<html> <head> <title>Rule 20:16:18:29 Vesting of service credits.</title> <META NAME="Keywords" Content="Administrative Rules 20:16:18:29"> <META NAME="Description" Content="Administrative Rules 20:16:18:29 Vesting of service credits."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 15 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; text-align:justify; font-size:12.0pt; font-family:"Times New Roman",serif;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline;} .MsoChpDefault {font-size:10.0pt;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US link=blue vlink=purple> <div class=WordSection1> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:16:18:29.&nbsp;&nbsp;Vesting of service credits.</b> 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 &#167;&#167;&nbsp;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<sup>th</sup> 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.</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 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.</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=3-12C-1647">3-12C-1647.</A></p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=3-12C-1643">3-12C-1643</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=3-12C-1644">3-12C-1644.</A></p> <p class=MsoNormal>&nbsp;</p> </div> </body> </html>