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. Retired Member Newsletter Outlook September 2025 South Dakota Retirement System sd.gov/sdrs | 605-773-3731 Fiscal Year 2025 Investment Summary 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...

2 Jim Smith Pierre, SD Jim Smith RETIREE SPOTLIGHT: 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 3...

3 Jim Smith RETIREE SPOTLIGHT: Continued from page 2. 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! Meet the SDRS Board of Trustees SDRS is governed by a 17-member Board of Trustees. This dedicated body includes 14 elected representatives of participating membership groups, two appointees of the Governor, and an ex-officio non-voting representative of the South Dakota Investment Council. Together, they serve in one of the most vital public roles in South Dakota - protecting the retirement security of thousands of SDRS members and beneficiaries. The current retiree representative on the SDRS Board of Trustees is Wesley Tschetter. Mr. Tschetter’s connection to SDRS dates back to its very beginning. In 1974, while working for the Legislative Research Council, he assisted in drafting the legislation that established the System. Mr. Tschetter retired in 2018 as Chief Financial Officer of South Dakota State University. His service to SDRS has spanned decades and roles. He served as a state employee representative for 11 years and as the school board representative for six years. In July 2023, he returned to the Board as the retiree representative. Wesley Tschetter Retiree Representative Brookings, SD

Jake Oakland County Employee Representative Sioux Falls, SD Hank Prim Public Safety Employee Representative Pierre, SD 4 Meet the SDRS Board of Trustees...continued Eric Stroeder Chair State Employee Representative Glenham, SD Jim Appl Vice Chair Teacher Representative Aberdeen, SD Penny Brunken Teacher Representative Sioux Falls, SD Liza Clark Board of Regents Employee Representative Fort Pierre, SD Matt Clark State Investment Officer, Non-Voting Ex-Officio Sioux Falls, SD Laurie Gronlund Municipal Employee Representative Pierre, SD LaJena Gruis Elected Municipal Officials Representative Onida, SD Victoria Hinek Classified Employee Representative Sturgis, SD Myron Johnson County Commissioners Representative Watertown, SD Jill Lenards State Employee Representative Watertown, SD Shane Roth School Board Member Representative DeSmet, SD Justice Mark Salter Judicial Member Representative Sioux Falls, SD Darin Seeley Governor’s Appointee Chester, SD Jim Terwilliger Governor’s Appointee Pierre, SD Upcoming Board Meetings December 10, 2025 April 1, 2026 June 10, 2026 September 2, 2026 December 9, 2026 SDRS Board meetings are held at the SDRS Campus, 222 E Capitol Avenue, Pierre, SD. Meetings are livestreamed (audio only) online at sd.net. Meeting materials are available on the SDRS website, sd.gov/sdrs.

5 Heading South for the Winter? Update Your Address! As the winter months approach, many retirees escape the cold to enjoy the warmer climates down south. If you plan to head south for the winter, updating your address with SDRS is essential. Here’s why: Why Update Your Address? Ensure Timely Delivery of Important Documents: By updating your address, you ensure that all important documents, including retiree statements and tax forms, reach you without delay. Maintain Continuous Communication: Keeping your address current allows SDRS to maintain contact with you and ensures you don’t miss out on any critical information. Avoid Mail Forwarding Delays: Relying on mail forwarding services can sometimes lead to delays or lost mail. Updating your address directly with SDRS ensures a smooth transition to your winter residence. The Importance of Having an Email Address on File In today’s digital age, having an email address on file with SDRS is more important than ever. Here’s how it benefits you: Instant Communication: Email allows SDRS to reach you instantly, regardless of your physical location, so you can stay informed no matter where you are. Access to Digital Documents: By having an email address on file, you can receive notifications when important documents, such as tax forms and retiree statements, are available online through MySDRS. Environmentally Friendly and Cost-Effective: Opting for electronic communications helps reduce paper waste and is cost-effective, saving staff time, office resources, and postage costs. How to Update Your Address and Email with SDRS Updating your address and email with SDRS is simple and can be done in a few easy steps: Log in to your MySDRS account at sd.gov/sdrs. Navigate to your profile to update your information and save your changes. Or you can contact SDRS directly to have a form sent to you. By keeping your address and email up to date, you can rest easy knowing that SDRS can reach you. If you have any questions or need assistance, please contact SDRS. Safe travels and enjoy the sunshine!

222 East Capitol Avenue Pierre, SD 57501-1098 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. 11,500 copies of this document were printed on recycled paper by SDRS at a cost of $0.289 per document. Fiscal Year 2025 Investment Summary...continued 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. 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.