South Dakota § 3-12C-308 - Political subdivision or public corporation joining system--Accrued benefit deposit required--Participation by employees--Deferred payment of deposit--Present value of benefits earned to date defined.

§ 3-12C-308. Political subdivision or public corporation joining system--Accrued benefit deposit required--Participation by employees--Deferred payment of deposit--Present value of benefits earned to date defined.

Employees of an eligible political subdivision or public corporation not participating in the systems consolidated into the system created by this chapter, may become a participating unit in the system if the unit commits to deposit an amount equal to the present value of benefits earned to date, based on the employee's prior service to the unit to be covered by the system. The expense of the actuarial determination of this amount must be borne by the applicant. All eligible employees of an applicant shall participate in the system upon admission. If the unit is unable to deposit this amount in a single sum, the unit must have the option to pay the amount by periodic level installments over a period up to twenty years, the value of which, when discounted for compound interest at the assumed rate of return, is equal to the amount due at the date of participation.

For purposes of this section, "present value of benefits earned to date" means:

(1)    The present value of the benefits currently being paid to retired members, if included, and the retired members' beneficiaries;

(2)    The present value of the benefits payable to terminated members; and

(3)    The actuarial accrued liability of active members, based on the actuarial assumptions and methods used in the actuarial valuation.

Source: SL 1967, ch 303, § 10; SDCL § 3-12-36; SL 1968, ch 216, § 1; SL 1974, ch 35, § 27; SL 2004, ch 42, § 12; SL 2016, ch 31, § 9; SDCL § 3-12-69; SL 2019, ch 22, §§ 43, 45; SL 2025, ch 27, § 25.