South Dakota
Retirement System
Proudly Serving South Dakota's Public Employees Since 1974



Net Pension Liability (NPL) - Each employer's share of the unfunded liability (Total Pension Liability minus the Pension Plan's Fiduciary Net Position) associated with their employees who participate in SDRS.

Discount Rate - A blended or single rate (expressed as a percentage) that reflects (1) the long-term expected rate of return on pension plan investments to the extent (a) this rate will support projected benefit payments of the plan, and, (b) assets will be invested using the current allocation targeted to achieve that return, and (2) for the period of benefit payments not supported, will incorporate an index rate for 20-year tax-exempt municipal bonds.

Employer's Proportion - A measure of the proportionate relationship of an employer of a cost-sharing pension plan like SDRS to all employers of the plan.

Pension Expense - Represented by changes in SDRS's Net Pension Liability, recognized in the current reporting period. There are some exceptions that include changes due to differences between expected and actual experience, changes in economic and demographic assumptions, and the difference between projected and actual earnings on pension plan investments.

Pension Plan's Net Position - SDRS's plan net assets at fair value.

Proportionate Shares - Measures of the collective Net Pension Liability, collective Pension Expense and other disclosure items of the plan related to pensions - attributable to a specific employer, based on the Employer's Proportion.

Total Pension Liability - The portion of the actuarial present value of projected benefit payments (reflecting projected service and anticipated salary and benefit increases) that is attributed to past periods of SDRS member service, similar to current Actuarial Accrued Liability (AAL), determined under the Entry Age Actuarial Cost Method, calculated using the Discount Rate.

Related Links:
GASB 67 & 68 Overview
GASB Employer Email Contact
Employer Information