South Dakota
Retirement System
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Working After Retirement

Some members may seek employment after retirement. If you are drawing SDRS retirement benefits and are contemplating returning to SDRS-covered employment, it is important to contact SDRS prior to accepting any position to determine if your retirement benefit will be affected.

Reemployment with a Non-SDRS Employer
If you return to work for an employer that is not covered by SDRS, there will be no change in your SDRS benefit.

Reemployment with an SDRS Employer: Part-TIme/Non-Benefited Status
If you return to work for an SDRS employer in a position that is part-time (less than 20 hours per week) and/or non-benefited, there will be no change in your SDRS benefit.

 

Reemployment with an SDRS Employer
Retirement from SDRS requires a bona fide separation from service. Separation from service is a complete severance of the employment relationship, including severance of employer-provided benefits and payout of any leave balances and/or contract. Severance of the employment relationship means that the employee is no longer working for the employer in any capacity, whether it be full-time, part-time, temporary, seasonal, contractual, leased, or any other designation.

If you return to work for an SDRS employer, you must have three consecutive months of separation from service. The separation period cannot include any kind of relationship or employment with an SDRS participating employer. Returning to work prior to meeting the three-month separation invalidates your retirement status and all retirement benefits must be repaid to SDRS.

Note: A member is exempt from the three-month separation from service if the member was at least age 59 1/2 at retirement and rehired to work less than 1,250 hours during the employer's fiscal year.

If you are rehired by an SDRS employer to work more than 1,250 hours during their fiscal year, your benefit will be reduced by 15 percent and the COLA will be eliminated during the reemployment period. Member contributions go into your SDRS-SRP account. Exception for Class B Public Safety member returning to work as a Class A member: the 15 percent benefit reduction and COLA elimination will not be applied to your Class B retirement benefit during your period of Class A reemployment.

If you are rehired by an SDRS employer to work less than 1,250 hours during their fiscal year:

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