You may be eligible for health, vision and dental coverage in retirement through an employer that participates in the state insurance program when you retire:

• Due to years of service
• Due to age
• On approved disability:
  • Through one of PEBA Retirement Benefits' defined benefits plans: South Carolina Retirement System (SCRS), Police Officers Retirement System (PORS), General Assembly Retirement System (GARS), or Judges and Solicitors Retirement System (JSRS) or  
  • If you participate in the State Optional Retirement Program (State ORP) or work for an employer that does not participate in PEBA Retirement Benefits, through approval by Standard Insurance Company for Basic Long Term Disability and/or Supplemental Long Term Disability. 

Regardless of how or when you qualify for retirement, to qualify for the retiree group insurance program, your last five years of employment must be served consecutively and in a full-time, permanent position with an employer that participates in the state insurance program.

Some retirees, who are referred to as “non-funded retirees,” are eligible for insurance but must pay the full premium, which includes the retiree share plus the employer contribution. These retirees worked in an insurance-eligible position before May 2, 2008, with an employer participating in the state insurance program, and include:

• Employees who retire at age 55 with at least 25 years of retirement service credit (including at least 10 years of earned service credit with an employer that participates in the state insurance program). This is commonly referred to as the “55/25 rule.” These retirees must pay the full insurance premium until they reach age 60 or the date they would have had 28 years of service credit, whichever occurs first. At the end of this period, they will be eligible for funded retiree rates. This rule applies only to  participants in the retirement systems administered by the S.C. Public Employee Benefit Authority. If you are retiring from a local subdivision, contact your benefits administrator for premium information.
• Employees who are eligible to retire and have at least five years, but fewer than 10 years, of earned service credit with a participating state insurance program employer.
• General Assembly members who leave office or retire with at least eight years of General Assembly Retirement System service credit.
• Former municipal and county council members who served on council for at least 12 years and were covered under the state’s plan when they left the council. It is up to the county or municipal council to decide whether to allow former members to have this coverage.

State Optional Retirement Program participants must meet the same retiree insurance eligibility guidelines as participants in the retirement systems administered by the S.C. Public Employee Benefit Authority, with the exception of the 55/25 year rule.

Whether you are a funded or a non-funded retiree, the following types of service do not count toward your earned service credit requirement for insurance eligibility: non-qualified, federal, military, out-of-state employment, educational service, leave of absence, unused sick leave or service with employers that do not participate in the state insurance program.

If you are eligible for retiree insurance, you must enroll within 31 days of your eligibility date.

If you are not eligible for insurance as a retiree, you may still be eligible to continue coverage under COBRA.

TERI Program Participants:
If you are a Teacher and Employee Retention Incentive (TERI) program participant in a permanent, full-time position, your insurance benefits as an active employee continue. When your TERI employment ends, you must apply for continuation of your insurance benefits as a retiree (if eligible) within 31 days of your date of termination. Your service as a TERI participant in a full-time, permanent position with a participating employer may be applied toward retiree insurance eligibility.

Who Pays For Your Insurance?
State Agency, Higher Education and School District Retirees:
You may be eligible for a state contribution to your retiree insurance premiums based on when you began employment and on your number of years of earned service credit with an employer that participates in the state insurance program.

Local Subdivision Retirees:
Local subdivisions may or may not pay a portion of the cost of their retirees’ insurance premiums. Each local subdivision develops its own policy for funding retiree insurance premiums for its eligible retirees. If you are a local subdivision employee, contact your benefits office for information about retiree insurance premiums.

Employees Hired Before May 2, 2008
If you worked in an insurance-eligible position before May 2, 2008, with an employer participating in the state insurance program, your health insurance benefits in retirement are eligible for funding if you fall into one of these categories:

• Employees who leave employment when they are eligible to retire and have at least 10 years of earned service credit with an employer that participates in the state insurance program. Your last five years of employment must be served consecutively and in a full-time, permanent position.
• Employees who leave employment before they are eligible to retire and who have at least 20 years of earned service credit with an employer that participates in the state insurance program. Your last five years of employment must be served consecutively and in a full-time, permanent position. These employees are not eligible for insurance coverage until age 60 when they are eligible to receive a retirement check. (This also applies to local subdivision or ORP retirees who are covered under PEBA Insurance Benefits.) Employees who qualify under the Police Officers Retirement System (PORS) become eligible at age 55.

Non-Funded Retirees:

• Employees who leave employment when they are eligible to retire and have at least five years, but fewer than 10 years, of earned service credit with an employer that participates in the state insurance program. The last five years must be served consecutively and in a full-time, permanent position.
• Employees who leave employment when they are eligible to retire and who retire at age 55 with at least 25 years of service credit, including 10 years of earned service credit with an employer participating in the state insurance program. Your last five years of employment must be served consecutively and in a full-time, permanent position. These employees pay the full insurance premium until they reach age 60 or the date they would have had 28 years of service credit, whichever occurs first. At the end of this period, they may be eligible for funded retiree rates. This rule applies only to SCRS participants.
• Employees who leave employment before they are eligible to retire but when they left, they had at least 25 years of SCRS service credit, including 20 years of earned service credit, with an employer that participates in the state insurance program. Your last five years of employment must be served consecutively and in a full-time, permanent position.
• Former municipal or county council members who served on council for at least 12 years and were covered under the state's plan when they left the council. It is up to the county or municipal council to decide whether to allow former members to have this coverage.

Employees Hired on or After May 2, 2008
New retiree insurance provisions, which were created by Act 195 of 2008, apply to new employees hired on or after May 2, 2008. At retirement, you must meet established insurance eligibility rules, and funding for your health insurance will be determined by calculating the number of years of earned service with an employer participating in the state insurance program.

These new funding provisions apply to participants in SCRS, ORP, PORS, General Assembly Retirement System and Judges and Solicitors Retirement System, the retirement systems administered by the S.C. Public Employee Benefit Authority.

Funded Retirees:
If an employee retires with 25 or more years of earned service credit, the state pays 100 percent of the employer’s share of the premium. The retiree pays the retiree’s share.

Partially Funded Retirees:
If an employee retires with 15 years, but fewer than 25 years, of earned service credit, the state pays 50 percent of the employer’s share of the premium. The retiree pays the retiree’s share plus the remaining 50 percent of the employer’s contribution.

Non-Funded Retirees:
If an employee retires with five years, but fewer than 15 years, of earned service credit, the retiree pays the full premium. There is no state contribution. 

See also the Insurance Benefits Guide.