South Dakota Retirement System, Pierre, is considering reducing the minimum amount of the cost-of-living-adjustment to zero from 0.5%, confirmed Matt Clark, state investment officer for the South Dakota Investment Council, which oversees the management of the $12.2 billion pension fund.
The pension plan's board discussed recommending the change to the state Legislature at its Sept. 3 meeting. Mr. Clark said in an email that this action would be done "to allow the system to remain 100% funded for a greater range of adverse investment outcomes" in times of economic stress.
The board plans to discuss this option again at its next meeting in December.
Mr. Clark said the COLA "is set in statute to be within a 0.5% to 3.5% range."