Summary

Explains how SDRS calculates retirement benefits using benefit multipliers, Final Average Compensation (FAC), and credited service, including differences between Foundation and Generational plans and how membership class and service periods affect the final benefit amount.

 

 

The Formula

SDRS calculates your monthly lifetime benefit using benefit multipliers that are specific to your plan (Foundation or Generational) and membership class (Class A General, Class B Public Safety, or Class B Judicial). The benefit multiplier is applied to your FAC and service.

 

Benefit Multiplier x Final Average Compensation x Years of Credited Service.

 

 

The Benefit Multipliers

Foundation Benefit Multipliers

Class A General

• Service before July 1, 2008: 1.7%
• Plus, service after July 1, 2008: 1.55%

 

Class B Public Safety

• Service before July 1, 2008: 2.4%
• Plus, service after July 1, 2008: 2.0%

 

Class B Judicial

• For first 15 years of service:
  • Service before July 1, 2008 (up to 15 years): 3.733%
  • Plus, service after July 1, 2008 (up to 15 years): 3.333%
• Plus, for service in excess of 15 years:
  • Service before July 1, 2008: 2.4%
  • Plus, service after July 1, 2008: 2.0%

 

Generational Benefit Multipliers

Class A General

• All service: 1.8%

 

Class B Public Safety

• All service: 2.0%

 

Class B Judicial

• For first 15 years of service: 3.333%
• Plus, service in excess of 15 years: 2.0%

 

 

Final Average Compensation (FAC)

FAC is based on:

• Your highest 20 consecutive calendar quarters of pay (highest 5 years),
• Within your last 40 quarters of SDRS service (last 10 years).

 

Important Notes Regarding FAC

• Compensation is capped at 105% for each of the five years used in determining your FAC.
• FAC is also subject to adjustments for extraordinary payments in the final year. Extraordinary payments include any non-recurring, non-regular, or lump-sum payments that are not considered compensation for SDRS purposes.

 

 

Credited Service

Credited service is the period of time you work for an SDRS-participating employer. You earn credited service as follows:

• You receive one-fourth of a year of credited service for each calendar quarter in which you make SDRS contributions.

• Partial or full years of service count toward your total credited service.

 

Surrendered service: If you previously took a refund of your SDRS contributions, the service you earned during that time is removed from your account. Because that service is no longer credited to your account, it cannot be used in calculating your retirement benefit.

 

 

How to Estimate Your Benefit

The Benefit Calculator helps members estimate their future SDRS monthly retirement benefit. You can prepare estimates using different retirement dates, salary amounts, and service years to see how each factor affects your benefit.

 

Click here to access the Benefit Calculator.

 

Note: For a more personalized experience using your actual SDRS account data, please log in to your SDRS account.

 

You can contact the SDRS office at any time to request a benefit estimate.

• Call 605-773-3731; or
• Use the Contact Us page: https://sd.gov/sdrs?id=contact_sdrs