- What is the TERI program?
TERI is an acronym for the Teacher and Employee Retirement
Incentive, a deferred retirement plan that lets eligible employees
retire, but continue to work. TERI participants may continue
employment for up to five years from the date they enter the
program. The S.C. Retirement System will calculate a participant's
retirement benefit as of the effective date of the TERI application.
For employees entering the program after June 30, 2005, the
final retirement benefit will be recalculated at the end of
the TERI program to include payment for unused annual leave.
During the TERI period, the S.C. Retirement System will deposit
the participant's monthly retirement benefit into their tax-deferred
TERI account. No interest is paid on retirement benefits paid
into the TERI account, however applicable cost-of-living increases
will be added to the monthly benefit. As of July 1, 2005, TERI
participants will resume paying employee contributions to the
S.C. Retirement System at 6.25% of earnings. The employee contribution
will increase to 6.5% on July 1, 2006. The University will continue
its normal employer contributions during the specified TERI
period. Those employer contributions will increase by 1% over
two year staring July 1, 2006.
TERI participants accrue no further retirement service credit,
and cannot apply for disability retirement during the TERI period.
TERI participants are eligible for the S.C. Retirement Systems'
group life insurance benefit in the amount of one year's base
salary.
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. To the extent permitted by law, this amount may
be rolled over into an eligible plan. At that time, former TERI
participants will begin receiving a monthly retirement check
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- 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 under 28 years of service, whichever is less.
The TERI plan is not available to employees who participate
in the Police Officer Retirement System or the Optional Retirement
Program.
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- Who decides if a faculty or staff member
may participate in the TERI program?
Participation in the TERI program is the voluntary choice
of eligible employees. It is important to remember that there
is no longer an age limit to active and full employment provided
the employee continues to meet the requirements of the position.
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- When is the best time to retire?
It depends upon your personal situation. We usually recommend
that employees retire at the end of a quarter especially if
this is one of your 12 highest quarters of earnings. Discussion
with the retirement counselor can assist you in considering
the factors related to your individual retirement situation.
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- What if I want to retire in less than five
years; may I still participate in the TERI program?
Yes. Participation in the TERI program is limited to a maximum
of five years, but an employee may terminate at any time during
the five-year period without penalty. However, if you elect
to participate in the TERI program for less than the five-year
period, you are unable to extend the amount of time designated
in the TERI enrollment form. At the end of your designated TERI
period, you become fully retired. Continued employment after
TERI is at the discretion of the University—just as it
is now after full retirement.
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- Is there a penalty for leaving before the
end of the five years stipulated in the TERI agreement?
No, but as with any decision to leave employment you must
notify your department of your date of separation. The University
must notify the S.C. Retirement System when a TERI employee
terminates and is paid out for unused annual leave.
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- May I rescind my decision to enter the TERI
program?
You may rescind your decision up until the effective date
of entry stated on the TERI enrollment form.
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- Will I keep my same job if I participate
in the TERI program?
Yes. There is nothing inherent in the TERI program that changes
the type of position you occupy. TERI participants who were
in FTE positions prior to entering the program will continue
to occupy an FTE position. In addition to occupying FTE positions,
TERI program participants also may occupy temporary, research
grant, or time limited positions. TERI participants also are
eligible to pursue other positions at the University or another
state agency during the TERI period.
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- Will I have to contribute to the S.C. Retirement
System after I enter the TERI program?
Yes, you will be required to make the same contribution to
the S.C. Retirement System as active employees.
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- Will I receive any additional benefit for
my continued contributions to the S. C. Retirement System?
As a TERI participant, you will not receive any additional
service credit for your contributions. You will be eligible
for the S.C. Retirement Systems' group life insurance benefit
in the amount of one year's base salary while participating
in the program.
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- How are my rights and benefits as a University
faculty or staff member affected by my participation in the TERI
program?
TERI participants who entered the program prior to June 6,
2005, retain the same status and employment rights they held
upon entering the program. Employees who enter the TERI program
after June 6, 2005, are excluded from coverage under the State
Employee Grievance Procedures Act; however, faculty continue
to have the employment rights afforded to them by the appropriate
Faculty Manual.
Employees who enter the TERI program gain no new employment
rights and are subject to the employment policies and procedures
associated with whatever position they occupy during the program
period, including those policies and procedures related to salary
and benefits. In other words, TERI participants can still be
terminated for poor performance or rule violations, and staff
positions are subject to reduction in force if circumstances
warrant. (See the first paragraph of this section for information
concerning grievance rights for TERI participants.)
Participants in the TERI program are eligible for active state
employee health insurance benefits and the S.C. Retirement Systems'
group life insurance benefit in the amount of one year's base
salary; however they are not eligible for disability retirement
benefits.
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- What happens to my annual and sick leave?
Will I accumulate leave as a participant in the TERI program?
Upon entering the TERI program, up to 90 days of unused sick
leave may be applied to your service credit. Your sick leave
balance will be reduced by the amount of sick leave used to
calculate your retirement benefit.
Participants in the TERI program will be eligible to earn
and use annual leave and sick leave if they are in positions
that are eligible for leave benefits. Annual leave will be earned
at the rate consistent with their years of state service for
leave accrual purposes. State service while participating in
the TERI program will constitute state service for bonus leave
accrual purposes.
Employees entering the TERI program after June 30, 2005, will
be eligible to be paid for up to 45 days of unused annual leave
only upon termination of employment. TERI participants' average
final compensation will be recalculated upon termination of
employment to include the number of annual leave days paid at
separation. All unused sick leave will be forfeited.
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- If I participate in the TERI program, will
I be eligible for cost-of-living, merit and performance salary
increases?
Yes. Consideration for cost-of-living, merit and performance
raises will be the same for TERI participants as for all other
employees. However, pay increases you receive after entering
the TERI program will not increase your average final compensation,
which is calculated at the time you enter the TERI program.
Your retirement benefit is calculated using your average final
compensation, which means the average of your 12 highest consecutive
quarters of earnings—normally, but not necessarily—your
last 12 quarters.
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- How is my retirement benefit calculated?
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.
The average of your twelve highest consecutive quarters is used
to calculate your average final compensation.
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- How are earnings posted?
Earnings are posted by the quarter in which they are paid
to you. Quarters are: January - March, April - June, July -
September, and October - December. The regular nine-month salary
of faculty is posted during the academic year. Summer school
and/or earnings outside the base time are posted in the quarter
in which they are paid.
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- Will summer school earnings affect my retirement
income?
Summer school earnings are included in reportable earnings
for the purpose of computing your 12 highest consecutive quarters.
Payments for the Summer I session are normally included in the
April-June quarter.
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- How does annual leave pay affect my retirement
benefit?
Current legislation allows faculty and staff who earn annual
leave and enter the TERI program before July 1, 2005, to receive
an annual leave payout upon entering the program. One-third
of the annual leave payout is added to the average final compensation
and the retirement benefit amount is calculated on this amount.
Those employees entering the program before July 1, 2005, are
eligible to receive a second annual leave payout at the time
of separation from the TERI program
Faculty and staff who earn annual leave and enter the TERI
program after June 30, 2005, 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 their retirement benefit will be recalculated on this
adjusted amount.
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- Will state and federal income tax be withheld
from the retirement benefit payment held in my TERI account?
No state or federal income tax will be withheld from the payments
held in the tax-deferred TERI account. Upon separation from
employment either during or at the end of the TERI period, the
S.C. Retirement System will issue a taxable lump-sum payment
to the participant, or the participant may roll the amount of
the TERI account into an eligible tax-deferred plan, to the
extent permitted by law. If a lump-sum distribution is made
to the retiree and not rolled over into an eligible tax-deferred
plan, state and federal taxes will be applicable.
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- What happens if I experience a break in
service during my 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.
An employee experiences a break in state service 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.
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- How does participation in the TERI program
affect a faculty member's tenure status?
A tenured faculty member entering the TERI program will retain
tenure during the five-year period of continued employment as
long as the faculty member remains employed in a tenure-eligible
position. Participation in the program does not guarantee employment
for the amount of time designated in the TERI enrollment form.
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- Are TERI participants eligible to hold and
receive endowed chairs?
Yes, TERI participants are eligible to hold and receive endowed
chairs.
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- Are TERI participants still subject to the
post-tenure review process?
If post-tenure review is scheduled during the time period specified
in the TERI enrollment form, the faculty member will be subject
to the post-tenure review process in accordance with the provisions
of the applicable Faculty Manual. The end of participation in
the TERI program sets the maximum date of full employment with
the University.
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- What about customary financial support from
the University such as travel support, sabbatical leave, and internal
research grants?
Consideration for customary institutional support such as
travel, sabbatical leave, internal research grants, etc., will
be the same for TERI participants as for those faculty not participating
in the TERI program.
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- How does participation in the TERI program
affect retirement agreements between the University and individual
faculty members?
If an employee has signed a retirement agreement that contains
a date the employee intends to retire, the employee is expected
to retire as specified in the agreement.
If an employee has signed a retirement agreement for two years
in the future, and if they are eligible to participate in the
TERI program, there is nothing about the retirement agreement
that would preclude their participation in the TERI program.
A critical point to consider is that the average final compensation
is calculated at the time the employee enters the TERI program,
so subsequent salary increases could still be given but would
not count toward the final average compensation.
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- Does TERI participation have any effect
on guaranteed summer school teaching?
No. Participants in the TERI program may teach summer school
in accordance with the applicable Faculty Manual.
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- May I continue to work for the University
after I complete my TERI period? Is there an earnings limitation
on post-retirement employment?
Continued employment after completion of the TERI period is
at the discretion of the University just as it is now after
full retirement. The retiree earnings limitation was removed
effective July 1, 2005.
