SIOUX FALLS, S.D. (KELO AM) - A bill revising the formula used to calculate the cost-of-living adjustment in the South Dakota Retirement System passed a House committee in Pierre yesterday.
Another measure that won approval updates the definition of compensation, an effort to promote consistency in the retirement system says the bill's sponsors.
The two bills are in a package of four that state employees are keeping an eye on in this legislative session.
Pierre Representative Mary Duvall says the bills are aimed at keeping the state system sustainable for decades.
Duvall says plan is to adjust the COLA, the Cost of Living Adjustment Rider, so it fits more in line with inflation and not some made-up statutory number. It also is designed, she says, to prevent what's called pension spiking. That's when workers are getting really large salaries in their last year or two of employment.
The other two bill in the package revise how final average compensation is determined relating to retirement benefits and update provisions relating to the salary of the retirement system's executive director.
The bills move to the House for consideration probably by Monday afternoon.