Title 3 — PUBLIC OFFICERS AND EMPLOYEES

Any political subdivision or public corporation may operate a retirement plan created prior to July 1, 1974, unless the retirement plan of the political subdivision or public corporation is accepted in the system created by this chapter. Notwithstanding the provisions of this sec…

No political subdivision or public corporation, including municipalities, counties, and chartered governmental units, may establish any retirement plan unless such political subdivision or public corporation becomes a participating unit of the system created in this chapter. Sour…

Any political subdivision and any public corporation, including municipalities, counties and chartered governmental units in the State of South Dakota, may become a participating unit by a duly passed resolution of its governing body. Any political subdivision not participating i…

If a participating unit and a nonparticipating South Dakota political subdivision or public corporation agree to provide certain public services on a joint basis, they may agree to consider persons employed pursuant to the agreement as if they were solely employees of the partici…

Employees of an eligible political subdivision or public corporation not participating in the systems consolidated into the system created by this chapter, may become a participating unit in the system if the unit commits to deposit an amount equal to the present value of benefit…

The date when the participation of the employees of a participating unit may commence shall be at the beginning of the first month of a calendar quarter. Source: SL 1967, ch 303 , § 10; SDCL § 3-12-37; SL 1968, ch 216 , § 1; SL 1974, ch 35 , § 28; SL 2009, ch 20 , § 1; SDCL § 3-1…

At the end of the ten-year period, no further interest may be credited with respect to contributions and no further investment return may be credited with respect to any variable retirement account. If the member fails to withdraw the member's accumulated contributions within ele…

Acquisition of years of service toward vesting or early retirement granted, pursuant to § 3-12C-310 , ceases upon the member's termination of employment with the private employer, even if the member later returns to employment with the employer. A member in continuing employment …

Each participating unit shall appoint an employee to serve as an authorized agent between the participating unit and the system. Source: SL 2025, ch 27 , § 28.

Each participating unit shall make an additional contribution in the amount of six and two-tenths percent of any foundation member's compensation in each calendar year that exceeds the maximum taxable amount for social security for the calendar year. The additional contribution m…

All employee and employer contributions to the system and the necessary supporting data must be transmitted by the employer at least monthly to the system. If the employer does not have a pay date in the month, no report is required in that month. Each monthly transmission for ea…

If a participating unit has at least one pay date in a month, the participating unit must prepare at least one contribution report for the month. If a participating unit has no pay date in a particular month, no report is required for the month. Each report must be dated no later…

If any participating unit becomes delinquent thirty or more days by failure or refusal to pay any amounts due to the system, the state treasurer shall, upon certification by the executive director of the delinquency, withhold and deduct the amount of the delinquency, penalty, and…

The officers responsible for the personnel records of employees of each participating unit shall file with the Board of Trustees, in such form as the board shall from time to time prescribe, a detailed statement of all service rendered by each eligible employee of the system; and…

Any person or employer who transmits a report of compensation to the system knowing that some or all of the compensation is excluded by § 3-12C-105 , is guilty of a Class 1 misdemeanor. Source: SL 2017, ch 28 , § 5; SDCL § 3-12-47.13 ; SL 2019, ch 22 , § 1.

For any foundation member, "accumulated contributions" means the sum of: (1) All contributions made by the member and any member contributions made by an employer after June 30, 1984, pursuant to § 3-12C-401 ; (2) For a member whose contributory service concluded after June 30, 2…

For any generational member, the term, accumulated contributions, means the sum of: (1) All contributions made by the member; (2) Eighty-five percent of the contributions made by the member's employer if the member has three years or more of contributory service or noncontributor…

After all benefits currently or potentially payable under any provision of this chapter have terminated, if the aggregate benefits paid to a member and the member's surviving spouse and minor children, including any distribution of the member's variable retirement account, are le…

If a designated beneficiary does not survive the member, any lump-sum payment that may be due shall be payable to the member's surviving spouse. If there is no surviving spouse, the payment shall be payable to all of the member's surviving children, irrespective of age, on a shar…

Any period of credited service granted under the rules and regulations adopted by the Board of Trustees must be applied uniformly and consistently to all members. Source: SL 1974, ch 35 , § 45; SDCL § 3-12-89 ; SL 2019, ch 22 , § 1.

For any foundation member, "credited service" means: (1) Years of service, or fractions thereof, for which a member contribution was made to the system; (2) Years of noncontributory service, or fractions thereof, credited before July 1, 1974, previously credited under the provisi…

For any generational member, "credited service" means the sum of the following: (1) Years of service, or fractions thereof, for which a member contribution was made to the system; (2) Any period of authorized leave of absence or sick leave with pay, for which a deduction for any …

A current contributing member of the system may receive credited service by election to make, or have made on the member's behalf, contributions, based on the higher of the member's current compensation, or the member's final compensation calculated as if the member retired on th…

Any increase in a retired member's benefit as a result of credited service related to years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement syst…

Any member who, pursuant to the provisions of § 3-12C-504 , has purchased a portion or all of the member's noncontributory service earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because …

Source: SL 1996, ch 30 , § 2; SDCL § 3-12-83.1; SL 2019, ch 22 , § 1; SL 2020, ch 12 , § 9.

Source: SL 1996, ch 30 , § 3; SL 2008, ch 20 , § 11; SL 2013, ch 20 , § 7; SDCL § 3-12-83.2; SL 2019, ch 22 , § 1; SL 2020, ch 12 , § 10.

The amount due may be paid by periodic level installments over a period of up to ten years, the value of which, if discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment pa…

A contributing member may acquire credited service by utilizing a trustee to trustee transfer of funds, excluding any after tax employee contributions, from a member's individual retirement plan that meets the requirements of sections 403(b) or 457 of the Internal Revenue Code to…

Notwithstanding the restrictions contained in §§ 3-12C-504 and 3-12C-509 , a current contributing member with over five years of contributory service in the system may purchase nonqualified permissive service credit as defined in and pursuant to the provisions of § 415(n) of the …

If a contributing member was mobilized into federal military service pursuant to the provisions of United States Code Title 10 after February 1, 2002, but prior to September 30, 2004, the member, after returning to active membership in the system, may acquire credited service at …

A member taking a leave of absence authorized by the member's employer may receive credited service during the leave if employee and employer contributions are made to the system during the leave by or on behalf of the employee. The contributions shall be at the rates in effect d…

A member must receive credited service for leave of absence due to qualified military service, authorized in advance by the employer, without contribution by the employee or employer, if the member returns to the employ of a participating unit within one year from the member's da…

If a member on leave of absence performing initial qualified military service dies, the member shall be considered to have returned from the leave of absence on the day before the member's death and become a contributing member for purposes of survivor benefits, if the member has…

To the extent required by § 414(u)(12) of the Internal Revenue Code, a member receiving differential wage payments, as defined under § 3401(h)(2) of the Internal Revenue Code, from a member's employer shall be treated as employed by that employer, and the differential wage paymen…

Payment of a deposit with the system for credited service pursuant to §§ 3-12C-504 to 3-12C-514 , inclusive, shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic, level installments o…

A current contributing Class B public safety member may convert the following credited services as a Class A member with benefits, as provided for in § 3-12C-1106 , to a credited service as a Class B public safety member with benefits, as provided for in § 3-12C-1107 : (1) Credit…

If a current contributing Class B public safety member of this system has equivalent public service for which the member is not entitled to retirement benefits from another public retirement system, the member may elect to deposit or have deposited on the member's behalf an amoun…

If a nonvested member who has terminated employment and has left the member's accumulated contributions in the system returns to employment with a participating unit, the system shall credit the member's prior service time toward the total length of service necessary for the memb…

A terminated member who has a vested right in the system may leave the member's accumulated contributions on deposit with the system and receive a retirement benefit commencing at the member's retirement. In calculating such benefit, the member's final average compensation shall …

A member who elects to withdraw accumulated contributions, as provided for in § 3-12C-602 , or a member's surviving spouse or nonspouse beneficiary who receives a lump-sum payment pursuant to § 3-12C-409 , may receive the distribution directly. An eligible rollover distribution m…

A member of the system who is not vested may leave the member's accumulated contributions in the system upon termination of employment for a period not to exceed ten years from the date of termination. However, no additional contributions may be made to the system by the member o…

If any payment from the system remains uncollected, the payment shall revert to the system and all rights to the payment shall terminate, if the system has made reasonable efforts to notify the person entitled to the payment of the person's right to the payment and the effect of …

Any rights which have terminated pursuant to the provisions of § 3-12C-604 or 3-12C-605 may be reinstated upon presentation to the executive director of a request for reinstatement of those rights and competent evidence of the rights. Source: SL 1984, ch 24 , § 4; SL 2016, ch 31 …

No member or former member of the system who has withdrawn contributions from the system before July 1, 1998, may receive any additional refund pursuant to this chapter. Source: SL 1998, ch 15 , § 31; SDCL § 3-12-77.4 ; SL 2019, ch 22 , §§ 21, 45.

Notwithstanding any provision of this chapter to the contrary, whenever a member withdraws accumulated contributions under § 3-12C-602 and becomes a full-time employee within twelve months after withdrawal, contributions must have been made to the system for a period of twelve co…

A member in the system may claim the benefits provided for in this chapter only in the form of a monthly benefit payment and only after such time as these benefits are payable. Unless otherwise specifically provided, no member or a former member of the system may receive a lump-s…

For purposes of determining eligibility for, and the amount of, any benefit payable pursuant to this chapter, the first day of the month in which an individual's birthday falls is considered the individual's birthday. Source: SL 2016, ch 32 , § 55; SDCL § 3-12-47.9; SL 2019, ch 2…

The COLA payable must be applied annually to all benefits except those based on the member's accumulated contributions, variable retirement account, or contribution credit. The COLA must be eliminated for any period of time that a retired member reenters covered employment in the…

The COLA payable is the baseline COLA or the restricted COLA, as applicable. The baseline COLA is equal to the increase in the consumer price index, but no less than zero percent and no greater than three and one-half percent. The restricted COLA is equal to the increase in the c…