S.D. Codified Laws § 3-12C-1808
The system shall determine the amount necessary to pay the benefits under § 3-12C-1805 for each calendar year. The required contribution will be 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 will be reduced by the amount necessary to pay the benefits under § 3-12C-1805, and these contributions will be deposited in the qualified benefit preservation arrangement trust fund. The employer contributions otherwise required under the terms of this chapter shall be divided into those contributions required to pay the benefits under § 3-12C-1805, and those contributions paid into and accumulated in the system fund to pay the maximum benefits permitted. Under no circumstances may employer contributions to fund the benefits under § 3-12C-1805 be credited to or commingled with contributions paid into and accumulated in the system fund, as otherwise prohibited by §§ 3-12C-219 and 3-12C-1803. The amount deducted from employer contributions and deposited into the qualified benefit preservation arrangement fund does not increase the amount of employer contributions required under the system fund. Any contributions 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, shall be used to pay the administrative expenses of the qualified benefit preservation arrangement for the calendar year. Any contributions not used to pay the benefits under § 3-12C-1805 for the current calendar year that remain after paying administrative expenses shall be used to fund administrative expenses or benefits of participants in future years.
The system shall account separately for the amounts determined to be necessary to provide the benefits under § 3-12C-1805 for each participant. However, this separate accounting does not constitute setting aside these amounts for the benefit of a participant. Benefits under § 3-12C-1805 shall 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.
SDCL 3-12C-1808