ARSD Article 20:16 — CEMENT PLANT EMPLOYEE RETIREMENT PLANS

SOUTH DAKOTA RETIREMENT SYSTEM SOUTH DAKOTA RETIREMENT SYSTEM

Chapter 20:16:01 Definitions

ARSD 20:16:01:01 Definitions

Terms used in this Article mean:

(1) "Commission," the former South Dakota State Cement Plant Commission or its successor state agency or the State of South Dakota;

(2) "Employee," any salaried or hourly person employed by the commission;

(3) "Plant," the South Dakota state cement plant at Rapid City, South Dakota;

(4) "Management," the president, vice president and controller, or their designees;

(5) "Union," the United States steel workers and any other union under contract with the employees of the plant;

(6) "Board," the South Dakota Retirement System Board of Trustees created pursuant to SDCL 3-12C-203.

History

Source: 2 SDR 38, effective November 26, 1975; transferred from § 15:01:01:01, effective July 1, 1979; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

Chapter 20:16:09 Retirement plan 4, Repealed

ARSD 20:16:09 Repealed chapter

CHAPTER 20:16:09

RETIREMENT PLAN 4

(Repealed. 28 SDR 109, effective February 11, 2002)

Chapter 20:16:10 Retirement plan 3, Repealed

ARSD 20:16:10 Repealed chapter

CHAPTER 20:16:10

RETIREMENT PLAN 3

(Repealed. 28 SDR 109, effective February 11, 2002)

Chapter 20:16:11 Retirement plan 2, Repealed

ARSD 20:16:11 Repealed chapter

CHAPTER 20:16:11

RETIREMENT PLAN 2

(Repealed. 28 SDR 109, effective February 11, 2002)

Chapter 20:16:12 Retirement plan 1, Repealed

ARSD 20:16:12 Repealed chapter

CHAPTER 20:16:12

RETIREMENT PLAN 1

(Repealed. 28 SDR 109, effective February 11, 2002)

Chapter 20:16:13 Retirement plan 5, Repealed

ARSD 20:16:13 Repealed chapter

CHAPTER 20:16:13

RETIREMENT PLAN 5

(Repealed. 28 SDR 109, effective February 11, 2002)

Chapter 20:16:14 Retirement plan 1A, Repealed

ARSD 20:16:14 Repealed chapter

CHAPTER 20:16:14

RETIREMENT PLAN 1A

(Repealed. 40 SDR 197, effective May 27, 2014)

Chapter 20:16:15 Retirement plan 2A

ARSD 20:16:15:01 Definitions

Terms used in this chapter mean:

(1) "Plan," the retirement plan set forth in this chapter and any modifications, amendments, extensions, or renewals of it;

(2) "Collective bargaining agreement," any written contract between a union and the commission requiring contributions to the plan or setting forth benefits to be provided, including all extensions or renewals and its successor agreements of it;

(3) "Employee," an employed person, including an officer, whose customary employment is for at least 20 hours in a week and for at least five months in any calendar year;

(4) "Pensioner," an employee who is retired and who is receiving benefits under the plan;

(5) "Credited service," period of employment for purposes of determining eligibility for benefits under the plan, as set forth in §§ 20:16:15:21 to 20:16:15:23, inclusive;

(6) "Actuarial equivalent," a benefit calculated to be of equal value to the benefit otherwise payable when computed on the basis of assumptions and methods last adopted for this purpose by the board on the advice of an actuary;

(7) "Beneficiary," any person, estate, or trust designated by the employee or pensioner to receive benefit payments, if any, after the death of the employee or pensioner;

(8) "Earnings," the compensation paid to an employee by the commission, excluding premium pay, overtime pay, and higher pay rates for temporary job assignments. For the purpose of converting an hourly rate to a monthly rate, four and one-third weeks per month at 40 hours per week shall be utilized;

(9) "Final average earnings," the average of an employee's highest consecutive 36 calendar months of earnings in the last 72 calendar months of the employee's credited service immediately preceding the earlier of the calendar month in which the employee's retirement date occurs or the calendar month in which the employee attains the age of 65. Final average earnings for any piece worker shall be calculated as stated above plus piece work pay as described in the collective bargaining agreement for vacations, sick leave, or authorized leaves of absence;

(10) "Effective date," March 1, 1968;

(11) "Restated plan effective date," February 1, 1974;

(12) "Retirement date," the date an employee actually retires under the applicable provisions of the plan. "Normal retirement date" means the first day of the calendar month coincident with or next following the employee's 65^th birthday;

(13) "Compulsory retirement date," the first day of the calendar month coincident with or next following the employee's 67^th birthday;

(14) "Fund," the fund created pursuant to SDCL chapter 3-12C;

(15) "Totally disabled," any disability which prevents the employee from performing the employee's duties and entitles the employee to receive a federal Social Security Act disability benefit;

(16) "Number," the singular number includes the plural unless a different meaning is plainly required by the context.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:02 Term of coverage

Retirement Plan 2A covers any employee who retired from employment or terminated employment and who qualified to be an inactive vested employee with the commission from February 1, 1974, to January 31, 1977, inclusive.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644

ARSD 20:16:15:03 Participation in benefits

Any employee, as defined in subdivision 20:16:15:01(3), is eligible to participate in the pension plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:04 Repealed

Contributions by the commission.** Repealed.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; repealed, 40 SDR 197, effective May 27, 2014

ARSD 20:16:15:05 Forfeiture

Any amount that is forfeited by an employee pursuant to any of the provisions of the plan shall remain in the fund.

History

Source: 29 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:06 Qualifications for normal pension

A retiring employee is entitled to a normal pension if the employee meets all of the following requirements:

(1) Has attained the age of 65;

(2) Has accumulated at least ten years of credited service; and

(3) Retires from active employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:07 Amount of normal pension

The normal pension amount is one and four-tenths percent of final average earnings times the number of years of credited service, up to a maximum of 35 years.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:08 Qualifications for early retirement pension

An employee is entitled to an early retirement pension if the employee meets all the following requirements:

(1) Has attained the age of 62 but has not yet attained age 65;

(2) Has accumulated at least ten years of credited service; and

(3) Retires from active employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:09 Amount of early retirement pension

The amount of the early retirement pension is determined by calculating the amount of the normal pension to which the employee would be entitled if the employee were age 65 on the effective date the employee's early retirement pension reduced by four percent each year for which the date of early retirement precedes the employee's attaining age 65.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:10 Disability pension

An employee is entitled to a disability pension if the employee meets all the following requirements:

(1) Has become totally and permanently disabled on or after the date the plan was restated;

(2) Has completed at least five years of credited service;

(3) Retires from active employment with the commission; and

(4) Has been approved for and receives a disability benefit under the federal Social Security Act.

The board may, at any time, require evidence of continued entitlement to a social security disability benefit.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:11 Amount of disability pension

The disability pension shall be equal to the normal pension otherwise payable, computed to the date of disability, without any reduction for disability commencing prior to age 65. In no event may the disability pension be less than $100 per month.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:12 Disability pension payments

Payment of the disability pension shall commence five months after the month in which the disability occurs and shall continue thereafter for so long as the disability pensioner remains totally disabled, upon attainment of age 65, a disability pensioner shall have benefits continued regardless of whether or not the pensioner remains totally disabled.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:13 Reemployment of disability pensioner

A disability pensioner who is no longer entitled to a disability benefit may be entitled to a normal or early pension unaffected by the prior receipt of a disability pension.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:14 Preretirement death benefit

If an employee who has completed at least ten years of credited service dies prior to filing for a pension benefit, the employee's surviving spouse shall receive a monthly pension equal to 50 percent of the normal pension otherwise payable, computed to the date of death, without any reduction for death prior to age 65. The benefit to the surviving spouse shall be continued until such time as the spouse remarries or dies. If the employee does not have a surviving spouse, no benefits are payable.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:15 Normal form of pension benefits

The normal form of pension benefits is a life annuity, payable monthly, commencing on the employee's retirement date and continuing to the last monthly payment for the month in which the pensioner dies.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:16 Joint and survivor benefit

In lieu of the pension otherwise payable to an employee, an employee entitled to a normal or early retirement pension may elect to receive a smaller monthly pension during the employee's lifetime, and after the employee's death such smaller benefit will be continued to the employee's beneficiary, called a contingent annuitant, during the latter's lifetime.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:17 Election of joint and survivor benefit

To be effective, a joint and survivor option election shall be made by written request filed with the board not less than 12 months prior to the employee's retirement date. If such an election is not filed at least 12 months prior to the employee's retirement date, the option may not take effect until after 12 months have elapsed after the election, and it shall then be effective with respect to all subsequent months. Until the option takes effect, the benefit shall be payable in the normal form only, as if the option had not been elected and benefits to be paid shall be retroactively adjudged if the option is put into effect.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:18 Effective date of joint and survivor benefit

The joint and survivor option shall take effect only if the pensioner and the pensioner's contingent annuitant are both alive on the date when it is otherwise to take effect.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:19 Revocation of joint and survivor benefit

Once elected, the joint and survivor option may not be revoked except under the following conditions:

(1) Revocation must be made in writing in a form prescribed by the board and filed with the board before the end of the first calendar month for which a pension benefit has become payable to the pensioner;

(2) Revocation may not become effective until 12 months after it has been filed. Until then any benefits payable shall be paid in the amount determined under the joint and survivor option, without retroactive adjustment of such payments once revocation takes effect;

(3) The option shall be automatically revoked if the contingent annuitant dies. If the contingent annuitant is the employee's spouse and the spouse is divorced from the employee before a pension in the optional form has become effective, the employee may continue the option if, within 90 days of such an event, the employee makes a choice of another contingent annuitant and communicates it to the board in writing;

(4) The designation of a contingent annuitant cannot be changed after the first pension payment under the option has been made to the pensioner.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:20 Limitation on joint and survivor benefit option

The joint and survivor option may not be payable if it would result in a monthly pension of less than $20 to the pensioner or the contingent annuitant.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:21 Credited service

Credited service under the plan means the last period of continuous employment with the commission prior to termination of employment for the purpose of retirement. Credited service may not exceed 35 years and may not be granted after attainment of age 65.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644

ARSD 20:16:15:22 Interruption of continuous employment

If continuous employment is interrupted for any cause, except as provided in the plan, any credited service accrued for periods of employment prior to the interruption may not be considered, and the employee shall be treated as a new employee in determining credited service. However, continuous employment is not considered interrupted by leaves of absence from regular employment authorized by the commission for:

(1) Disability, except in connection with retirement;

(2) Service in the armed forces of the United States, if the employee returns to employment with the commission within the period of time prescribed by law for the reemployment of veterans; or

(3) Not more than 12 months for any other cause or reason satisfactory to the commission. During any period of authorized leaves of absence, no service credit may be granted.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:23 Vesting of service credits

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:24 Advance written applications required

An application for the commencement of pension benefits shall be in writing on a form and in a manner prescribed by the board, and shall be filed with the board in advance of the first month for which benefits are to be paid.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:25 Information required

An employee, pensioner, or beneficiary shall furnish the board with any information or proof requested by it and reasonably required to administer the plan. Failure on the part of any person to comply with such a request promptly, completely, and in good faith shall be sufficient grounds for denying benefits to the person. If a pensioner or beneficiary makes a false statement material to any claim for benefits, the person shall be denied all benefits, and the board may recover any payments made in reliance on the false statement.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:26 Payments for incompetents

If a pensioner is mentally or physically incompetent, payments shall be made to any person who has satisfied the board that he or she is caring for the pensioner or beneficiary. Such payments shall be a complete discharge of the liabilities under this plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:27 Nonalienation of benefits

No benefit payable at any time under the plan may be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, or encumbrance of any kind. Any attempt to encumber such a benefit in any way is void. A benefit is not subject in any manner to the debts or liabilities of any person to whom the benefit is payable. If, by reason of bankruptcy, insolvency, or assignment of creditors of an employee or pensioner or any other happening at any time such benefits would devolve upon anyone else or would not be enjoyed by the employee or pensioner, the board may terminate the employee's or pensioner's interest in any such benefits and hold or apply them to or for the benefit of the person, the person's spouse, children, or other dependents or any of them in such manner as the board deems proper.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:28 Terms of employment not affected

Under no circumstances may an employee's participation in the plan be construed to constitute a contract of continuing employment or in any manner obligate the board to continue or discontinue the services of an employee.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:29 Conditions for forfeiture of benefit rights

Any retirement benefit that may be payable or become payable and all rights under the plan in favor of any employee or pensioner shall be forfeited if, prior to or after the termination of employment by the commission, the employee or pensioner confesses to or is convicted of any crime perpetrated against the commission involving the embezzlement of commission funds or property.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:30 Reference to other documents

Any reference in the plan to rights under the plan shall be construed as reference to rights also under any instrument, trust agreement, or insurance or annuity contract created or entered into to effect the purposes of the plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:31 Rounding of benefit amounts

The monthly amount of pension benefits, as computed in accordance with §§ 20:16:15:06 to 20:16:15:16, inclusive, or if any adjustment provided elsewhere is applied, shall be rounded to the next higher whole dollar amount.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:32 Improvement factor

The benefits described in this chapter shall be increased by an amount equal to two percent of the initial benefit amount, not compounded, for each year commencing on the July 1 that is at least 12 months following the date on which the benefit was first payable.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:33 Repealed

Statutory limitation.** Repealed.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective March 23, 2014; 45 SDR 142, effective July 1, 2019.

ARSD 20:16:15:34 Privatization of the plant

The plant was privatized on March 16, 2001. Any pensioner or former employee who qualifies to be an inactive vested employee affected by the privatization is entitled to the benefits accrued as of the effective date of the privatization.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:15:35 Amendment and termination of the plan

The board reserves the right to amend this plan at any time subject to Internal Revenue Code rules regarding accrued benefits of the participants. No modification or amendment of the plan may make it possible for any part of the income or assets of the fund to be used for or diverted to purposes other than for the exclusive benefit of the participants and their beneficiaries. Also, no modification or amendment of the plan may reduce benefits to the participants, but benefits may be increased.

The board reserves the right to discontinue this plan in whole or in part. In the event of a termination of the plan, the rights of all affected participants to benefits then accrued shall thereupon become 100 percent vested and nonforfeitable. The board shall take such steps as it determines necessary or desirable to comply with applicable laws.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

Chapter 20:16:16 Retirement plan 3A, Repealed

ARSD 20:16:16 Repealed chapter

CHAPTER 20:16:16

RETIREMENT PLAN 3A

(Repealed. 40 SDR 197, effective May 27, 2014)

Chapter 20:16:17 Retirement plan 4A

ARSD 20:16:17:01 Definitions

Terms used in this chapter mean:

(1) "Plan," "pension plan," the retirement plan set forth in this chapter and any modifications, amendments, extensions, or renewals of it;

(2) "Collective bargaining agreement," a written contract between a union and the commission requiring contributions to the plan or setting forth benefits to be provided, including all extensions or renewals and successor agreements of it;

(3) "Employee," an employed person, including an officer, whose customary employment is for at least 20 hours in a week and for at least five months in any calendar year;

(4) "Pensioner," an employee who is retired and who is receiving benefits under the plan;

(5) "Credited service," period of employment for purposes of determining eligibility for benefits under the plan, as set forth in §§ 20:16:17:27 to 20:16:17:29, inclusive;

(6) "Actuarial equivalent," a benefit calculated to be of equal value to the benefit otherwise payable when computed on the basis of the 1971 Group Annuity Mortality Table, as published in Appendix A at the end of this chapter, at 7.5 percent interest;

(7) "Beneficiary," the person, estate, or trust designated by the employee or pensioner to receive any benefit payments after the death of the employee or pensioner;

(8) "Earnings," compensation paid to an employee by the commission including base pay, the employee's elective contributions to deferred compensation plans, other deferred compensation, any short term and long term bonuses based on compensation and discretionary bonuses, but excluding any premium pay, overtime pay, higher pay rates for temporary job assignments, lump sum annual leave payment, sick leave retirement bonus payment, severance payment, or other compensation not specifically stated as being covered compensation for the retirement calculation;

(9) "Hourly conversion rate," for the purpose of converting an hourly rate to a monthly rate four and one-third weeks a month at 40 hours a week is used;

(10) "Final average earnings," the average of an employee's highest consecutive 36 calendar months of earnings in the last 72 calendar months of this credited service immediately preceding the earlier of the calendar month in which the employee's retirement date occurs. Final average earnings for any piece worker shall be calculated as stated in this subdivision plus piece work pay as described in the collective bargaining agreement for vacations, sick leave, or authorized leaves of absence;

(11) "Effective date," May 1, 1970;

(12) "Restated plan effective date," February 1, 1974;

(13) "Retirement date," the date an employee actually retires under the applicable provisions of the plan;

(14) "Normal retirement date," the first day of the calendar month coincident with or next following the employee's 65^th birthday;

(15) "Fund," the fund created pursuant to SDCL chapter 3-12C;

(16) "Totally disabled," a disability that prevents the employee from performing the employee's duties and entitles the employee to receive a federal Social Security Act disability benefit;

(17) "Number," the singular number includes the plural unless a different meaning is plainly required by the context;

(18) "Child or children," any employee's unmarried dependent child who is under 19 years of age; any unmarried dependent child under 23 years of age who is a full-time student; any unmarried dependent child who is totally or permanently disabled, either physically or mentally, regardless of the child's age, if the disability occurred before age 19; any stepchild or foster child who depends on the employee for support and lives in the household of the employee in a regular parent-child relationship; or any child of the employee conceived during the employee's lifetime and born after the employee's death;

(19) "Other public benefits," the benefits provided by the old age, survivors, disability, and health insurance program provided by the federal Social Security Act, the federal civil service retirement program, federal military, disability, railroad retirement plans, workers' compensation, or any other public retirement system.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:02 Term of coverage

Retirement Plan 4A covers any employee who retired from employment or terminated employment and who qualifies to be an inactive vested employee with the commission from October 1, 1978, to June 30, 1999, inclusive.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:03 Participation in benefits

Any employee is eligible to participate in the pension plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:04 Repealed

Contributions by the commission.** Repealed.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; repealed, 40 SDR 197, effective May 27, 2014.

ARSD 20:16:17:05 Forfeiture

Any amount that is forfeited by an employee pursuant to any of the provisions of this plan shall remain in the fund.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:06 Qualifications for normal pension

A retiring employee is entitled to a normal pension if the employee meets all of the following requirements:

(1) Has attained the age of 65;

(2) Has accumulated at least five years of credited service; and

(3) Retires from active employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:07 Amount of the normal pension

The normal pension amount for any employee employed prior to July 1, 1977, and not retired before February 1, 1977, is one and four-tenths percent of final average earnings times the number of years of credited service, up to a maximum of 35 years. Any employee hired subsequent to June 30, 1977, and retiring before January 1, 1993, will receive a normal pension amount equal to one percent of final average earnings times the number of years of credited service. Any employee hired subsequent to June 30, 1977, and retiring after December 31, 1992, shall receive a normal pension amount equal to 1.3 percent of final average earnings times the number of years of credited service.

The amount of earnings under the plan may not exceed the limit on compensation allowed under § 401(a)(17) of the Internal Revenue Code.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:08 Qualifications for early retirement pension

An employee or former employee is entitled to an early retirement pension if the employee meets all the following requirements:

(1) Has attained the age of 62 but has not yet attained age 65;

(2) Has accumulated at least five years of credited service;

(3) Has terminated from active employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:09 Amount of the early retirement pension

The amount of the early retirement pension shall be determined by calculating the amount of the normal pension to which the employee would be entitled if the employee were age 65 on the effective date of the employee's early retirement pension reduced by three percent each year for which the date of early retirement precedes the employee attaining age 65.

History

Source: 28 SDR 109, effective February 11, 2002; 37 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:10 Disability pension

An employee is entitled to a disability pension if the employee meets all the following requirements:

(1) Has become totally disabled on or after the date the plan was restated;

(2) Has completed at least three years of credited service or was disabled;

(3) Retires from active employment with the commission; and

(4) Has been approved for and receives a disability benefit under the federal Social Security Act.

The board may, at any time, require evidence of continued entitlement to a disability benefit.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:11 Amount of the disability pension

The disability pension shall be equal to 50 percent of the highest annual earnings earned in any one of the three years immediately preceding the date of disability, increased by 10 percent of those earnings for each eligible child to a maximum of four children. The disability allowance shall be paid only in the form of monthly installments.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:12 Disability pension payments

Payment of the disability pension shall begin five months after the month in which the disability occurs and shall continue thereafter for as long as the disability pensioner remains totally disabled. Upon attainment of age 65, a disability pensioner shall have benefits continued under § 20:16:17:16 regardless of whether or not the pensioner remains totally disabled.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:13 Deduction of other public benefits from disability pension

20:16:17:13 . Deduction of other public benefits from disability pension. Disability allowances shall be reduced by an amount equal to the other public benefits paid or payable. Disability allowances payable on account of children shall be reduced when children become ineligible dependents.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:14 Reduction of disability pension of earnings in employment

If a person receiving a disability pension is employed or is self-employed in any capacity, the disability pension shall be reduced by 50 cents for each dollar earned through such employment.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 208, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:15 Reemployment of a disability pensioner

A disability pensioner who is no longer entitled to a disability benefit may be entitled to a normal or early pension unaffected by the prior receipt of a disability pension.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:16 Conversion of disability pension to normal retirement pension at retirement age

When a person who is receiving a disability pension reaches normal retirement age, or at a later date when there are no eligible children, the person's disability pension shall be terminated. Thereafter the person shall receive the pension payable for normal retirement at that age, calculated on the credited service the person would have accrued to age 65 and earnings projected at two percent per year not compounded. In no event, however, may the recomputed pension be greater than the disability pension payable to the employee without eligible children under this provision.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:17 Family benefits payable on death of employee before retirement

If an employee with five years of credited service dies after January 31, 1977, but prior to the earlier of either the employee's normal retirement age or the employee's actual retirement date or if the employee was receiving a disability allowance that started after January 31, 1977, the surviving spouse of the employee or, if there is no spouse, the custodian or conservator of any surviving children shall be paid the following family benefits:

(1) A surviving spouse having the care of children shall receive an annual amount, payable in monthly installments, equal to 40 percent of the highest annual earnings earned by the employee during any one of the last three years of credited service, plus 10 percent of those earnings for each child to a maximum of five children;

(2) If there is no surviving spouse, the custodian or conservator of each child shall receive on behalf of each child, to a maximum of five children, an annual amount, payable in monthly installments, equal to 10 percent of the highest annual earnings earned by the employee during any one of the last three years of service. Payments under this subdivision may not total more than 50 percent of those earnings;

(3) If there are more than five children, the benefits payable to children under subdivision (1) or (2) shall be allocated to all children on a share and share alike basis; or

(4) If there are no benefits being paid to the spouse under subdivision (1), the spouse upon reaching age 65 shall receive a monthly payment based on the pension which would have been payable to the deceased employee at normal retirement age based on the employee's credited and projected service and projected compensation actuarially reduced to reflect a 50 percent joint and survivor option. The benefit payable under this subdivision shall be increased by application of the improvement factor for time which elapses between the date the employee would have reached normal retirement age and the date benefits begin to the spouse.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:18 Deduction of other public benefits from family benefits

All other public benefits payable to a beneficiary shall be deducted from the family benefits provided in § 20:16:17:17.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:19 Election of additional survivor protection option -- Beginning and end of additional contribution

Within 90 days after becoming an employee or marrying or attaining age 35, an employee may elect to provide the employee's spouse with additional survivor protection by making an employee contribution of eight-tenths of one percent of earnings. This contribution shall start with the first payroll period following the date of the election. It shall continue until the earlier of the employee's attaining normal retirement age, employee's spouse attaining age 65, the death or disability of the employee, the death of the spouse, termination of employment, or the termination of the marriage. All funds contributed for the additional survivor protection shall remain with the system and may not be refunded to the employee.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:20 Amount of additional survivor protection benefits -- Termination

The additional survivor protection payable under § 20:16:17:19 shall, on the death of the employee or expiration of benefits that may have been paid pursuant to § 20:16:17:17 because there is no eligible child, entitle the surviving spouse to an annual amount, payable in monthly installments, equal to 40 percent of the highest annual earnings earned by the employee during any one of the last three years of credited service multiplied by the improvement factor for each full 12-month period between the earlier of the date of death or disability of the employee and the date the payment of the benefit is due to start. The additional survivor protection allowance shall continue until the spouse dies or attains age 65, whichever is earlier.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:21 Normal form of pension benefits

The normal form of pension benefits is a life annuity, payable monthly, beginning on the employee's retirement date and continuing to the last monthly payment for the month in which the pensioner dies.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:22 Joint and survivor benefit

In lieu of the pension otherwise payable, an employee entitled to a normal or early retirement pension may elect to receive a smaller monthly pension during the employee's lifetime by electing a 50 percent or 100 percent joint and survivor benefit. After the employee's death the percentage of the reduced benefit elected by the employee shall be continued to the employee's beneficiary, called a "contingent annuitant," during the latter's lifetime. If a 50 percent or 100 percent joint and survivor option is not elected, an automatic 50 percent joint and survivor option shall be made unless an employee and spouse specifically choose not to elect either of the joint and survivor options.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:23 Election of joint and survivor benefit

To be effective, a joint and survivor option election shall be made by written request filed with the board not less than 12 months prior to the employee's retirement date. If the election is not filed at least 12 months prior to the employee's retirement date, the option may not take effect until after 12 months have elapsed after election, and it shall then be effective for all subsequent months. Any employee reaching retirement before July 1, 1979, shall be granted election options prior to retirement date. Until the option takes effect, the benefit shall be payable in the normal form only, as if the option had not been elected. Benefits to be paid may not be retroactively adjudged if the option is put into effect.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:24 Effective date of joint and survivor benefit

The joint and survivor option shall take effect only if the pensioner and the pensioner's contingent annuitant are both alive on the date when it is to take effect.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:25 Revocation of joint and survivor benefit

Once elected, the joint and survivor option may not be revoked except under the following conditions:

(3) The option shall be automatically revoked if the contingent annuitant dies. If the contingent annuitant is the employee's spouse and the spouse is divorced from the employee before a pension in the optional form becomes effective, the employee may continue the option if, within 90 days after such an event, the employee chooses another contingent annuitant and communicates it to the board in writing; and

(4) The designation of a contingent annuitant may not be changed after the first pension payment under the option has been made to the pensioner.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:26 Limitation of joint and survivor benefit option

The joint and survivor option may not be paid if payment would result in a monthly pension of less than $20 to the pensioner or the contingent annuitant.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:27 Credited service

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 97, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:28 Interruption of continuous employment

(1) Disability, except in connection with retirement;

(2) Service in the armed forces of the United States, if the employee returns to employment with the commission within the period of time prescribed by law for the reemployment of veterans; or

(3) Not more than 12 months for any other cause or reason satisfactory to the commission. During any period of authorized leaves of absence, no service credit may be granted.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:29 Vesting of service credits

An employee who terminates employment for any reason other than death or early or normal retirement is entitled to a deferred pension if the employee has accumulated at least five years of credited service. The deferred pension shall start on the normal retirement date, or, at the request of the employee, as early as age 62 in accordance with §§ 20:16:17:08 and 20:16:17:09. The deferred pension amount shall be calculated using the benefit formula in effect at the time of the employee's termination with the commission and the years of continuous employment to the date of termination. If this plan is terminated, the accrued benefits of each participant in the plan immediately become 100 percent vested and nonforfeitable.

If an employee becomes a participant in the retirement plan within the five-year period preceding the employees 65^th birthday, the participant's normal retirement date is the first day of the calendar month coincident with or immediately following the participant's fifth anniversary of the plan participation. If a participant's employment with the commission is terminated at or after attainment of the participant's normal retirement date, the participant is vested in and entitled to receive the participant's accrued benefit.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:30 Advance written applications required

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:31 Information required

An employee, pensioner, or beneficiary shall furnish the board with any information or proof requested by it and reasonably required to administer the plan. Failure on the part of any person to comply with such a request promptly, completely, and in good faith is sufficient grounds for denying benefits to that person. If a pensioner or beneficiary makes a false statement material to any claim for benefits, the person shall be denied all benefits, and the board may recover any payments made in reliance on the false statement.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:32 Payments for incompetents

If a pensioner or beneficiary is mentally or physically incompetent, payments shall be made to the person who has satisfied the board that he or she is caring for the pensioner or beneficiary. Such payments shall be a complete discharge of the liabilities under this plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:33 Nonalienation of benefits

No benefit payable at any time under the plan may be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, or encumbrance of any kind. An attempt to encumber a benefit in any way is void. A benefit is not subject in any manner to the debts or liabilities of a person to whom the benefit is payable. However, the board may make distributions pursuant to a qualified domestic relations order as defined in Internal Revenue Code § 414(p), if the board has notified the employee and any alternative payee of the order and has determined that the order is a qualified domestic relations order.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:34 Terms of employment not affected

Under no circumstances may an employee's participation in the plan be construed to constitute a contract of continuing employment or in any manner obligate the commission to continue or discontinue the services of an employee.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:35 Reference to other documents

A reference in the plan to rights under the plan shall be construed as a reference to rights also under any other instrument, trust agreement, or insurance or annuity contract created or entered into to effect the purposes of the plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:36 Rounding of benefit amounts

The monthly amount of pension benefits, as computed in accordance with §§ 20:16:17:06 to 20:16:17:21, inclusive, or if an adjustment provided elsewhere is applied, shall be rounded to the next higher whole dollar amount.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:37 Improvement factor

The annual increase in the amount of the benefit allowance for each year commencing on the July first that is at least 12 months following the date on which the benefit was first payable shall be equal to 50 percent of the annual percentage change in the consumer price index for urban wage earners and clerical workers (all U.S. city average) as computed by the Bureau of Labor Statistics of the United States Department of Labor for the prior calendar year, not to exceed a 1.43 percent increase compounded annually.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:38 Minimum distribution requirements. Benefit payments under this plan shall follow the minimum distribution rules of § 401(a)(9) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1901 to 3-12C-1905, inclusive. Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021. General Authority: SDCL 3-12C-1647. Law Implemented: SDCL 3-12C-1643, 3-12C-1644

Minimum distribution requirements. Benefit payments under this plan shall follow the minimum distribution rules of § 401(a)(9) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1901 to 3-12C-1905, inclusive.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:39 Limitation on benefits. This section does not constitute an election under § 415(b)(10)(C) of the Internal Revenue Code. Benefit payments under this plan shall follow the annual benefit limitations of § 415(b)(1)(A) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1801 to 3-12C-1817, inclusive. Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021. General Authority: SDCL 3-12C-1647. Law Implemented: SDCL 3-12C-1643, 3-12C-1644

Limitation on benefits. This section does not constitute an election under § 415(b)(10)(C) of the Internal Revenue Code. Benefit payments under this plan shall follow the annual benefit limitations of § 415(b)(1)(A) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1801 to 3-12C-1817, inclusive.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:40 Privatization of the plant

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:17:41 Amendment and termination of the plan

The board reserves the right to amend this plan at any time subject to Internal Revenue Code rules regarding accrued benefits of participants. No modification or amendment of the plan may make it possible for any part of the income or assets of the fund to be used for or diverted to purposes other than for the exclusive benefit of the participants and their beneficiaries. Also, no modification or amendment of the plan may reduce benefits to the participants, but benefits may be increased.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

Chapter 20:16:18 Retirement plan 5A

ARSD 20:16:18:01 Definitions

Terms used in this chapter mean:

(1) "Plan," "pension plan," the retirement plan set forth in this chapter and any modifications, amendments, extensions, or renewals of it;

(3) "Employee," a person employed on a full-time basis, including an officer, whose customary employment is for at least 40 hours in a week and 12 months in any calendar year and on a continuous basis;

(4) "Pensioner," an employee who is retired and who is receiving benefits under the plan;

(5) "Credited service," periods of employment for purposes of determining eligibility for benefits under the plan, as set forth in §§ 20:16:18:27 to 20:16:18:29, inclusive;

(7) "Beneficiary," the person, estate, or trust designated by the employee or pensioner to receive any benefit payments after the death of the employee or pensioner;

(8) "Earnings," compensation paid to an employee by the commission including base pay, the employee's elective contributions to deferred compensation plans, other deferred compensation, any short term and long term bonuses based on compensation and discretionary bonuses, but excluding any premium pay, overtime pay, higher pay rates for temporary job assignments, lump sum annual leave payment, sick leave retirement bonus payment, severance payment or other compensation not specifically stated as being covered compensation for the retirement calculation;

(9) "Hourly conversion rate," for the purpose of converting an hourly rate to a monthly rate four and one-third weeks a month at 40 hours a week is used;

(11) "Effective date," July 1, 1999;

(12) "Retirement date," the date an employee actually retires under the applicable provisions of the plan;

(13) "Normal retirement date," the first day of the calendar month coincident with or next following the employee's 65^th birthday;

(14) "Fund," the fund created pursuant to SDCL chapter 3-12C;

(15) "Totally disabled," a disability that prevents the employee from performing duties and entitles the employee to receive a federal Social Security Act disability benefit;

(16) "Child or children," any employee's unmarried dependent child who is under 19 years of age; any unmarried dependent child under 23 years of age who is a full-time student; any unmarried dependent child who is totally or permanently disabled, either physically or mentally, regardless of the child's age, if the disability occurred before age 19; any stepchild or foster child who depends on the employee for support and lives in the household of the employee in a regular parent-child relationship; or any child of the employee conceived during the employee's lifetime and born after the employee's death; and

(17) "Other public benefits," the benefits provided by the federal Social Security Act, the federal civil service retirement program, federal military, disability, railroad retirement plans, workers' compensation, or any other public retirement system.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:02 Term of coverage

Retirement Plan 5A covers any employee who retired from employment or terminated employment and who qualifies to be an inactive vested employee with the commission from July 1, 1999, to April 30, 2000, inclusive.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:03 Participation in benefits

Any employee is eligible to participate in the pension plan. However, no person specifically employed as a temporary employee is eligible to participate in this plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:04 Repealed

Contributions by the commission.** Repealed.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; repealed, 40 SDR 197, effective May 27, 2014.

ARSD 20:16:18:05 Forfeiture

Any amount which is forfeited by an employee pursuant to any of the provisions of the plan shall remain in the fund.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:06 Qualifications for normal pension

A retiring employee is entitled to a normal pension if the employee meets all of the following requirements:

(1) Has attained the age of 65;

(2) Has accumulated at least three years of credited service; and

(3) Retires from active employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:07 Amount of the normal pension

The normal pension amount for any employee who retires after June 30, 1999, shall be the sum of:

(1) 1.55 percent of final average earnings times all years of credited service prior to July 1, 2000; and

(2) 1.3 percent of final average earnings times all years of credited service after June 30, 2000.

The amount of earnings under the plan may not exceed the limit on compensation allowed under § 401(a)(17) of the Internal Revenue Code.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:08 Qualifications for early retirement pension

An employee or former employee is entitled to an early retirement pension if the employee meets all the following requirements:

(1) Has attained the age of 62 but has not yet attained age 65;

(2) Has accumulated at least three years of credited service; and

(3) Has terminated from active employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:09 Amount of the early retirement pension

Amount of early retirement pension.** The amount of the early retirement pension shall be determined by calculating the amount of the normal pension to which the employee would be entitled if the employee were age 65 on the effective date of the employee's early retirement pension times the appropriate percentage from the table below:

Years of Credited Service

Age 62

Age 63

Age 64

Age 65

Less than 26

91%

94%

97%

100%

94%

97%

100%

97%

100%

28 and over

100%

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:10 Disability pension

An employee is entitled to a disability pension if the employee meets all the following requirements:

(1) Has become totally disabled on or after the date this plan became effective;

(2) Has completed at least three years of credited service;

(3) Retires from active employment with the commission; and

(4) Has been approved for and receives a disability benefit under the federal Social Security Act.

The last day of active employment shall coincide with or follow the date Social Security designates as the first day of total disability. If the last day of active employment was before the date Social Security designates as the first day of total disability, the terminated employee is not eligible for a disability pension.

The board may, at any time, require evidence of continued entitlement to a disability benefit.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:11 Amount of the disability pension

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:12 Disability pension payments

Payment of the disability pension shall begin five months after the month in which the disability occurs and shall continue thereafter for as long as the pensioner remains totally disabled. Upon attainment of age 65, a pensioner shall have benefits continued under § 20:16:18:16 regardless of whether or not the pensioner remains totally disabled.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:13 Deduction of other public benefits from disability pension

A disability pension shall be reduced by an amount equal to the other public benefits paid or payable. A disability pension payable on account of children shall be reduced when children become ineligible dependents.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:14 Reduction of disability pension of earnings in employment

If a person receiving a disability pension is employed or is self-employed in any capacity, the disability pension shall be reduced by 50 cents for each dollar earned through such employment. Earned income shall be determined in accordance with the definition as established by Internal Revenue Code § 32(c)(2).

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:15 Reemployment of a disabled pensioner

A pensioner who is no longer entitled to a disability benefit may be entitled to a normal or early pension unaffected by the prior receipt of a disability pension.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:16 Conversion of disability pension to normal retirement pension at retirement age

When a person who is receiving a disability pension reaches normal retirement age, or at a later date if there are no eligible children, the person's disability pension shall be terminated. Thereafter the person shall receive the pension payable for normal retirement at that age, calculated on the credited service the person would have accrued to age 65 and earnings projected at two percent per calendar year not compounded. The earnings will be increased each January 1 staring with the first January subsequent to the date of disability. In no event, however, may the recomputed pension be greater than the disability pension payable to the employee without eligible children under this provision.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:17 Family benefits payable on death of employee before retirement

If an employee with three years of credited service dies after June 30, 1999, but prior to the earlier of either the employee's normal retirement age or the employee's actual retirement date or if the employee was receiving a disability pension which started after June 30, 1999, a family benefit shall be paid as follows:

(2) The custodian or conservator of each child shall receive on behalf of each child, to a maximum of five children, an annual amount, payable in monthly installments, equal to 10 percent of the highest annual earnings earned by the employee during any one of the last three years of service. Payments under this subdivision may not total more than 50 percent of those earnings;

(3) If there are more than five children, the benefits payable to children under subdivision (1) or (2) shall be allocated to all children on a share and share alike basis; or

(4) If there are no benefits being paid to the spouse under subdivision (1), the spouse upon reaching age 65 shall receive a monthly payment based on the pension which would have been payable to the deceased employee at the employee's normal retirement age. The amount of this monthly payment shall be based on the employee's credited and projected service and projected compensation calculated using the credited service the deceased employee would have accrued to aged 65 and earnings projected at two percent per calendar year not compounded. These earnings would be increased each January 1 starting with the first January subsequent to the date of disability. This amount shall be actuarially reduced to reflect a 50 percent joint and survivor option. The benefit payable under this subdivision shall be increased by application of the improvement factor for time which elapses between the date the employee would have reached normal retirement age and the date benefits begin to the spouse.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:18 Deduction of Social Security benefits from family benefits

The initial Social Security benefits payable to a beneficiary shall be deducted from the family benefits provided in § 20:16:18:17. Any future increase in Social Security benefits does not apply to this section.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:19 Election of additional survivor protection option -- Beginning and end of additional contribution

Within 90 days after becoming an employee or marrying or attaining age 35, or after June 30, 1999, and before October 1, 1999, an employee may elect to provide the employee's spouse with additional survivor protection by making an employee contribution of 8/10 of one percent of earnings. This contribution shall start with the first payroll period following the date of the election. It shall continue until the earlier of the employee's retirement, employee's spouse attaining age 65, the death or disability of the employee, the death of the spouse, termination of employment, or the termination of the marriage. Any funds contributed for the additional survivor protection shall remain with the system and may not be refunded to the employee.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:20 Amount of additional survivor protection benefits -- Termination

The additional survivor protection payable under § 20:16:18:19 shall, on the death of the employee or expiration of benefits that may have been paid pursuant to § 20:16:18:17 because there is no eligible child, entitle the surviving spouse to an annual amount, payable in monthly installments, equal to 40 percent of the highest annual earnings earned by the employee during any one of the last three years of credited service multiplied by the improvement factor for each full 12-month period between the earlier of the date of death or disability of the employee and the date the payment of the benefit is due to start. The additional survivor protection benefit shall continue until the spouse dies or attains age 65, whichever is earlier.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:21 Normal form of pension benefits

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:22 Joint and survivor benefit

In lieu of the pension otherwise payable, an employee entitled to a normal or early retirement pension may elect to receive a smaller monthly pension during the employee's lifetime by electing a 50 percent or 100 percent joint and survivor benefit. After the employee's death, the percentage of the reduced benefit elected by the employee shall be continued to the employee's beneficiary, called a "contingent annuitant," during the latter's lifetime. If a 50 percent or 100 percent joint and survivor option is not elected, an automatic 50 percent joint and survivor option shall be made unless an employee and spouse specifically choose not to elect either of the joint and survivor options.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:23 Election of joint and survivor benefit

To be effective, a joint and survivor option election shall be made by written request filed with the board not less than 12 full calendar months prior to the employee's retirement date. If the election is not filed at least 12 full calendar months prior to the employee's retirement date, the option may not take effect until after 12 full calendar months have elapsed after election, and it shall then be effective for all subsequent months. Until the option takes effect, the benefit shall be payable in the normal form only, as if the option had not been elected. Benefits to be paid may not be retroactively adjudged if the option is put into effect.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:24 Effective date of joint and survivor benefit

The joint and survivor option shall take effect only if the pensioner and the pensioner's contingent annuitant are both alive on the date when it is to take effect.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:25 Revocation of joint and survivor benefit

Once elected, the joint and survivor option may not be revoked except under the following conditions:

(1) Revocation shall be made in writing in a form prescribed by the board and filed with the board before the end of the first calendar month for which an optional pension benefit has become payable to the pensioner;

(3) The option shall be automatically revoked if the contingent annuitant dies. If the contingent annuitant is the employee's spouse and the spouse is divorced from the employee before a pension in the optional form becomes effective, the employee may continue the option if, within 90 days after such an event, the employee chooses another contingent annuitant and communicates it to the board in writing; and

(4) The designation of a contingent annuitant may not be changed after the first pension payment under the option has been made to the pensioner.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:26 Limitation of joint and survivor benefit option

The joint and survivor option may not be paid if payment would result in a monthly pension of less than $20 to the pensioner or the contingent annuitant.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:27 Credited service

Credited service under the plan means the last period of continuous employment as a full-time employee with the commission prior to termination of employment for the purpose of retirement. However, if a temporary employee moves from temporary to a full-time status without a break in service, the employee's credited service shall include the period of temporary employment.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:28 Interruption of continuous employment

(1) Disability, except in connection with retirement;

(2) Service in the armed forces of the United States, if the employee returns to employment with the commission within the period of time prescribed by law for the reemployment of veterans; or

(3) Not more than 12 months for any other cause or reason satisfactory to the commission.

No service credit may be granted during any period of authorized leave of absence.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:29 Vesting of service credits

An employee who terminates employment for any reason other than death or early or normal retirement is entitled to a deferred pension if the employee has accumulated at least three years of credited service. The deferred pension shall start on the normal retirement date, or, at the request of the employee, as early as age 62 in accordance with §§ 20:16:18:08 and 20:16:18:09. The deferred pension amount shall be calculated using the benefit formula in effect at the time of the employee's termination with the commission and the years of continuous employment to the date of termination. If this plan is terminated, the accrued benefits of each participant in the plan immediately become 100 percent vested and nonforfeitable. If an employee becomes a participant in the retirement plan within the three-year period preceding the employee's 65^th birthday, the participant's normal retirement date is the first day of the calendar month coincident with or immediately following the participant's third anniversary of the plan participation. If a participant's employment with the commission is terminated at or after attainment of the participant's normal retirement date, the participant is vested in and entitled to receive the participant's accrued benefit.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:30 Advance written applications required

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:31 Information required

An employee, pensioner, or beneficiary shall furnish the board with any information or proof requested by it and reasonably required to administer the plan. Failure on the part of any person to comply with such a request promptly, completely, and in good faith is sufficient grounds for denying benefits to that person. If a pensioner or beneficiary makes a false statement material to any claim for benefits, the person shall be denied all benefits, and the board may recover any payments made in reliance on the false statement.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:32 Payments for incompetents

If a pensioner or beneficiary is mentally or physically incompetent, payments shall be made to any person who has satisfied the board that he or she is caring for the pensioner or beneficiary. Such payments shall be a complete discharge of the liabilities under this plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:33 Nonalienation of benefits

No benefit payable at any time under the plan may be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, or encumbrance of any kind. An attempt to encumber a benefit in any way is void. A benefit is not subject in any manner to the debts or liabilities of a person to whom the benefit is payable. However, the board may make distributions pursuant to a qualified domestic relations order as defined in Internal Revenue Code § 414(p), if the board has notified the employee and any alternate payee of the order and has determined that the order is a qualified domestic relations order.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:34 Terms of employment not affected

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:35 Reference to other documents

Any reference in the plan to rights under the plan shall be construed as a reference to rights also under any other instrument, trust agreement, or insurance or annuity contract created or entered into to effect the purposes of the plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:36 Rounding of benefit amounts

The monthly amount of pension benefits, as computed in accordance with §§ 20:16:18:07 to 20:16:18:22, inclusive, or if an adjustment provided elsewhere is applied, shall be rounded to the next higher whole dollar amount.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:37 Improvement factor

The annual increase in the amount of the benefit allowance for each year commencing on the July first that is at least 12 months following the date on which the benefit was first payable shall be 3.1 percent, compounded annually. This annual increase, effective July 1, 1999, applies to all employees who retire after June 30, 1999, or who terminate employment after June 30, 1999, for any reason other than early or normal retirement after three years of credited service. The improvement factor shall commence on the July first that is at least 12 full calendar months following the date of termination. No individual may be required to incur another improvement factor waiting period when changing from one type of benefit to another type of benefit. Once the original waiting period has applied, future benefits shall automatically increase each July 1 thereafter.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:38 Minimum distribution requirements. Benefit payments shall follow the minimum distribution rules of § 401(a)(9) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1901 to 3-12C-1905, inclusive. Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021. General Authority: SDCL 3-12C-1647. Law Implemented: SDCL 3-12C-1643, 3-12C-1644

Minimum distribution requirements. Benefit payments shall follow the minimum distribution rules of § 401(a)(9) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1901 to 3-12C-1905, inclusive.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:39 Limitation on benefits. This section does not constitute an election under § 415(b)(10)(C) of the Internal Revenue Code. Benefit payments under this plan shall follow the annual benefit limitations of § 415(b)(1)(A) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1801 to 3-12C-1817, inclusive. Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021. General Authority: SDCL 3-12C-1647. Law Implemented: SDCL 3-12C-1643, 3-12C-1644

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:40 Privatization of the plant

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:18:41 Amendment and termination of the plan

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

Chapter 20:16:19 Retirement plan 6

ARSD 20:16:19:01 Definitions

Terms used in this chapter mean:

(1) "Plan," "pension plan," the retirement plan set forth in this chapter and any modifications, amendments, extensions, or renewals of it;

(3) "Employee," a person employed on a full time basis, including an officer, whose customary employment is for at least 40 hours in a week and 12 months in any calendar year and on a continuous basis;

(4) "Pensioner," an employee who is retired and who is receiving benefits under the plan;

(5) "Credited service," period of employment for purposes of determining eligibility for benefits under the plan, as set forth in §§ 20:16:19:27 to 20:16:19:31, inclusive;

(7) "Beneficiary," any person, estate, or trust designated by the employee or pensioner to receive any benefit payments after the death of the employee or pensioner;

(9) "Hourly conversion rate," for the purpose of converting an hourly rate to a monthly rate four and one-third weeks a month at 40 hours a week is used;

(10) "Final average earnings," the average of an employee's highest consecutive 36 calendar months of earnings in the last 72 calendar months of the credited service immediately preceding employee's retirement date. The month in which the employee retires may be used as a full calendar month, if it is advantageous for the employee, even though it may only be a portion of a month because the employee's retirement date falls before the end of the month;

(11) "Effective date," May 1, 2000;

(12) "Retirement date," the date an employee actually retires under the applicable provisions of the plan;

(13) "Normal retirement date," the first day of the calendar month coincident with or next following the employee's 65^th birthday;

(14) "Fund," the fund created pursuant to SDCL chapter 3-12C;

(15) "Totally disabled," a disability that prevents the employee from performing duties and entitles the employee to receive a federal Social Security Act disability benefit;

(16) "Child or children," any employee's unmarried dependent child who is under 19 years of age; any unmarried dependent child under 23 years of age who is a full-time student; any unmarried dependent child who is totally or permanently disabled, either physically or mentally, regardless of the child's age, if the disability occurred before age 19; any stepchild or foster child who depends on the employee for support and lives in the household of the employee, both of which shall have occurred prior to March 17, 2001, in a regular parent-child relationship; or any child of the employee conceived during the employee's lifetime and born after the employee's death, but for a child to be considered a dependent, the child shall have been born prior to March 17, 2001; and

(17) "Other public benefits," the benefits by the federal Social Security Act, the federal civil service retirement program, federal military, disability, railroad retirement plans, workers' compensation, or any other public retirement system.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:02 Term of coverage

The plan covers any employee who retires, dies, or becomes disabled after April 30, 2000, and any benefit payable under the plan became 100 percent vested and nonforfeitable on March 16, 2001, the date when the plant was privatized. Any employee on March 16, 2001, is eligible for all benefits payable under the plan the same as if the employee was still an active employee, even if the employee dies subsequent to March 16, 2001, but before the employee retires. Benefits for any person who is not an employee after April 30, 2000, shall be determined under the provisions of the retirement plan that existed at the time of the person's employment with the commission.

Cross-References: Disability pension, § 20:16:19:10; Privatization of the plant -- Effect on benefits, § 20:16:19:28.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:03 Participation in benefits

Any employee is eligible to participate in the pension plan. However, no person specifically employed as a temporary employee is eligible to participate in the plan.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:04 Repealed

Contributions by the commission.** Repealed.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; repealed, 40 SDR 197, effective May 27, 2014.

ARSD 20:16:19:05 Forfeiture

Any amount that is forfeited by an employee pursuant to any of the provisions of the plan shall remain in the fund.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:06 Qualifications for normal pension

A retiring employee is entitled to a normal pension if the employee meets all of the following requirements:

(1) Has attained the age of 65;

(2) Has accumulated at least three years of credited service; and

(3) Retires from active employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:07 Amount of normal pension

Amount of the normal pension.** The normal pension amount for any employee who retires after April 30, 2000, shall be:

(1) 1.625 percent of final average earnings times all years of credited service prior to March 17, 2001; or

(2) 2.325 percent of final average earnings times all years of credited service prior to March 17, 2001, less 80 percent of the primary Social Security benefits that would be provided as of March 16, 2001, under federal Social Security.

The amount of earnings under the plan may not exceed the limit on compensation allowed under § 401(a)(17) of the Internal Revenue Code.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:08 Qualifications for early retirement pension

An employee or former employee is entitled to an early retirement pension if the employee or former employee meets all of the following requirements:

(1) Has attained the age of 55 but has not yet attained age 65;

(2) Has accumulated at least three years of credited service; and

(3) Has terminated from active employment with the commission.

Cross-Reference: Privatization of the plant -- Effect on benefits, § 20:16:19:28.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:09 Amount of the early retirement pension

The amount of the early retirement pension shall be determined by calculating the amount of the normal pension to which the employee would be entitled if the employee were age 65 on the effective date of the employee's early retirement pension times the appropriate percentage or pro rated percentage from the table below:

Years of Credited Service

Age 55

Age 56

Age 57

Age 58

Age 59

Age 60

Age 61

Age 62

Age 63

Age 64

Age 65

Less than 21

70%

73%

76%

79%

82%

85%

88%

91%

94%

97%

100%

73%

76%

79%

82%

85%

88%

91%

94%

97%

100%

76%

79%

82%

85%

88%

91%

94%

97%

100%

79%

82%

85%

88%

91%

94%

97%

100%

82%

85%

88%

91%

94%

97%

100%

85%

88%

91%

94%

97%

100%

88%

91%

94%

97%

100%

91%

94%

97%

100%

94%

97%

100%

97%

100%

Cross-Reference: Privatization of the plant -- Effect on benefits, § 20:16:19:28.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 2010, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:10 Disability pension

An employee is entitled to a disability pension if the employee meets all the following requirements and the employee was disabled prior to March 17, 2001, but after April 30, 2000:

(1) Has become totally disabled on or after the date this plan became effective;

(2) Has completed at least three years of credited service;

(3) Retires from active employment with the commission; and

(4) Has been approved for and receives a disability benefit under the federal Social Security Act.

The board may, at any time, require evidence of continued entitlement to a disability benefit.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:11 Amount of the disability pension

The disability pension shall be equal to 50 percent of the 12 consecutive months out of the last 36 consecutive months prior to the month of disability, increased by 10 percent of those earnings for each eligible child to a maximum of four children. The disability allowance shall be paid only in the form of monthly installments.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:12 Disability pension payments

Payment of the disability pension shall begin five months after the month in which the disability occurs and shall continue thereafter for as long as the pensioner remains totally disabled. Upon attainment of age 65, a pensioner shall have benefits continued under § 20:16:19:16 regardless of whether or not the pensioner remains totally disabled.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:13 Deduction of other public benefits from disability pension

The initial Social Security benefit or other public benefit payable to the pensioner shall be deducted from the disability pension provided in § 20:16:19:11. Any future increase in Social Security benefits for the pensioner does not apply to this section. A disability pension payable on account of children shall be reduced when children become ineligible dependents.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 297, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:14 Reduction of disability pension of earnings in employment

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:15 Reemployment of a disability pensioner

Reemployment of a disabled pensioner.** A pensioner who is no longer entitled to a disability benefit may be entitled to a normal or early pension unaffected by the prior receipt of a disability pension.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:16 Conversion of disability pension to normal retirement pension at retirement age

When a person who is receiving a disability pension reaches normal retirement age, or at a later date if there are no eligible children, the person's disability pension shall be terminated. Thereafter the person shall receive the pension payable for normal retirement at that age, calculated on the credited service the person would have accrued to age 65 and earnings projected at two percent per calendar year not compounded. The earnings will be increased each January 1 starting with the first January subsequent to the date of disability. In no event, however, may the recomputed pension be greater than the disability pension payable to the employee without eligible children under this provision.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:17 Family benefits payable on death of employee before retirement

If an employee with three years of credited service dies after April 30, 2000, but prior to the earlier of either the employee's normal retirement age or the employee's actual retirement date or if the employee was receiving a disability pension which started after April 30, 2000, a family benefit shall be paid as follows:

(3) If there are more than five children, the benefits payable to children under subdivision (1) or (2) shall be allocated to all children on a share and share alike basis; or

(4) If there are no benefits being paid to the spouse under subdivision (1), the spouse upon reaching age 65 shall receive a monthly payment based on the pension which would have been payable to the deceased employee at the employee's normal retirement age, equal to 60 percent of the pension benefit that the deceased employee would have been eligible to receive at the time of the employee's death. Any employee on March 16, 2001, is eligible for the benefits payable under this section, if the employee has at least three years of credited service at death, including any years of continuous service with any successor employer. If an employee terminates employment with the successor employer for any reason other than death, the employee is not eligible for a benefit under this section. However, the spouse is eligible for a benefit under § 20:16:19:22 when the spouse reaches age 65 if the employee dies before retirement. The family benefit payable under subdivision (1) and (2) shall be based on the employee's compensation at plan termination.

All benefits payable under this subdivision shall be increased by application of the improvement factor from § 20:16:19:39 commencing on the July first that is at least 12 full calendar months following the date of termination of employment with the commission.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:18 Deduction of Social Security benefits from family benefits

The initial Social Security benefits payable to a beneficiary shall be deducted from the family benefits provided in § 20:16:19:17. Any future increase in Social Security benefits does not apply to this section.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:19 Election of additional survivor protection option

Within 90 days after becoming an employee or marrying or attaining age 35 an employee may elect to provide the employee's spouse with additional survivor protection by making an employee contribution of 8/10 of one percent of earnings. This contribution shall start with the first payroll period following the date of the election. It shall continue until the earlier of the employee's retirement, employee's spouse attaining age 65, the death or disability of the employee, the death of the spouse, termination of employment, termination of the marriage, or March 16, 2001. Any funds contributed for the additional survivor protection shall remain with the system and may not be refunded to the employee.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:20 Amount of additional survivor protection benefits

The additional survivor protection payable under § 20:16:19:19 shall, on the death of the employee or expiration of benefits that may have been paid pursuant to § 20:16:19:17 because there is no eligible child, entitle the surviving spouse to an annual amount, payable in monthly installments, equal to 40 percent of the highest annual earnings earned by the employee during any one of the last three years of credited service multiplied by the improvement factor from § 20:16:19:39 commencing on the July first that is at least 12 full calendar months following the date of termination of employment with the commission. The additional survivor protection benefit continues until the spouse dies, becomes eligible for a benefit under § 20:16:19:22, or attains age 65, whichever is earlier. If the spouse is not already eligible for a benefit under § 20:16:19:22, the spouse becomes eligible for a benefit as stated in § 20:16:19:22 when the spouse attains the age 65.

Any employee who participated in the § 20:16:19:19 benefit on March 16, 2001, is eligible for the benefits payable under this section. If an employee terminates employment with any successor employer for any reason other than death, the employee is not eligible for a benefit under this section. However, the spouse is eligible for a benefit under § 20:16:19:22 when the spouse reaches age 65 if the employee dies before retirement.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:21 Normal form of pension benefits

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:22 Joint and survivor benefit

Upon the death of any pensioner, any employee, or former employee who has reached normal retirement age, the surviving spouse is eligible to receive a normal pension benefit, payable in monthly installments, equal to 60 percent of the pension benefit that the pensioner, employee, or former employee was receiving or was eligible to receive at the time of death. In lieu of the 60 percent pension benefit, an employee or former employee entitled to a normal or early pension benefit may elect to receive a smaller monthly pension during the pensioner's lifetime by electing a 100 percent joint and survivor benefit. After the employee's or former employee's death, the reduced benefit elected by the employee or former employee shall be continued to the employee's or former employee's beneficiary, called a "contingent annuitant," during the latter's lifetime.

Cross-Reference: Family benefits payable on death of employee before retirement, § 20:16:19:17.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:23 Election of joint and survivor benefit

To be effective, the 100 percent joint and survivor option election shall be made by written request filed with the board not less than 12 full calendar months prior to the employee's retirement date. If the election is not filed at least 12 full calendar months prior to the employee's retirement date, the option may not take effect until after 12 full calendar months have elapsed after election, and it shall then be effective for all subsequent months. Until the option takes effect, the benefit shall be payable in the normal form only, as if the option had not been elected. Benefits to be paid may not be retroactively adjudged when the option is put into effect. If the pensioner should die before the 100 percent joint and survivor option takes effect, the beneficiary shall receive 60 percent of the pensioner's benefit under § 20:16:19:22.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:24 Effective date of joint and survivor benefit

The joint and survivor option shall take effect only if the pensioner and pensioner's contingent annuitant are both alive on the date when it is to take effect.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:25 Revocation of joint and survivor benefit

Once elected, the joint and survivor option may not be revoked except under the following conditions:

(1) Revocation must be made in writing in a form prescribed by the board and filed with the board before the end of the first calendar month for which an optional pension benefit has become payable to the pensioner;

(3) The option shall be automatically revoked if the contingent annuitant dies. If the contingent annuitant is the employee's spouse and the spouse is divorced from the employee before a pension in the optional form becomes effective, the employee may continue the option if, within 90 days after such an event, the employee chooses another contingent annuitant and communicates it to the board in writing; and

(4) The designation of a contingent annuitant may not be changed after the first pension payment under the option has been made to the pensioner.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:26 Limitation of joint and survivor benefit option

The joint and survivor option may not be paid if payment would result in a monthly pension of less than $20 to the pensioner or the contingent annuitant.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:27 Credited service

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:28 Privatization of the plant -- Effect on benefits

Any employee, former employee, pensioner, or any other person affected by the privatization of the plant is entitled to the benefits accrued as of the effective date of the privatization, March 16, 2001. For the purposes of determining eligibility for vesting of service credits pursuant to § 20:16:19:30 and for the purposes of determining qualifications for and amount of early retirement pursuant to §§ 20:16:19:08 and 20:16:19:09, years of continuous service with the successor employer shall be counted.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:29 Interruption of continuous employment

(1) Disability, except in connection with retirement;

(2) Service in the armed forces of the United States, if the employee returns to employment with the commission within the period of time prescribed by law for the reemployment of veterans; or

(3) Not more than 12 months for any other cause or reason satisfactory to the commission.

No service credit may be granted during any period of authorized leave of absence. Subsections (1) and (3) shall be considered an interruption of service when it applies to a successor employer after March 16, 2001.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:30 Vesting of service credits

An employee who terminates employment for any reason other than death or early or normal retirement is entitled to a deferred pension if the employee has accumulated at least three years of credited service. The deferred pension shall start on the normal retirement date, or, at the request of the employee, as early as age 55 in accordance with §§ 20:16:19:08 and 20:16:19:09. The deferred pension amount shall be calculated using the benefit formula in effect at the time of the employee's termination with the commission and the years of continuous employment to the date of termination. This benefit shall be increased pursuant to § 20:16:19:39. The accrued benefits of each participant in the plan immediately became 100 percent vested and nonforfeitable on March 16, 2001. If an employee becomes a participant in the retirement plan within the three-year period preceding the employee's 65^th birthday, the participant's normal retirement date is the first day of the calendar month coincident with or immediately following the participant's third anniversary of the plan participation. If a participant's employment with the commission is terminated at or after attainment of the participant's normal retirement date, the participant is vested in and entitled to receive the participant's accrued benefit.

Cross-Reference: Privatization of the plant -- Effect on benefits, § 20:16:19:28.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:31 Purchase of credited service

Any employee may elect to purchase additional credit for years of service for which the employee is not presently receiving credit for the purpose of determining eligibility for benefits under the plan, calculating the amount of benefit payments under the plan, or both. Any credited service purchased or transferred under Plans 1 to 5, inclusive, and Plans 1A to 5A, inclusive, including any amendments as well as this Plan 6 shall be used for calculating any and all benefits under this plan, including eligibility for early or normal retirement. The full actuarial costs of such credited service as determined by the actuary shall be paid. The employee may use only the following sources to purchase such credited service.

(1) All or any portion of the balance of the employee's interest in a qualified trust pursuant to § 401(a) of the Internal Revenue Code;

(2) The money contained in an individual retirement account or individual retirement annuity of the employee that is attributable to a qualified distribution from a qualified trust pursuant to § 401(a) of the Internal Revenue Code, and qualified as an eligible rollover distribution to § 402 of the Internal Revenue Code; or

(3) Payment by the commission to pay for all or part of the cost of purchasing credited service on behalf of the employee.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:32 Advance written applications required

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:33 Information required

An employee, pensioner, or beneficiary shall furnish the board with any information or proof requested by it and reasonably required to administer the plan. Failure on the part of any person to comply with such a request promptly, completely, and in good faith is sufficient grounds for denying benefits to that person. If a pensioner or beneficiary makes a false statement material to any claim for benefits, the person shall be denied all benefits, and the board may recover any payments made in reliance on the false statement.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:34 Payments for incompetents

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 28, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:35 Nonalienation of benefits

No benefit payable at any time under the plan may be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, or encumbrance of any kind. An attempt to encumber a benefit in any way is void. A benefit is not subject in any manner to the debts or liabilities of a person to whom the benefit is payable. However, the board may make distributions pursuant to a qualified domestic relations order as defined in Internal Revenue Code § 414(p), if the board has notified the employee and any alternate payee of the order and has determined that the order is a qualified domestic relations order.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:36 Terms of employment not affected

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:37 Reference to other documents

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:38 Rounding of benefit amounts

The monthly amount of pension benefits, as computed in accordance with §§ 20:16:19:07 to 20:16:19:21, inclusive, or if an adjustment provided elsewhere is applied, shall be rounded to the next higher whole dollar amount.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:39 Improvement factor

The annual increase in the amount of the benefit paid for each year commencing on the July first that is at least 12 months following the date on which the benefit was first payable shall be 3.1 percent, compounded annually. This annual increase applies to all employees who retire after April 30, 2000, and to those employees who terminate employment after April 30, 2000, and entitled to a deferred pension pursuant to § 20:16:19:30. The improvement factor for inactive vested employees shall commence on the July first that is at least 12 full calendar months following the date of termination. No individual may be required to incur another improvement factor waiting period when changing from one type of benefit to another type of benefit. Once the original waiting period has applied, future benefits shall automatically increase each July 1 thereafter.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:40 Minimum distribution requirements. Benefit payments shall follow the minimum distribution rules of § 401(a)(9) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1901 to 3-12C-1905, inclusive. Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021. General Authority: SDCL 3-12C-1647. Law Implemented: SDCL 3-12C-1643, 3-12C-1644

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:41 Limitation on benefits. This section does not constitute an election under § 415(b)(10)(C) of the Internal Revenue Code. Benefit payments under this plan shall follow the annual benefit limitations of § 415(b)(1)(A) of the Internal Revenue Code, as the code is defined in § 3-12C-101, and as set forth in §§ 3-12C-1801 to 3-12C-1817, inclusive. Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021. General Authority: SDCL 3-12C-1647. Law Implemented: SDCL 3-12C-1643, 3-12C-1644

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019; 47 SDR 138, effective July 1, 2021.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:42 Amendment and termination of the plan

The board reserves the right to amend this plan at any time subject to Internal Revenue Code rules regarding accrued benefits of the participants. No modification or amendment of the plan may make it possible for any part of the income or assets of the fund to be used for or diverted to purposes other than for the exclusive benefit of the participants and their beneficiaries. Also no modification or amendment of the plan may reduce benefits to the participants, but benefits may be increased.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; 40 SDR 197, effective May 27, 2014; 45 SDR 142, effective July 1, 2019.
General Authority: SDCL 3-12C-1647.
Law Implemented: SDCL 3-12C-1643, 3-12C-1644.

ARSD 20:16:19:43 Reversion of funds

Repealed.

History

Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; repealed, 40 SDR 197, effective May 27, 2014.