South Dakota
Retirement System
Proudly Serving South Dakota's Public Employees Since 1974
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Determining Your Retirement Benefit

The amount of your benefit is calculated using a formula:

                      *The benefit multiplier used is dependent on class of service.

A Foundation member's Final average compensation (FAC) is determined by averaging the highest specified number of consecutive calendar quarters of pay out of the last 40 quarters. The specified number of quarters used for averaging is dependent on retirement date as follows:

Currently, a member's compensation is capped at 105 percent in the final year and quarter. For members with contributory service after June 30, 2020, the 105 percent compensation cap will be extended to each of the years used in determining the member's FAC. FAC is also subject to adjustments for extraordinary payments in the final year.

 

Class A Members: Two formulas determine your benefits at or beyond normal retirement age: the standard benefit formula and the alternate benefit formula. If you are a Class A member, you will receive the larger benefit based on these formulas. For most members, the standard formula will yield the larger benefit.

Note: The alternative benefit formula is financed by an additional employer contribution of 6.2 percent of the member's salary that exceeds the maximum taxable amount for Social Security in any calendar year.

                Class A Standard Benefit Formula
                                Enhanced Benefit:
                                1.7% X Final Average Compensation X Credited Service Before 7/1/2008

                                PLUS

                                Base Benefit:
                                1.55% X Final Average Compensation X Credited Service After 7/1/2008

                Class A Alternate Benefit Formula
                                Enhanced Benefit:
                                2.4% X Final Average Compensation X Credited Service Before 7/1/2008

                                PLUS

                                Base Benefit:
                                2.25% X Final Average Compensation X Credited Service After 7/1/2008

                                LESS

                                80% of Primary Social Security
 

For information on retirement eligibility: Eligibility for Retirement page

For more detailed information regarding benefit formulas, consult the Class A Foundation Member Handbook or contact SDRS toll-free at 1-888-605-SDRS (7377).

To prepare a benefit estimate, use the Benefit Calculator or log-in to MySDRS. For an estimate prepared by the SDRS office, contact SDRS toll-free at 1-888-605-SDRS (7377).

 

Class B Public Safety Members:

                                Enhanced Benefit:
                                2.4% X Final Average Compensation X Credited Service Before 7/1/2008

                                PLUS

                                Base Benefit:
                                2.0% X Final Average Compensation X Credited Service After 7/1/2008


For information on retirement eligibility: Eligibility for Retirement page

For more detailed information regarding benefit formulas, consult the Class B Public Safety Foundation Member Handbook or contact SDRS toll-free at 1-888-605-SDRS (7377).

To prepare a benefit estimate, use the Benefit Calculator or log-in to MySDRS. For an estimate prepared by the SDRS office, contact SDRS toll-free at 1-888-605-SDRS (7377).

 

Class B Judicial Members:

                                For first 15 years:
                                Enhanced Benefit:
                               
3.733% X Final Average Compensation X Credited Service Before 7/1/2008 (up to 15 years)

                                PLUS

                                Base Benefit:
                               
3.333% X Final Average Compensation X Credited Service After 7/1/2008 (up to 15 years)

       PLUS

       In excess of 15 years:
       Enhanced Benefit:
      
2.4% X Final Average Compensation X Credited Service Before 7/1/2008

                                PLUS

                                Base Benefit:
                               
2.0% X Final Average Compensation X Credited Service After 7/1/2008


For information on retirement eligibility: Eligibility for Retirement page

For more detailed information regarding benefit formulas, consult the Class B Judicial Foundation Member Handbook or contact SDRS toll-free at 1-888-605-SDRS (7377).

To prepare a benefit estimate, use the Benefit Calculator or log-in to MySDRS. For an estimate prepared by the SDRS office, contact SDRS toll-free at 1-888-605-SDRS (7377).