Member Contributions

As a SCERS member, a percentage of your salary is automatically deducted each pay period and deposited into your retirement account. This starts with your first paycheck in a SCERS-covered position and continues as long as you’re employed in an eligible role.

Contribution Rates

Your contribution rate:

• Is based on your membership category (Miscellaneous or Safety) and your benefit tier
• Is set and reviewed annually by the SCERS Board
• Cannot be adjusted or opted out of

Contributions are deducted on a pre-tax basis and apply only to pension-eligible compensation as defined by law and SCERS rules. Some pay types are excluded.

How Contribution Rates Are Determined

Each year, SCERS’ actuary performs the annual actuarial valuation, which measures the system’s assets, liabilities, and long-term funding needs. Based on this analysis, the actuary recommends contribution rates for both members and employers for the subsequent fiscal year. These rates are reviewed and adopted by the SCERS Board of Retirement.

Contribution rates are designed to cover two main costs:

1. Normal Cost – the cost of benefits earned by active members in the current year.
2. Amortization of Unfunded Liability – additional contributions needed to pay off any gap between assets and liabilities over time.

By funding both current benefits and unfunded liabilities, the system ensures that each generation of members and taxpayers pays its fair share.

Legacy vs. PEPRA Members

Interest on Contributions

SCERS credits interest to your member account twice per year on June 30 and December 31, using the lower of: 

• Half the 5-year U.S. Treasury Note rate, or
• Half the rate applied to SCERS valuation reserves

Interest is applied on funds that have been in your account for at least 6 months and is not tied to market returns.  

Access and Refunds

Your contributions:

• Are held in trust for your benefit
• Can be refunded if you leave employment and withdraw from SCERS
• Cannot be borrowed against or accessed while working

30-Year Membership — Member Contributions Cease

Member Contributions are generally required for all periods of employment after your SCERS Membership Date. However, for all Safety members regardless of Membership Date, and for Miscellaneous members hired on or before March 7, 1973 who have maintained continuous membership in SCERS, Member Contributions stop when 30 years of Service Credit is achieved. However, employer retirement contributions continue to be paid based on pension-eligible compensation and the member will continue to earn Service Credit that will be used in the calculation of retirement benefits.

The following types of Service Credit are excluded from SCERS’ determination of the 30-year Member Contribution cut-off:

• Public Service
• Military leave of absence
• Additional Retirement Credit (only available for purchase from May 2007 through December 31, 2012).

We encourage you to contact SCERS if you are approaching 30 years of service and are unsure if or when this Member Contribution cut-off feature applies to you.

Why Contribution Rates Matter

For members, contribution rates determine how much is deducted from each paycheck to fund retirement benefits. For employers, rates affect payroll budgets and financial planning. And for the retirement system, contribution rates ensure that the plan has enough resources to pay current and future benefits without shifting costs unfairly to future generations.

By recalculating and adjusting contribution rates each year, SCERS ensures that funding keeps pace with obligations and that the system remains strong and sustainable.