S.D. Admin. R. 62:01:07:12.01

Current through Register Vol. 51, page 67, December 16, 2024

Section 62:01:07:12.01 - Repayment of overpayments by person other than member Options - Interest - Delayed repayment - Failure to select an option - Required notice and presumption

Any person other than a member who is required to repay an overpayment of benefits may choose one of the following repayment methods:

(1) Immediate repayment in a lump-sum from other funds;

(2) Repayment by monthly installments over a period not to exceed three years, including interest at the system's assumed rate of return;

(3) Repayment by monthly benefit reductions over a period not to exceed three years, including interest at the system's assumed rate of return; or

(4) Repayment by an actuarial equivalent reduction in monthly benefits that shall continue as long as the benefit is paid.

If the person required to repay an overpayment is receiving a benefit from the system and does not choose a repayment option within two months after being given notice of the overpayment, the person is deemed to have chosen to make repayment by an actuarial equivalent reduction in monthly benefits. If repayment is pursuant to an actuarial equivalent reduction by either the person's choice or the person's failure to choose a repayment option, system staff shall inform the person that the reduction is unlikely to result in repayment of the exact amount of the overpayment plus interest if appropriate, and the person is presumed to so understand.

If repayment is delayed for more than three months, interest on the overpayment amount shall accrue during the period of delay at the system's assumed rate of return. If any overpayment is due to a system error, the executive director may absolve any interest accrual.

S.D. Admin. R. 62:01:07:12.01

45 SDR 045, effective 10/8/2018; 45 SDR 142, effective 7/1/2019

General Authority: SDCL 3-12C-211, 3-12C-214.

Law Implemented: SDCL 3-12C-214.