Legislature's authority over retirement system won't be appealed in court

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Circuit Judge Mark Barnett’s decision that the Legislature had the legal authority to reduce the annual cost of living adjustment for South Dakota Retirement System members won’t be further challenged, SDRS administrator Rob Wylie said Wednesday.

The period for filing an appeal to the state Supreme Court expired last week, according to Wylie. Several members led by a retired circuit judge, Merton Tice, had sued to stop the COLA reductions.

“This court case is completed,” Wylie said.

Barnett found there wasn’t a contractual right for what he called a “forever COLA” and the Legislature had the authority to change the COLA percentages.

“So we are happy with that decision,” SDRS lawyer Jackie Storm said.

The Legislature changed the approach so there is a full 3.1 percent COLA only when the system is financially balanced or has a surplus. The COLA is a smaller amount, with a sliding scale, when the system is in a deficit.

The legal work on the case earned praise by Sen. Bruce Rampelberg, RRapid City, the retirement law committee’s chairman. “It was very well pursued by our attorney general,” he said.

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