Free South Carolina 1104 PDF Template

What is Form 1104 and who needs to complete it?

Form 1104, known as the Election of Non-Membership form, is designed for employees of eligible employers covered under the South Carolina Retirement System (SCRS) who decide to opt out of membership in the retirement systems. Eligible employers include school districts, higher education institutions, technical colleges, state departments, agencies, bureaus, commissions, and institutions. It's important for an employee, who is not receiving benefits as a retired member and who meets specific criteria, to complete this form if they choose not to participate in either the traditional defined benefit plan (SCRS) or the optional defined contribution plan (State ORP).

Can an employee elect non-membership at any time after being hired?

No, the option to elect non-membership is time-sensitive. An employee must make this election within 30 calendar days after their entry into service, which is typically the date of hire. If this 30-day window is missed, the employee cannot elect non-membership at a later date unless they experience a break in service and are rehired. Upon rehire, the employee would be eligible again to make the election within 30 days from the new date of hire. This rule emphasizes the importance of making a timely decision about retirement system participation.

What happens if an employee changes their mind after electing non-membership?

Once an employee elects non-membership and the 30-day window of election has expired, they cannot opt into the State Optional Retirement Program (State ORP) if they initially chose not to participate during their eligibile period. However, if the employee experiences a break in service, thus ending their employment, and is later rehired, they are given another 30-day window from their rehire date to make a new election regarding their participation.

What are the conditions under which an employee cannot elect non-membership?

An employee cannot elect non-membership if they currently have funds on deposit in the Retirement Systems. This condition is applicable regardless of the employment category or position they hold within an eligible employer. The form also outlines specific employment categories, such as non-permanent positions or elected officials earning below a certain amount, which qualify for non-membership, provided the employee meets all other prerequisites including not having funds in the Retirement Systems.

When individuals fill out the South Carolina 1104 form, it is crucial to avoid common mistakes that can lead to processing delays or rejection of the application. Below is a detailed outline of these errors:

1. Failing to use black ink for printing or typing and blue ink for signatures, as specified in the instructions. This requirement is often overlooked, but is crucial for ensuring the form is processed efficiently.

2. Entering incorrect or incomplete employee information in Section I, especially with details such as Social Security Number or address. Accuracy in this section is paramount for the identity verification process.

3. Not reading the statements in Section II carefully before signing, which can result in misunderstandings about the election of non-membership and its implications. Understanding these statements is critical for making an informed decision.

4. Overlooking the 30-day window for making an election to participate in the State ORP after entry into service, as mentioned in Section II. Missing this deadline means forfeiting the option for non-membership for the duration of that employment.

5. Assuming eligibility for non-membership without verifying current funds' status in the Retirement Systems. If funds are on deposit, as noted in both Section I and III, the employee is not eligible to elect non-membership.

6. Errors on the part of the employer in Section III, such as incorrectly marking the employment category or failing to certify the form. Employer verification is a crucial step in the form's processing.

To ensure smooth processing of the South Carolina 1104 form, both employees and employers must handle their respective sections with care and accuracy, adhering to the specified requirements.

When handling the South Carolina Form 1104, a range of other documents may need to be considered or completed to ensure comprehensive compliance and understanding of one's employment and retirement options under the South Carolina Retirement Systems. Here's a look at some crucial documents often used in conjunction with Form 1104.

• South Carolina State ORP Enrollment Form: This form is used by employees who opt for the State Optional Retirement Program (ORP) instead of the traditional defined benefit plan. It is critical for those deciding within their first 30 days of employment.
• Beneficiary Designation Form: Employees enrolling in either retirement plan should complete this form to designate their beneficiaries. It ensures the appropriate individuals receive benefits in the event of the employee's death.
• Form 1102 - Application for Membership in SCRS: For employees choosing the South Carolina Retirement System's traditional plan, this form initiates their membership and outlines their retirement benefit plan.
• Salary Verification Form: Employers must complete this document to verify the employee’s salary. It's often required for retirement plan enrollment to ensure accurate benefit calculations.
• Change of Information Form: Used to update personal information such as address, name change, or the correction of Social Security numbers. It's essential for maintaining accurate records with the retirement systems.
• Service Credit Purchase Form: For employees wishing to purchase additional service credit towards their retirement, this form provides the means to initiate that transaction. It's critical for those looking to increase their retirement benefits.

The completion and submission of these forms, alongside the South Carolina Form 1104, are steps toward securing one's future through the South Carolina Retirement Systems. Whether opting for non-membership or joining one of the retirement plans, these documents play a role in shaping the retirement benefits an employee can expect. Careful attention to these forms ensures employees make well-informed decisions regarding their retirement options.

The South Carolina 1104 form, which is used for the election of non-membership in the South Carolina Retirement Systems (SCRS), shares similarities with several other types of legal and transactional documents. One such example is the 401(k) Plan Enrollment Form. Both serve as initial steps for individuals to either participate in or opt-out of retirement benefit plans. The 401(k) Plan Enrollment Form is used by employees to either enroll in a 401(k) plan offered by their employer or to make specific elections about contributions and investment options. Like the 1104 form, it captures personal and employment-related information, requires an understanding of the options available, and entails making a decision that could significantly impact an employee's financial future.

Another document similar to the South Carolina 1104 form is the Health Insurance Enrollment Form. This form is utilized when individuals decide to join or waive participation in health insurance coverage offered by an employer. Both forms require employees to fill out personal information and make decisions regarding benefits offered by their employers. The decision to elect non-membership in the SCRS, as detailed in the 1104 form, can be likened to the decision to waive health insurance coverage, as both involve declining participation in a benefit program that could have long-term consequences.

A Power of Attorney (POA) form also shares some characteristics with the South Carolina 1104 form, particularly in the aspect of granting or waiving rights. While the subject matter differs greatly—estate planning and financial decision-making authority in the case of a POA, versus retirement plan participation with the 1104 form—both documents involve a formal declaration of an individual’s choice to either opt-in or opt-out of certain legal entitlements or responsibilities. In both cases, the individual's signature affirms their understanding of the consequences of their decision.

Lastly, the Voluntary Termination of Employment Form parallels the 1104 form in that it is used by individuals to formally document a significant decision regarding their employment status. Whereas the Voluntary Termination form is completed by an employee who chooses to resign or retire, the 1104 form is filled out by employees choosing not to participate in a retirement plan. Both forms have lasting impacts on the individuals’ future employment benefits and financial planning. Additionally, each requires the employee to certify their decision with a signature, acknowledging they have made their choices with full knowledge of the implications.

When filling out the South Carolina 1104 form, which is an Election of Non-Membership form for the South Carolina Retirement Systems, it is crucial to pay attention to the details. This form has potential consequences for your retirement benefits, so it's important to handle it correctly. Here are six things you should do and six things you shouldn't do to ensure the process goes smoothly.

• Read the instructions on page 2 before you start filling out the form. These instructions are there to help guide you through the process and ensure you fill out the form correctly.
• Print or type in black ink for all sections that you are required to complete as an employee. Black ink is more legible and is the standard for official documents.
• Sign in blue ink. This helps distinguish the original document from copies.
• Make sure that you complete all items in Section I with accurate information. This section collects your personal and employment details.
• Understand your eligibility before electing non-membership. If you currently have funds on deposit in the Retirement Systems, you may not elect non-membership.
• Contact Customer Service if you have any questions. It's better to ask for clarification than to make an incorrect assumption and fill out the form improperly.

• Don't skip reading the employee certification and signature section (Section II) before signing. Understanding what you're certifying is crucial.
• Don't use any ink colors other than black for filling out the form and blue for your signature, as this could lead to processing delays or form rejection.
• Don't leave any items in Section I incomplete. Missing information can delay the processing of your form or cause it to be returned to you.
• Don't elect non-membership without considering your future retirement needs. Electing non-membership means you won't be credited with retirement service for this period of employment.
• Don't submit the form without checking with your employer if you’re unsure about your employment category in Section III. This information is crucial and needs to be accurate.
• Don't ignore the deadline for choosing non-membership. If you wish to elect non-membership, you must do so within 30 calendar days after entry into service (date of hire).

By following these guidelines, you can ensure that your Election of Non-Membership form is filled out accurately and submitted properly, safeguarding your interests and ensuring clarity regarding your retirement system participation.

Understanding the intricacies of South Carolina's Form 1104 can be challenging. It's important to clarify common misconceptions surrounding this form to ensure employees and employers navigate their options accurately. Here are four common misunderstandings:

• Assumption that enrollment in the Retirement Systems is automatic for all employees: A widespread misconception is that all employees are automatically enrolled in the South Carolina Retirement Systems (SCRS) or State Optional Retirement Program (State ORP). Form 1104 explicitly allows eligible employees to choose non-membership. This decision must be informed and made within 30 calendar days after entering employment, highlighting the importance of understanding options early in one’s career.
• Belief that once you opt-out, you cannot rejoin: Many believe that if you elect non-membership through Form 1104, you're permanently barred from joining the State ORP or SCRS in the future. This is incorrect. If an employee has a break in service and is subsequently rehired, they are again given a 30-day window to elect to join the State ORP, signaling a flexible approach to retirement planning that can adapt to career changes.
• Misunderstanding about eligibility for non-membership based on current deposit in the Retirement Systems: There's a common misconception that any employee can choose non-membership at any point. Form 1104 clarifies that if an employee currently has funds on deposit in the Retirement Systems, they cannot opt for non-membership. This detail is crucial for employees considering their retirement options, especially those with previous employment history within the state system.
• Confusion over the role of employment categories in determining non-membership eligibility: A significant point of confusion lies in the misunderstanding that all employment categories qualify for non-membership. The form lists specific employment categories eligible for non-membership, including non-permanent positions and certain exempt positions under the Retirement Act. This nuance underscores the importance of reviewing one’s employment category carefully when considering non-membership.

Dispelling these misconceptions about Form 1104 is vital for both employees and employers in South Carolina. It ensures that decisions around non-membership and retirement planning are made based on accurate information, facilitating a more informed workforce. For additional clarification or assistance, reaching out to the South Carolina Retirement Systems Customer Service is recommended.

Filling out the South Carolina 1104 form accurately is crucial for employees electing non-membership in the Retirement Systems. Here are key takeaways:

• Use black ink for printing or typing the information and sign it in blue ink to ensure clarity and distinguish the original document from copies.
• Employees with existing funds in the Retirement Systems are ineligible to elect non-membership, emphasizing the importance of understanding one's current membership status.
• The form is designed specifically for employees working for eligible employers such as school districts, higher education institutions, technical colleges, state departments, agencies, bureaus, commissions, and institutions covered under the South Carolina Retirement System (SCRS).
• A timely decision is essential as the election to participate in the State Optional Retirement Program (State ORP) or choose non-membership must be made within 30 calendar days after the employee's entry into service.
• Electing non-membership is a critical decision that precludes credit for retirement service for the period of non-membership, signifying a complete understanding of future retirement benefits implications.
• The form requires certification from the employer that the employee's position qualifies for non-membership, ensuring that both the employee and employer acknowledge the eligibility criteria.
• Specific employment categories, detailed in the form, outline eligibility for non-membership, helping employees determine if their position qualifies.
• For positions such as non-permanent positions, elected officials earning $9,000 or less per year, and employees earning less than $2,000 working fewer than 1,600 hours in a year, optional membership exemptions are outlined, expanding the criteria for potential non-membership.
• Reemployment after retirement under certain conditions such as returning to work for a public institution of education or being an active General Assembly member receiving benefits allows for non-membership election, catering to specific scenarios of public service after retirement.
• The document clearly states that the language used does not create any contractual rights or entitlements between the member and the South Carolina Retirement Systems, underscoring the importance of the mutual understanding between the employee and the employer regarding the non-membership election.
• Employees and employers must ensure forms are properly completed and submitted to avoid delays or rejections, highlighting the importance of accuracy in filling out the form.
• Contact information for Customer Services is provided for assistance, encouraging users to seek help if they have questions or need clarification on filling out the form or understanding eligibility.

Overall, the South Carolina 1104 form is a vital document for employees and employers, guiding the process of electing non-membership in the Retirement Systems and highlighting the significance of understanding one's options and the implications of such elections.