State agencies, public higher education institutions, public school districts and charter schools that participate in both insurance and retirement pay an insurance surcharge to fund the employer contribution for their retirees who participate in the state's health and dental plans. It is not part of the actuarially established retirement contribution rates. PEBA collects this employer surcharge with retirement contributions and transfers it to the South Carolina Retiree Health Insurance Trust Fund. The insurance surcharge, effective July 1, 2022, will remain 6.25%.

While all versions of the state’s annual appropriations bill include a 1% increase in the employer contribution rates for SCRS, State ORP and PORS effective July 1, 2022, the budget has not yet been finalized. We anticipate the budget will be finalized in the coming weeks and will update employers as soon as more information is available.