Title 3, PUBLIC OFFICERS AND EMPLOYEES

For purposes of determining the retirement benefits of a foundation member conservation officer for credited service earned before July 1, 1983, the benefits are calculated pursuant to § 3-12C-1106 . For credited service earned after June 30, 1983, the benefits are calculated pur…

To determine the retirement benefits of a conservation officer employed by the Department of Game, Fish and Parks, Division of Custer State Park, and a park ranger, for credited service earned prior to July 1, 1995, the benefits are calculated pursuant to § 3-12C-1106 . For credi…

For purposes of §§ 3-12C-1801 to 3-12C-1817 , inclusive, a participant is a member, retiree, or the surviving spouse of a member or retiree, who is eligible to participate in the qualified benefit preservation arrangement as determined by § 3-12C-1804 . Source: SL 2020, ch 14 , §…

For purposes of §§ 3-12C-1801 to 3-12C-1817 , inclusive, the qualified benefit preservation arrangement is an arrangement under section 415(m) of the Internal Revenue Code and established in § 3-12C-1803 . Source: SL 2020, ch 14 , § 2; SL 2025, ch 27 , § 73.

The qualified benefit preservation arrangement is established and placed under the management of the board. The purpose of the qualified benefit preservation arrangement is solely to provide a portion of the benefit that would otherwise have been payable by the system except for …

Effective as of July 1, 2020, a participant is eligible to participate in the qualified benefit preservation arrangement for any calendar year, or portion of the calendar year, during which the participant is entitled to receive a benefit payment from the system, but the benefit …

A participant shall receive a portion of the participant's benefit that is equal to the difference between the amount of that participant's monthly retirement benefit paid under the system and the amount that would have been payable to the participant from the system in that mont…

After retirement, the monthly retirement benefit that would have been payable to the participant if not for the application of section 415(b) of the Internal Revenue Code will increase with any cost of living adjustment as determined by the system, and the applicable benefit limi…

The qualified benefit preservation arrangement is, and shall remain, unfunded within the meaning of federal tax laws, and the rights, if any, of any participant to any benefit under the qualified benefit preservation arrangement are limited to those specified in this part. Source…

The system must determine the amount necessary to pay the benefits under § 3-12C-1805 , for each calendar year. The required contribution is the aggregate of the benefits payable under § 3-12C-1805 to all participants for the calendar year and an amount determined to be a necessa…

The qualified benefit preservation arrangement trust fund is established as a valid trust under the laws of the state, separate from the system fund, to hold contributions of the employers. Contributions to the qualified benefit preservation arrangement fund shall be held separat…

Any assets held by the qualified benefit preservation arrangement to assist in meeting the employer's obligations under the qualified benefit preservation arrangement, including all employer contributions made under the qualified benefit preservation arrangement, all property and…

The system shall administer the qualified benefit preservation arrangement. The system shall compile and maintain all records necessary for administration. The board has the same rights, duties, and responsibilities respecting the qualified benefit preservation arrangement as it …

The rights of a person to a benefit, and the benefit itself, payable under this part are hereby exempt from any state, county, municipal, or other local tax and may not be subject to execution, garnishment, attachment, operation of bankruptcy or insolvency laws, or any other proc…

In resolving any conflict between provisions of this part, and in resolving any other uncertainty as to the meaning or intention of any provision of the qualified benefit preservation arrangement, the prevailing interpretation shall be the one that causes: (1) The qualified benef…

Neither the establishment or maintenance of the qualified benefit preservation arrangement, nor any amendment to the qualified benefit preservation arrangement, nor any act or omission under the qualified benefit preservation arrangement or resulting from the operation of the qua…

Any benefit payment that should not have been made, according to the terms of the qualified benefit preservation arrangement and the benefits provided under the qualified benefit preservation arrangement, may be recovered as provided in § 3-12C-214 . If in doubt concerning the co…

Any payment to any participant shall, to the extent paid, be in full satisfaction of the participant's claim being paid and may be conditioned on the delivery by the participant of the duly executed receipt and release in a form determined by the system. Source: SL 2020, ch 14 , …

The Legislature reserves the right at any time and, from time to time, to modify or amend, in whole or in part, any or all of the provisions of the qualified benefit preservation arrangement. No member of the system and no beneficiary of a member acquires any vested right to a pa…

The system shall pay all benefits in accordance with a good faith interpretation of the requirements in § 401(a)(9) of the Internal Revenue Code and the regulations in effect under that section, as applicable to a governmental plan within the meaning of section 414(d) of the Inte…

If a member dies after the required distribution of benefits has begun, the remaining portion of the member's interest shall be distributed at least as rapidly as under the same method of distribution before the member's death. Source: SL 2021, ch 28 , § 3.

If a member dies before required distribution of the member's benefits has begun, the member's interest shall be distributed as follows: (1) If the member has a surviving spouse, the surviving spouse shall receive benefits over the life of the surviving spouse beginning as soon a…

The death and disability benefits provided by the system are limited by the incidental benefit rule set forth in § 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation § 1.401-1(b)(1)(i). As a result, the total death or disability benefits payable may not exceed twen…

Notwithstanding the other provisions of §§ 3-12C-1901 to 3-12C-1904 , inclusive, or the provisions of United States Treasury regulations, benefit options may continue so long as the option satisfies § 401(a)(9) of the Internal Revenue Code based on a reasonable and good faith int…

This chapter shall be cited as the South Dakota Retirement Act. Source: SL 1974, ch 35 , § 84; SDCL § 3-12-128 ; SL 2019, ch 22 , § 1.

The system shall be under the Board of Trustees. The Board of Trustees shall be held to the standard of conduct of a fiduciary and shall carry out its functions solely in the interest of the members and benefit recipients and for the exclusive purpose of providing benefits and de…

There is created a governing authority of the system known as the Board of Trustees. Voting representation on the board must be the following: (1) Two state employee members; (2) Two certified school employee members; (3) A participating municipality member; (4) A participating c…

Each group of retirement system members who are vested or are currently contributing or employers as set out in § 3-12C-203 shall elect its own trustee or trustees in a separate election. The board shall promulgate rules, pursuant to chapter 1-26 , to carry out the elections. The…

If any trustee no longer serves in the capacity that qualified the trustee for membership on the board, the trustee is considered to have resigned from the board on June thirtieth of the following calendar year. The vacancy created by the resignation shall be filled through the a…

The executive director must be notified of a vacancy on the board by the vacating trustee, by the trustee's participating unit's governing body, by the trustee's employer, or by any other trustee. Upon the executive director's receipt of notice, the procedure to fill the vacancy …

Each trustee, after being appointed or elected, shall take and file in the Office of the Secretary of State the oath required by § 3-1-5 . Source: SL 1959, ch 84 , § 7; SDC Supp 1960, § 15.3911; SL 1961, ch 255 , § 8; SL 1967, ch 303 , § 3; SDCL §§ 3-12-5, 9-15-8, 13-45-10; SL 19…

Each trustee shall receive per diem compensation and allowable expense reimbursement, pursuant to § 4-7-10.4 . Source: SL 1967, ch 303 , § 3; SDCL § 3-12-6; SL 1968, ch 216 , § 1; SL 1974, ch 35 , § 9; SDCL § 3-12-51; SL 2019, ch 22 , § 1; SL 2025, ch 27 , § 15.

The board shall meet at least twice each year, and shall adopt its own rules of procedure. A majority of trustees constitutes a quorum. At the first meeting of each fiscal year the board shall elect from the board's membership a chair and a vice chair. At least eight concurrent v…

The board shall appoint an executive director, qualified by training and experience, to serve at the pleasure of the board. The board shall fix the compensation for the executive director. The compensation must be based on a compensation policy, adopted by the board, which consid…

The South Dakota Retirement System expense fund is continued and the board is authorized to transfer from the South Dakota Retirement System fund an annual amount not to exceed three percent of the annual contributions received by the system, and the money transferred is appropri…

The Board of Trustees may promulgate rules necessary to establish uniform procedures for the administration of the system and to insure uniformity of application of the provisions of this chapter. Rules may be adopted in the following areas: (1) Membership and class of membership…

An application for membership, a refund of the member's accumulated contributions, or any benefit must be made to the executive director on a form approved by the system. Source: SL 1974, ch 35 , § 14; SL 2016, ch 31 , § 3; SDCL § 3-12-56; SL 2019, ch 22 , §§ 12, 45; SL 2021, ch …

Any individual aggrieved by an order of the executive director issued pursuant to this chapter and chapters 3-13 and 3-13A may, in writing, request a contested case hearing before the executive director, if that individual believes that the order is based upon a mistake of fact o…

If any change or error in the records of the system or any participating unit results in any person receiving from the system less than the person would have been entitled to receive had the records been correct, the executive director must correct the error and, as far as practi…

Any member 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, plus interest at the system's assumed …

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, plus intere…

Member information is confidential. Member information may be disclosed only in the following circumstances: (1) To the member or with the member’s consent; (2) For the purpose of, and only to the extent necessary for, the administration of this chapter and chapters 3-13 and 3-13…

The rights of a person to a benefit, return of accumulated contributions, the benefit itself, any optional benefits and any other right accrued or accruing under the provisions of this chapter and all moneys belonging to the system are hereby exempt from any state, county, munici…

For purposes of § 3-12C-216 , the system shall determine if a domestic relations order is a qualified domestic relations order. Upon receipt of a domestic relations order, the system shall promptly issue a written notice of receipt to the member and any alternate payee. Within a …

If a qualified domestic relations order provides that a member's former spouse must be treated as a beneficiary for any payment pursuant to § 3-12C-409 , the provision must supersede any contrary beneficiary designation by the member. The provision of the qualified domestic relat…

The provisions of a qualified domestic relations order are prospective from the date of the order. Any division of benefits paid prior to the date of the order, service of the order upon the system, or qualification of the order by the system, whichever is later, must be the resp…