Title 3, PUBLIC OFFICERS AND EMPLOYEES

Terms used in this chapter mean: (1) "Actuarial accrued liability," the present value of all benefits less the present value of future normal cost contributions; (2) "Actuarial experience analysis," a periodic report that reviews basic experience data and furnishes actuarial anal…

For purposes of this chapter, "actuarial equivalent" means a benefit of equal value, computed on the basis of the interest rate, mortality, and baseline COLA assumptions adopted by the board for purposes of the actuarial valuation. If the board adopts a select and ultimate rate o…

For purposes of administering benefits pursuant to this chapter, the term, child, means an unmarried dependent child of the member, who has not passed the child's nineteenth birthday and each unmarried dependent child, who is totally and permanently disabled, either physically or…

For purposes of this chapter, "COLA" or "cost of living adjustment" means the annual increase, if any, as determined by § 3-12C-704 , in the amount of the benefit provided on July first, compounded annually. No COLA may be provided unless the member has received benefit payments …

For purposes of this chapter, "compensation" means gross wages paid to a member by the employer for credited service rendered during the period for which the payment was earned. Compensation includes: (a) Any amount reported as wages, tips, and other compensation on the member's …

For purposes of this chapter, "contributing member" means any member for whom the system receives an employer contribution report. The employer contribution report must state any contributions made for the member by the employer and employee. Source: SL 2016, ch 32 , § 53; SDCL §…

A member's period of active membership in the system is established by the date of the employer contribution report to the system, which must include the member's initial employee and employer contributions. A member's active membership is terminated when the system receives noti…

For purposes of this chapter, "disability" or "disabled" means any medically determinable physical or mental impairment that prevents a member from performing the member's usual duties for the member's employer, even with accommodations, or performing the duties of a comparable l…

For purposes of this chapter, "effective rate of interest" means the interest at an annually compounded rate to be established by the board for each fiscal year. The rate may be no greater than ninety percent of the average ninety-one day United States treasury bill rate for the …

For purposes of this chapter, "minimum actuarial requirement to support benefits" means the normal cost and the interest on and amortization of the unfunded actuarial accrued liability over a period not to exceed twenty years, all expressed in terms of a percentage of covered pay…

For purposes of this chapter, "spouse" means an individual who was married to the member at the time of the death of the member and whose marriage was both before the member's retirement and more than twelve months before the death of the member. Source: SL 2019, ch 22 , § 6; SL …

For any foundation member whose contributory service concluded before July 1, 2021, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twelve consecutive calendar quarters during the member's last forty cale…

For any foundation member whose contributory service concluded before July 1, 2020, if the compensation received in the last calendar quarter considered exceeds a set percentage of the amount in the highest previous calendar quarter, or if the average compensation received in the…

For any foundation member whose contributory service concluded after June 30, 2021, and before July 1, 2022, the term, final average compensation, means the highest average annual compensation earned by a member during any period of sixteen consecutive calendar quarters during th…

For purposes of this section, the term, compensation year, means each separate, mutually exclusive period of four consecutive calendar quarters considered in the computation of final average compensation. The earliest compensation year is the earliest four consecutive calendar qu…

For any foundation member, normal retirement age is age sixty-five for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-five for other Class B credited service. Source: SL 2016, ch 32 , § 28; SDCL § 3-12-89.6 ; SL 2…

Upon retirement, a foundation member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter as provided for in § 3-12C-1113 , for Class A credited service, equal to the larger of one and seven-tenths percent of final average compensation for …

Upon retirement, a foundation member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter as provided in § 3-12C-1113 , for Class B credited service other than as a justice, judge, or magistrate judge, equal to two and four-tenths percent o…

Upon retirement, a foundation member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter as provided in § 3-12C-1113 , for the first fifteen years of Class B credited service as a justice, judge, or magistrate judge equal to three and seve…

Each member who retired before July 1, 2008, and each beneficiary of a deceased member who retired prior to July 1, 2008, shall receive a retirement benefit based on the provisions of § 3-12C-1106 , 3-12C-1107 , or 3-12C-1108 as applicable based on the member's final average comp…

For purposes of this chapter, "terminated" means a complete severance of employment from public service of any member by resignation or discharge and involves the following termination proceedings routinely followed by the member's participating unit: (a) Payment to the member fo…

For any foundation member, the term, reduction age, means the age at which the sum of the foundation member's age and credited service equals a number as follows: (1) For Class A credited service, an age not less than fifty-five and at which the sum of the foundation member's age…

Any vested foundation member can retire in the ten years preceding the member's normal retirement age and the retirement benefit shall be reduced by the lesser of the following: (1) One-fourth of one percent for each full month which remains between the date of commencement of pa…

Any foundation member who retires before being eligible for social security retirement benefits may elect to receive initial retirement benefit payments from the system in an amount greater than the standard benefit payments computed on the basis of the member's age and earnings …

A member may not elect to change normal payment of the member's retirement annuity in favor of adjusted payments pursuant to § 3-12C-1112 , or the opposite if more than one monthly retirement annuity payment has been made to the member. If a member who has received one adjusted p…

Unless a foundation member's required beginning date for retirement occurs first, the early or normal retirement benefit of a foundation member is effective in accordance with whichever of the following is last: (1) The first day of the month following the date on which the membe…

Upon the death of any foundation member who has reached normal retirement age or who has retired with a benefit payable from the system, the surviving spouse is eligible to receive a benefit, payable in monthly installments, equal to sixty percent of the retirement benefit that t…

If no family benefit is being paid pursuant to § 3-12C-907 , a surviving spouse of a contributing foundation member who had acquired at least three years of contributory service or noncontributory service or who died while performing usual duties for the employer and who died aft…

A foundation member's spouse who would be eligible to receive a surviving spouse benefit at age sixty-five may elect to start the benefit prior to age sixty-five but no earlier than the date on which the surviving spouse attains the age of fifty-five. The early surviving spouse b…

For purposes of this chapter, "vested" means the right to a retirement benefit from the system, as provided for in this chapter, after three years of contributory service or noncontributory service, even if the member leaves the employment of a participating unit, provided the me…

For purposes of this chapter, "Internal Revenue Code" or "code" means the United States Internal Revenue Code (January 1, 2026). Source: SL 2023, ch 14 , § 2; SL 2024, ch 21 , § 1; SL 2025, ch 28 , § 1; SL 2026, ch 22 , § 1.

For purposes of this chapter, "member information" means any information collected, prepared, or received by the system, relating to a member of the system. The term does not include data in a form that cannot be associated with or otherwise identify, directly or indirectly, a pa…

For any generational member, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twenty consecutive calendar quarters during the member's last forty calendar quarters of membership in the system. For purposes…

For purposes of this section, the term, compensation year, means each separate, mutually exclusive period of four consecutive calendar quarters considered in the computation of final average compensation. The earliest compensation year is the earliest four consecutive calendar qu…

For any generational member, normal retirement age is sixty-seven for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-seven for other Class B credited service. The Legislature may increase the normal retirement age…

Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class A credited service, equal to one and eight-tenths percent of final average compensation for each year of Class A credited service. Source…

Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class B credited service other than as a justice, judge, or magistrate judge, equal to two percent of final average compensation for each year …

Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, equal to three and three hundred thirty-three thousands percent of final average compensation for the first fifteen years of Class B credited servi…

Any vested generational member may elect to start the retirement benefit in the ten years preceding the member's normal retirement age. However, no retirement benefit may be paid unless the member submits a completed retirement application to the system that includes the benefit …

No retirement benefit may be paid unless the system has received a completed application for a retirement benefit, including the benefit option elected. The application must be made to the executive director, on a form approved by the system. If the member is married, the member'…

Any generational member applying for a retirement benefit shall elect one of the following monthly benefit options: (1) A single life benefit that provides a monthly benefit to the member for as long as the member lives and ceases upon the death of the member; (2) A sixty percent…

If more than one monthly retirement benefit payment has been made to the generational member, the benefit election made by a member is irrevocable and surviving spouse benefits, if elected, may only be paid to the person who is the spouse both at the time of the election and at t…

Unless a generational member's required beginning date for retirement occurs first, the retirement benefit of a generational member is effective in accordance with whichever of the following is last: (1) The first day of the month following the date on which the member's contribu…

Any generational member who fails to make a timely application for retirement benefits may receive three months of benefits retroactive from the effective date of the member's retirement benefit. However, no member may receive any retroactive benefits for any period of time befor…

Upon the death of a generational member retiree who elected either a sixty percent or one hundred percent joint and survivor benefit, the surviving spouse is eligible to receive a surviving spouse benefit. The amount of the surviving spouse benefit is based on the election made u…

Upon the death of a generational member who was vested or died while performing usual duties for the employer and who has reached normal retirement age but has not yet begun a retirement benefit, a surviving spouse is eligible to receive a surviving spouse benefit. The surviving …