3-13C-14 . Vested accrued benefit--Distribution--Small amounts payment.
If the present value of the participant's vested accrued benefit does not exceed five thousand dollars, and the participant has not started retirement benefits with respect to any portion of the vested accrued benefit, the present value of the participant's entire vested accrued benefit shall be distributed as of the earliest of the participant's retirement date or the date of severance from employment for any reason other than death. For purposes of this section, if the present value of the participant's vested accrued benefit is zero, the participant shall be deemed to have received a distribution of the present value. This is a small amounts payment. The small amounts payment is in full settlement of all benefits otherwise payable.
If a participant has a severance from employment for any reason other than death or retirement and does not elect to have a small amounts payment paid directly to an eligible retirement plan specified by the participant in a direct rollover or to receive the distribution directly and the present value of the participant's vested accrued benefit is greater than one thousand dollars, a mandatory distribution will be made in accordance with § 3-13C-12 . If the present value of the participant's vested accrued benefit is one thousand dollars or less, the present value of the participant's entire vested accrued benefit shall be paid directly to the participant.
If the present value of the preretirement spouse and dependent child death benefit or the certain period death benefit as provided in §3-13C-18 does not exceed five thousand dollars on the date of the participant's death, the present value of the preretirement spouse and dependent child death benefit or the certain period death benefit shall be distributed as of the date the participant dies. If the single sum death benefit payable to a beneficiary does not exceed five thousand dollars, on the date of the participant’s death, the death benefit shall be distributed in a single sum as of the date the participant dies. This is a small amounts payment.
A small amounts payment is in full settlement of the death benefit otherwise payable. No other small amounts payments may be made.
Source: SL 2020, ch 13, § 21.
Structure South Dakota Codified Laws
Title 3 - Public Officers and Employees
Chapter 13C - Department Of Labor And Regulation Employee Retirement
Section 3-13C-1 - Definitions.
Section 3-13C-2 - Actuarial equivalent--Distribution expected--Determination of amount.
Section 3-13C-3 - Compensation determined.
Section 3-13C-4 - Credited past service--Determination.
Section 3-13C-5 - Credited service--Determination.
Section 3-13C-6 - Eligible retirement plan--Determination.
Section 3-13C-7 - Eligible rollover distribution.
Section 3-13C-8 - Normal retirement date--Determination.
Section 3-13C-9 - Confidentiality of records--Exceptions.
Section 3-13C-10 - Class D members vested--Contributions not required--Participation ceases.
Section 3-13C-11 - Beneficiaries--Records.
Section 3-13C-12 - Direct rollovers--Election by distributee.
Section 3-13C-13 - Required minimum distributions--General rule.
Section 3-13C-13.1 - Required minimum distributions--Member's death after distributions begun.
Section 3-13C-13.2 - Required minimum distributions--Member's death before distributions begun.
Section 3-13C-13.3 - Required minimum distributions--Incidental benefit rule.
Section 3-13C-13.4 - Required minimum distributions--Reasonable and made in good faith.
Section 3-13C-14 - Vested accrued benefit--Distribution--Small amounts payment.
Section 3-13C-15 - Accrued benefit determined.
Section 3-13C-16 - Amount of benefit at retirement.
Section 3-13C-17 - Benefit limitation.
Section 3-13C-19 - Death benefit after retirement determination--Payment amount determined.
Section 3-13C-20 - Vested benefits--Distribution amount determined.
Section 3-13C-21 - Retirement benefits--Optional forms.