Payments Not Considered SDRS Compensation

Some payments are not considered compensation for SDRS purposes and are not reported to SDRS, as outlined in South Dakota Codified Law 3-12C-105, including:

• Any allowance, payment, or reimbursement for travel, meals, lodging, moving, uniforms, or any other expense that is incidental to employment and paid or reimbursed by the employer
• Any lump sum payment for sick leave and/or annual leave (lump sum payouts of accumulated leave upon termination, lump sum payouts of accumulated leave to active employees such as personal leave payouts at the end of the school year)
• Any payment for, or in lieu of, insurance coverage of any kind or any other employee benefit paid by an employer directly to a member or directly to a third party on behalf of a member or a member and any dependent
• Any allowance or payment for housing or vehicles
• Any temporary payment paid as a lump sum or over a period of time that is not due to additional duties
• Any amount paid in a one-time lump sum payment or over a period of time and based on or attributable to retirement or an agreement to retire in the future or results in an incentive to retire
• Any payment made upon dismissal or severance
• Any worker's compensation payment
• Any payment contingent on a member terminating employment at a specified time in the future paid or payable in a lump sum or over a period of time

If you ever question whether payments should or should not be reported to SDRS, please contact the SDRS office toll-free at 1-888-605-SDRS (7377).