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Sioux Falls Pension Plan Revisions Now Up To Employees

July 10, 2012, 10:32 PM by Kelly Bartnick


The Sioux Falls City Council approved employee pension plan revisions Tuesday night designed to eventually get the city out of the retirement business.

Under the proposal new employees would receive retirement benefits from the South Dakota retirement system.

Current Sioux Falls employees would remain on the system, but would see their monthly contributions increase by two percent over two years beginning in 2014. Current employees would also be given a stipend system to pay for retirement health care.

Benefits for current Sioux Falls retirees will stay the same.

The changes have been in the works for 18 months. While the proposal has been approved by the city council, it must also be approved by city employees.

Employee union representatives at the city council meeting said it would be a tough sell to public safety workers who have operated under minimal raises, if any.

This article has been revised to reflect the following correction:
This story was corrected to reflect that new employees will not be eligible for a health care stipend.

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