How your class is decided
Two classes are open: Class Two and Class Three (Class One is no longer available). Class Two members are generally employees who currently have earned service credit in SCRS or a correlated system (PORS, GARS) for a period of service before July 1, 2012. Class Three members do not currently have earned service in SCRS or a correlated system for a period before July 1, 2012. Withdrawn (refunded) service and State ORP participation do not count toward that test unless the member buys it back; a Class Three member who purchases withdrawn service or State ORP participation for covered employment before July 1, 2012 reverts to Class Two. SCRS Handbook FY2027, p. 5, Classes of membership
Your class depends on whether you still have SCRS service from before July 1, 2012. A refund or ORP years can change it.
We guess your class from your start date; you can change it.
SCRS Handbook FY2027, p. 5, Classes of membershipSide by side
| Class Two | Class Three | |
|---|---|---|
| Who | Still has SCRS (or PORS/GARS) service from before July 1, 2012 | Membership began on or after July 1, 2012 |
| Vested | 5 years of earned service (needed for any pension) | 8 years of earned service (needed for any pension) |
| Full pension | 28 years of service at any age, or age 65 | Rule of 90 (age + service), or age 65 |
| Early pension | Age 60 (−5% a year under 65), or 55 with 25 years (−4% a year under 28) | Age 60 (−5% a year under 65) |
| AFC | 12 highest consecutive quarters ÷ 3, plus up to 45 days' annual leave pay | 20 highest consecutive quarters ÷ 5; leave pay not included |
| Unused sick leave | Up to 90 days added to service (20 days = 1 month) | Not credited |
| Formula | 1.82% × AFC × years | 1.82% × AFC × years |
The rows feed the SCRS formula and decide your early-retirement cut; vesting matters if you're leaving teaching.
SCRS or the State ORP
Membership is mandatory for covered positions unless exempted by statute. Newly hired employees of state agencies, public higher education institutions, public school districts and participating charter schools can choose the State ORP instead of SCRS within 30 days of hire; with no election they are enrolled in SCRS. SCRS Handbook FY2027, p. 5, Membership and enrollment
- State ORP is a 401(a) defined contribution plan offered as an alternative to SCRS to new employees of state agencies, public school districts, public higher education institutions and participating charter schools; elect within 30 days of hire. Retirement plan details (FY2027), PDF p. 1; SCRS Handbook FY2027, p. 5
- Employee contributes 9% (same as SCRS). Employer contributes at the SCRS employer rate; 5% of pay goes to the participant's account with the chosen provider and the rest is remitted to SCRS. Introduction: defined contribution plan (FY2027), PDF p. 1; PEBA Contribution rates page, footnote 3
- Benefit is the account balance; participant bears investment and longevity risk and pays fees; no disability protection, no benefit adjustment, no PEBA monthly benefit. Immediate rights to the balance on termination from all covered employment or at 59 1/2. Introduction: defined contribution plan (FY2027), PDF p. 1
- For retiree insurance, a year in State ORP counts as a year of earned service and eligibility is determined as if the participant were an SCRS member. Retiree Insurance Eligibility, Funding (state), PDF p. 1
- SCRS service credit can be purchased for State ORP years (actuarially neutral cost); a Class Three member who buys pre-July 1, 2012 ORP service reverts to Class Two. SCRS Handbook FY2027, p. 10, State ORP service
These are the facts from PEBA's publications. Which plan suits you depends on your own situation; we don't recommend one. Our calculator estimates the SCRS pension only.
No DROP; TERI is closed
No DROP is open. The former TERI program closed effective June 30, 2018. Past Pension Reform Legislation, PDF p. 1, Act 278 The handbook still mentions it once: time in the former TERI program doesn't count toward the 48-month return-to-membership rule. SCRS Handbook FY2027, p. 23, Working 48 continuous months
Other PEBA systems
- Police Officers Retirement System: Correlated with SCRS (service combined for eligibility). Not for teachers. SCRS Handbook FY2027, p. 7, Correlated systems
- General Assembly Retirement System: Correlated; closed to newly elected officials after the 2012 general election. SCRS Handbook FY2027, p. 7; Past Pension Reform Legislation, PDF p. 1
- State Optional Retirement Program: Defined contribution alternative to SCRS for teachers and other eligible employees. SCRS Handbook FY2027, p. 4, General information
What the sources say
- South Carolina public school teachers are covered by the South Carolina Retirement System (SCRS), which PEBA (the South Carolina Public Employee Benefit Authority) runs.SCRS Handbook FY2027, p. 4, General information
- There are two classes. You're Class Two if you still have SCRS (or PORS/GARS) service from before July 1, 2012. You're Class Three if you don't. Class Three is everyone whose membership began on or after July 1, 2012.SCRS Handbook FY2027, p. 5, Classes of membership; SCRS at a Glance (Class Three), PDF p. 1
- A refund can change your class. Service you cashed out, and years in the State ORP, don't count unless you buy them back. A Class Three member who buys back pre-July 2012 service goes back to Class Two.SCRS Handbook FY2027, p. 5, Classes of membership; p. 10, Previously withdrawn SCRS service
- New teachers have 30 days from hire to choose SCRS or the State Optional Retirement Program (State ORP). If you don't choose, you're put in SCRS.SCRS Handbook FY2027, p. 5, Membership and enrollment
- State ORP is a 401(a) account plan, not a pension. You pay 9% like SCRS members, and 5% of your pay from the employer goes into your account. You carry the investment risk, and you get no disability benefit and no yearly increase from PEBA.Introduction: defined contribution plan (FY2027), PDF p. 1; PEBA Contribution rates page, footnote 3
Questions
I started before 2012, took a refund and came back. Which class am I?
Class Three, unless you buy back the refunded service. Refunded service doesn't count toward the Class Two test; buying back pre-July 2012 service returns you to Class Two.
Can I switch from the State ORP to SCRS later?
The choice is made within 30 days of hire. The handbook says you can buy SCRS service credit for State ORP years at an actuarially neutral cost, and buying pre-July 2012 ORP years makes a Class Three member Class Two.
Is there a DROP or TERI?
No DROP is open. The former TERI program closed effective June 30, 2018.
Source: South Carolina Retirement System Member Handbook, Fiscal year 2027 (SCPEBA 082026, expires June 30, 2027), pp. 4, 5, 7, 8, 10, 16, 17, 19. Also: Retirement plan details (FY2027); Introduction: defined contribution plan (FY2027); PEBA Contribution rates page; Retiree Insurance Eligibility, Funding (state); Past Pension Reform Legislation; SCRS at a Glance (Class Three); S.C. Code 9-1-10. Last reviewed .