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             "RECALCULATING ROUTE!"

With 3.5 Yrs. Until Closure...

                        Is It Time To TERI?

Your Time To Graduate

Teachers have unique options and benefits for retirement and often have trouble learning and understanding the different impacts their options have on their future. Things like how can I buy back credits, who should I name as the beneficiary to my annuity payments when I die, how should I invest after I retire? Unless they signed up for summer classes, a lot of teachers spend more money during the summer rather than during the year when they are working? As such shouldn't there be considerable planning as to how one may "spend" their retirement? Since TERI is being done away with in  June 2018, it present a number of challenging decisions for teachers who have the option to TERI. Callenges which combine tough money (tangible) choices verses intangible choices like putting a value on quality of life and freedom from working. Each teacher is different as some may enjoy working and not want to quit whereas others feel rightfully so that they have 'put in their dues'. At ProVest Wealth Advisors we can help to drown out the 'white noise' and focus on what really matters in retirement. By working on a customized retirement analysis, we can address issues and concerns that teachers face in retirement and be prepared to live well in retirement.

Let Us Help You With Your Lesson Plan...For The Next 50 yrs

For the never-ending summer we call retirement it can be challenging deciding on future plans and retirement expenses . Before one can answer questions like, "how do I take my TERI distribution, when should I begin my pension, or can I quit working a detailed plan must be setup. We take a look at the current capital, what is coming in each month from savings and pension payments from the SCRS and Social Security, and also what is going out each month to fund retirement and the many lifestyle plans. Once we add in inflation and each customized objectives and ideas to accomplish, we can put together a written plan designed to help make the right choices to retire well.

Receive Continual Guidance To Stay On Track

Hire us to continually help you stay on your path.  If you want to come in a talk, the initial consultation is at no charge. If you decide to have us work on a written plan for you, we charge a flat fee determined at the time of the interview (ranging from $250). We look forward to hearing from you.

PH:

(864) 582 7766

FAQ's About The TERI program (Teacher and Employee Retention Incentive program)

What is TERI?

TERI participants may work for up to five years from the date they enter the program. If starting in 2015 the benefit would only be able to earn up to 3.5 years as the TERI program is being terminated on June 30th 2018.The S.C. Retirement System will calculate a participant's retirement benefit as of the effective date of the TERI application.

 

-During the TERI period, the SCRS will start paying pension payments into a tax deferred account; The final retirement benefit will be recalculated at the end of the TERI program to include payment for unused annual leave. Upon separation from employment either during or at the end of the TERI period, the S.C. Retirement System will issue a lump-sum payment of the funds that have accumulated in the participant's TERI account after the employee has completed the TERI Payout Election Form 7500 (https://forms.retirement.sc.gov/formGenericGet.do?formNum=web7500.xdp).

 

Do You Still Contribute To The SCRC while on TERI?

Yes. TERI participants are still required to pay employee contributions to the S.C. Retirement System at 8% of earnings (8.16% after July 1st, 2015).

 

DO you accrue retirement credits while on TERI?

No. There is no further retirement service credit, and one cannot apply for disability retirement during the TERI period. Participants are eligible for the S.C. Retirement Systems' group life insurance benefit in the amount of one year's base salary.

 

What are the eligibility requirements for participation in the TERI program?

Faculty and staff who are active members of the S.C. Retirement System and who have at least five years of earned service may participate in the TERI program if they qualify to retire with one of the following options:

  • Reduced benefit retirement at age 60 or at age 55 with 25 years of service

  • Regular retirement at age 65 or with 28 years of service.

Note: Prior service in the S.C. Retirement System may be reestablished to meet the five-year earned service requirement. Retirement benefits will be reduced by 5 percent for each year the employee is under the age of 65, or 4 percent for each year the employee has less than 28 years of service, whichever is less.

 

When is the best time to TERI?

At the end of a quarter in which a teacher had previously earned the12 highest quarters of earnings.

Do you have to go the full 5 years to enter the TERI program?

NO. 5 years are not required, but if a teacher indicates 3 years on the enrollment form and wants to extend after being enrolled in the TERI they may not do so.

 

Can a teacher rescind enrollment in the TERI program?

Yes, but not after the effective date.

 

What happens to annual leave and sick leave? Will You accumulate leave as a participant in the TERI program?

Faculty and staff will not be paid for annual leave upon entering the program; however, they will receive an annual leave payout at the time of separation from TERI. One-third of their annual leave payout will be added to the average final compensation that was determined when they entered the program, and employees aren’t able to be paid on more than 45 days of unused annual leave upon termination of employment. The average final compensation will be recalculated upon termination of employment to include the number of annual leave days paid. All unused sick days will be forfeited.

 

How is my retirement benefit calculated?

Your retirement benefit is calculated using the average of your 12 highest consecutive quarters of earnings

The S.C. Retirement System provides extensive online information concerning how your retirement benefit is calculated at: http://www.retirement.sc.gov/publications/select.pdf. Retirement calculators are available at http://www.retirement.sc.gov/calculators/default.htm

 

What happens if you experience a break in service during participation in the TERI program?

A participant in the TERI program will be considered to have terminated employment if a break in service is experienced that is when there is an interruption of continuous state service for a period of more than 15 calendar days, when the employee remains in leave without pay status for more than one calendar year, or when the employee is paid for unused annual leave.

How Does The State Employee Grievance Procedure Act Affect TERI participants?

TERI participants employed by an agency that adheres to state personnel policies will be exempt from the State Employee Grievance Procedure Act. This means your employment as a TERI participant is at will. If a TERI participant works for an employer that is not governed by state personnel policies, the TERI participant would be subject to his employer’s policies regarding employment status and rights.

 

What happens in the event of death while an employee is on TERI?

If an employee were to die while being enrolled in the TERI program, the employer provides the incidental death benefit, and the named beneficiary may be entitled to a payment equal to one year’s earnable compensation. Also the total amount of accumulated benefits in the TERI account will be distributed to the named beneficiary.

What If I inherited A TERI account from a deceased spouse or family member?

A designated beneficiary who is a spouse may roll over the taxable portion of the TERI balance into an IRA, a 401(k) plan, a 401(a) eligible plan, a 403(b) plan, or a 457 plan. A non-spousal beneficiary may roll over the taxable portion of the TERI balance into an inherited or beneficiary IRA only.

 

How Does the TERI Program Termination Affect Me?

TERI Program to Close June 30, 2018Initially, TERI participants could defer receipt of their retirement annuity for up to 60 months; however, the TERI program will be closed effective June 30, 2018. Participants who enter the TERI program after July 1, 2013, will not be eligible to participate in TERI for the full 60 months. Instead, their TERI participation will end on June 30, 2018, regardless of when they entered the program.

 

 

 

 

 

 

How much do I have to contribute to the SCRS retirement plan?

Employees enrolled in the SCRS plan contribute a tax-deferred 8% of gross pay into your SCRS retirement account. This will increase to 8.16% effective July 1, 2015. Active members earn 4% compounded annually on the account balance as of the previous June 30. Your SCRS account is considered inactive and stops earning the 4% when no contributions have been made to the account in the preceding 12 months and no other active, correlated system or State ORP account exists.

 

What Age Is Normal Retirement (Unreduced Benefit):

  • 28 years of service on the date of retirement, five years of which must be earned service credit; or

  • Age 65 or older on the date of retirement with at least five years of earned service credit.

 

Early Retirement (Reduced Benefit):

  • Age 60 with at least five years of earned service credit. Your annuity is permanently reduced 5 percent for each year of age less than 65; or

  • Age 55 or older with 25 years of service, five of which must be earned service credit. Your annuity is permanently reduced 4 percent for each year of service less than 28. Benefit adjustment restrictions apply.

 

Should you leave money in the SCRS retirement account?

If there is a chance a teacher or Employee in the State Retirement System then the answer is yes. By leaving the funds they may retain earned years of service credit, which may be added to any future service that may be accrued by one of the correlated retirement systems administered by PEBA. The account will continue to earn interest until it becomes inactive. An account is considered inactive when no contributions have been made to the account in the preceding 12 months and no other active, correlated system or State ORP account exists. You may apply for a refund at a later date or apply for a service retirement annuity upon reaching eligibility.

 

Beneficiaries

The benefits administered by PEBA Retirement Benefits also offer options to help provide for survivors in the event of death. As an active member, employees have the option to designate three types of beneficiaries for their retirement account:

  • Primary beneficiaries for in-service death benefits or refund of contributions. Multiple beneficiaries would share equally in a survivor monthly annuity;

  • Contingent beneficiaries in case of death of the primary beneficiaries. All primary beneficiaries must be deceased before any contingent beneficiaries will be paid; and

  • Incidental death benefit beneficiaries.

An estate may be named as a beneficiary for an account; however, monthly annuity payments cannot be paid to an estate. As an active member, beneficiaries may be changed at any time before retirement.

FAQ's About The South Carolina Retirement System Defined Benefit Plan

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Securities offered through Cambridge Investment Research, Inc., Member FINRA, SIPC and Investment Advisory Services offered through Cambridge Investment Research Advisors Inc, a Registered Investment Advisor. Cambridge and Provest Wealth Advisors, Inc are not affiliated. We are licensed in the following states:NC, SC, GA, FL, VA, TX, TN, ME.

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