What happens to my SCRS pension if I quit teaching?
It depends on whether you're vested. With 5 years of earned service in Class Two, or 8 in Class Three, you can leave your money with SCRS and draw a pension once you meet the age rules. Before that, your choices are a refund of your own contributions plus interest, or leaving the money on deposit in case you come back.
Are you vested?
Class Two needs at least five years of earned service for a benefit; Class Three needs at least eight. SCRS Handbook FY2027, p. 16, Eligibility
- Class Two: 5 years of earned service
- Class Three: 8 years of earned service
Not sure which class you're in? See Class Two or Class Three.
Choice 1: leave it on deposit
A vested member who leaves and keeps contributions on deposit can receive the benefit on reaching age eligibility. SCRS at a Glance (Class Two / Class Three), PDF p. 2, Leaving before retirement; S.C. Code 9-1-1650(A) The age rules are in early retirement and the full pension, and the amount comes from the SCRS formula on the years you have.
Leaving funds on deposit keeps your service; the account earns interest until it becomes inactive. SCRS Handbook FY2027, p. 15, Leave funds on deposit
Choice 2: take a refund
After terminating all covered employment you can request a refund of your contributions plus interest (Form 4101). PEBA cannot pay it sooner than 90 days after termination or later than six months after the request. A refund forfeits future service and disability benefits; employer contributions are not refunded. 20% federal withholding unless rolled over; possible 10% penalty under 59 1/2. SCRS Handbook FY2027, p. 15, Request a refund
From the sources
- If you leave all covered jobs before retiring, you can take a refund of your contributions plus interest. PEBA pays it no sooner than 90 days after you leave. A refund ends any right to a future benefit, and employer contributions aren't refunded.SCRS Handbook FY2027, p. 15, Request a refund
- If you're vested (Class Two: five years, Class Three: eight) and leave your money in, you can collect a benefit when you reach retirement age.SCRS at a Glance (Class Two / Class Three), PDF p. 2, Leaving before retirement
- Your account earns 4% interest until it goes inactive, which means no contributions in the last fiscal year and no other active account.SCRS Handbook FY2027, p. 6, Interest on your SCRS account
Questions
Do I get the employer's contributions if I take a refund?
No. A refund pays back your own contributions plus interest. Employer contributions stay with SCRS.
How soon can I get a refund?
Not sooner than 90 days after you leave all covered work, and no later than 6 months after you ask.
If I'm vested and leave, when can the pension start?
When you reach the age rules for your class, as long as you leave your money on deposit.
Related: a refund is taxable unless you roll it over; see taxes on SCRS payments.
Source: South Carolina Retirement System Member Handbook, Fiscal year 2027 (SCPEBA 082026, expires June 30, 2027), pp. 6, 9-10, 15, 16. Also: SCRS at a Glance (Class Two); SCRS at a Glance (Class Three); Past Pension Reform Legislation; SCRS at a Glance (Class Two / Class Three); S.C. Code 9-1-1650. Last reviewed .