The system must determine the amount necessary to pay the benefits under § 3-12C-1805 , for each calendar year. The required contribution is the aggregate of the benefits payable under § 3-12C-1805 to all participants for the calendar year and an amount determined to be a necessary and reasonable expense of administering the qualified benefit preservation arrangement. Contributions may not be calculated in a manner designed to pay future benefits under § 3-12C-1805 . Each payment of contributions by an employer that would otherwise be made to the system fund must be reduced by the amount necessary to pay the benefits under § 3-12C-1805 , and the contributions must be deposited in the qualified benefit preservation arrangement trust fund. Any employer contribution otherwise required under the terms of this chapter is divided into the contributions required to pay the benefits under § 3-12C-1805 , and the contributions paid into and accumulated in the system fund to pay the maximum benefits permitted. Any employer contribution to fund the benefits under § 3-12C-1805 may not be credited to or commingled with any contribution paid into and accumulated in the system fund. The amount deducted from an employer contribution and deposited into the qualified benefit preservation arrangement fund does not increase the amount of employer contributions required under the system fund. Any contribution not used to pay the benefits under § 3-12C-1805 for a current calendar year, together with any income accruing to the qualified benefit preservation arrangement fund, is used to pay the administrative expenses of the qualified benefit preservation arrangement for the calendar year. Any contribution not used to pay the benefits under § 3-12C-1805 for the current calendar year that remain after paying administrative expenses is used to fund administrative expenses or benefits of participants in future years. The system must account separately for the amounts determined to be necessary to provide the benefits under § 3-12C-1805 for each participant. The separate accounting does not constitute setting aside the amounts for the benefit of a participant. Benefits under § 3-12C-1805 must be paid from the qualified benefit preservation arrangement fund. Any consultant or outside auditor, attorney, or actuary performing services for the system may also perform services for the qualified benefit preservation arrangement. Any fees attributable to services performed with respect to the qualified benefit preservation arrangement are payable solely from the qualified benefit preservation arrangement fund.
‹ Prev All South Dakota sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.