Participation, Eligibility, Contributions, & Vesting


Participation

If you are a full-time employee of an SDRS participating employer, you are required to participate and make contributions to the South Dakota Retirement System. Full-time employees are those customarily working at least 20 hours per week and six months per year. Participation in the South Dakota Retirement System begins on the day of your first contribution.

 

Eligibility

Class A members include all state administrative employees, teachers, general employees of participating municipalities and counties, classified employees of participating school districts, and employees of the Board of Regents. All newly elected officials (except justices and judges) may participate. 

Class A Foundation Member Handbook
Class A Generational Member Handbook

Class B Public Safety members include state law enforcement officers, municipal police officers, municipal firefighters, county sheriffs, deputy county sheriffs, correctional security staff, parole agents, air rescue firefighters, campus security officers, court services officers, juvenile corrections agents, conservation officers, and park rangers.

Class B Public Safety Foundation Member Handbook
Class B Public Safety Generational Member Handbook

Class B Judicial employees include members who are justices, judges, and magistrate judges.

Class B Judicial Foundation Member Handbook
Class B Judicial Generational Member Handbook

The following are excluded from membership in SDRS: The governing body of any participating county, municipality, or other political subdivision.

 

Contributions

You and your employer share the cost of your retirement benefits by contributing a percentage of your salary to the system. The amount of contributions is dependent on your class of service: 

  • Class A: 6% employee; 6% employer 
  • Class B Public Safety: 8% employee; 8% employer 
  • Class B Judicial: 9% employee; 9% employer 

Your contributions are deducted from your paycheck each pay period. SDRS contributions are made on a pre-tax basis, meaning that Federal income taxes are not withheld on contributions when they are made to the system. When you begin drawing benefits, your payments will become taxable. 

 

Vesting

A member becomes vested and entitled to a retirement benefit after three years of contributory service, provided the member has not withdrawn their accumulated contributions.