Bring sugar and corn syrup to a boil in a 4-quart saucepan. Remove from heat and stir in peanut butter.
Add cereal to peanut butter mixture. Stir to combine.
Press into a 9×13 inch pan.
Using a double boiler or microwave, melt the chocolate and butterscotch chips. Once melted, pour over cereal and spread. Allow to cool before cutting into squares.