Valuation of purchased prior service credit--Installment payments--Death of member--Adjustment when installments not paid.

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3-12C-517. Valuation of purchased prior service credit--Installment payments--Death of member--Adjustment when installments not paid.

Payment of a deposit with the system for credited service pursuant to §§3-12C-504 to 3-12C-514, inclusive, shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic, level installments over a period of up to ten years, the value of which, when discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment payments, the surviving spouse may complete the payments due the system, but, unless the payments are being made by a participating unit, the amount shall be paid in full within ninety days of the member's death or retirement. If the periodic payments are not completed or paid when due, the executive director may make an appropriate adjustment to the credited service, benefits payable under this chapter, or schedule of payments to allow for the default. Any member participating in installment payments pursuant to this section before July 1, 1989, shall have the balance due on July 1, 1989, recalculated pursuant to §§3-12C-504 and 3-12C-509 and shall have the installment payments due after June 30, 1989, recalculated accordingly.

Source: SL 1974, ch 35, §43; SL 1977, ch 28, §9; SL 1980, ch 31, §6; SL 1989, ch 38, §18; SL 1996, ch 30, §4; SL 2008, ch 20, §14; SL 2016, ch 31, §18; SDCL §3-12-87; SL 2019, ch 22, §1; SL 2020, ch 12, § 12.


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