Joined before July 1, 2017? You're a Foundation member. Joined on or after it? You're a Generational member. The date is when your contributory service began. Foundation Handbook (July 2024), p. 7, Participation & Eligibility; SDCL 3-12C-101(46), (51)
- South Dakota teachers are members of the South Dakota Retirement System (SDRS), the plan for South Dakota's public employees. Teachers and classified employees of participating school districts are Class A members.Foundation Handbook (July 2024), pp. 5, 7
- SDRS is one plan with two benefit designs. If you joined SDRS before July 1, 2017 you are a Foundation member; if you joined on or after July 1, 2017 you are a Generational member. Your membership begins with your first contribution.Foundation Handbook (July 2024), p. 7; SDCL 3-12C-101(46), (51)
- You must join if you work for a participating employer at least 20 hours a week and six months a year.Foundation Handbook (July 2024), p. 7
The differences show up in the formula, early retirement and payment options.
Side by side
| Foundation | Generational | |
|---|---|---|
| Joined SDRS | Before July 1, 2017 | On or after July 1, 2017 |
| Each year of service earns | 1.7% of final average compensation before July 1, 2008, 1.55% after | 1.8% of final average compensation |
| Alternate formula | Yes: 2.4% / 2.25% less 80% of primary Social Security, if larger | No |
| Unreduced benefit | At 65, or the Rule of 85 from 55 | At 67 |
| Earliest reduced benefit | 55 | 57 |
| Early cut | 0.25% a month (3% a year) | 5% a year |
| Spouse after you die | 60% continues automatically | Only if you choose a 60% or 100% joint & survivor benefit |
| Variable Retirement Account | No | Yes, up to 1.5% of pay |
Vesting and contributions
- You are vested after three years of contributory service, as long as you have not taken a refund. Service you buy after July 1, 2004 does not count toward vesting.Foundation Handbook (July 2024), p. 8; SDRS Actuarial Valuation (June 30, 2024), p. 50
- Class A members contribute 6% of pay and the employer matches 6%. For Generational members, up to 1.5% of pay from the employer side goes into a Variable Retirement Account.Foundation Handbook (July 2024), p. 7; Generational Handbook (July 2024), p. 13
Full-time employees (customarily at least 20 hours a week and six months a year) of a participating employer must join and contribute. Class A includes teachers and classified employees of participating school districts. Foundation Handbook (July 2024), p. 7, Participation & Eligibility
The Legislature may raise normal retirement age for then-contributing members if life expectancy keeps rising. SDCL 3-12C-1203
The Variable Retirement Account contribution is set each year by the SDRS Board, from 0% to 1.5% of pay. Our newest source (2024) says 1.5%. We don't use it in the calculator.
What would settle it: The June 30, 2025 valuation or a Board resolution.
Try the calculator: it picks your group from the date you joined.
Questions
Am I a Foundation or Generational member?
It depends on when your contributory service in SDRS began. Before July 1, 2017: Foundation member. On or after it: Generational member. Your membership starts with your first contribution.
Do Foundation and Generational members pay the same?
Yes. Class A members contribute 6% of pay and the employer matches 6%.
How long until I'm vested?
3 years of contributory service, as long as you haven't taken a refund.
Source: SDRS Class A Handbooks (Foundation and Generational members), July 2024, Foundation pp. 5, 7-8, 10-12, 16; Generational pp. 7-8, 10-11, 13, 15. Also: SDRS Actuarial Valuation (June 30, 2024) pp. 50, 53-55; SDCL §§ 3-12C-101, 3-12C-112, 3-12C-401, 3-12C-1105, 3-12C-1106, 3-12C-1110, 3-12C-1111, 3-12C-1114, 3-12C-1203, 3-12C-1204, 3-12C-1207, 3-12C-1208, 3-12C-1209, 3-12C-1210, 3-12C-1301, 3-12C-1303. Last reviewed .