South Dakota SDRS Retirement Calculator
Estimate your South Dakota Retirement System Class A pension. Pick Foundation or Generational, enter your service and pay, and see the monthly benefit, any early retirement cut, and how the variable COLA could move it.
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Foundation or Generational: it's your join date
SDRS split its members on July 1, 2017. If you joined before that date you're a Foundation member. If you joined on or after it, or took a refund and came back after it, you're Generational. The rules below come from the SDRS Class A handbooks for each group, both dated July 2024. Class A covers state employees, Board of Regents staff, school district teachers and classified staff, and general city and county employees. Public safety and judicial members are Class B, with different rules.
The Foundation formula
1.7% x FAC x years before July 1, 2008
+ 1.55% x FAC x years after July 1, 2008
The handbook example: a member retiring at 65 with 30 years (13 before July 2008, 17 after) and a $30,000 FAC gets $6,630 + $7,905 = $14,535 a year. Foundation members also have an alternate formula, 2.4% and 2.25% less 80% of primary Social Security. SDRS pays whichever is higher, and the handbook says the standard formula usually wins. This calculator uses the standard formula.
Foundation members retire unreduced at 65. They can also retire unreduced as early as 55 under the Rule of 85, once age plus credited service adds up to 85: 55 with 30 years, 58 with 27, 62 with 23. Otherwise they can retire from 55 with a permanent cut of 3% for each year before 65, prorated for partial years. The handbook's early example retires at 62 with 18 years and $30,000 FAC: $8,415 less 9% = $7,657.65 a year.
The Generational formula
1.8% x FAC x years of service
Generational members earn a higher multiplier but wait longer. Normal retirement is 67, there's no Rule of 85, and early retirement starts at 57 with a 5% cut for each year before 67. The handbook example: 30 years and a $30,000 FAC is $16,200 a year at 67, or $12,150 at 62 after a 25% cut. Generational members also get a Variable Retirement Account, funded with up to 1.5% of pay and credited with SDRS's investment return. It pays out at retirement on top of the pension.
Final average compensation
FAC is the average of your highest 20 consecutive calendar quarters in your last 40 quarters of membership. Each of those five years counts only up to 105% of the year before it. Member and employer contributions on pay above that cap come back to you as a lump sum at retirement.
The variable COLA
Each July the SDRS board sets a COLA based on CPI-W inflation and the system's fair value funded ratio. The handbooks set the range at 0% to 3.5%. For July 1, 2026 the board approved 1.56%. Your first COLA comes after you've received benefits for a full July-to-June fiscal year, so someone who starts benefits in August waits nearly two years.
Vesting and leaving early
You're vested after three years of contributory service. A vested member who leaves can leave the money in SDRS and draw a benefit later: unreduced at 65 (Foundation, or earlier under the Rule of 85) or 67 (Generational), or reduced from 55 or 57. A member who takes a refund gets their own contributions plus 85% of the employer share if vested, or 50% if not.
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Frequently asked questions
What is the difference between SDRS Foundation and Generational members?
Your SDRS join date. Members who joined before July 1, 2017 are Foundation members. Members who joined on or after July 1, 2017 are Generational members, and so is anyone who took a refund and rejoined after that date. Foundation Class A members earn 1.7% of final average compensation for each year before July 1, 2008 and 1.55% for each year after, retire unreduced at 65 or under the Rule of 85, and can retire early at 55. Generational Class A members earn 1.8% for every year, retire unreduced at 67, and can retire early at 57.
How is an SDRS Foundation benefit calculated?
1.7% x FAC x years before July 1, 2008, plus 1.55% x FAC x years after. The handbook example: a member retiring at 65 with 13 years before 2008, 17 after and a $30,000 FAC gets $6,630 + $7,905 = $14,535 a year. An alternate formula (2.4% and 2.25%, less 80% of your primary Social Security) also exists and SDRS pays whichever is larger, but the standard formula is higher in most cases.
How is an SDRS Generational benefit calculated?
1.8% x FAC x years of service. The handbook example: retiring at 67 with 30 years and a $30,000 FAC gives $16,200 a year. Generational members also get a Variable Retirement Account funded with up to 1.5% of pay, paid at retirement on top of the pension.
What is the Rule of 85?
Foundation members only. Once your age plus credited service reaches 85, you can retire with no reduction, but not before 55. That means 55 with 30 years, 60 with 25, or 64 with 21. Generational members don't have a Rule of 85.
How much does early retirement cost?
Foundation: 3% for each year before 65, prorated for partial years, starting at 55. Retiring at 62 costs 9%. Generational: 5% for each year before 67, starting at 57. Retiring at 62 costs 25%. The cut is permanent.
Does SDRS have a COLA?
Yes. The SDRS board sets it each July from CPI-W inflation and the fair value funded ratio, between 0% and 3.5%. The board approved 1.56% for July 1, 2026. You need a full fiscal year (July to June) of benefits before your first COLA.
How is final average compensation figured?
The average of your highest 20 consecutive calendar quarters out of your last 40 quarters of membership. Each year's pay counts only up to 105% of the year before, starting from a base year. Contributions on pay above the cap come back to you as a lump sum at retirement.
When am I vested in SDRS?
After three years of contributory service. A vested member who leaves can take a benefit later instead of a refund.