South Dakota Codified Laws 3-13C-18. Preretirement death benefits–Payment recipient–Conditions–Determination of amount
If a participant dies before retirement benefits start, monthly payments shall be made to the surviving spouse or, if there is no surviving spouse, to the dependent child’s principal support if the following provisions are met:
(1) The participant is survived by a spouse to whom the participant was continuously married throughout the one-year period ending on the date of this death;
Terms Used In South Dakota Codified Laws 3-13C-18
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Children: includes children by birth and by adoption. See South Dakota Codified Laws 2-14-2
- Dependent: A person dependent for support upon another.
(2) The participant is survived by a dependent child on the date of death; and
(3) The participant had not ceased to be an employee, dependent child, or beneficiary.
The amount of payments to the surviving spouse with a dependent child are equal to fifty-five percent of the amount of monthly retirement benefit expected to become payable upon attaining age sixty, assuming the participant’s employment continues, and monthly compensation remains unchanged.
For each dependent child of the participant with a surviving spouse, the amount of payments is equal to the least of: sixty percent of the participant’s average compensation on the date of death, divided by the number of dependent children; seventy-five dollars; or two hundred twenty-five dollars, divided by the number of dependent children.
The payments to a dependent child are in addition to the payments made to the surviving spouse.
For each dependent child of a participant who does not have a spouse on the date of death, the amount of payments is equal to the least of: seventy-five percent of the participant’s average compensation on the date of death, divided by the number of dependent children; ninety dollars; or two hundred seventy dollars, divided by the number of dependent children.
In addition, a single-sum benefit equal to the participant’s required contribution account on the date of death shall be payable to the participant’s beneficiary.
The death benefits shall begin on the first day of the month after the participant dies and shall continue until the later of the date the surviving spouse dies, or the date there no longer is a dependent child.
If the surviving spouse remarries before the attainment of age sixty, no further monthly payments shall be made after the first day of the month immediately preceding the date of the spouse’s remarriage.
Benefits payable to the dependent children of a participant who did not have a spouse on the date of death shall be assumed to continue until the date the youngest dependent child attains age twenty-two.
If the participant is not survived by a spouse, dependent child, or beneficiary, the death benefit shall be the preservation of retirement option death benefit. This death benefit is the death benefit payable to the participant’s beneficiary or contingent participant if the participant’s retirement date had occurred on the date of death. The optional form of distribution elected in accordance with § 3-13C-23 before the participant’s death is the form in effect for determining the death benefit. Any death benefit payable shall be subject to the provisions of § 3-13C-13 .
The distribution of death benefits shall be subject to the provisions of § 3-13C-14 .
Source: SL 2020, ch 13, § 25.