Covid-19 Earnings Limitation Exception And Retirement Contributions

Covid-19 Earnings Limitation Exception And Retirement Contributions

On March 19, 2020 Governor McMaster approved A116 (H4014) requiring the Executive Budget Office to establish a COVID-19 Response account which will hold $45 million for use by the Department of Health and Environmental Control (DHEC) “for those purposes necessary for the health, safety and welfare of the public in response to the COVID-19 pandemic”. This bill also provides that for the period beginning March 19, 2020 and ending September 1, 2020, the earnings limitation does not apply to retired members of the SC Retirement System or the PORS system who return to covered employment to participate in the state’s public health preparedness and response to the COVID19 virus.

Retired members of the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS) who return to covered employment to participate in the state’s public health preparedness and response to the COVID-19 virus will not be subject to the $10,000 service retirement earnings limitation.  This provision is in place from March 19, 2020 until September 1, 2020.

Each employer is responsible for determining if a return-to-work retiree’s job function meets the qualifications.  If an employer determines a retiree qualifies, the employer mush complete the COVID-19 Earnings Limitation Exemption Certification (Form 7216) and return it to PEBA.  The earning limitation exception can apply to a retiree who returned to covered employment prior to March 19, 2020, if the retiree’s job function meets the qualification.  The employer must still complete the certification form, and the exception will not apply and earlier than March 19, 2020.

It’s important to note that retirement contributions, both employer and employee contributions, are still due for all return-to-work retirees, even those who meet this new exception.

Please contact PEBA’s Customer Contact Center with any questions at 803.737.6800 or 888.260.9430, or www.peba.sc.gov.

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