South Dakota's investment officer explains what the loss on Wall Street means this way: On June 30th, the retirement fund had about 106 percent of the assets it would need to pay all the benefits that are owed.  Now it has about 80 percent.  The news isn't good, but Matt Clark tells KSFY retirees will get their money.

Clark says the fund is one of the strongest state retirement plans in the nation.

And even with the loss, it's been in this position before.

"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," said Clark.

Still if the market doesn't improve, there could be changes in benefits.

"There may even have to be consideration of not having benefit increases for cost of living allowances until things get better," said Clark.

Clark says if that happened, he doesn't think any retirees benefits would be cut, but they may not increase for several years.

He says people in the state retirement system will be much better off than their friends and family members in 401k's.

But this is surely a time of lots of fear and some panic.

And Clark says the markets may not have bottomed out yet.

"We shouldn't be surprised at all if they fall more to get to those huge discounts to fair market that one expects to see at the height of panic."

Clark says at the next meeting of the retirement system board in December, he expects members to begin talking about some contingency plans in case things get worse.

That may include delaying increases in benefits paid.