SOUTH DAKOTA RETIREMENT SYSTEM

 

 

 

 

1971 GROUP ANNUITY MORTALITY TABLES

 

 

Chapter 20:16:18

 

APPENDIX A

 

 

SEE: § 20:16:18:01(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Source: 28 SDR 109, effective February 11, 2002; 40 SDR 197, effective May 27, 2014.

 

20 0.000260 21 0.000275 22 0.000292 23 0.000309 24 0.000327 25 0.000347 26 0.000368 27 0.000390 28 0.000414 29 0.000440 30 0.000469 31 0.000499 32 0.000533 33 0.000569 34 0.000608 35 0.000651 36 0.000698 37 0.000750 38 0.000807 39 0.000869 40 0.000938 41 0.001013 42 0.001094 43 0.001186 44 0.001286 45 0.001397 46 0.001519 47 0.001654 48 0.001802 49 0.001967

50 0.002151 51 0.002324 52 0.002520 53 0.002738 54 0.002982 55 0.003256 56 0.003574 57 0.003948 58 0.004388 59 0.004901 60 0.005489 61 0.006156 62 0.006898 63 0.007712 64 0.008608 65 0.009563 66 0.010565 67 0.011621 68 0.012877 69 0.014461 70 0.016477 71 0.019000 72 0.021911 73 0.025112 74 0.028632 75 0.032385 76 0.036408 77 0.040769 78 0.045472 79 0.050616

80 0.056085   81 0.061853   82 0.067936   83 0.074351   84 0.081501   85 0.089179   86 0.097468   87 0.106452   88 0.116226   89 0.126893   90 0.138577   91 0.151192   92 0.165077   93 0.180401   94 0.197349   95 0.206129   96 0.236970   97 0.258059   98 0.280237   99 0.304679 100 0.331630 101 0.361361 102 0.394167 103 0.430366 104 0.471522 105 0.519196 106 0.574950 107 0.640345 108 0.716944 109 0.806309 110 0.999999

 

Constructed by the Segal Company from Transactions of the Society of Actuaries, Volume 23,

Pages 569-622, published by Society of Actuaries, copyright: 1971.

 

20 0.000530 21 0.000522 22 0.000544 23 0.000566 24 0.000591 25 0.000617 26 0.000650 27 0.000684 28 0.000722 29 0.000763 30 0.000809 31 0.000860 32 0.000916 33 0.000978 34 0.001046 35 0.001122 36 0.001204 37 0.001295 38 0.001397 39 0.001509 40 0.001633 41 0.001789 42 0.002000 43 0.002260 44 0.002569 45 0.002922 46 0.003318 47 0.003754 48 0.004228 49 0.004740

50 0.005285 51 0.005867 52 0.006480 53 0.007127 54 0.007806 55 0.008519 56 0.009262 57 0.010039 58 0.010889 59 0.011924 60 0.013119 61 0.014440 62 0.015863 63 0.017413 64 0.017185 65 0.021260 66 0.023643 67 0.026316 68 0.029188 69 0.032435 70 0.036106 71 0.040008 72 0.043827 73 0.047489 74 0.051221 75 0.055293 76 0.060068 77 0.065924 78 0.072595 79 0.079672

80 0.087431   81 0.095445   82 0.103691   83 0.112303   84 0.121116   85 0.130102   86 0.139315   87 0.148714   88 0.158486   89 0.168709   90 0.179452   91 0.170489   92 0.201681   93 0.212986   94 0.226535   95 0.241164   96 0.256204   97 0.272480   98 0.290163   99 0.309125 100 0.329825 101 0.352455 102 0.377220 103 0.406205 104 0.441497 105 0.485182 106 0.539343 107 0.606069 108 0.687444 109 0.785555 110 0.999999

 

Constructed by the Segal Company from Transactions of the Society of Actuaries, Volume 23,

Pages 569-622, published by Society of Actuaries, copyright: 1971.

 

          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;

 

          (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," 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;

 

          (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;

 

          (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.

 

          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.

 

          20:16:18:02.  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.

 

          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.

 

          20:16:18:03.  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.

 

          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.

 

          20:16:18:04.  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.

 

          20:16:18:05.  Forfeiture. Any amount which is forfeited by an employee pursuant to any of the provisions of the plan shall remain in the fund.

 

          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.

 

          20:16:18:06.  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.

 

          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.

 

          20:16:18:07.  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.

 

          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.

 

          20:16:18:08.  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.

 

          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.

 

          20:16:18:09.  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:

 

 

          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.

 

          20:16:18:10.  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.

 

          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.

 

          20:16:18:11.  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.

 

          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.

 

          20:16:18:12.  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.

 

          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.

 

          20:16:18:13.  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.

 

          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.

 

          20:16:18:14.  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).

 

          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.

 

          20:16:18:15.  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.

 

          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.

 

          20:16:18:16.  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.

 

          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.

 

          20:16:18:17.  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:

 

          (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;

 

          (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.

 

          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.

 

          20:16:18:18.  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.

 

          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.

 

          20:16:18:19.  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.

 

          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.

 

          20:16:18:20.  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.

 

          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.

 

          20:16:18:21.  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.

 

          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.

 

          20:16:18:22.  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.

 

          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.

 

          20:16:18:23.  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.

 

          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.

 

          20:16:18:24.  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.

 

          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.

 

          20:16:18:25.  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;

 

          (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 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.

 

          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.

 

          20:16:18:26.  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.

 

          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.

 

          20:16:18:27.  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.

 

          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.

 

          20:16:18:28.  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.

 

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

 

          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.

 

          20:16:18:29.  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.

 

          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.

 

          20:16:18:30.  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.

 

          20:16:18:31.  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.

 

          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.

 

          20:16:18:32.  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.

 

          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.

 

          20:16:18:33.  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.

 

          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.

 

          20:16:18:34.  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.

 

          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.

 

          20:16:18:35.  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.

 

          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.

 

          20:16:18:36.  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.

 

          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.

 

          20:16:18:37.  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.

 

          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.

 

          20:16:18:40.  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.

 

          20:16:18:41.  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.

 

          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.