The proposed changes aim to eliminate unfair advantages in the current system, and to ensure member equity. One proposal is to increase the punishment for reporting false wages, making it a Class 1 misdemeanor, punishable by one year in jail or a $2000 fine. A second proposal is to increase the number of quarters average compensation is based on from 12 to 20. A third proposed change involves the cost of living allowances. The current minimum increase each year is 2.1 percent, and the proposed change would lower that to 0.5 percent. The maximum increase would go from 3.1 percent to 3.5 percent. The Trustees for the South Dakota Retirement System have approved the changes in a 9-3 vote, and will now place the proposals before the legislature.
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