<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 3-12C-109 - Minimum actuarial requirement to support benefits defined.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s1904e4cb41f14bbb95122c89fc5291a5Normal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s1904e4cb41f14bbb95122c89fc5291a5SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s1904e4cb41f14bbb95122c89fc5291a5CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s1904e4cb41f14bbb95122c89fc5291a5Statute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s1904e4cb41f14bbb95122c89fc5291a5DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s1904e4cb41f14bbb95122c89fc5291a5000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s1904e4cb41f14bbb95122c89fc5291a5NoIndent { text-indent: 0.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s1904e4cb41f14bbb95122c89fc5291a5DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s1904e4cb41f14bbb95122c89fc5291a5SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 3-12C-109 - Minimum actuarial requirement to support benefits defined."><meta property="og:description" content="SDLRC Codified Law 3-12C-109 - Minimum actuarial requirement to support benefits defined."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/3-12C-109"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s1904e4cb41f14bbb95122c89fc5291a5Normal"><a href="https://sdlegislature.gov/Statutes?Statute=3-12C-109" rel="noopener"><span class="s1904e4cb41f14bbb95122c89fc5291a5SENU">3-12C-109</span></a><span xml:space="preserve" class="s1904e4cb41f14bbb95122c89fc5291a5SENU">. </span><span class="s1904e4cb41f14bbb95122c89fc5291a5CL">Minimum actuarial requirement to support benefits defined.</span></p><p dir="ltr" class="s1904e4cb41f14bbb95122c89fc5291a5Statute"><span class="s1904e4cb41f14bbb95122c89fc5291a5DefaultParagraphFont">For purposes of this chapter, "minimum actuarial requirement to support benefits" means the normal cost and the interest on and amortization of the unfunded actuarial accrued liability over a period not to exceed twenty years, all expressed in terms of a percentage of covered payroll and based on the baseline COLA or the restricted COLA, as applicable. If the actuarial value of assets exceeds the actuarial accrued liability, the minimum actuarial requirement to support benefits includes recognition of the amount by which the actuarial value of assets exceeds the actuarial accrued liability. In no event may the recognition reduce the minimum actuarial requirement to support benefits to a percentage less than the contribution rate.</span></p><p dir="ltr" class="s1904e4cb41f14bbb95122c89fc5291a5Normal"><span xml:space="preserve" class="s1904e4cb41f14bbb95122c89fc5291a5000000"> </span></p><p dir="ltr" class="s1904e4cb41f14bbb95122c89fc5291a5NoIndent"><span xml:space="preserve" class="s1904e4cb41f14bbb95122c89fc5291a5DefaultParagraphFont-000001">Source: </span><span class="s1904e4cb41f14bbb95122c89fc5291a5SCL">SL 2018, ch 33, § 13; SDCL § 3-12-120.4; SL 2019, ch 22, § 1; SL 2023, ch 16, § 3; SL 2025, ch 27, § 9.</span></p></div></body></html>