Char Gatje,
Brian
Berglin, High School Math teacher from Sioux Falls, and Carol Burch, Middle
School Art teacher from Belle Fourche, represent K-12 Education employees on the
South Dakota Retirement System Board of Directors.
Please let them know if you have any questions or concerns about the
retirement system so that they can ensure that the concerns of the members they
represent are addressed.
The following questions were submitted for Carol and
Brian:
Question:
“From
the Advocate column, I understand there is a $521.1 M reserve for funding long
term benefit goals. I understand
these are for benefits not yet a part of the retirement plan.
Is my understanding correct?”
Brian Berglin
answers:
“There
is actually approximately 1.2 billion in the reserve for funding long term
benefits. This is spread out over a
5 year period. The amount from that
reserve that was available this year for benefit improvements was approximately
521 million. This could be spent on
new benefits, improving existing benefits, or kept in the reserve as a cushion
against unfavorable markets in the future.”
Question:
“I
understand the SDRS includes not only retirement benefits (giving some insurance
against living too long), but disability benefits and death benefits (giving
some insurance against not living long enough).
Additionally, I understand some consideration is being given to a
"dividend account" which will operate similar to a savings plan
benefit. What is the
logic/advantages that would include other than retirement benefits in a
retirement plan?”
Brian Berglin
answers:
“SDRS
is a hybrid defined benefit plan, not a defined contribution plan, so the system
tries to provide a benefit package that is balanced and advantageous to a wide
variety of members with diverse needs. The
dividend account you asked about was proposed as an alternative way to provide
members with a return on their investment in favorable years.”
SDEA
regularly features a column on the retirement system in your Advocate in which
your questions are answered by Carol Burch or Brian Berglin.
If you wish to submit a question or have an issue you would like Carol or
Brian to discuss with the board, please send it to: Retirement Questions, SDEA,
411 E. Capitol Ave., Pierre SD 57501 or email to: