April 16, 2012
The legislative debate regarding the fate of the SC Retirement Systems (SCRS, PORS, & GARS) is a complicated and ever-changing issue. This is a "hot button" issue that remains very fluid and changes, literally, every day. I will try to answer the question, as best I can, given the most current information that we have. First of all, let me clarify that the TERI program is only available to participants in the (regular) SCRS program. Participants in the PORS (Police Officers Retirement System) do not participate in the TERI program, but are eligible to retire and rehire, through a separate program. I won't go into the detailed differences between TERI and Retire and Rehire (or Return to Work) here, but let's just say they are different. What makes this question even more complicated to answer is that there are currently three (3) different scenarios that are at play regarding what changes will take place for new hires, current employees, and retirees. I will try to address the proposed changes, specifically for the TERI and Retire and Rehire programs, in each venue of debate. - In November of 2011, the State Budget and Control Board approved changes to all of the retirement systems. Their changes would affect the different retirement systems, but did not change TERI or Retire and Rehire. - The House of Representatives has passed a bill that will make changes to the retirement systems. Their changes would affect TERI and Retire and Rehire in the following ways: - TERI would not be available for employees in the SCRS hired after July 1, 2012. It does not affect current employees in the SCRS. Changes to the Retire and Rehire program in PORS were not mentioned. - The Senate has a special subcommittee appointed by the Senate Finance Committee that is currently working on proposals for their version of a bill that would make changes to the retirement systems. This bill is still being debated in subcommittee and has not yet been approved by the full Senate Finance Committee, nor the Senate. The SC State Firefighters Association, along with a coalition of law enforcement associations, are working with members of the special subcommittee to keep the Retire and Rehire program available to these in the PORS system. We do not yet know what changes the final bill will include. This is a situation where doing nothing is not an option. Some changes WILL and MUST occur to maintain a solvent retirement system, that our members can trust will be there in the future. Regardless of the outcome, we will likely face changes to the system again in the future. My advice to all is, don't retire until you can afford to retire, and don't bank on your state retirement alone to sustain you in retirement. Good financial planning at the beginning of a career, can make retirement at 25 years an affordable option.
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