SIOUX FALLS, S.D. (KELO AM) - Governor Daugaard today signed a bill that manages the South Dakota Retirement System that he says will strengthen its future.
Daugaard say the System's board reduced the inflation and investment return assumptions knowing that would make the plan look weaker, but the changes faced reality.
Daugaard says the bill he signed today changes the method by which a retiree's cost-of-living adjustment is calculated.
He says that means to make the cost-of living adjustment reflect what is affordable, given actual earnings, and what is needed, given actual inflation.
Daugaard says the new law also requires immediate recommendations for change if the plan is not 100% funded or if the contribution is is not going to be enough to meet what the actuary is recommending.
He says other states and cities have failed their retirees and citizens, citing that Detroit went bankrupt largely because of problems within its retirement system.
Daugaard say this is one of the most significant pieces of legislation this year.