Compliance August 26, 2005

SC Court Extends TERI Suit to All State Workers

August 26, 2005 (PLANSPONSOR.com) - Justices of the South Carolina Supreme Court have ruled that a lawsuit by four retirees over the Teacher and Employee Retention Incentive (TERI) program should apply to all state workers in the program.
Reported by

The four plaintiffs filed their suit when South Carolina lawmakers changed the rules for the TERI program to help pump more money into the retirement system (see  SC Seeks High Court Review of Public Pension Lawsuits ).  

The program had allowed state employees who retire after 28 years to return to work and earn pension benefits and a salary for up to five years without paying in any money to the retirement system. But the law changed in July, requiring retirees to resume pension contributions while they returned to work (see  SC Pension Reform Bills Differ Sharply ). 

Also, the justices told state officials that money contributed to TERI should be segregated in an interest-bearing account until the legal dispute can be settled, according to the Associated Press.

«