South Dakota Retirement System, Sioux Falls, returned 25.84% on its investments for the fiscal year ended June 30, increasing the $7.9 billion retirement system's funding ratio to 103%, confirmed state investment officer Matthew Clark.
Mr. Clark said in a telephone interview that the system is in the process of updating its actuarial estimate on non-investment returns, which is expected to be completed by late in the fall, but the update is unlikely to reduce the funded status below 100%. The retirement system hit a funding ratio low of 76% at the end of fiscal year 2009, he said.
“South Dakota did pretty well (relative to the returns of other public and corporate pension plans) probably because of its strong internal management and strong team,” he said. Roughly 70% of the system's investments are run in-house by the South Dakota Investment Council, Sioux Falls.