PIERRE, S.D. (KELO) — The cost of living adjustment for people who receive South Dakota Retirement System benefits will be 1.28%, the trustees decided Thursday.
It takes effect July 1, 2021, according Travis Almond, the system’s executive director. The possible range is 0.5 to 3.5%.
The variable COLA started in 2011. The Legislature previously had set it at a flat 3.1% through 2009 and transitioned to 2.1% for 2010.
The COLA that took effect July 1 was 1.56%. It was 2.03% last year.
The system has about 90,000 members, including current or past employees and retirees from state government and participating county and municipal governments, school districts and other local government units.
Earlier this year, the trustees discussed removing the 0.5% minimum so that no adjustment could be granted if necessary. Such a change would require approval from the Legislature and the governor.
The board’s goal is that the COLA matches or stays near the rate of inflation.