S.D. Admin. R. 62:01:08:03
If a member has been credited with less than 10 years of credited service, the maximum annual retirement benefit shall be reduced by multiplying the maximum annual pension by a fraction, the numerator of which is the number of the member's years of credited service and the denominator of which is 10.
The limits in § 62:01:08:01 apply to a straight life annuity with no ancillary benefits and to an annuity that constitutes a qualified joint and survivor annuity, provided payment begins between ages 62 and 65.The limits, however, do not apply to any portion of a benefit resulting from required member contributions made on an after-tax basis. If payment begins before age 62, the limits shall be reduced so that they are actuarially equivalent to such a benefit beginning at age 62. For police or fire fighters who are members of the system, the limit may not be reduced for retirement before age 62, regardless of retirement age, provided that the member has completed at least 15 years of credited service. If a member's benefit is limited by the maximum annual retirement benefit, the member may be eligible for a benefit as determined by SDCL 3-12C-1805. The interest assumption for purposes of determining actuarial equivalency under this section is 5 percent annually and the mortality assumption is the IRS applicable mortality table.
S.D. Admin. R. 62:01:08:03
General Authority: SDCL 3-12C-711.
Law Implemented: SDCL 3-12C-711.