The Automatic Enrollment Feature
To make starting to invest for retirement easier, the South Dakota Retirement System-Supplemental Retirement Plan (SDRS-SRP) implemented automatic enrollment for all permanent, full-time employees hired on or after July 1, 2009. The goal of automatic enrollment is to encourage early participation in the plan, so that members may potentially maintain their standard of living during the retirement years.
However, not all SDRS-SRP employers offer the automatic enrollment feature.
Investing for your retirement
If your account is automatically activated, you will begin by contributing $25 per month into a Qualified Default Investment Alternative (QDIA).
The QDIA is an investment option selected by the South Dakota Investment Officer. It is considered appropriate for meeting a participant’s needs when investing for retirement.
You can change your contribution amount at any time; and may increase it up to the maximum limit defined by the IRS. After you’re enrolled, you can also designate beneficiaries and select other investment options offered by the SDRS-SRP.
Opting out of the plan
Because we care about your retirement future, we’ve designed the plan to possibly help you maintain your standard of living through retirement. However, we realize that one solution may not be perfect for everyone, and you may have to opt out of the plan. After you are enrolled, you will have 90 days after your first pay date to decide if you need to opt out of the plan.
If you do opt out, you will receive a refund of your contributions (net any gains or losses), penalty-free (taxes will be withheld). If you do not opt out within the 90 day period, you will not be eligible for a refund from your account unless you qualify under IRS rules for a one-time, in-service distribution, you terminate employment or you retire.
Get the help you need
Talk to a Retirement Specialist if you have questions about automatic enrollment.