SDCERS Board Approves Annual Supplemental Benefit for 2025

At its November 14, 2025 meeting, SDCERS’ Board of Administration approved payment of the Annual Supplemental Benefit for eligible retirees and continuance beneficiaries. The Annual Supplemental Benefit is paid in years when the fund’s investment earnings are sufficient to qualify, according to a set formula defined in the plan documents.

In addition, the Corbett Settlement Increase (“Corbett benefit”) will be paid to eligible retirees and continuance beneficiaries in years when the Annual Supplemental Benefit is paid. If you are eligible for one or both of these benefits, payment will be included in your November 2025 monthly pension payment.

There are minimum service credit requirements to qualify for the Annual Supplemental benefit (5 or 10 years, depending on hire date and plan sponsor), as well as restrictions based on initial date of hire – the following are not eligible for the Annual Supplemental Benefit:

• City Members hired on or after July 1, 2005;

• Port Members hired on or after October 1, 2005; and
• Airport Members hired on or after October 3, 2006.

Payment amounts are determined by years of service credit (not including reciprocal service credit).  The amount per year of service credit is $30, $45, $60, or $75 per year of service credit depending on year of retirement. Continuance beneficiaries of eligible retirees will be paid an amount using the same ratio as their monthly benefits bear to the monthly benefit received by their respective deceased retired spouse.

The eligibility requirements for the Annual Supplemental Benefit and Corbett benefit are described in our FAQs under “Annual Supplemental Benefit, Corbett, COLA, COL Annuity.” Here, you will also find a more detailed description of how these benefits are calculated.

In addition to the requirements outlined in the FAQ’s, in order to be eligible for the 2025 Annual Supplemental Benefit, a retiree or continuance beneficiary must have been:

• Alive on October 1, 2025, and
• Eligible to receive a monthly pension benefit payment on October 1, 2025.

If an eligible retiree died on or after October 1, 2025, the retiree’s continuance beneficiary is not eligible for their own Annual Supplemental Benefit this year. In this case, the retiree’s Annual Supplemental Benefit payment will be included in the $2,000 Retiree Death Benefit and Other Payable Monies, which is paid to the beneficiary(ies) designated to receive that death benefit.