If things don't improve in the stock market, State of South Dakota retirees may not see a cost-of-living increase for several years. That according to the man responsible for managing the $6 billion fund for 70,000 members. KSFY sat down with state investment officer Matt Clark Friday.

The state's retirement fund has lost between 20% and 25% of it's value since the end of June. But it's manager says even as the market tumbles, the South Dakota system is still one of the strongest in the entire country.

Watching the markets from his desk, Matt Clark says it's important not to panic. He says the worst case scenario would be that cost of living increases for retirees might not happen for several years. "Even if things get worse, and fail to rebound and get better, that we're talking about just some fine tuning and a little bit of belt tightening."

The fund now has assets that total about 80 percent of the benefits promised to retirees. That's down from 106 percent at the end of June. "That's not a new thing. Back in the 70's and early 80's it was routine for the retirement system to operate in the 70 to 80 percent funding range."

South Dakota retirees like Dee Sanford says it's good to know the fund isn't in worse shape. "Well as long as we can continue to at least get what we're getting now."

Clark says the main thing for people invested in the system to remember is their money will be there. The fund is just in a similar position to what it was several decades ago. "I think people should have confidence that they're going to get their retirement checks. We're in no worse shape in much of those periods of time."