If you've got the reduction box, you'd have to either factor it in, or remove it and get the right gears.
Personally I'd want to remove it, just one more thing to potentially go wrong, but I'm not sure if GM ran those because it was simpler to use the same gears in all the trans/t-cases, or because no speedometer gear combo was available that would be close enough.
10% of 50 is 5, 20% then is 10, so if 50 is really 60, your speedometer is 20% slow. But again, with the ratio box, you'd have to factor that into the gears. I'd pull the box and drive it, see what percent it's off then, and see if gears are made that will correct it.