The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes that dictate its operational framework and the rights of its members. When a participating employer ceases to exist or is dissolved, the law provides for the disposition of its assets and liabilities related to the pension fund. Specifically, South Dakota Codified Law (SDCL) Chapter 36-12 outlines the provisions for the retirement system, including scenarios involving employer dissolution. Under these statutes, if a participating employer dissolves and its assets are insufficient to cover its liabilities to the retirement system, the remaining balance of the employer’s account, which represents its unfunded liability, becomes a debt owed to the system. This debt is not extinguished by the dissolution but is instead the responsibility of the dissolving entity’s successor or, if no successor exists, it remains an outstanding obligation. The law mandates that the retirement system must be made whole for any underfunding caused by the dissolution of a participating employer. Therefore, the remaining unfunded liability must be paid to the system.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules. When a participating employer terminates its participation in SDPERS, certain procedures must be followed regarding the assets and liabilities of the system. South Dakota Codified Law § 3-12-120 outlines the process for employer withdrawal. This statute mandates that upon termination of participation, the employer’s assets and liabilities are to be handled in accordance with the provisions of the retirement system. Specifically, it states that the assets and liabilities shall be adjusted and settled as provided in the retirement system’s statutes and rules. The primary objective is to ensure that the retirement system remains actuarially sound and that the benefits of all members, including those of the withdrawing employer’s employees, are protected. Therefore, the disposition of assets and liabilities is not left to the discretion of the withdrawing employer but is determined by the established legal framework of SDPERS to maintain the integrity and solvency of the pension fund for all participants. The law ensures a systematic and equitable distribution or retention of assets and liabilities to prevent adverse financial impacts on the remaining members or the state’s pension system as a whole.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes that dictate the conditions under which a member can receive a disability retirement benefit. Under South Dakota Codified Law (SDCL) Chapter 3-12, a member must be an active contributing member at the time of disability. Furthermore, the disability must be a result of a medically determinable physical or mental impairment that renders the member incapable of performing their regular and substantial duties as an employee. The impairment must also be expected to be of long-continued and indefinite duration or to result in death. Crucially, the impairment must not have been incurred as a result of intentional self-inflicted injury or the illegal use of alcohol or controlled substances. The law requires that the disability be certified by at least two physicians, one of whom must be a specialist in the area of the disability, and both must be selected by the retirement system. The determination of eligibility is a process that involves medical evidence and adherence to statutory criteria to ensure that benefits are provided only to those members who meet the defined standards for disability retirement.

The South Dakota Public Employees Retirement System (SDPERS) administers retirement benefits for state employees. The determination of eligibility for disability retirement benefits under SDPERS involves specific criteria. A member must be in service at the time of disability and have accumulated a minimum of five years of credited service. The disability must be permanent and total, meaning the member is unable to engage in any gainful occupation. Furthermore, the disability must be a direct result of a duty-related injury or illness, or if not duty-related, it must be a medical condition that prevents the member from performing their regular duties and any other substantial gainful employment. The process typically requires medical evidence from qualified physicians. The applicable South Dakota Codified Law, specifically SDCL Chapter 3-12, outlines the provisions for retirement, including disability retirement. The question tests the understanding of the foundational requirements for a member to qualify for disability retirement benefits from SDPERS, focusing on the service credit and the nature of the disability as defined by the system’s regulations.

The scenario involves the South Dakota Retirement System (SDRS) and the determination of a member’s final average salary for pension calculation purposes. Under SDRS statutes, specifically South Dakota Codified Law (SDCL) Chapter 3-12, the final average salary is generally calculated based on the highest consecutive 36 months of compensation. However, SDCL 3-12-47 provides for an alternative calculation in specific circumstances. If a member has less than 36 months of credited service, the final average salary is based on the total compensation earned during their credited service. In this case, Ms. Anya Sharma has 28 months of credited service. Therefore, her final average salary is calculated by dividing her total compensation earned during these 28 months by 28. The total compensation is given as $140,000. Calculation: Final Average Salary = Total Compensation / Number of Months of Credited Service Final Average Salary = $140,000 / 28 months Final Average Salary = $5,000 per month The question asks for the determination of Ms. Sharma’s final average salary. Based on the SDRS statutes for members with less than 36 months of service, the calculation is the total compensation divided by the number of months of credited service.

The scenario involves a former state employee, Ms. Aris Thorne, who separated from state service in South Dakota and is inquiring about the portability of her defined benefit pension. South Dakota Codified Law (SDCL) Chapter 3-12 governs the South Dakota Retirement System (SDRS). SDCL § 3-12-47 outlines the conditions under which a member may receive a refund of their accumulated contributions upon termination of employment. Specifically, it states that a member who terminates service and is not eligible for a retirement benefit may elect to receive a refund of their accumulated contributions, including any interest earned. However, SDCL § 3-12-48 addresses the option to leave contributions in the system for a deferred retirement benefit. This section permits a member who has attained at least five years of credited service to leave their accumulated contributions in the system and receive a retirement benefit commencing at a later date, typically age 65, or earlier if the plan permits. The question implies Ms. Thorne has sufficient credited service to be eligible for a deferred benefit. The critical aspect is that electing a refund under SDCL § 3-12-47 forfeits all rights to any future retirement benefits from the SDRS, including a deferred benefit. Therefore, if Ms. Thorne wishes to preserve her eligibility for a future retirement benefit based on her service with the state of South Dakota, she must not elect to receive a refund of her contributions. Instead, she should allow her contributions to remain in the SDRS to accrue interest and qualify for a deferred retirement benefit.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules that dictate the process for handling unclaimed benefits. When a retiree or beneficiary cannot be located and their benefits remain unpaid for a specified period, the funds are typically transferred to the state’s unclaimed property fund. South Dakota Codified Law (SDCL) Chapter 43-41A outlines the procedures for escheatment and the handling of unclaimed property by the state treasurer. For SDPERS, the specific provisions within SDCL Title 3, particularly those relating to retirement system administration and unclaimed benefits, would detail the notification requirements and the ultimate disposition of these funds. Generally, before funds are escheated, the retirement system must make reasonable efforts to locate the intended recipient, often involving multiple attempts at contact through various means. If these efforts are unsuccessful and the benefit remains unclaimed for a statutory period, the funds are then remitted to the state treasurer for management as unclaimed property, subject to potential claims by the rightful owner in the future.

The scenario involves the South Dakota Retirement System (SDRS) and the application of its rules regarding disability retirement. To determine the correct benefit amount, one must understand how SDRS calculates disability benefits for members who have not yet reached their normal retirement age. SDRS disability retirement benefits are generally calculated as the member’s accrued service benefit, but with a minimum provision that ensures a certain level of benefit if the member has a significant amount of credited service. Specifically, for a member who is disabled and has at least 10 years of credited service, the benefit is the greater of their accrued service benefit or a benefit calculated as if the member had 5 years more service than they actually have, but not to exceed the benefit they would receive at their normal retirement age. In this case, Ms. Anya Sharma has 15 years of credited service and is 48 years old, with a normal retirement age of 65. Her accrued service benefit is calculated based on her contributions and the SDRS formula. However, the key provision for disability is the “benefit increase” for those with at least 10 years of service. This provision states that the disability benefit will be the greater of her accrued service benefit or the benefit she would receive if she had 15 + 5 = 20 years of credited service, capped at the benefit she would receive at age 65. Since Ms. Sharma is under 65, the calculation for 20 years of service is relevant. The SDRS formula for retirement benefits typically involves multiplying years of service by a factor applied to the member’s average final compensation. While the exact average final compensation and the specific SDRS multiplier are not provided, the principle is that the disability benefit will be enhanced by this “service credit addition” up to a certain point. The question asks for the benefit calculation method, not a specific dollar amount. Therefore, the correct approach is to identify the rule that applies to her situation: her accrued benefit is compared to a benefit calculated with an additional five years of service, with the latter not exceeding her normal retirement age benefit. This ensures a reasonable income for a member who is disabled before reaching their full retirement eligibility. The other options represent incorrect interpretations of SDRS disability provisions, such as applying a flat percentage, using a different service credit addition, or ignoring the minimum benefit calculation entirely.

The South Dakota Public Employees Retirement System (SDPERS) is governed by South Dakota Codified Law Chapter 3-12. This chapter outlines the eligibility, contribution rates, benefit calculations, and administration of the retirement system for state employees, teachers, and other public employees in South Dakota. Specifically, SDCL § 3-12-47 details the conditions under which a member can receive a disability retirement benefit. A member must be a contributing member of the system, have at least five years of credited service, and be determined by the retirement board to be totally and permanently disabled from performing their usual and customary duties or any other occupation for which they are reasonably suited by education, training, or experience. The disability must not be the result of an injury sustained during the commission of a felony or while intentionally self-inflicted. The explanation of the law emphasizes that the disability must be assessed by the retirement board based on medical evidence and the member’s occupational capabilities.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules that dictate benefit calculations. For a member with 25 years of credited service and an average final compensation of \$75,000, the calculation of their monthly retirement benefit under SDPERS, assuming a standard retirement plan with a 2% multiplier per year of service, would be as follows: Monthly Benefit = (Years of Credited Service) * (Average Final Compensation) * (Multiplier) In this scenario: Years of Credited Service = 25 years Average Final Compensation = \$75,000 per year Multiplier = 2% or 0.02 Monthly Benefit = 25 * \$75,000 * 0.02 Monthly Benefit = 25 * \$1,500 Monthly Benefit = \$37,500 annually To find the monthly benefit, we divide the annual benefit by 12: Monthly Benefit = \$37,500 / 12 Monthly Benefit = \$3,125 This calculation is based on the typical structure of defined benefit pension plans, where the benefit is a product of service years, final average salary, and a service factor. Understanding the specific multiplier and the definition of average final compensation as defined by South Dakota Codified Law Chapter 3-12 and the associated administrative rules is crucial. The average final compensation is typically calculated over a specific period, often the highest consecutive years of earnings. The multiplier is a fixed percentage applied to each year of service. This calculation determines the gross monthly pension payment before any potential deductions for taxes or optional benefit elections. It is important to note that specific plan provisions, such as early retirement reductions or post-retirement cost-of-living adjustments, are not included in this basic calculation but are integral to the overall benefit determination.

The scenario describes a situation involving a South Dakota public employee retirement system that has experienced a significant unfunded actuarial accrued liability. The question probes the appropriate legal framework for addressing such a deficit within the context of South Dakota pension law. South Dakota Codified Law Chapter 3-12A governs the South Dakota Retirement System (SDRS). This chapter, along with related administrative rules, outlines the powers and duties of the SDRS Board of Trustees, including their responsibility to ensure the fiscal soundness of the system. Specifically, SDCL § 3-12A-10 grants the Board the authority to adopt actuarial assumptions and to make recommendations for contribution rates to the Legislature. SDCL § 3-12A-11 mandates the periodic valuation of the system’s assets and liabilities. While the Board has significant operational authority, the ultimate responsibility for legislative changes, such as adjusting benefit formulas or contribution levels, rests with the South Dakota Legislature. Therefore, the most appropriate and legally sound approach for a substantial unfunded liability would involve a collaborative effort between the SDRS Board, who would identify the need and propose solutions based on actuarial valuations, and the Legislature, who would enact the necessary statutory changes. Options involving unilateral action by the Board to reduce benefits without legislative authority, or solely relying on market performance without addressing the underlying actuarial deficit, would be insufficient or legally questionable. Similarly, a focus solely on increasing employee contributions without legislative approval would bypass the established process for system funding adjustments. The legal framework emphasizes a shared responsibility, with the Board providing the actuarial basis and recommendations, and the Legislature providing the statutory authority for funding and benefit adjustments.

The scenario describes a situation involving the South Dakota Retirement System (SDRS) and the application of its rules concerning the distribution of benefits upon the death of a member. The core issue is determining the appropriate recipient of accumulated contributions and any accrued benefits when a member dies without a designated beneficiary or with a beneficiary who is deceased. South Dakota Codified Law § 3-12-110 outlines the procedures for benefit distribution in such circumstances. Specifically, if a member dies before retirement and has not designated a beneficiary, or if the designated beneficiary is also deceased, the accumulated contributions are paid to the member’s estate. This payment to the estate is a statutory default mechanism to ensure that the member’s financial interests are handled according to their overall estate plan or through intestacy laws if no will exists. The law prioritizes direct beneficiaries and then the legal heirs or the estate itself, reflecting a hierarchical approach to benefit disbursement that aligns with general probate and inheritance principles in South Dakota. Therefore, the accumulated contributions would be disbursed to the estate of the deceased member, as no valid beneficiary designation is in place.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules that dictate how pension benefits are administered. When a member of the South Dakota state government workforce, such as an employee of the Department of Transportation in Pierre, retires, the calculation of their pension benefit involves several factors. These include the member’s final average compensation, their years of credited service, and a defined benefit multiplier. For service rendered after June 30, 2007, the benefit multiplier for general employees is 2% per year of service. The final average compensation is typically calculated based on the highest consecutive 36 months of compensation during the member’s final years of service. Let’s consider an employee, Ms. Eleanor Vance, who retires with 30 years of credited service, and her final average compensation is \$60,000. Her annual pension benefit would be calculated as the product of the final average compensation, the years of credited service, and the benefit multiplier. Therefore, the calculation is: \$60,000 (Final Average Compensation) \* 30 (Years of Credited Service) \* 0.02 (Benefit Multiplier) = \$36,000 per year. This annual benefit is then typically paid in monthly installments. The underlying statutes that govern these calculations are found within South Dakota Codified Law Chapter 3-12, which outlines the benefits and administration of the retirement system. Understanding the precise definition of “credited service” and how “final average compensation” is determined according to South Dakota law is crucial for accurate benefit calculation. The benefit multiplier can vary based on the member’s class of service and the date of hire, but for general employees after the specified date, the 2% rate is standard.

The South Dakota Public Employees Retirement System (SDPERS) governs the retirement benefits for state employees. When a member of the South Dakota retirement system terminates employment before meeting the minimum age and service requirements for retirement, their contributions are generally subject to forfeiture if not withdrawn. However, South Dakota Codified Law (SDCL) Chapter 3-12, specifically concerning the Public Employees Retirement System, outlines the conditions under which these contributions can be withdrawn. SDCL § 3-12-48 details the process for a member who is not entitled to a retirement allowance to receive a refund of their accumulated contributions. This refund includes the member’s contributions and any accumulated interest. The law specifies that if a member is not entitled to a retirement allowance and terminates service, they may elect to receive a refund of their accumulated contributions, less any employer contributions that may have been made on their behalf and any applicable deductions or fees as prescribed by the system’s rules. The critical aspect here is that the refund is of the member’s accumulated contributions, which are those amounts directly paid by the employee into the system, plus any interest earned on those contributions. Employer contributions, if any, are not typically refunded to the employee upon termination before vesting. Therefore, the refund consists solely of the member’s own contributions and the associated interest.

South Dakota Codified Law § 3-12-123 addresses the disposition of retirement benefits upon the death of a member of the South Dakota Retirement System (SDRS). Specifically, it outlines the conditions under which a surviving spouse may elect to receive a life annuity benefit. The law requires that the surviving spouse must have been married to the deceased member for at least one year immediately preceding the member’s death. Furthermore, the member must have been an active contributing member of the SDRS at the time of their death, and the member must have elected a retirement option that provides for a continuing benefit to a beneficiary. If these conditions are met, the surviving spouse is eligible to receive a benefit equivalent to the retirement option the member had selected, typically a life annuity. The law also specifies that if the surviving spouse is the sole beneficiary and the member had not elected a specific retirement option that provided for a continuing benefit, the surviving spouse would receive a lump sum refund of the member’s accumulated contributions, as per SDRS administrative rules which complement the statutory provisions. The critical element for the annuity election is the duration of the marriage and the member’s active status and elected retirement option.

The scenario describes a situation involving the South Dakota Retirement System (SDRS) and the potential for a member to receive a refund of their contributions. South Dakota Codified Law (SDCL) Chapter 3-12 governs the SDRS. Specifically, SDCL 3-12-48 addresses the conditions under which a member is entitled to a refund of their accumulated contributions upon termination of employment. This statute outlines that a member who leaves covered employment and is not eligible for a retirement benefit is entitled to a refund of their accumulated contributions, including any mandatory contributions and voluntary contributions made to the system. The law also specifies that interest is credited to these contributions up to the date of termination. Therefore, when Ms. Gable ceases her employment with the state of South Dakota and is not yet eligible for retirement benefits, she is entitled to a refund of all her accumulated contributions, which would encompass both her mandatory contributions and any voluntary contributions she may have made to the SDRS. The SDRS rules and regulations, as well as the statutory framework, dictate that these contributions are to be refunded with credited interest.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules. When a participating employer in South Dakota transitions from a defined benefit pension plan to a defined contribution plan, or ceases to participate in SDPERS for its employees, specific procedures must be followed to address the accrued benefits of its members. South Dakota Codified Law (SDCL) Chapter 35-12 outlines the framework for SDPERS, including provisions for the termination of participation and the handling of assets. SDCL § 35-12-42.1 specifically addresses the disposition of accumulated contributions and prior service credits upon termination of a political subdivision’s participation. This statute dictates that upon such termination, the assets attributable to the members of that political subdivision are to be transferred to the South Dakota Retirement System’s general fund, and members are entitled to receive their accumulated contributions plus any interest earned. However, it does not mandate a direct transfer of these assets to a successor defined contribution plan sponsored by the former employer. Instead, the statute provides for the distribution of these benefits according to the rules of SDPERS, which typically involves either a lump-sum payout of accumulated contributions or the preservation of service credits within the SDPERS system if the member remains employed by another participating employer. The law prioritizes the security and proper administration of retirement benefits within the established SDPERS framework. The specific scenario described involves a cessation of participation by a municipal employer, meaning the employer is no longer contributing to SDPERS for its employees. The law requires that the assets held by SDPERS for the employees of that municipality be handled in accordance with the statutes. SDCL § 35-12-42.1 is the governing provision here. It states that upon termination of participation, the political subdivision shall be entitled to a distribution of the assets of the retirement fund attributable to the members of that political subdivision, subject to the rights of the members to their accumulated contributions and prior service credits. However, the law does not permit a direct transfer of these accumulated assets to a new, non-SDPERS sponsored defined contribution plan established by the municipality. The benefits accrued under SDPERS must be managed and distributed according to SDPERS’ own rules and the governing statutes, which typically means members receive their vested account balances, or can elect to roll them over to an IRA or another qualified plan if permitted by SDPERS’ regulations. The statute does not grant the municipality the authority to dictate the disposition of these specific assets to a plan it unilaterally establishes post-termination.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules. When a member separates from service and is vested, they have options regarding their retirement benefits. The key statutes governing these benefits are found within South Dakota Codified Law (SDCL) Chapter 3-12. Specifically, SDCL § 3-12-47 outlines the provisions for receiving benefits upon termination of service for a vested member. This section details that a member who has attained at least five years of credited service and has attained age 55, or has at least thirty years of credited service regardless of age, may elect to receive a retirement benefit. The benefit is calculated based on the member’s final average salary and credited service. The choice to defer benefits is a crucial decision for vested members. SDCL § 3-12-47(2) explicitly states that a member may elect to receive the retirement benefit at any time after becoming eligible for a retirement benefit, which includes the option to defer receipt. This deferral does not alter the fundamental eligibility criteria but rather postpones the commencement of payments. The benefit amount itself is determined at the time of separation from service and is not subject to change due to the deferral period, assuming no other statutory adjustments apply. Therefore, the election to defer benefits does not require a new determination of final average salary or credited service at the time of commencement, as these are fixed at the point of separation for a vested member choosing to defer.

The scenario presented involves a South Dakota public employee’s pension plan that was established prior to the enactment of South Dakota Codified Law (SDCL) Chapter 3-13. This chapter, enacted in 1974, governs the South Dakota Retirement System (SDRS). Prior to this comprehensive legislation, various pension arrangements for state employees existed, often managed at the departmental or agency level, with differing contribution rates, benefit formulas, and vesting schedules. The core principle at play here is the protection of accrued benefits and vested rights, which are generally considered contractual in nature and protected by both state and federal law, including the Contracts Clause of the U.S. Constitution and potentially ERISA if the plan were to be considered a non-governmental plan, though public employee plans are typically exempt from ERISA’s fiduciary and reporting requirements. However, the principle of protecting vested rights remains paramount. When a public entity like South Dakota modifies its pension system, it must generally ensure that participants who have already met the requirements for a benefit have that benefit protected. For those not yet vested, or for future accruals, modifications are permissible, provided they are reasonable and do not impair the contractual rights of existing participants. The question asks about the legal standing of benefits accrued by an employee who was a member of a pre-SDRS pension system. South Dakota law and judicial precedent generally uphold the sanctity of earned pension benefits. Therefore, benefits accrued by an employee under a pension system established and operating before the implementation of SDCL Chapter 3-13, and which have vested according to the terms of that pre-existing system, are protected from impairment by subsequent legislative changes to the pension framework. This means that the employee retains the right to those accrued benefits as if the new system had never been implemented for those specific accrued amounts. The question is not about future accruals or the transition to SDRS, but specifically about benefits already earned and vested under the prior system.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes that dictate the procedures for handling disability retirement applications. Under SDCL Chapter 3-12, an employee seeking disability retirement must submit an application that includes a medical certification from a physician. This certification must attest to the employee’s inability to perform their job duties due to a medical condition. The system then reviews this application and medical evidence. If the medical evidence is deemed insufficient or if further clarification is needed, the board of trustees, or a designated medical advisor, has the authority to request additional medical examinations or information from the applicant. This process ensures that disability retirements are granted only when the medical criteria established by law and the retirement system are met. The law does not mandate an automatic approval upon submission of a single physician’s statement if the board has reasonable grounds to question the sufficiency of the evidence. Therefore, the ability to request further medical evaluations is a crucial aspect of due diligence for the retirement system.

The scenario describes a situation involving the South Dakota Retirement System (SDRS) and a public employee who has elected to defer a portion of their salary into a retirement annuity. The question pertains to the tax treatment of these deferred contributions under South Dakota law. South Dakota, unlike many other states, does not have a state income tax. Therefore, the taxability of retirement contributions is primarily governed by federal tax law, specifically the Internal Revenue Code (IRC). Contributions made to a qualified retirement plan, such as those typically offered by state entities under SDRS, are generally considered pre-tax contributions. This means they are excluded from current gross income for federal income tax purposes in the year they are contributed. The deferred amounts, along with any earnings on them, are then taxed as ordinary income when distributed during retirement. South Dakota’s lack of a state income tax means that there is no state-level income tax to consider on these deferred amounts. Consequently, the deferred salary is not subject to South Dakota income tax in the year of deferral.

The scenario involves a South Dakota public employee participating in a defined benefit pension plan. The question probes the understanding of how certain types of compensation might be included or excluded when calculating the final average salary, which is a critical component for determining pension benefits. South Dakota Codified Law (SDCL) Chapter 3-12, specifically pertaining to the South Dakota Retirement System (SDRS), outlines the rules for calculating final average salary. Generally, this calculation is based on the employee’s highest consecutive years of compensation. However, certain forms of compensation, such as one-time bonuses or payments for unused sick leave upon termination, are often excluded to prevent artificial inflation of the average salary. The purpose of this exclusion is to ensure that pension benefits are based on consistent, regular earnings rather than extraordinary payouts. Therefore, understanding the specific definitions of “compensation” as used in SDRS regulations is paramount. The law typically defines compensation as regular salary or wages earned for services rendered, excluding lump-sum payments for accrued vacation, sick leave, or severance pay unless specifically mandated otherwise by statute or plan rules. The calculation for final average salary in South Dakota typically uses the highest 36 consecutive months of compensation. If a lump-sum payment for unused sick leave upon retirement is considered compensation, it would be included in the calculation of the final average salary, thereby increasing the pension benefit. However, SDRS rules, as per SDCL 3-12, generally exclude such terminal leave payouts from the definition of compensation for pension calculation purposes, unless the payment represents wages earned for services already rendered and is not a severance or termination benefit. Given the typical exclusion of terminal leave payouts in South Dakota’s public pension system, the final average salary would not be inflated by this payment.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes that define eligibility and benefit calculations. For a member to be eligible for a disability retirement benefit, they must have at least five years of credited service. The disability must be determined to be permanent and total, meaning the member is unable to engage in any gainful occupation or employment. The benefit calculation for disability retirement typically involves a percentage of the member’s final average salary, determined by their years of credited service and the plan’s provisions. In this scenario, while Ms. Albright has accumulated 12 years of credited service, the critical factor for disability retirement eligibility is the permanency and totality of her condition, as determined by the system’s medical review process. Without this medical determination confirming permanent and total disability, she cannot qualify for disability retirement, regardless of her service years. The question tests the understanding of the dual requirements for disability retirement: sufficient service credit and a medically certified permanent and total disability. The other options present scenarios that do not meet the statutory requirements for disability retirement under SDPERS. Option b is incorrect because a temporary condition, even if it prevents current work, does not meet the permanent disability standard. Option c is incorrect because while age and service are factors in regular retirement, they do not, on their own, qualify for disability retirement without the medical component. Option d is incorrect because voluntary separation from employment does not, by itself, trigger disability retirement benefits; the disability must be the primary reason for the inability to work.

The South Dakota Public Employees Retirement System (SDPERS) governs retirement benefits for state employees. A key aspect of its administration involves the treatment of service credit. Service credit is generally earned for periods of active employment for which contributions are made to the system. However, there are specific provisions for purchasing or crediting certain periods that are not directly tied to active employment. For instance, South Dakota Codified Law (SDCL) Chapter 3-12 addresses various aspects of public employee retirement, including provisions for purchasing service credit. Under SDCL § 3-12-46, members may be allowed to purchase credit for periods of military service, provided certain conditions are met, such as discharge under honorable conditions and subsequent return to public employment within a specified timeframe. The calculation for the cost of purchasing such service credit typically involves actuarial assumptions and the member’s salary during the period being purchased, or their current salary, depending on the specific statute and plan provisions. The law aims to allow individuals to enhance their retirement benefits by accounting for significant periods of public service or other qualifying service, thereby promoting financial security for public servants. The cost is generally determined by actuarial methods to ensure the system remains financially sound, balancing the benefit of added service credit with the financial impact on the pension fund. The underlying principle is that the member should contribute the actuarial cost of the benefit, which often means contributing both the member’s and the employer’s share of the contributions plus interest.

The South Dakota Public Employees Retirement System (SDPERS) administers retirement benefits for state employees. The calculation of a member’s final average salary is a critical component in determining the pension amount. Final average salary is generally calculated as the average of the member’s highest consecutive months of compensation, typically 36 months, within the last 10 years of credited service. This average is then multiplied by a service factor, which is determined by the member’s years of credited service and their age at retirement, to arrive at the annual pension benefit. For instance, if a member retires with 30 years of credited service and their final average salary over the highest 36 consecutive months is \$60,000, and their applicable service factor is 2%, the annual pension would be calculated as \$60,000 \* (30 years \* 2%) = \$36,000. This calculation is governed by South Dakota Codified Law Chapter 3-12. Understanding the precise definition of compensation and the rules for determining the highest consecutive months is crucial for accurate benefit projection and administration. The law specifies what types of compensation are included in this calculation, generally focusing on base salary and regularly paid overtime, while excluding one-time bonuses, expense reimbursements, or severance pay that are not part of the regular compensation structure. The intent is to base the pension on consistent, earned income.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules. When a participating employer, such as a municipality or a state agency, decides to terminate its participation in the SDPERS system, or if the system itself undergoes significant changes that affect its participants, there are established procedures and considerations. One critical aspect is the handling of accumulated contributions and any potential benefits. South Dakota Codified Law (SDCL) Chapter 3-12 outlines the framework for SDPERS. Specifically, SDCL 3-12-113 addresses the disposition of accumulated contributions upon termination of participation by an employer. This statute generally provides that upon termination of an employer’s participation, the accumulated contributions of its members are to be returned to them. However, the statute also allows for the transfer of assets to a successor defined contribution plan or other arrangements as agreed upon by the board of trustees and the terminating employer, provided it meets certain federal and state requirements to preserve the tax-qualified status of the retirement plan. The question asks about the disposition of accumulated contributions for members of a South Dakota municipal police department that ceases to participate in SDPERS. Based on SDCL 3-12-113, the primary mechanism for members is the return of their accumulated contributions. This return is typically a direct refund of the member’s own contributions plus any accumulated interest earned thereon, as determined by SDPERS’ actuarial assumptions and policies. The law prioritizes ensuring members receive at least the value of their own contributions. Other options, such as the automatic conversion to a defined benefit plan without member consent or the forfeiture of all contributions, are not consistent with the statutory provisions designed to protect members’ vested interests upon employer withdrawal from the system. The possibility of transferring assets to a successor plan exists but is contingent on specific agreements and compliance with regulations, and the most direct and guaranteed outcome for members, absent such a specific agreement, is the refund of their contributions.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes that dictate its operational framework and the rights and responsibilities of its members and participating employers. When a participating employer withdraws from SDPERS, or if a plan is terminated or substantially altered, specific provisions within South Dakota Codified Law (SDCL) Chapter 3-12A outline the procedures for the disposition of accumulated contributions and benefits. SDCL 3-12A-127 addresses the distribution of assets upon termination or withdrawal. This statute generally mandates that upon termination of a plan or withdrawal of a participating employer, all assets in the retirement system shall be used to pay benefits to members and beneficiaries in accordance with the terms of the plan and the applicable statutes. Any remaining assets after all liabilities for benefits have been satisfied are to be distributed in accordance with the plan’s provisions, but crucially, these distributions cannot be made in a way that would violate the non-reversionary principle for defined benefit plans, meaning surplus cannot revert to the employer. The law emphasizes that the primary purpose of the system is to provide retirement benefits to its members. Therefore, any surplus remaining after all accrued benefit obligations are met must be retained within the system or distributed in a manner that continues to serve the retirement security of the members, rather than being returned to the employer or its general fund. This principle is a cornerstone of public pension law, designed to protect the retirement security of public employees.

The South Dakota Public Employees Retirement System (SDPERS) is governed by specific statutes and administrative rules that dictate how benefits are calculated and administered. For a member retiring with 25 years of service credit and a final average salary of \$75,000, the pension benefit calculation involves multiplying these factors by a service annuity factor. The service annuity factor is determined by the member’s age at retirement and the number of years of service. For a member retiring at age 60 with 25 years of service, the applicable service annuity factor is 2.2% per year of service. Therefore, the annual pension benefit is calculated as: \(2.2\% \times 25 \text{ years} \times \$75,000\). This translates to \(0.022 \times 25 \times \$75,000 = 0.55 \times \$75,000 = \$41,250\). This calculation is based on the standard formula for calculating a defined benefit pension under South Dakota law for members of the public employees’ retirement system. The final average salary is typically the average of the highest consecutive 36 months of compensation. The service credit represents the total years of creditable service earned by the member. The annuity factor is a multiplier that increases with service and can be affected by early retirement factors if the member retires before the normal retirement age. In this scenario, retirement at age 60 with 25 years of service is generally considered within the normal retirement parameters for many public pension systems, including those in South Dakota, thus using the standard annuity factor.

The scenario involves a defined benefit pension plan sponsored by a South Dakota municipal employer. The question pertains to the proper handling of a participant’s benefit calculation upon their voluntary separation from service before meeting the normal retirement age but after completing the minimum vesting period. South Dakota Codified Law (SDCL) Chapter 3-12, specifically concerning public employee retirement systems, outlines the procedures for benefit calculations upon separation. For a participant who has vested but has not reached normal retirement age, the law generally permits several options. One common option is to defer the commencement of benefits until normal retirement age, at which point the benefit is calculated based on the participant’s final average compensation and credited service at the time of separation, with no further accruals. Another option, often available, is to elect a reduced benefit commencing at an earlier age, typically between the age of separation and normal retirement age. The reduction is actuarially determined to account for the longer payout period. The specific reduction factor is crucial. Assuming a participant separated at age 55 with 20 years of credited service, and the plan’s normal retirement age is 65, with an assumed actuarial reduction factor of 5% per year for early commencement before normal retirement age. If the participant elects to receive benefits immediately at age 55, they would be electing to receive benefits 10 years prior to normal retirement age. The benefit would be calculated based on their accrued benefit at separation, reduced by the early retirement factor. If the accrued benefit at age 55 was calculated to be $30,000 per year, the reduction would be \(10 \text{ years} \times 5\%/\text{year} = 50\%\). Therefore, the immediate benefit would be $30,000 \times (1 – 0.50) = $15,000 per year. However, the question asks about the benefit if the participant defers commencement until normal retirement age. In this case, the benefit is calculated based on the accrued benefit at the time of separation, which is $30,000 per year, and no actuarial reduction is applied because benefits commence at normal retirement age. The calculation of the accrued benefit itself would involve factors such as final average compensation and the plan’s benefit formula (e.g., a multiplier applied to credited service). For example, if the final average compensation was $60,000 and the benefit formula was 2% per year of service, the annual benefit at separation would be $60,000 \times 2\% \times 20 \text{ years} = $24,000. If the participant defers this to age 65, the benefit remains $24,000 per year, as there are no further accruals or actuarial adjustments for deferral beyond normal retirement age. The crucial point is that deferring to normal retirement age means the benefit is calculated based on the frozen service and compensation at separation, without early retirement reductions.

The scenario involves a South Dakota public employee participating in a defined benefit pension plan. The core issue is the treatment of a previously forfeited service credit upon re-employment with a different South Dakota public employer. South Dakota Codified Law (SDCL) Chapter 3-12, specifically concerning the South Dakota Retirement System (SDRS), outlines the rules for service credit. Generally, when a member terminates employment and withdraws their accumulated contributions, any service credit associated with that period is forfeited. However, SDCL 3-12-47.1 provides a mechanism for members who have previously forfeited service credit to repurchase that service if they are again employed by a participating employer and become an active member of SDRS. The repurchase cost is typically actuarially determined to represent the present value of the future benefit attributable to that service, adjusted for any previously refunded contributions. In this case, the employee was a member, terminated, withdrew contributions (forfeiting service), and is now re-employed by a different participating employer. To reinstate the forfeited service, the employee must repurchase it. The cost of repurchase is calculated based on the actuarial present value of the benefit that would have been paid for that service, as determined by the SDRS actuary. This calculation involves factors such as the member’s age, final average salary, and the benefit accrual rate for the period of forfeited service. The SDRS Board of Trustees approves the actuarial assumptions and methodologies used for these calculations. Therefore, the employee must repurchase the forfeited service credit, and the cost is determined by the SDRS actuary based on actuarial principles.