Leaving Employment & Deferring Benefits

When you leave employment with a SCERS-covered agency, you’ll need to decide what to do with your retirement contributions. If you choose to leave your contributions on deposit, you become a Deferred Member—preserving your eligibility to retire and receive a future SCERS benefit.

This section explains your options and what to expect when transitioning into deferred status.

Your Choices at Separation

Upon leaving your job, SCERS provides two primary options for your account:

  • Defer Your Benefit (Leave contributions on deposit)
    • You retain your earned service credit and retirement tier
    • You remain eligible to retire from SCERS once you reach the minimum retirement age and service requirement
    • Your account continues to earn interest annually
    • You can apply for retirement later, when eligible
  • Withdraw Your Contributions
    • You receive a lump sum payout of your employee contributions plus interest
    • Employer contributions are not included
    • You forfeit any future SCERS retirement benefits
    • This action is irrevocable unless you later return to SCERS-covered employment and redeposit your contributions with interest

When Do You Make the Choice?

After your employer notifies SCERS that you’ve separated, SCERS will mail you a letter outlining your options. You will be asked to complete a Distribution Election Form to indicate whether you wish to defer or withdraw. If you do not respond, your account remains on deposit by default.

Can You Change Your Mind?

Yes—until you retire or withdraw, your deferred status is preserved. You can request a withdrawal at any time. However, once a withdrawal is processed, it cannot be undone.