Do South Dakota teachers get Social Security?
Yes. SDRS members are covered by Social Security, so the same teaching job earns both an SDRS pension and Social Security. SDRS asks members to plan around three income sources: SDRS, Social Security and their own savings. Under the standard formula, Social Security doesn't reduce your SDRS benefit.
- SDRS members are covered by Social Security. SDRS plans around three income sources: SDRS, Social Security and personal savings.SDRS Update (June 2026), slide 21; SDRS new-member newsletter (Dec. 2025), p. 1
SDRS members are covered by Social Security. SDRS, Social Security and personal savings are the three income sources SDRS asks members to plan around. The Foundation level income option and alternate formula are built around Social Security. SDRS Update (June 2026), slide 21, COLA Comparisons table ('Social Security? Yes' for SDRS); SDRS new-member newsletter (Dec. 2025), p. 1, Know Your Retirement Income Sources; Foundation Handbook (July 2024), pp. 2, 11, 12
Where Social Security shows up in SDRS rules
- The Foundation alternate formula subtracts 80% of your primary Social Security benefit from a higher percentage of pay. You get it only if it beats the standard formula. See the SDRS formula. Foundation Handbook (July 2024), p. 11, Normal Retirement Benefits (formula graphics, see source/handbook-image-text.txt); SDCL 3-12C-1106; SDRS Actuarial Valuation (June 30, 2024), pp. 53-54
- The Foundation level income option pays more until 62 and less after, so that SDRS plus Social Security stays about level. See payment options. Foundation Handbook (July 2024), pp. 12-13, Level Income Payment Option; SDCL 3-12C-1112
- Who pays for the alternate formula: employers add 6.2% of a Foundation member's pay above the Social Security taxable maximum. Foundation Handbook (July 2024), p. 11 (note: the alternate formula is financed by an additional employer contribution of 6.2% of salary above the Social Security taxable maximum); SDCL 3-12C-402
- In the Foundation alternate formula, 'other public benefits' means 80% of your primary Social Security amount. A member who also worked for a public employer not covered by Social Security is presumed to get the maximum primary Social Security benefit.SDCL 3-12C-101(62), 3-12C-1106
- Termination pay that goes into the SDRS Special Pay Plan is excluded from your gross income for Social Security (FICA) withholding.Foundation Handbook (July 2024), p. 19, SDRS Special Pay Plan
- SDRS's handbook says SDRS and Social Security benefits are designed to provide dependable lifetime income, but many retirees will need more, which is what the SDRS Supplemental Retirement Plan (a 457(b) savings plan) is for.Foundation Handbook (July 2024), p. 18, SDRS Supplemental Retirement Plan
The Foundation alternate formula subtracts 80% of your primary Social Security benefit, but the sources don't say at what age that amount is measured. We use it only if you type in a monthly Social Security amount.
What would settle it: SDRS rules (ARSD 62:01) or an SDRS estimate showing both formulas.
To test the alternate formula, the calculator lets you enter a monthly Social Security amount; otherwise it uses the standard formula only. Not sure whether you're a Foundation member? See Foundation or Generational.
What the sources don't say
The SDRS sources say nothing about how Social Security treats your SDRS benefit or when to claim it. Ask the Social Security Administration about your own benefit. Check with SDRS
Related: South Dakota doesn't tax your SDRS pension, though the IRS does; see SDRS pension taxes.
Questions
Do South Dakota teachers get Social Security?
Yes. SDRS members are covered by Social Security, so you earn an SDRS benefit and a Social Security benefit for the same work.
Does Social Security reduce my SDRS benefit?
Not under the standard formula. Foundation members also get an alternate formula check that subtracts 80% of the primary Social Security benefit; SDRS pays whichever formula is larger.
What is the SDRS level income option?
A Foundation choice for members who start between 55 and 62: a higher SDRS payment until 62, then a lower one, so SDRS plus Social Security stays about level.
Source: SDRS Class A Handbooks (Foundation and Generational members), July 2024, Foundation pp. 2, 11-13, 18-19. Also: SDRS Update (June 2026) slide 21; SDRS new-member newsletter (Dec. 2025) p. 1; SDRS Actuarial Valuation (June 30, 2024) pp. 53-54; SDCL §§ 3-12C-101, 3-12C-402, 3-12C-1106, 3-12C-1112. Last reviewed .