Pension reform: Retirement contribution increased and capped

June 20, 2017

On April 25, 2017, South Carolina Governor Henry McMaster signed into law the Retirement System Funding and Administration Act of 2017. While the act does not change any benefits for retirees or working members, the legislation seeks to strengthen funding for PEBA’s retirement plans so their unfunded liability will be paid down more quickly.

Beginning July 1, 2017, Clemson University and its employees will make higher retirement contributions. For the South Carolina Retirement System and State Optional Retirement Program, the employee contribution rate will increase to 9 percent. For the Police Officers Retirement System, the employee contribution rate will increase to 9.75 percent. Employee contribution levels will be capped at the July 1, 2017 contribution levels. The University’s contribution level increases by 2 percent as of July 1, 2017, and will continue to increase annually by 1 percent through July 1, 2022.

Click here for more information, and contact (864-656-2000/ASK-HR) should you have questions or concerns.

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