Title 3, PUBLIC OFFICERS AND EMPLOYEES

If the system is terminated, or if contributions to the system are discontinued, the rights of all members to benefits that have accrued as of the date of termination or discontinuation of contributions shall vest. A member's recourse against the fund shall be limited by the exte…

Forfeitures arising because of termination of employment before the member becomes eligible for benefits or for any other reason shall be applied to reduce the costs of the system and not to increase the benefits otherwise payable to members. Source: SL 1984, ch 23 , § 5; SDCL § …

The State Investment Council as provided in § 4-5-12 is responsible for the investment of the assets of the system. The Investment Council may pool the several retirement funds for investment purposes and the investment of the funds is not restricted by the provisions of § 4-5-26…

The board shall retain the services of an independent contractor, not involved in the investment process, to make a report to the board not less than every four years on the investment performance results of the assets of the retirement funds. Source: SL 1974, ch 35 , § 72; SL 20…

In the event the investment return on the common stock portfolio or bond portfolio is lower than the average return achieved by other institutional investors of pension funds, then the Investment Council shall review the way in which the assets are being invested and the sources …

To determine and verify the adequacy of any member and employer contributions to the system, an actuarial valuation of the system must be made annually by an approved actuary. The actuarial valuation must provide: (1) A demonstration of the relationship of any current member and …

The actuarial valuation required by § 3-12C-226 , must be based on actuarial assumptions adopted by the board, as a result of an actuarial experience analysis. The board may not make any change in the actuarial assumptions unless the approved actuary retained to make the actuaria…

The board shall review the funding of the system and shall make a report to the Governor and the Retirement Laws Committee if the funding of the system does not meet both of the following conditions: (1) The fair value funded ratio is greater than or equal to one hundred percent;…

At the beginning of each legislative session, the board shall provide the Governor and the Legislature with an annual report of the funded status of the system for the fiscal year that ended the previous June thirtieth. Source: SL 2017, ch 27 , § 3; SDCL § 3-12-122.1 ; SL 2019, c…

The board shall keep complete records of its proceedings which shall be open to public inspection. The board shall prepare an annual report setting forth its financial information for the previous fiscal period including the amount of the accumulated cash and securities of the sy…

All of the following full-time employees are included as members in the system: (1) All state employees; (2) All certified school employees; (3) All justices, judges, and magistrate judges; (4) All police officers and firefighters of participating municipalities; (5) All general …

Membership in the system shall exclude the following: (1) All elective officials except justices and judges, unless the official is currently contributing or has previously contributed to the system or the official has elected and is otherwise qualified to become a member of the …

A newly-elected official, who is a full-time employee of a participating unit and not a member of the system, may elect to become a member. However, the official shall make the election when the official is first eligible to participate in the system, and the official's election …

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…

If a participating unit determines that a governmental function is to be privatized after July 1, 1997, the participating unit must pass a resolution to that effect determining the date that its employees will cease to be public employees eligible for membership in the system. Th…

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.

Any employee included in § 3-12C-301 shall make a contribution to the system, except as specified in § 3-12C-1405 , and the employer shall make an equal contribution to the system, except as otherwise specified, at the following rates: (1) Class A members: five percent of compens…

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 …

If a current contributing member with at least five years of contributory service in the system has other 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 mem…

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…