South Dakota
Retirement System
Proudly Serving South Dakota's Public Employees Since 1974
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Cost-of-Living Adjustment

Your monthly lifetime retirement benefits are partially protected against inflation. The cost-of-living adjustment (COLA) is an annual increase in the amount of monthly benefits effective on July 1 of each year, compounded annually, for all eligible member benefit payments. The amount of the annual COLA is established by the SDRS Board of Trustees. The process to determine the COLA considers affordability based on SDRS' Fair Value Funded Ratio and the annual inflation rate as defined by the Consumer Price Index (CPI-W). The COLA can range from no less than 0.5 percent to a maximum of 3.5 percent.

To be eligible for a COLA, the member cannot have reentered SDRS-covered employment and the member must have received benefit payments for the entire previous fiscal year period (July 1 - June 30).

When the COLA occurs, you will receive a notification from SDRS regarding the increase in your monthly payment.