For fiscal year 2025 (July 1, 2024 - June 30, 2025), SDRS achieved a net investment return of 5.45 percent, with SDRS assets valued at $15.26 billion, up from $14.91 billion the previous year. Management and Objectives The South Dakota Investment Council (SDIC) has managed SDRS assets since 1971. The SDIC is comprised of eight members who oversee investment strategies and policies. Its primary investment objective is to exceed the benchmark return over the long term. Each year, the SDIC adopts a benchmark that represents a low-cost investment mix believed to provide the best opportunity to maintain SDRS’s financial strength over the long term. The benchmark is challenging, as it is difficult for most investors to exceed index returns. Member Newsletter Outlook September 2025 Fiscal Year 2025 Investment Summary South Dakota Retirement System sd.gov/sdrs | 605-773-3731 Asset Allocation Allocating assets over different investment categories typically has the most impact on investment performance. In fiscal year 2025, the SDRS asset allocation to stocks was approximately 50 percent, significantly below the 70 percent benchmark due to stock markets being expensive. SDRS bond allocations were also under benchmark levels because of longer term interest rates being unattractive. Consequently, the cash allocation was significantly higher than the benchmark. Continued on page 6...

Meet the SDRS Board of Trustees: Part 3 of 3 Victoria Hinek is a personnel specialist for the Black Hills Special Services Cooperative. She is from Sturgis, SD, and has served as the classified employee representative since July 2024. Victoria Hinek Darin Seeley Darin Seeley is the Commissioner of the Bureau of Human Resources and Administration for the State of South Dakota. He has served as a Governor’s Appointee to the SDRS Board since December 2019. Mr. Seeley lives near Chester, SD. Hank Prim is a Supervisory Special Agent for the South Dakota Division of Criminal
Investigation. Mr. Prim has served as the public safety employee representative on the board since July 2023. He lives in Pierre, SD. Hank Prim Liza Clark is the Board of Regents employee representative on the SDRS Board and has been a board member since July 2024. Ms. Clark is the Chief of Staff for the South Dakota Board of Regents. She is from Fort Pierre, SD. Liza Clark Jake Oakland is the Information Technology Director for Lincoln County. He resides in Sioux Falls, SD, and has served on the SDRS Board as the county employee representative since July 2024. Jake Oakland Shane Roth is a school board member for DeSmet Schools. He is the school board representative on the SDRS Board and has served in that position since July 2024. Mr. Roth is from DeSmet, SD. Shane Roth Wesley Tschetter is the retiree representative on the SDRS Board of Trustees. During his career, he was employed as the Chief Financial Officer for South Dakota State University. Mr. Tschetter lives in Brookings, SD. Wesley Tschetter 2

Meet SDRS retiree Jim Smith. Jim was born in 1938 and raised in Frederick, SD. He attended Ellendale State Teachers College in Ellendale, ND, graduating in 1960. Jim married his wife, Beverly, in 1962. They shared 56 years together before her passing in 2019. He has four children, seven grandchildren, and two great- grandchildren. Jim had a 40-year career in public service. He started as a teacher at Glenham Schools before earning his Master’s degree at Black Hills State. He then went on to become the superintendent of Philip Schools and then Wagner Schools. Next, Jim accepted employment with the South Dakota Board of Charities and Corrections (BCC) as the Executive Director. In 1989, the BCC was abolished and replaced by the Department of Corrections and the Department of Human Services. In July 1989, Jim became Warden of the Springfield State Prison in Springfield, SD, and remained there until 1995. Finally, Jim returned to education, becoming the superintendent at Gregory Schools before retiring in 2001. We recently chatted with Jim to hear his thoughts about SDRS and how he has enjoyed his retirement journey thus far. As a 30-year-old with a wife and four children at home, did you have any idea the impact SDRS would have on your retirement years? When I started teaching in 1960, participation was not required like it is today. As a 22-year-old, retirement was nowhere on my radar. However, as a 30-year-old husband and the father of four children, it suddenly dawned on me that we had better do something about this. How did you save for retirement? It’s tough. Beverly and I were married with four children, and frankly, we were not putting anything away. That was a mistake. We could have put a little bit away, and it would have made it easier as time progressed. We eventually got started putting a little bit here and a little bit there. Thankfully, because of SDRS, Social Security, and the additional savings we were able to do, I have more spendable income than I’ve ever had. How has the SDRS pension benefit impacted your retirement years? It allowed my wife and me to do things we would have never been able to do. We’ve traveled to many places, including Australia, New Zealand, Europe, and Iceland. Without the SDRS benefits, that would never have happened. It absolutely made an impact on our lives. Besides travel, how have you spent your time in retirement? We know you golf. Continued on page 4... 3 Jim Smith Pierre, SD Jim Smith RETIREE SPOTLIGHT:

4 Jim Smith RETIREE SPOTLIGHT: Continued from page 3. Yes indeed, I do golf. And now, I tell people, “I golf the best I can that day, which is not very good.” I’ve been fortunate to have served on the South Dakota Board of Pardons and Paroles. For the last 19 years, I’ve been involved with the legislative process, most recently as the Sergeant at Arms on the House side. During the winter months in Pierre, SD, what are you supposed to do? I literally walk across the street to the Capitol, where I get to meet a lot of nice people as the Sergeant at Arms. Would you change anything about your retirement? The only thing I would have done differently is save for retirement right out of the gate. Beverly and I had to really work hard and make some sacrifices along the way to have the retirement we’ve been so fortunate to enjoy today. What advice would you give about retirement to someone who’s just starting out with a family and a career? This is pretty basic, but always make more money than you spend. Always put something away, whether it’s in a retirement account or a nest egg. Make sure you’re taking care of yourself because retirement will come quicker than you realize. Don’t be afraid to invest, but also don’t deny yourself everything while saving for retirement. That’s not living. Be prudent, have some fun along the way, take care of your family, but save some money for retirement. What advice would you give about retirement to someone who is contemplating retirement in the near future? The hardest job in my life was actually retiring. I was a busy guy before retiring. I had a great job. All of a sudden, I was bored. My wife told me, “Jim, quit following me around. Find something to do!” So, my advice is that you have to have a plan. I don’t care if it’s fishing, golfing, or knitting; you have to plan how you’ll spend your retirement years. What financial advice would you give to someone who is just starting their career? Make sure you have a retirement plan in place. We’re blessed to have SDRS, so make certain you understand how it works. Also, make sure you’re aware of the saving opportunities available to you and get started. Thank you, Jim! Enjoy your retirement! Annual Personal Benefits Statements Are Ready! Your annual Personal Benefits Statement (PBS) is an important retirement planning tool. It gives you a snapshot of your SDRS account and provides you with benefit estimates. When your PBS is available, generally by mid-September, SDRS will notify you in one of two ways: Email: If you are opted in to electronic communications for statements/notices and have an email address on file, you will receive an email notification when your annual PBS is available through MySDRS. Mail: If you have not opted in to electronic communications for statements/notices or do not have an email address on file, you will receive a paper PBS in the mail. Reminder: Ensure your personal information is current by logging in to your MySDRS account online at sd.gov/sdrs. Foundation Member Video Generational Member Video Need help reading your annual statement? Check out our “Understanding Your Personal Benefits Statement” videos on YouTube!

SDRS retirement planners are available to meet one-on-one with members for personal retirement consultations throughout the state! It’s never too early, or too late, to plan for your retirement! View our full schedule online at sd.gov/sdrs. Call the SDRS office at 605-773-3731 to schedule your appointment. RETIREMENT CONSULTATIONS All SDRS members, at any stage of their career, will benefit from the information provided during these short online presentations. Visit sd.gov/sdrs to register for these online events. RETIRE READY Take a more detailed look at the system and its benefits. Held via Zoom: October 8 at 10:00 AM (CT); November 5 at 4:15 PM (CT); December 3 at 10:00 AM (CT) SDRS 101 Additional personal savings will be key to having a financially successful retirement. Learn more about how the SDRS Supplemental Retirement Plan (SRP) can help you save more for your retirement. Held via Zoom: October 15 at 10:00 AM (CT); November 12 at 4:15 PM (CT); December 10 at 10:00 AM (CT) SDRS-SRP and SPP Build on your budgeting and savings skills. Be empowered to take charge of your finances. Held via Zoom: October 22 at 10:00 AM (CT); November 19 at 4:15 PM (CT); December 17 at 10:00 AM (CT) Steps to Financial Success Location Spearfish Spearfish Yankton Yankton Date October 21 October 22 October 28 October 29 Time 2:00-8:00 PM (MT) 7:00 AM-7:00 PM (MT) 2:00-8:00 PM (CT) 7:00 AM-7:00 PM (CT) Address Holiday Inn, I-90 Exit 14 Holiday Inn, I-90 Exit 14 Kelly Inn, 1607 E Highway 50 Kelly Inn, 1607 E Highway 50 5 E V E N T S Scan here to view our schedule! 2026 event schedule will be available in December. SDRS can provide you with all the information you need about your SDRS benefits. Our retirement planners are equipped with the data, knowledge, and expertise to help you. You can connect with one of our planners at your convenience by phone at 605-773-3731 Monday- Friday, 8:00 AM-5:00 PM (CT). You can also reach out to SDRS online. Visit the Contact Us page on the SDRS website, sd.gov/sdrs, to log in and send a direct message. If you are ever contacted by someone wanting to advise you about your SDRS benefits, remember that SDRS is your most reliable source for accurate and timely information, and SDRS will never charge a fee to speak with one of our planners or to attend an SDRS event. SDRS is Your Source for Information on Your SDRS Benefits

Continued from page 1. The SDIC’s strategy aims to outperform the benchmark over the long term by reducing exposure to expensive assets prior to downturns and increasing exposure during recoveries. 222 East Capitol Avenue Pierre, SD 57501-1098 Fiscal Year 2025 Investment Summary...continued The information presented in Outlook is neither a legal reference nor a complete statement of South Dakota laws or administrative rules. In any conflict between this information and South Dakota laws or administrative rules, the laws and administrative rules shall prevail. Outlook is produced to communicate the plan provisions, changes in law, and issues of interest to members of the South Dakota Retirement System. It is published with funds provided through the contributions of teachers, school boards, state government, state employees, county commissions, county employees, municipal governments, municipal employees, and other local units and employees. 17,200 copies of this document were printed on recycled paper by SDRS at a cost of $0.249 per document. Performance Comparison SDRS’s investment return of 5.45 percent fell short of the benchmark return of 12.51 percent, due in part to allocating fewer assets to stocks. Global stock markets rose over 16 percent, which significantly exceeded the approximately 4.9 percent return of cash (three-month T-bills). In addition, the internal public equity portfolios underperformed the benchmark due to fewer investments in technology stocks. Private equity and real estate also underperformed. SDRS’s long-term performance stands at a 10.13 percent return over 51 years, surpassing the benchmark’s 9.53 percent. The SDIC adheres to a contrarian strategy, emphasizing discipline and patience in investment decisions. It remains committed to this philosophy and to SDRS’s ongoing success.