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


Variable Retirement Account

In addition to SDRS retirement benefits, Generational members have an additional benefit called a Variable Retirement Account (VRA). The VRA is funded by a monthly contribution of up to 1.5 percent of pay to active Generational members.

Investment earnings are credited annually (as of June 30) based on SDRS' net investment return for the fiscal year. For VRA distributions during the fiscal year, the VRA will be credited with the estimated investment return through the month prior to the distribution. The investment earnings may be positive or negative, but the VRA will never be less than the sum of all contributions to the account.

The VRA becomes payable at retirement, disability, or death. Generational members may elect payment options to fit their needs: a lump-sum payment, a rollover to the SDRS Supplemental Retirement Plan (SRP) or other eligible plan, or a purchase of a SDRS Supplemental Pension Benefit (SPB) at retirement.

Generational members who terminate employment and refund their accumulated contributions will forfeit their VRA. VRA funds are only payable at a Generational member's retirement, disability, or death.