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.

          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.

          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.

          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

          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.

          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.

          20:16:15:04.  Contributions by the commission. Repealed.

          Source: 28 SDR 109, effective February 11, 2002; 36 SDR 207, effective July 1, 2010; repealed, 40 SDR 197, effective May 27, 2014

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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

          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.

          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.

          20:16:15:23.  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 commence on the normal retirement date. The deferred pension amount shall be calculated utilizing the benefit formula in effect at the time of the employee's termination with the commission and years of continuous employment to the date of termination.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          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.

          20:16:15:33.  Statutory limitation. Repealed.

          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.

          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.

          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.

          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.

          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.