South Dakota Retirement System (SDRS)

Issue/Question

Where can I find information on SDRS?

What is the SDRS (South Dakota Retirement System) retirement plan?

Environment

• Employees 
• Benefits

Cause

Employee wants to understand retirement through SDRS.

Resolution

The South Dakota Retirement System Plan is a Defined Benefit Plan (401A) that automatically covers all employees who work at least six months per year and at least 20 hours or more per week. A member's contributions to SDRS are sheltered from taxes until retirement or withdrawal from the system. As of July 1, 2002, a deduction of 6% is taken out of the employee's gross monthly salary and USD matches that amount.

• Employees who join the South Dakota Retirement System on and after July 1, 2017 are considered Generational members of the system. Employees who join the South Dakota Retirement System prior to July 1, 2017 are considered Foundation Members of the system. The overview for these employees can be found at: https://www.sd.gov/sdrs
• If an employee leaves the system within the first three years of employment, they have access to 100% of their contribution plus 50% of USD's match. The monies can be rolled to another retirement account or refunded to the employee (penalties and taxes may apply). You may also choose to leave your accumulated contributions with SDRS for a max of 10 years.
• After three years (or 12 quarters) of employment, an employee leaving the system has access to 100% of their contribution and 85% of USD's match. The terminating employee may elect a monthly retirement benefit, a refund, or the dollars can be rolled over into another retirement account (penalties and taxes may apply).
• Employees may be eligible to receive disability benefit coverage after three (3) years as a contributing member.
• In the event of the contributing employee’s death before retirement, there are family benefits offered to surviving family members. *Spouse benefit may be payable in the event of a legal marriage for at least 12 months before the death.
• If you have any further specific questions, you can reach out to a SDRS representative at 605-773-3731.