What SDRS pays your family if you die first

• If you die while working with at least three years of service, your children under 19 share a family benefit equal to the greater of 25% of FAC or your unreduced accrued benefit. Your spouse later gets 60% of that (with COLAs) from 65 (Foundation) or 67 (Generational), or as early as 55 / 57 reduced 5% a year.Foundation Handbook (July 2024), pp. 15-16; Generational Handbook (July 2024), pp. 14-15
• To qualify for a surviving spouse benefit, your spouse must have been married to you before your retirement date and for at least 12 months before your death.Foundation Handbook (July 2024), p. 16

After you retire

Foundation members. If you die after retirement, your eligible spouse gets 60% of the benefit being paid to you, for life, with COLAs. The spouse must have been married to you before your retirement date and for at least 12 months before your death. Foundation Handbook (July 2024), p. 16, If you die after retirement; SDCL 3-12C-1114

Generational members. Your spouse gets a lifetime benefit only if you chose a 60% or 100% joint & survivor benefit at retirement. Payment options. Generational Handbook (July 2024), p. 15, If you die after retirement; SDCL 3-12C-1208, 3-12C-1209, 3-12C-1210

Accumulated contributions are a minimum benefit: if you (and a surviving spouse) die before they are paid out, the rest goes to your beneficiary or estate. Foundation Handbook (July 2024), pp. 8, 16; Generational Handbook (July 2024), p. 15

Before you retire

If you have at least three years of contributory service (or die on the job) and die while contributing, before normal retirement age, dependent children under 19 share a family benefit equal to the greater of 25% of FAC or your unreduced accrued benefit. Foundation Handbook (July 2024), p. 15, Survivor Benefits; Generational Handbook (July 2024), p. 14; SDCL 3-12C-907

The surviving spouse gets 60% of the family benefit when it ended, or if none was paid 60% of the greater of 25% of FAC or your unreduced accrued benefit, increased by COLAs, starting at 65 (Foundation) or 67 (Generational), or as early as 55 / 57 reduced 5% a year (prorated by full month). Foundation Handbook (July 2024), pp. 15-16; Generational Handbook (July 2024), p. 15; SDCL 3-12C-1115, 3-12C-1116, 3-12C-1215, 3-12C-1216

Foundation: a member past 65 who had not started benefits leaves the spouse 60% of the benefit the member was eligible for. Generational: 60% of what the member would have received as a 60% joint & survivor retiree on the date of death. SDCL 3-12C-1114; SDCL 3-12C-1214

Spouse must have been married to you before your retirement date and for at least 12 months before your death. Foundation Handbook (July 2024), p. 16; Generational Handbook (July 2024), p. 15

An illustration

A Foundation member dies while working with 12 years (2 before July 2008) and a $50,000 final average compensation. The accrued benefit is $9,450 a year; 25% of final average compensation is $12,500. The family benefit is the greater: $12,500 a year.

If you leave SDRS work before you die, the refund and deferred-benefit rules in leaving teaching apply. How the yearly increase works is in the SDRS COLA.

Disability

Greater of 25% of FAC at disability or your unreduced accrued retirement benefit; lifetime with COLAs (Foundation). Must apply within three years of termination. Foundation Handbook (July 2024), pp. 14-15, Disability Retirement Benefits; Generational Handbook (July 2024), p. 14; SDCL 3-12C-818, 3-12C-819

Generational: the disability benefit becomes a retirement benefit at 67 (or after five years if it started within five years of 67), with a benefit option elected then. SDCL 3-12C-819

Questions