Office of Human Resources
Retirement
RETIREMENT
The South Carolina General Assembly passed the following retirement-related laws in the 2001 Legislative session to be effective July 1, 2001.
1. RAISING THE EARNINGS LIMIT FOR RETIREES
Increased earnings limitation for retired members who return to work for an employer covered by the Retirement Systems from $25,000 to $50,000 per fiscal year.
2. RETIREE RETURNING TO WORK
If a retired member returns to covered employment sooner than 60 days after retirement, the member's retirement allowance will be suspended while the member remains employed by a covered employer. This 60-day break in service requirement applies to members who return to covered employment on or after July 1, 2001. The 60 days are measured from the date of retirement. In the case of a TERI participant, the date of retirement is the starting date of the member's TERI period.
TERI ELIGIBILITY
Active members of the South Carolina Retirement Systems who are eligible for service retirement may elect to participate in the TERI (Teacher and Employee Retirement Incentive) program. Retirement may be in one of the following ways:
NORMAL RETIREMENT:
Age 65 or 28 years of service credit, five years of which must be earned service.
EARLY RETIREMENT (Reduced Annuity):
Age 60 with at least five years of earned service; or
Age 55 or older with 25 years of service credit, five years of which must be earned service.
Thus, an employee who is eligible to retire is eligible to participate in the TERI program.
DEFERRED COMPENSATION
EFFECTIVE JANUARY 1, 2003 *
The percentage of compensation limitation for 401(k) and 403(b) plans is the lesser of 100% of total compensation or $12,000 per year. (Please note that the maximum you can contribute between the 401(k) and 403(b) plan is $12,000.) The 457 has been increased to 100% of adjusted gross. {Gross less Retirement System, Sec. 125 (health insurance related), 401(k) and 403(b) contributions.}
Normal elective deferral limits for 457, 401(k) and 403(b) are as follows:
2003 - $12,000 2005 - $14,000
2004 - $13,000 2006 - $15,000
Those who are age 50 or older can catch up an additional amount per year. The maximum contribution limits for the 457, 401(k), and 403(b) plans are as follows:
2003 - $2,000 2005 - $4,000
2004 - $3,000 2006 - $5,000
If you are within 3 years of being eligible to retire, the catch-up limit for the 457 plan will be twice the normal elective deferral limit. Only the 457 plan has this option. If you have catch-up available, you could defer as much as $24,000 in the 457 plan and an additional $14,000 in either the 401(k) or 403(b) {or combination of both} for a total of $34,000. You cannot contribute to both the over-50 catch-up provision of the 457 plan and the 3-year catch-up provision of the 457 plan.
401(k), 457 AND 403(b) CAN BE ROLLED OVER TO THE S. C. RETIREMENT SYSTEM TO PURCHASE SERVICE CREDIT TIME.
* These maximums go up every year through 2006.
THE LANGUAGE USED IN THIS DOCUMENT DOES NOT CREATE AN EMPLOYMENT CONTRACT BETWEEN THE EMPLOYEE AND LANDER UNIVERSITY. THIS DOCUMENT DOES NOT CREATE ANY CONTRACTUAL RIGHTS OR ENTITLEMENTS. LANDER RESERVES THE RIGHT TO REVISE THE CONTENT OF THIS DOCUMENT, IN WHOLE OR IN PART. NO PROMISES OR ASSURANCES, WHETHER WRITTEN OR ORAL, WHICH ARE CONTRARY TO OR INCONSISTENT WITH THE TERMS OF THIS PARAGRAPH CREATE ANY CONTRACT OF EMPLOYMENT.
