open enrollment period are not effective until April 1, 2013, do not make any applicable payroll changes until the first payroll on or after April 1, 2013. If you have any questions, contact Customer Services at 800-868-9002, 803-737-6800 or www.retirement.sc.gov.
Annual Member Statements Will No Longer Be Mailed
Date Posted: September 19, 2012
Category: General, Employer
Members of the retirement plans administered and managed by the South Carolina Public Employee Benefit Authority (PEBA) will no longer receive printed annual member statements. In lieu of this, retirement plan members are encouraged to sign up for online Member Access, a secure website through which members can view and print their retirement account statement at any time, night or day. In addition to reducing costs to the retirement plans, this decision helps PEBA use its resources more efficiently.
If you are new to Member Access, you can sign up quickly and easily. To get started, go to PEBA's Retirement Benefits website, and select the "Member Login" button in the top right corner. To register, active and inactive members will need a Retirement Benefits member statement that is less than five years old, as well as their last name, Social Security number, date of birth, and a valid email address. If you do not have an old member statement, your employer can print one for you. Retired members who want to register will need their last name, Social Security number, date of birth, a valid email address, and the net or gross amount of one of their most recent monthly annuity payments or deferrals under the Teacher and Employee Retention Incentive (TERI) program.
For more information about and/or assistance with Member Access, you may contact PEBA's Retirement Benefits office by email, at 803-737-6800, or toll free at 800-868-9002 (within S.C. only).
Service Purchase Costs to Change January 2, 2013
Date Posted: September 4, 2012
Category: General, Employer
Effective January 2, 2013, the calculation process used to determine the cost of purchasing additional years of certain types of service credit will be changed. The new service purchase provisions of Act No. 278 of 2012, the recently enacted retirement reform legislation, will affect actively employed members of the South Carolina Retirement System (SCRS), the Police Officers Retirement System (PORS), the General Assembly Retirement System (GARS), and the Judges and Solicitors Retirement System (JSRS) who wish to purchase service credit. Retired and inactive members are not eligible to purchase service credit.
If you are thinking about making a service purchase and would like to do so before the new service purchase provisions take effect, the Retirement Systems must receive your service purchase request prior to January 2, 2013. Payment for the service must be received by the Retirement Systems no later than March 1, 2013. You may request a service purchase invoice through our secure, online Member Access feature or by completing a Request for Service Purchase Cost (Form 2101) and submitting it to the Retirement Systems. If you submit a paper form, please note that the Retirement Systems must receive the form prior to January 2, 2013, for the current service purchase provisions to apply.
The current costs to purchase various types of service credit may not accurately reflect the true cost to the retirement system of the future additional benefit a member will receive as a result of a service purchase. In many instances, the retirement system subsidizes the cost of the service purchase. This subsidization has a cumulative negative effect on the system’s funding level by increasing the systems’ liabilities. Requiring members to pay the actuarial cost of a service purchase helps protect the system’s funding level by pricing the purchase at an amount that is the actuarial equivalent of the benefit received.
Actuaries use historical data and certain assumptions to determine the present value of the cost of future additional benefits the member will receive as a result of the purchase. The determination of the actuarial cost of a service purchase involves complex calculations that include a member’s current age, service credit, earnable compensation, and the type of service being purchased.
As a general rule, the earlier a service purchase is made, the less the cost will be. The actuarial cost for a younger member with fewer years of service credit will not be as high as for a member who is nearer to retirement since the retirement system will have use of those funds for investment purposes for a longer period of time before the system has to pay benefits to the member.
Act No. 278 of 2012 also specifies a minimum service purchase cost. The cost of a service purchase must be at least 16 percent of a member’s career highest earnable compensation for each year of qualified service being purchased and at least 35 percent of a member’s career highest earnable compensation for each year of nonqualified service being purchased.
If you have any questions or need additional information about the service purchase provisions that take effect January 2, 2013, please contact the Customer Services Call Center at 803-737-6800, toll free at 800-868-9002 (within S.C. only), by email, or by live chat by selecting the “Customer Service Chat Now” button in the header of our homepage.
Retirement Systems Now Accepting Appointments
Date Posted: July 9, 2012
Category: General, Employer
The South Carolina Retirement Systems has resumed its practice of scheduling appointments for retirement consultations. Due to the unusually high visitor volume, the Retirement Systems temporarily suspended this practice in June. If you would like to schedule an appointment for a consultation, contact our office at 803-737-6800, or toll free at 800-868-9002 (within S.C. only). Please note that appointments are not mandatory. We gladly accept walk-in visitors on a first-come, first-served basis.
Eligible Retirees to Receive a Benefit Adjustment
Date Posted: July 3, 2012
Category: General, Employer
Under current state law, eligible retirees of the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) are to receive a benefit adjustment of 1 percent of their annual annuity up to a maximum of $500, in their annuity checks effective July 1, 2012.
Fall 2012 Regional Retirement Seminars
Date Posted: July 2, 2012
Category: General, Employer
If you are one year or less away from retirement eligibility, the South Carolina Retirement Systems wants to help ensure you have all of the information you need to make the decisions that are best for you. We offer a one day retirement seminar designed to answer all of your questions and more. Presenters from the Retirement Systems, the South Carolina Deferred Compensation Program, the Social Security Administration, and the Employee Insurance Program will provide you with the information needed to successfully navigate the retirement process. Go to http://www.retirement.sc.gov/planning/regionalseminars.html to see the list of the fall 2012 regional retirement seminars and register for one that is near your area.
Governor Haley Signs Retirement Reform Legislation
Date Posted: June 28, 2012
Category: General, Employer
On June 26, 2012, Governor Nikki Haley signed the Retirement Free Conference Report on H.4967, the retirement reform legislation, into law. Member contribution rates will increase July 1, 2012, as a result. A comprehensive list of changes by effective date can be found here. For a comparison of the current statute and changes made by H.4967, click here.
Please note that employer contribution rates will also increase on July 1, 2012. New rates can be found here.
FY 2012-2013 Employer Contribution Rates
Date Posted: June 22, 2012
Category: Employer
Note: The insurance surcharge referred to in this article applies only to those organizations that provide retiree insurance through the State Health and Dental plans. If your organization does not provide retiree insurance through the state plans, please disregard this section of the article.
The South Carolina Retirement Systems is required to collect and forward to the SC Budget and Control Board Employee Insurance Program the employer contribution rate necessary to cover the costs of providing health and dental insurance to retirees covered by the State Health and Dental plans. Effective July 1, 2012, the insurance surcharge rate will increase from 4.30 percent to 4.55 percent. Visit our website for the contribution rates effective July 1, 2012, by clicking the link above or copying/pasting http://www.retirement.sc.gov/employers/contributionrates.htm into your browser.
SC General Assembly Passes Retirement Reform Legislation
Date Posted: June 21, 2012
Category: General, Employer
The South Carolina General Assembly voted this afternoon to adopt the Retirement Free Conference Report on H.4967, the retirement reform legislation. Next, the bill goes to governor for signature. Please note that the legislation does not become law until it is signed by the governor. In addition to retirement plan changes, the legislation creates the Public Employee Benefit Authority. For more information, please visit the General Assembly’s website at www.scstatehouse.gov.
Visitors to Retirement Systems Now Seen on First-Come, First-Served Basis
Date Posted: June 20, 2012
Category: General, Employer
The South Carolina Retirement Systems has temporarily suspended its practice of scheduling appointments for retirement consultations due to unusually high visitor volume. Visitors are now being seen on a first-come, first-served basis. Once visitor volume returns to a more normal level, we will again offer appointments. We apologize for any inconvenience this may cause.
Retirement Systems Temporarily Suspends Scheduling of Appointments
Date Posted: June 19, 2012
Category: General, Employer
Due to unusually high visitor volume, the South Carolina Retirement Systems is suspending its practice of scheduling appointments for retirement consultations effective immediately. Once visitor volume returns to a more normal level, we will once again offer appointments. We apologize for any inconvenience this may cause.
"One-Stop Shop" Collaboration Continues
Date Posted: June 8, 2012
Category: General, Employer
If you are a member of one of the retirement plans administered by the South Carolina Retirement Systems and you're thinking about retiring, it's not too late to take advantage of the Retirement Systems' one-stop shop.
From June 11-15, 2012, benefit consultants from the Employee Insurance Program (EIP) will be at the Retirement Systems' office to meet with prospective retirees. Counselors from both divisions will be available during regular business hours (8:30 a.m. - 5:00 p.m.) to help you determine your eligibility for retirement and for insurance. No appointment is required.
Extended office hours will not be available during this collaboration.
You will need to bring a completed Employment Verification Record with then to the consultation, along with:
Please be aware that visitor volume may be higher than normal during this period which might result in longer wait times. You may also visit EIP at their office located at 1201 Main Street, Suite 300, Columbia, SC 29201, during normal business hours.
For more information, contact the Retirement Systems at 803-737-6800 or toll free at 800-868-9002 (within S.C. only), or at www.retirement.sc.gov/contact/email.htm.
Successful Spring Venture Prompts another "One-Stop Shop"
Date Posted: May 29, 2012
Category: General, Employer
The South Carolina Retirement Systems and the Employee Insurance Program (EIP) are once again teaming up to offer prospective retirees the convenience of having all of their retirement questions answered in one location.
From June 4-15, 2012, benefits consultants from EIP will be at the Retirement Systems’ office to meet with members. Counselors from both divisions will be available to help members determine their eligibility for retirement and for insurance. No appointment is required.
Members will need to bring a completed Employment Verification Record with then to the consultation, along with:
Please be aware that visitor volume may be higher than normal during this period which might result in longer wait times. Members may also visit EIP at their office located at 1201 Main Street, Suite 300, Columbia, SC 29201, during normal business hours.
For more information, contact the Retirement Systems at 803-737-6800 or toll free at 800-868-9002 (within S.C. only), or at www.retirement.sc.gov/contact/email.htm.
"One-Stop Shop" Provides Prospective Retirees with Retirement, Insurance Information
Date Posted: March 27, 2012
Category: General, Employer
Benefits consultants from the Employee Insurance Program (EIP) will be available at the South Carolina Retirement Systems' office April 2-13, 2012, to meet with prospective retirees. First offered in December, this collaborative effort between EIP and the Retirement Systems provides those members considering retirement a convenient means to have both their insurance and retirement questions answered quickly and efficiently.
To further accommodate our members, the Retirement Systems will also be extending its office hours during this period. Benefits counselors from both divisions will be available from 7:30 a.m. until 6:00 p.m. to help members determine their eligibility for retirement and for insurance. No appointment is required.
Please bring a completed Employment Verification Record with you to the meeting, along with:
Please be aware that visitor volume may be higher than normal during this period which might result in longer wait times. Members may also visit EIP at their office located at 1201 Main Street, Suite 300, Columbia, SC 29201, during normal business hours.
For more information, contact the Retirement Systems at 803-737-6800 or toll free at 800-868-9002 (within S.C. only).
New Features Added to Member Access
Date Posted: February 16, 2012
Category: General, Employer
The South Carolina Retirement Systems has added several new features to Member Access, the online resource that allows members to view their personal information on file with the Retirement Systems. With this implementation, active members will be able to change their address and retired members will not only gain access but will be able to change their tax withholdings and their address, and view and print a 1099-R form, a Teacher and Employee Retention Incentive (TERI) program statement, and an annuity verification letter. To check out these new features or to register for the first time, please visit https://online.retirement.sc.gov/MemberAccess/welcome.
Attention Retirees: Your Benefit Check Net Amount May Have Changed
Date Posted: January 12, 2012
Category: General, Employer
The South Carolina Retirement Systems withholds state and federal income taxes from all taxable distributions in accordance with the rules and guidelines set forth by the Internal Revenue Service (IRS). As a result of recent changes to the federal tax withholding tables required for calendar year 2012, the net amount of the monthly benefit that is deposited into your bank account or issued to you in the form of a paper check may have changed from the prior month. If you wish to make changes to your income tax withholdings, please complete and submit a Withholding Certificate for Monthly Annuity Payments (Form 7202) which is available on our website. If you have any questions or need additional information, please contact our office at 800-868-9002, 803-737-6800 or http://retirement.sc.gov.
Open Enrollment for State Optional Retirement Program Participants
Date Posted: December 15, 2011
Category: General, Employer
The enrollment period for all State Optional Retirement Program (State ORP) participants is January 1 through March 1 of each year. During the open enrollment period, State ORP participants may change vendors or, if eligible, may irrevocably elect to join the South Carolina Retirement System (SCRS). Any State ORP participant who wishes to change vendors should complete a State ORP Notice of Termination or Change (Form 1162). State ORP participants are eligible to switch from the State ORP to SCRS during the 2012 open enrollment period if at any point during the open enrollment period they have a minimum of 12 months, but no more than a maximum of 60 months, participation from their initial enrollment in the State ORP (initial enrollment between January 1, 2007 and March 1, 2011).
Employers are responsible for notifying all State ORP participants of the open enrollment period. The enrollment period offers significant choices for State ORP participants so we encourage you to consider providing an opportunity for the four State ORP vendors, VALIC, Hartford, MetLife Resources, and TIAA CREF, to meet with interested, eligible employees at your worksite to answer any questions they may have. The vendors may contact you to arrange a meeting with your eligible employees. The Select a Retirement Plan Guide and the It's Your Choice Video are available in order to assist them in making this important retirement decision.
Any State ORP participant who decides to irrevocably join SCRS must complete and sign:
These forms, the guide, and video are available on our website at http://retirement.sc.gov/newhires. Since any changes made during the open enrollment period are not effective until April 1, 2012, do not make any applicable payroll changes until the first payroll on or after April 1, 2012.
If you have any questions, please contact Customer Services at 800-868-9002, 803-737-6800 or http://retirement.sc.gov.
The Retirement Systems and the Employee Insurance Program Work Together to Help Prospective Retirees
Date Posted: December 14, 2011
Category: General, Employer
If you are considering retirement, the Employee Insurance Program (EIP) and the South Carolina Retirement Systems are working together to help you explore your options in retirement. As part of a pilot project, a benefits counselor from EIP will be available at the South Carolina Retirement Systems' office December 28-30 during normal business hours (8:30 a.m. - 5 p.m.) to meet with prospective retirees. During these individual counseling sessions, representatives from both divisions will help you determine your eligibility for retirement and for insurance. No appointment is required. For more information, contact the Retirement Systems at 803-737-6800 or 800-868-9002 (within S.C. only).
Please bring a completed Employment Verification Record with you to the meeting, along with:
New Video Added to Website
Date Posted: December 13, 2011
Category: General, Employer
Premiering on the South Carolina Retirement Systems's website today is a new video in our Retirement Tips Series. This four-minute video provides a glance at the Police Officers Retirement System (PORS). Check it out! - http://retirement.sc.gov/video/videos/tips/porsbenefits.htm.
Retirement Systems Launches New Video Series
Date Posted: November 28, 2011
Category: General, Employer
In a recent poll a few of our fans let us know that they would like to see more information regarding retirement calculation factors covered in our next video. We appreciate your input! Premiering today on our website is the first video in a new series we have launched called whiteboard videos. These short, educational videos will provide an overview of some key terms related to retirement. The first video is a description of "average final compensation" and provides an overview of one of the factors used to calculate a member's AFC. http://www.retirement.sc.gov/video/videos/whiteboard/default.htm.
Legislative Page Updates
Date Posted: November 17, 2011
Category: General, Employer
The Retirement Systems' website has been updated with the latest information we have provided to the House Retirement Ad Hoc Study Committee. To view this information, please visit http://www.retirement.sc.gov/legislative/default.htm.
Public Policy Discussion about Retirement Plan Funding Underway
Date Posted: November 10, 2011
Category: General, Employer
In February 2011, public policy makers in South Carolina began discussion about the funding status of the state’s largest retirement plan for its public workforce, the South Carolina Retirement System (SCRS), as well as the four other systems (the Police Officers Retirement System, the General Assembly Retirement System, the Judges and Solicitors Retirement System, and the National Guard Retirement System. Special retirement subcommittees in both the House of Representatives and the Senate continue to meet and hold public hearings to solicit input and discuss the options available to put the plans on more solid fiscal ground, both now and in the future.
SCRS does not face an immediate liquidity crisis; the plan is currently funded at approximately 65 percent. This means that the plan has on hand 65 percent of the funds it needs to pay future benefits for service already earned. There are numerous options for public policy makers’ consideration. As part of the process, legislators are reviewing fiscal impact analyses provided by the Retirement Systems’ retained actuary, Gabriel, Roeder Smith and Company (GRS). The Retirement Systems’ staff and GRS will continue to provide information to the members of the Senate and House subcommittees so that they may make informed decisions about the plans. To view the documents which have been presented to policy makers as well as responses to their requests for information, please visit http://www.retirement.sc.gov/legislative/default.htm.
Board Takes Action on Retirement Issues
Date Posted: November 3, 2011
Category: General, Employer
At its November 3, 2011, meeting, the SC Budget and Control Board adopted the July 1, 2010, actuarial valuations prepared by Cavanaugh Macdonald for the South Carolina Retirement Systems’ five defined benefit plans.
The valuations for the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) included employer contribution rate increases to maintain the recommended funding periods for the plans. Effective July 1, 2012, the SCRS employer contribution rate will increase to 10.45 percent of covered payroll and the PORS employer contribution rate will increase to 11.90 percent of covered payroll. See table below for current and scheduled contribution rates.
|
FY12 Contribution Rate | Already Scheduled FY13 Contribution Rate | FY13 Contribution Rate Approved 11/3/11 | Incidental Death Benefit | Accidental Death Benefit | Total |
| SCRS | 9.385% | 9.530% | 10.45% | .15% | N/A | 10.60% |
| PORS | 11.363% | 11.595% | 11.90% | .20% | .20% | 12.30% |
Also adopted by the Board was an experience study of SCRS and PORS completed by Gabriel Roeder Smith and Company, which included actuarial assumption recommendations to strengthen the plans. As a result of the Board’s adoption of the experience study, the actuarial assumed rate of return will be reduced to 7.5 percent from the current 8 percent rate. This action reverts the statute governing the provision of cost-of-living adjustments (COLAs) to SCRS annuitants and beneficiaries to the law as amended in 2005, which provided for an automatic 1 percent COLA for eligible SCRS annuitants and beneficiaries. The statute governing the provision of COLAs to PORS members and beneficiaries reverts to the pre-2008 law, which provided for ad hoc COLAs only.
For information about the other actuarial assumptions that were adopted by the Board, please review the Gabriel Roeder Smith and Company experience study here.
Retirement Systems Office Hours
Date Posted: October 12, 2011
Category: General
The South Carolina Retirement Systems’ office hours are 8:30 a.m. to 5:00 p.m. Members needing retirement consultations are asked to arrive at our office no later than 4:15 p.m. to ensure ample time is available for our consultants to provide a comprehensive consultation. Members needing to change their addresses, complete direct deposit forms, apply for refunds, etc., will be seen until the close of business each day.
New Web Look, Member Access
Date Posted: October 3, 2011
Category: General
Today, you’ll notice a new look and a new feature on the Retirement Systems’ home page. In addition to making our home page easier to use, we launched the initial phase of our member access project. This new program allows our members to view and print their annual statement. To learn more, please select the Member Login button at the top of our website, or visit https://online.retirement.sc.gov/MemberAccess/welcome.
Public Policy Discussion about Retirement Plan Funding Has Begun
Date Posted: September 19, 2011
Category: General
Recent news articles and opinion editorials have focused on the funded status of the South Carolina Retirement System (SCRS), which is the largest of our state’s retirement plans for public workers. SCRS is underfunded and public policy makers began discussion about the plan’s funding situation in Senate and House subcommittee meetings held September 14 and 15, respectively. Public policy makers will most likely consider possible changes to the plan, including benefit structure and contribution rates, in an effort to put the plan on more solid fiscal ground.
Regardless of what appears in the media, please know that SCRS does not face a liquidity crisis. The plan is currently funded at approximately 65 percent. This means that the plan has on hand 65 percent of the funds it needs to pay accrued benefits in the future. The target funding rate for plans like SCRS is 80 percent. While the funding issue needs to be addressed with due deliberation with necessary changes made to contribution levels and benefits, it is too early in the public policy discussion process to speculate on what changes will be made. There are numerous options for public policy makers’ consideration. The Retirement Systems’ staff and its actuary have provided and will continue to provide information to the members of the Senate and House subcommittees that will help them make informed decisions about the plan.
For more information about the Senate and House subcommittee meetings, visit the South Carolina General Assembly’s website at http://www.scstatehouse.gov/html-pages/citizen.html.
Accounting and Financial Reporting Resource Center
Date Posted: July 21, 2011
Category: General
The Governmental Accounting Standards Board (GASB) recently released two proposals for revised accounting and financial reporting standards related to public pension plans. These “exposure drafts” would change the way public pension plans calculate and report the costs and obligations of the plans and would require employers participating in the plans to report in their financial statements their share of the pension plan costs and obligations. Retirement Systems staff is reviewing the exposure drafts and will be prepared to provide education and guidance to its participating employers to ensure smooth implementation of the proposed standards if approved by GASB. Visit our GASB Resource Center at http://www.retirement.sc.gov/gasb/ for more information about these proposals.
