What PERF Is and How South Carolina's Public Employee Retirement System Works

PERF covers retirement savings for most South Carolina public employees

PERF — the Public Employee Retirement System of South Carolina — is the state pension plan for teachers, police officers, firefighters, and other government workers. If you work for a public agency in South Carolina, you likely contribute to PERF through payroll deductions, and your employer matches a portion of those contributions. The system pools money from active workers and employers, invests it, and pays monthly retirement benefits to people who have worked long enough to may have access to.

PERF is not a 401(k) or individual investment account. It is a defined benefit plan, meaning your monthly retirement check is calculated by a formula based on your years of service and your salary history, not by how much you happened to contribute or how the stock market performed in any given year. The state guarantees that payment for life once you retire.

Understanding how PERF works matters if you are a public employee planning your future, or if you are a family member trying to understand what benefits a retired worker receives. The system has specific rules about when you can retire, how your benefit is calculated, and what happens to your money if you leave your job before retirement age.

Key Takeaways

• PERF is a state pension system for South Carolina public employees, funded by payroll contributions from workers and matching contributions from employers.
• Your monthly retirement benefit is calculated using a formula based on your years of service and your salary, not on investment returns or how much you personally contributed.
• You must meet age and service requirements to receive a full retirement benefit; leaving before those requirements are met may result in a refund of your contributions or a reduced benefit.
• PERF offers survivor benefits to spouses and dependents, and allows you to choose different payment options that affect the size of your monthly check.

How contributions and employer matching work

When you are hired as a South Carolina public employee, PERF contributions are deducted from your paycheck automatically. The percentage you contribute depends on the type of job you hold — teachers, law enforcement, firefighters, and general government employees have different contribution rates. These rates are set by state law and can change, but they typically range from about 6 percent to 9 percent of your salary.

Your employer — whether that is a school district, city, county, or state agency — also contributes money to PERF on your behalf. The employer contribution is separate from your paycheck deduction and is meant to ensure the system has enough money to pay all the retirement benefits it has promised. Both your contributions and your employer's contributions go into the PERF fund, where they are invested in stocks, bonds, and other assets to grow over time.

You can see your PERF account balance and contribution history by logging into your account through the PEBA website (PEBA stands for Public Employee Benefit Authority, the state agency that runs PERF). Your account statement shows how much you have contributed, how much your employer has contributed, and the current value of your account balance.

Retirement age and service requirements

PERF has different retirement rules depending on when you were hired and what type of job you do. Most employees can retire with a full benefit once they reach age 65 with at least five years of service, or once they have 30 years of service regardless of age. Some groups — such as law enforcement and firefighters — have different rules that allow earlier retirement.

If you leave your job before you meet the requirements for retirement, you have options. You can leave your money in PERF and wait until you are old enough to collect a benefit. You can request a refund of your contributions (though not your employer's contributions). Or, if you move to another South Carolina public job, your years of service may carry over, allowing you to build toward retirement in the new position.

The exact rules depend on your hire date and job category, so it is worth contacting PEBA directly to understand your specific situation. PEBA staff can tell you when you become may be able to access to retire and what your estimated benefit would be.

How your monthly benefit is calculated

Your PERF retirement benefit is not based on how much money sits in your account. Instead, it is calculated using a formula: your years of service multiplied by a percentage of your average salary over a specific period (usually your highest three or five consecutive years). The exact formula varies slightly depending on your job category and hire date.

For example, if you worked 25 years as a teacher, and your average salary over your highest-earning years was $50,000, your monthly benefit would be calculated by multiplying 25 years by a set percentage (such as 1.82 percent) and then by $50,000. The result is your monthly retirement payment, which you receive for life.

This formula means that your benefit grows with each year you work and with each salary increase you receive. Staying in your job longer, or earning more before you retire, directly increases your monthly check. PEBA provides a benefit calculator on its website where you can estimate what your retirement payment might be based on different scenarios.

Survivor benefits and payment options

If you die before you retire, PERF pays a survivor benefit to your spouse and dependent children. The amount depends on your years of service and salary at the time of death. If you die after you have started collecting retirement benefits, your spouse may continue to receive a portion of your monthly payment, depending on which payment option you chose when you retired.

When you are ready to retire, PERF offers you several payment options. You can choose a benefit that pays you the maximum amount each month, but stops when you die. Or you can choose an option that pays you a smaller monthly amount but continues to pay your spouse or a named beneficiary after you die. The longer the payment is may provide to continue, the smaller your monthly check will be. Understanding these options before you retire helps you make the choice that fits your family's needs.

You can also name a beneficiary to receive any remaining balance in your account if you die before your benefits are fully paid out, depending on which payment option you selected.

What happens if you change jobs or leave South Carolina

If you leave a South Carolina public job before you are may be able to access to retire, your contributions stay in PERF. You can request a refund of the money you personally contributed, though this means you lose credit for those years of service. Alternatively, you can leave your money in the system and wait until you reach retirement age to start collecting a benefit based on your years of service.

If you move to another public job in South Carolina — such as from a school district to a city government position — your years of service typically combine, so you build toward retirement faster. This is called service credit transfer, and it happens automatically in most cases.

If you move out of state or take a private-sector job, you can still leave your money in PERF and collect a benefit later, or you can request a refund. Some people who leave South Carolina public employment choose to roll their PERF balance into an Individual Retirement Account (IRA) or another retirement plan, though this requires following specific IRS rules to avoid taxes and penalties.

Contacting PEBA and accessing your account

PEBA manages PERF and handles all questions about your account, contributions, and retirement benefits. You can reach PEBA by phone at 803-737-6800, or visit their website at peba.sc.gov. PEBA staff can answer questions about your specific situation, help you understand your benefit options, and provide estimates of what your retirement payment might be.

You can also create an online account through the PEBA website to view your contribution history, account balance, and estimated retirement benefit. The online portal allows you to update your personal information, designate or change beneficiaries, and access forms you may need.

If you are nearing retirement, PEBA offers retirement planning sessions — sometimes in person and sometimes by phone — where you can walk through your options with a PEBA representative. These sessions are free and can help you understand the payment options available to you and plan the timing of your retirement.

Frequently Asked Questions

Can I take my PERF money with me if I leave my job?

You can request a refund of your personal contributions if you leave before retirement age, but you cannot take your employer's contributions. Alternatively, you can leave your money in PERF and collect a benefit later once you reach retirement age. If you move to another South Carolina public job, your years of service combine automatically.

What is the difference between PERF and Social Security?

PERF is a pension plan for public employees; Social Security is a federal program for workers across all sectors. Most South Carolina public employees do not pay into Social Security, so PERF is their primary retirement income. Some public employees pay into both systems, depending on their job and when they were hired.

How much will my monthly benefit be?

Your benefit depends on your years of service, your salary history, and your job category. PEBA provides a benefit calculator on its website where you can enter your information and see an estimate. For a precise calculation, contact PEBA directly — staff can give you an exact figure based on your account records.

What happens to my PERF if I die before I retire?

Your beneficiary receives a survivor benefit based on your years of service and salary. The amount varies depending on whether you have a spouse and dependents. If you have already retired and chosen a payment option that includes survivor benefits, your spouse or beneficiary continues to receive a portion of your monthly payment.

Can I retire early, before age 65?

Yes, if you have 30 years of service, you can retire at any age. Some job categories — such as law enforcement and firefighters — have different rules allowing earlier retirement. Contact PEBA to find out the specific requirements for your position and when you become may be able to access.