PEBA's four steps
- Add your 12 (Class Two) or 20 (Class Three) highest consecutive quarters of pay, plus any Class Two annual leave payout. Divide by 3 or 5. That's your AFC.
- Multiply by 1.82%.
- Multiply by your years of service credit.
- Divide by 12. That's your maximum monthly benefit (Option A).
Class Three, age 60, 30 years, same AFC: $16,380 a year, $1,365 a month.SCRS Handbook FY2027, p. 19, Class Two example; SCRS Handbook FY2027, p. 19, Class Three example
Part years
Convert months to days and divide total days by 360. Example: 25 years, 2 months and 10 days = 25 years 70 days; 70 / 360 = 0.19; 25.19 years. SCRS Handbook FY2027, p. 18, footnote 6 You can also add years by buying service credit.
Your AFC
Class Two: Average of the 12 highest consecutive quarters of earnable compensation with regular contributions and service credit. Termination pay for up to 45 days of unused annual leave (from the last employer's last termination payment) is added to the 12 quarters before dividing by 3. SCRS Handbook FY2027, p. 17, Average final compensation
Class Three: Average of the 20 highest consecutive quarters of earnable compensation. Unused annual leave payouts are not included. SCRS Handbook FY2027, p. 17, Average final compensation
A quarter is January-March, April-June, July-September or October-December. For work after Dec. 31, 2012, AFC does not include overtime pay not mandated by the employer. SCRS Handbook FY2027, p. 17, footnote 4; SCRS Handbook FY2027, p. 17, Estimated benefit; S.C. Code 9-1-10(8)(b)
School district and higher education employees: adjustments might be required so the AFC covers three full years of earnings (payroll cycle changes, contract payouts). SCRS Handbook FY2027, p. 19, Unused leave at retirement
Members who joined SCRS, PORS or State ORP on or after Jan. 1, 1996 are subject to the IRC 401(a)(17) limit ($360,000 for calendar 2026). Pay above it is not used in AFC. SCRS Handbook FY2027, p. 6, Member compensation limit
The handbook adds your annual leave payout to your 12 quarters before dividing by 3, so it raises your AFC by a third of the payout. The statute's wording could be read differently.
We follow the handbook.
SCRS Handbook FY2027, p. 18, Step 1, footnote 5; S.C. Code 9-1-10(4)(a)Unused sick leave (Class Two)
At retirement a Class Two member gets service credit for up to 90 days of unused sick leave from the last employer, at no cost: one month per 20 days. It cannot be used to establish retirement eligibility. Class Three members get no sick leave credit. SCRS Handbook FY2027, p. 19, Unused leave at retirement: Sick leave
The handbook's table of monthly amounts
Option A, before any early-retirement cut. The last column is what each extra year adds.
| AFC | 5 yrs | 10 yrs | 15 yrs | 20 yrs | 25 yrs | 28 yrs | 30 yrs | 35 yrs | 40 yrs | +1 yr |
|---|---|---|---|---|---|---|---|---|---|---|
| $20,000 | $152 | $303 | $445 (formula $455) | $607 | $758 | $849 | $910 | $1,062 | $1,213 | $30 |
| $25,000 | $190 | $379 | $569 | $758 | $948 | $1,062 | $1,138 | $1,327 | $1,517 | $38 |
| $30,000 | $228 | $455 | $683 | $910 | $1,138 | $1,274 | $1,365 | $1,593 | $1,820 | $46 |
| $35,000 | $265 | $531 | $796 | $1,062 | $1,327 | $1,486 | $1,593 | $1,858 | $2,123 | $53 |
| $40,000 | $303 | $607 | $910 | $1,213 | $1,517 | $1,699 | $1,820 | $2,123 | $2,427 | $61 |
| $45,000 | $341 | $683 | $1,024 | $1,365 | $1,706 | $1,911 | $2,048 | $2,389 | $2,730 | $68 |
| $50,000 | $379 | $758 | $1,138 | $1,517 | $1,896 | $2,123 | $2,275 | $2,654 | $3,033 | $76 |
| $55,000 | $417 | $834 | $1,251 | $1,668 | $2,085 | $2,336 | $2,503 | $2,920 | $3,337 | $83 |
| $60,000 | $455 | $910 | $1,365 | $1,820 | $2,275 | $2,548 | $2,730 | $3,185 | $3,640 | $91 |
| $65,000 | $493 | $986 | $1,479 | $1,972 | $2,465 | $2,760 | $2,958 | $3,450 | $3,943 | $99 |
| $70,000 | $531 | $1,062 | $1,593 | $2,123 | $2,654 | $2,973 | $3,185 | $3,716 | $4,247 | $106 |
| $75,000 | $569 | $1,138 | $1,706 | $2,275 | $2,844 | $3,185 | $3,413 | $3,981 | $4,550 | $114 |
| $80,000 | $607 | $1,213 | $1,820 | $2,427 | $3,033 | $3,397 | $3,640 | $4,247 | $4,853 | $121 |
| $85,000 | $645 | $1,289 | $1,934 | $2,578 | $3,223 | $3,610 | $3,868 | $4,512 | $5,157 | $129 |
| $90,000 | $683 | $1,365 | $2,024 (formula $2,048) | $2,730 | $3,413 | $3,822 | $4,095 | $4,778 | $5,460 | $137 |
| $95,000 | $720 | $1,441 | $2,161 | $2,882 | $3,602 | $4,034 | $4,323 | $5,043 | $5,763 | $144 |
| $100,000 | $758 | $1,517 | $2,275 | $3,033 | $3,792 | $4,247 | $4,550 | $5,308 | $6,067 | $152 |
| $110,000 | $834 | $1,668 | $2,503 | $3,337 | $4,171 | $4,671 | $5,005 | $5,839 | $6,673 | $167 |
Every cell equals AFC x 0.0182 x years / 12 rounded half-up to whole dollars, except two typos.
Two numbers in the handbook's benefit table don't match its own formula ($20,000 at 15 years and $90,000 at 15 years).
We use the formula, which gives $455 and $2,048.
SCRS Handbook FY2027, p. 21The first payments are an estimated benefit without unused sick or annual leave and final pay; PEBA finalizes after the employer reports final earnable compensation and PEBA audits the highest quarters. The final amount can be more or less. SCRS Handbook FY2027, p. 17, Estimated benefit
From the sources
- Your maximum monthly benefit = average final compensation x 1.82% x years of service, divided by 12. The 1.82% is the same for both classes.SCRS Handbook FY2027, p. 18, Service retirement benefit calculations
- Example: Class Two, 28 years, $30,000 AFC: $30,000 x 0.0182 x 28 / 12 = $1,274 a month. Class Three, age 60 with 30 years, $30,000 AFC: $1,365 a month.SCRS Handbook FY2027, p. 19, Class Two example; Class Three example
- Part years count. PEBA converts months to days (30 each) and divides by 360: 25 years, 2 months and 10 days is 25.19 years.SCRS Handbook FY2027, p. 18, footnote 6
- Your first checks are an estimate. PEBA finalizes the amount after your employer reports your final pay and leave, and the final amount can be higher or lower.SCRS Handbook FY2027, p. 17, Estimated benefit
- Class Two: your AFC is your 12 highest consecutive quarters of pay (three years), divided by 3. A payout for up to 45 days of unused annual leave is added before dividing.SCRS Handbook FY2027, pp. 17-18, Average final compensation; Step 1
- Class Three: your AFC is your 20 highest consecutive quarters (five years), divided by 5. Annual leave payouts don't count.SCRS Handbook FY2027, pp. 17-18, Average final compensation; Step 1
- Overtime your employer didn't require doesn't count (for work after 2012). If you joined in 1996 or later, pay over the federal limit ($360,000 in 2026) doesn't count either.SCRS Handbook FY2027, p. 17, Estimated benefit; p. 6, Member compensation limit
- Class Two members get service credit for up to 90 days of unused sick leave (20 days = one month). It raises the benefit but can't be used to qualify for retirement. Class Three members get no sick leave credit.SCRS Handbook FY2027, p. 19, Unused leave at retirement
Questions
Is the multiplier different for Class Two and Class Three?
No. Both use 1.82%. What differs is the AFC (12 vs 20 quarters), unused leave, and when the pension is unreduced.
Does my account balance decide my pension?
No. The pension comes from the formula. Your balance matters only for a refund if you leave, or as a death benefit under Option A.
How are part years counted?
PEBA turns months into days (30 each), adds the days and divides by 360. 25 years, 2 months and 10 days is 25.19 years.
Related: the formula gives the full amount; retiring before you qualify in full means an early-retirement cut.
Source: South Carolina Retirement System Member Handbook, Fiscal year 2027 (SCPEBA 082026, expires June 30, 2027), pp. 6, 17, 17-18, 18, 19, 21. Also: Get Set for Retirement: Service retirement (FY2027); Class Three example; Step 1; S.C. Code 9-1-10, 9-1-1550. Last reviewed .