Cost of Living Adjustment (COLA) established for Fiscal Year 2012 (02/17/2011)

SDCL 3-12-47 (41) defines the methodology that allows for an “Improvement Factor” to be provided to member benefit payments.  The more common expression used to describe the improvement factor is the term Cost of Living Adjustment or COLA.  The improvement factor (COLA) is an annual increase in the amount of monthly benefits that is established by the SDRS Board of Trustees each fiscal year. The law specifies a formula that is based in part on the increase in the consumer price index and on the system’s market value funded status of the previous year.  The improvement factor (COLA) cannot be greater than 3.1 percent or less than 2.1 percent.

The improvement factor (COLA) to be effective July 1, 2011 has been established to be 2.1 percent.