S.D. Admin. R. 20:16:18:17

Current through Register Vol. 50, page 162, June 24, 2024

Section 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.

S.D. Admin. R. 20:16:18:17

28 SDR 109, effective 2/11/2002; 36 SDR 207, effective 7/1/2010; 40 SDR 197, effective 5/27/2014; 45 SDR 142, effective 7/1/2019

General Authority: SDCL 3-12C-1647.

Law Implemented: SDCL 3-12C-1643, 3-12C-1644.