Contributions & Vesting

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vested and entitled to a retirement benefit after three years of contributory service, provided the member has not withdrawn their accumulated contributions.