Retiree health coverage isn't in the SDRS rules

Does SDRS provide retiree health insurance?

Not according to any SDRS source we use. The Foundation and Generational handbooks, the June 30, 2024 actuarial valuation and the SDRS chapter of state law describe pensions, refunds, disability and survivor benefits, but no retiree health plan and no premium subsidy. Coverage after you retire, if any, is up to your school district.

• Check with SDRSNone of the SDRS sources mentions retiree health coverage or a health subsidy.Sources are silent; coverage may come from employers instead.Foundation and Generational Handbooks (July 2024)

Where health insurance does come up

• For SDRS, leaving a job ('terminated') means a complete break from public employment, shown by the employer's usual steps, which can include ending your employer-provided health insurance coverage.SDCL 3-12C-111
• A payment for, or in lieu of, insurance coverage isn't compensation for SDRS, so an insurance stipend doesn't raise your final average compensation.SDCL 3-12C-105; SDRS Actuarial Valuation (June 30, 2024), p. 51
• SDRS's planning newsletter mentions health care only once: as a rising cost that is one reason some members may also need to work in retirement.SDRS new-member newsletter (Dec. 2025), p. 1

What to do instead

Before you set a retirement date, ask your school district's business office whether you can stay on its health plan, what it costs, and when it ends. For questions about SDRS itself, call SDRS at 605-773-3731.

Your SDRS benefit is the same either way: see the calculator. If you're weighing an earlier date, compare the early-retirement cut and the rules for working after retirement, and check how Social Security fits in.

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