Supplemental Pension Benefit
The Supplemental Pension Benefit (SBP) is a financial process that can be used to provide additional financial security during retirement through lifetime monthly benefit payments, with cost-of-living adjustments. Survivor benefits are available depending on your marital status at the time the SPB is established.
Any SDRS member is eligible to participate in the SPB program if they:
- have terminated employment, and
- are currently receiving an SDRS monthly retirement benefit, and
- have at least $10,000 in their Supplemental Retirement Plan, Special Pay Plan, and/or Variable Retirement Account
A member who has retired and has returned to SDRS-covered employment will not be allowed to purchase a SPB while employed because IRS law will not allow the transfer of 457 funds unless the member is in termination status.
The Supplemental Pension Benefit program has been designed to provide members with an opportunity to enhance their primary SDRS retirement benefit by allowing them to convert funds from their SRP, SPP, and/or VRA to establish an additional lifetime benefit. It is important to note that the SPB is an optional benefit and can be elected at any time during the member's retirement (for Generational members using VRA funds to establish an SPB: the SPB election would need to be made at time of retirement). There is no requirement that a member must exercise the SPB option at any specific time, if at all, but it is irrevocable once exercised.
SDRS has established a calculator to help determine the cost versus the benefit of participating in the Supplemental Pension Benefit program. The calculator is a planning tool that a member can use to estimate the amount of an SPB monthly benefit based on the amount of money transferred from SRP, SPP, and/or VRA. Members are cautioned to make sure they have additional savings before committing any or all of their SRP, SPP, and/or VRA funds to this program.
Generational Member SPB calculator