How it works
Per current state law, effective each July 1, eligible SCRS retirees receive an annual benefit adjustment of 1% of their annual benefit, up to a maximum of $500 per year. It first shows in the payment on the last business day of July. SCRS Handbook FY2027, p. 22, Benefit adjustments; S.C. Code 9-1-1815
Each increase is included in the base for later increases. Surviving annuitants also receive the adjustment; Options B and C survivor payments include granted adjustments. S.C. Code 9-1-1815; S.C. Code 9-1-1815; SCRS Handbook FY2027, p. 20
The $500 cap matters once your benefit is over $50,000 a year ($4,167 a month).
When it starts
The second July 1 after the date of retirement. SCRS Handbook FY2027, p. 22, Benefit adjustments
Class Two members who retire at 55 with 25 years: not eligible until the earlier of the second July 1 after reaching age 60 or the second July 1 after the date they would have had 28 years of service had they not retired. SCRS Handbook FY2027, p. 22, Benefit adjustments; S.C. Code 9-1-1515(C) More on that route in early retirement.
Your first 1% increase comes on the second July 1 after you retire. If you retire exactly on July 1, it isn't clear whether that day counts.
We don't count the July 1 you retire on.
SCRS Handbook FY2027, p. 22; S.C. Code 9-1-1815Example: the handbook's $1,274 a month
That's the handbook's Class Two example from the SCRS formula.
Retiring June 30, 2026, under current law (our projection):
| July 1 | Monthly |
|---|---|
| 2026 (not yet) | $1,274.00 |
| 2027 | $1,286.74 |
| 2028 | $1,299.61 |
| 2029 | $1,312.61 |
| 2030 | $1,325.74 |
| 2031 | $1,339.00 |
PEBA doesn't publish how it rounds the yearly increase.
We round the new monthly amount to the cent.
S.C. Code 9-1-1815From the sources
- Under current law, each July 1 your benefit goes up 1%, capped at $500 a year. The increase compounds.SCRS Handbook FY2027, p. 22, Benefit adjustments; S.C. Code 9-1-1815
- Your first increase comes on the second July 1 after you retire. Retire June 30, 2026 and it starts July 1, 2027. Retire July 15, 2026 and it starts July 1, 2028.SCRS Handbook FY2027, p. 22, Benefit adjustments
- The 1%/$500 limit dates from the 2012 pension reform (Act 278), which replaced the earlier cost-of-living adjustment.Past Pension Reform Legislation, PDF p. 1
Questions
When is my first increase?
On the second July 1 after you retire. Retire June 30, 2026 and it's July 1, 2027; retire July 15, 2026 and it's July 1, 2028.
Is it 1% or $500?
Whichever is less. 1% is less than $500 until your yearly benefit passes $50,000.
Is the increase guaranteed?
It's in current state law (S.C. Code 9-1-1815). The General Assembly can change the law.
Related: what your beneficiary receives under each payment option.
Source: South Carolina Retirement System Member Handbook, Fiscal year 2027 (SCPEBA 082026, expires June 30, 2027), pp. 20, 22. Also: Get Set for Retirement: Post-retirement information (FY2027); Past Pension Reform Legislation; S.C. Code 9-1-1515, 9-1-1815. Last reviewed .