<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-226 - System annual actuarial valuation--Scope--Actuarial value funded ratio defined.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2d6ddb9b6c274b37904f45924f0ba255Normal { 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.s2d6ddb9b6c274b37904f45924f0ba255SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2d6ddb9b6c274b37904f45924f0ba255CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2d6ddb9b6c274b37904f45924f0ba255Statute { text-indent: 0.50in; text-align: justify; 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font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2d6ddb9b6c274b37904f45924f0ba255SCL { 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-226 - System annual actuarial valuation--Scope--Actuarial value funded ratio defined."><meta property="og:description" content="SDLRC Codified Law 3-12C-226 - System annual actuarial valuation--Scope--Actuarial value funded ratio defined."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/3-12C-226"><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="s2d6ddb9b6c274b37904f45924f0ba255Normal"><a href="https://sdlegislature.gov/Statutes?Statute=3-12C-226" rel="noopener"><span class="s2d6ddb9b6c274b37904f45924f0ba255SENU">3-12C-226</span></a><span xml:space="preserve" class="s2d6ddb9b6c274b37904f45924f0ba255SENU">. </span><span class="s2d6ddb9b6c274b37904f45924f0ba255CL">System annual actuarial valuation--Scope--Actuarial value funded ratio defined.</span></p><p dir="ltr" class="s2d6ddb9b6c274b37904f45924f0ba255Statute"><span class="s2d6ddb9b6c274b37904f45924f0ba255DefaultParagraphFont">To determine and verify the adequacy of any member and employer contributions to the system, an actuarial valuation of the system must be made annually by an approved actuary.</span></p><p dir="ltr" class="s2d6ddb9b6c274b37904f45924f0ba255Statute"><span class="s2d6ddb9b6c274b37904f45924f0ba255DefaultParagraphFont">The actuarial valuation must provide:</span></p><p dir="ltr" class="s2d6ddb9b6c274b37904f45924f0ba255StatuteNumber1"><span class="s2d6ddb9b6c274b37904f45924f0ba255DefaultParagraphFont">(1)    A demonstration of the relationship of any current member and employer contributions, expressed as a percentage of payroll, to the minimum actuarial requirement to support benefits; and</span></p><p dir="ltr" class="s2d6ddb9b6c274b37904f45924f0ba255StatuteNumber1"><span class="s2d6ddb9b6c274b37904f45924f0ba255DefaultParagraphFont">(2)    The current year's actuarial value funded ratio and fair value funded ratio, as well as the ratios from the prior actuarial valuations.</span></p><p dir="ltr" class="s2d6ddb9b6c274b37904f45924f0ba255Statute"><span class="s2d6ddb9b6c274b37904f45924f0ba255DefaultParagraphFont">For purposes of this section, "actuarial value funded ratio" means the actuarial value of assets divided by the actuarial accrued liability.</span></p><p dir="ltr" class="s2d6ddb9b6c274b37904f45924f0ba255Normal"><span xml:space="preserve" class="s2d6ddb9b6c274b37904f45924f0ba255000000"> </span></p><p dir="ltr" class="s2d6ddb9b6c274b37904f45924f0ba255NoIndent"><span xml:space="preserve" class="s2d6ddb9b6c274b37904f45924f0ba255DefaultParagraphFont-000001">Source: </span><span class="s2d6ddb9b6c274b37904f45924f0ba255SCL">SL 1974, ch 35, § 74; SL 1996, ch 27; SL 2004, ch 42, § 13; SL 2018, ch 33, § 12; SDCL § 3-12-120; SL 2019, ch 22, §§ 14, 45; SL 2025, ch 27, § 23.</span></p></div></body></html>