Title 3, PUBLIC OFFICERS AND EMPLOYEES

A participant does not have actual ownership of deferrals and investments but has a contractual right to receive benefits under the plan. In accordance with § 457(g) of the Internal Revenue Code, all amounts of compensation deferred under the plan, all property and rights purchas…

Each participant may elect to have deferrals invested in one or more of the investment alternatives selected by the state investment officer. A participant may change the election for future deferrals at any time. Source: SL 2025, ch 27 , § 96.

Subject to any limitations imposed by a vendor or by the third-party administrator, a participant may elect to transfer any portion of the account balance from one offered investment alternative to another at any time, provided notice is given to the third-party administrator. An…

An account must be established for each participant's pre-tax contributions. A separate account must be established for each participant's designated Roth contributions. The accounts are the basis for any distribution to the participant or to the participant's beneficiary, surviv…

No contributions other than a designated Roth contribution and a properly attributable investment return may be credited to a participant's designated Roth account. The plan must maintain separate recordkeeping for each designated Roth account and must record the year that the pa…

The total investment return on any offered investment must be allocated to the account of each participant based on the proportion the participant's account bears to all other accounts that have been invested in the same investment alternative. Allocations must be made on each ac…

Each offered investment alternative must be valued on each accounting date. The valuation must be at market value. Any charges against the value must be explicitly disclosed. Source: SL 2025, ch 27 , § 101.

Each participant must be provided with a statement of the participant's account no later than forty-five days after the close of each plan quarter. Source: SL 2025, ch 27 , § 102.

A participant may select a normal retirement date. The normal retirement date may not be earlier than the date that the participant severs employment. If a participant does not select a normal retirement date, the participant's normal retirement date is as defined in chapter 3-12…

If a participant returns to employment or enters into a contract with a participating employer within thirty days after a severance from employment, no severance from employment occurs for the purposes of the plan. If a participant provided contractual services to a participating…

Deferrals may be distributed only if one of the following conditions has occurred: (1) Severance from employment with a participating employer; (2) Death of the participant; (3) An unforeseeable emergency, set forth in § 3-13-82 ; (4) Requirements are satisfied for an in-service …

The distribution of deferrals to a participant may begin no earlier than thirty days following the participant's severance from employment with a participating employer. Any irrevocable election of a benefit commencement date, made by a participant or a beneficiary prior to Janua…

A participant may elect to receive the participant's distribution in any of the following forms: (1) A lump sum; (2) Equal monthly installments over a fixed period; or (3) Any other form offered by the third-party administrator. The election must be made prior to the time any amo…

A participant may direct from which contributions a distribution is made. The participant may direct that the withdrawal be taken from either pre-tax contributions or designated Roth contributions, or from both pre-tax contributions and designated Roth contributions. Source: SL 2…

If a participant suffers an unforeseeable emergency, the participant may request an immediate distribution of all or part of the participant's deferrals. The request must be made through an application to the third-party administrator. If the third-party administrator approves th…

Notwithstanding any other provision of this chapter, a participant may receive an in-service distribution from the plan, or the executive director may render an involuntary distribution to the participant, under the following conditions: (1) The participant is inactive in the pla…

Notwithstanding § 3-13-83 , a participant who is at least fifty-nine and one-half years old may elect to receive an in-service distribution from the plan in any form permitted under § 3-13-80 . The receipt of an in-service distribution pursuant to this section does not preclude t…

Any distribution under §§ 3-13-79 and 3-13-80 is deemed to be reasonable and made in good faith under § 401(a)(9) of the Internal Revenue Code. Source: SL 2025, ch 27 , § 111.

No employee of a participating employer and no spouse or dependent of the employee may act as or represent a third-party administrator or a vendor in a matter concerning the plan, except the State Investment Council and its employees may invest all or part of the fund. Source: SL…

A participant may not assign or otherwise alienate any right to benefits under the plan, except through the provisions of a qualified domestic relations order, as defined in § 414(p) of the Internal Revenue Code. Source: SL 2025, ch 27 , § 113.

To the extent permitted by law, a participant may transfer a portion or all of the participant's account in another plan, which is eligible under § 401, 403(b), 408, or 457(b) of the Internal Revenue Code, into the plan by trustee-to-trustee transfer or by rollover. The plan must…

For the purpose of acquiring credited service in a qualified governmental defined benefit retirement plan, as identified under § 401(a) and defined in § 414(d) of the Internal Revenue Code, a participant may transfer a portion or all of the participant's account in the plan by tr…

A participant or a participant's surviving spouse may transfer a portion or all of the participant's account by rollover to another plan, which is eligible under § 401, 403(b), 408, 408A, or 457 of the Internal Revenue Code. A participant's beneficiary who is not the participant'…

A participant may convert the participant's pre-tax contributions to designated Roth contributions within the plan. The amount of the in-plan Roth conversion is subject to ordinary income taxes in the year of the conversion. Withholding of federal income tax from the conversion a…

The plan and the plan's assets, until made available to a participant or a beneficiary, must be maintained in trust for the sole benefit of the participants of the plan. Source: SL 2025, ch 27 , § 118.

Any form required under the plan which causes a change on a participant's payroll, is effective as early as the next available pay date, subject to the timing of payroll processing by the participant’s employer. If a form is filed too late for a change to be made effective for th…

If, due to an error, a participant defers more than the permissible amount, the third-party administrator may correct the error by returning the excess deferral to the participant. For any plan year in which a participant makes both pre-tax contributions and designated Roth contr…

If, due to a payroll error, a participant's deferral is deposited in an investment alternative other than the one selected by the participant, the third-party administrator may correct the error by transferring the participant's deferral to the proper investment alternative, subj…

Any participating employer may become an automatic enrollment unit. Automatic enrollment includes automatic escalation for any participating employer becoming an automatic enrollment unit after June 30, 2015. The decision to become an automatic enrollment unit must be made by the…

A participating employer who became an automatic enrollment unit prior to July 1, 2015, may elect to add automatic escalation for the participating employer's current and future permanent employees. The decision must be made by the elected official, the appointed official, or the…

An automatic enrollment unit may elect to commence automatic escalation in either January or July. Automatic escalation commences the January or July immediately after the automatic enrollment unit's decision is delivered in writing to the system, as long as notice of the decisio…

Any individual who becomes a permanent employee of a participating employer, after the participating employer becomes an automatic enrollment unit, becomes an automatic enrollee in the plan. Any permanent employee of the state who is not contributing to the plan on June 30, 2019,…

An automatic enrollment unit other than the state may elect to automatically enroll the unit's permanent employees who are not contributing to the deferred compensation plan. The automatic enrollment unit may elect to commence automatic enrollment for the employees on the January…

There is hereby established the South Dakota special pay retirement program. It is the intent of the Legislature that the special pay retirement program shall become a qualified plan under § 401(a) of the code and that the program shall be treated as a governmental plan under § 4…

A participant who elects an immediate total lump-sum distribution from the program shall be guaranteed payment of the entire amount of the participant's special pay, plus any earnings, and less any mandatory income tax withholding and fees established by the board, within a perio…

Each participant may elect to have the participant's funds invested in one or more of the investment alternatives selected by the state investment officer pursuant to § 3-13A-9 . Subject to any limitations imposed by the executive director, a vendor, or a third-party administrato…

If a contract between the state investment officer and a vendor is terminated and a participant fails to notify the executive director or third-party administrator of the participant's new investment selection before the contract terminates, the executive director or third-party …

The total investment return on any offered investment shall be allocated to the account of each participant based on the proportion the participant's account bears to all other accounts which have been invested in the same investment alternative. Allocations shall be made on each…

Each offered investment alternative shall be valued on each accounting date. The valuation shall be at market value. Any charges against the value shall be explicitly disclosed. Each participant shall be provided with a statement of the participant's account by no later than fort…

A participant may designate a beneficiary to receive the participant's benefits under the program in case of the death of the participant. If no beneficiary is designated or the beneficiary has predeceased the participant, the participant's benefits shall be paid as follows: (1) …

Notwithstanding the provisions of § 3-13A-15 , no participant may assign or otherwise alienate any right to any payment or benefit under the program. The right of a participant to any payment or benefit is not subject to the rights of the participant's or any beneficiary's credit…

The executive director shall administer the program and shall determine all questions arising under or in connection with the program. The executive director may hire additional employees as may be required and shall set the remuneration of the employees. In addition, the executi…

Any public employer that is a participating unit of the system established under chapter 3-12C may become a participating unit under this chapter at any time on or after July 1, 2004. The decision to become a participating unit shall be made by the elected official, the appointed…

For the purpose of acquiring credited service in a qualified governmental defined-benefit retirement plan as identified under § 401(a) and defined in § 414(d) of the code, a participant may transfer a portion or all of the participant's account in the program by trustee-to-truste…

The definitions contained in chapter 3-12C , apply to this chapter, unless otherwise specified. Terms used in this chapter mean: (1) "Account," the record for each participant reflecting the amount of the participant's special pay transmitted to the fund, allocated investment gai…

The board shall establish by rule promulgated pursuant to chapter 1-26 the parameters under which a participant, a participant's surviving spouse, or a participant's beneficiary may transfer a portion or all of the participant's account by rollover to a plan which is an eligible …