South Dakota
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Working After Retirement

If you are contemplating returning to work after retirement, it is important to contact SDRS to see if/how your benefit would be affected during your reemployment period. Please contact our office toll-free at 1-888-605-SDRS (7377) to speak with your retirement planner.

Reemployment of Retirees (Effective April 1, 2010)

All Retirements
Effective April 1, 2010, all retired members must complete three (3) full calendar months of termination from employment before returning to covered SDRS employment. If a member returns to covered employment prior to satisfying the termination period, the member's retirement status will be revoked and all retirement benefits paid to the member will need to be repaid to the system, with interest.

Early Retirements (Reduced Benefit) - After meeting the termination period
If you are reemployed before normal retirement age by a participating employer on a permanent, full-time basis after having retired with a reduced benefit, your monthly benefit payments will stop while you are reemployed and you will not be eligible for a COLA until you have terminated employment and met the full fiscal year requirement. During reemployment, you will not earn any additional credited service and your required employee contributions will accrue in the SDRS-SRP. No employee or employer contributions will be credited to your SDRS accumulated contributions during your period of reemployment.

Special Early or Normal Retirements - After meeting the termination period
If you are reemployed by a participating employer on a permanent, full-time basis after having retired with an unreduced benefit, your monthly benefit payments will be reduced by fifteen (15) percent while you are reemployed and you will not be eligible for a COLA until you have terminated employment and met the full fiscal year requirement. During reemployment, you will not earn any additional credited service and your required employee contributions will accrue in the SDRS-SRP. No employee or employer contributions will be credited to your SDRS accumulated contributions during your period of reemployment.

Early Retirements (Reduced Benefit) - After meeting the termination period - Reemployed as a Class B Public Safety Member or a Class A Member
If you are reemployed as a Class A member or return to employment as a Class B Public Safety member before normal retirement age with a participating employer on a permanent, full-time basis after having retired with a reduced benefit, your monthly benefit payments will stop while you are reemployed and you will not be eligible for a COLA until you have terminated employment and met the full fiscal year requirement. During reemployment, you will not earn any additional credited service and your required employee contributions will accrue in the SDRS-SRP. No employee or employer contributions will be credited to your SDRS accumulated contributions during your period of reemployment.

Special Early or Normal Retirements - After meeting the termination period - Reemployed as a Class B Public Safety Member
If you are reemployed by a participating employer as a Class B Public Safety member on a permanent, full-time basis after having retired with an unreduced Class B Public Safety retirement benefit or a Class A retirement benefit, your monthly benefit payments will be reduced by fifteen (15) percent while you are reemployed and you will not be eligible for a COLA until you have terminated employment and met the full fiscal year requirement. During reemployment, you will not earn any additional credited service and your required employee contributions will accrue in the SDRS-SRP. No employee or employer contributions will be credited to your SDRS accumulated contributions during your period of reemployment.

Special Early or Normal Retirements - After meeting the termination period - Reemployed as a Class A Member
If you are reemployed by a participating employer as a Class A member on a permanent, full-time basis after having retired with an unreduced Class B Public Safety retirement benefit, the fifteen (15) percent benefit reduction and the COLA elimination will not be applied to your Class B retirement benefit during your reemployment. However, during your Class A reemployment, you will not earn any additional credited service and your required employee contributions will accrue in the SDRS-SRP. No employee or employer contributions will be credited to your SDRS accumulated contributions during your period of reemployment.

South Dakota Codified Law requires employers to certify the date the employee's employment is or will be severed and that no agreement exists to allow the employee to return to service.

For additional information regarding work after retirement: Returning to Work Guide