Updated October 30, 2026. Quick answer: South Carolina SCRS retirees receive an annual benefit adjustment each July 1 of 1% of the annual benefit, up to a maximum of $500 a year. State law sets it as the lesser of one percent or five hundred dollars, and it is not tied to inflation. The earliest a retiree can receive it is the second July 1 after retirement. The July 2027 adjustment follows the same fixed rule.
More on public pension retirement ages and eligibility: the South Carolina SCRS retirement age and eligibility rules for Class Three and Class Two.
The rule in the statute
South Carolina Code section 9-1-1815 reads: “Effective beginning July 1, 2012, and annually thereafter, the retirement allowance received by retirees and their surviving annuitants inclusive of supplemental allowances payable pursuant to the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, must be increased by the lesser of one percent or five hundred dollars.” “Only those retirees and their surviving annuitants in receipt of an allowance on July first preceding the effective date of the increase are eligible to receive the increase.”
How PEBA describes it
The SCRS member handbook says: “Per current state law, effective each July 1, eligible SCRS retirees are to receive an annual benefit adjustment of 1% of their annual benefit up to a maximum of $500 per year.” “The earliest you can receive a benefit adjustment is the second July 1 after your date of retirement.” For early retirees it adds: “Class Two members who retire under the early retirement provisions at age 55 with 25 years of service are not eligible for benefit adjustments until the earlier of the second July 1 after they reach age 60 or the second July 1 after the date they would have had 28 years of service credit had they not retired.”
PEBA’s reform summary calls it: “Limited annual benefit adjustment, formerly referred to as a cost of living adjustment, to 1% up to a maximum of $500 annually.”
Where 2027 stands
The July 2027 SCRS adjustment is fixed by statute at the same rule: it is a set annual adjustment, not a vote, unless the General Assembly amends the law.
A worked example
As computed illustrations (not source figures), a retiree with an annual benefit of $30,000 (invented, for the computation) would get 1%, which is $300 (computed) a year, below the cap. A retiree with an annual benefit of $60,000 (invented, for the computation) would compute to $600 (computed), so the cap holds the increase to $500.
Common mistakes
- Expecting a CPI-linked COLA. The statute fixes the adjustment at the lesser of 1% or $500.
- Expecting the adjustment on the first July 1 after retiring. The earliest is the second July 1.
- Applying the SCRS rule to the Police Officers Retirement System. This page covers SCRS only.
Related: South Carolina SCRS retirement decisions, how public pension decisions work, and whether South Carolina taxes pensions.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about retirement income
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with retirement income
Considering financial advice? Request an adviser introduction with no obligation to hire.
The form is run by Kapitalwise, our advisor-matching partner. Requesting an introduction is free. Submitting the form shares your contact details with advisers, so expect calls and texts. Advisers pay for introductions. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you hire anyone. A match is not guaranteed.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- South Carolina Legislature, S.C. Code Title 9, Chapter 1 (Section 9-1-1815 Retirement allowance adjustments): www.scstatehouse.gov
- PEBA, South Carolina Retirement System Member Handbook, Fiscal year 2027: peba.sc.gov
- PEBA, Past Pension Reform Legislation: peba.sc.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.