62:01:01:01.  Definition of terms. Terms defined in SDCL chapters 3-12C and 3-13A have the same meaning when used in this article. In addition, terms used in this article mean:

          (1)  "Disability advisory committee," a committee composed of the secretary of the Department of Human Services or a designee, a lawyer, and a physician, the latter two members both appointed by the executive director;

          (2)  "Represented group," a group entitled to elect one or more trustees pursuant to SDCL 3-12C-203 and 3-12C-204. The group to which a member belongs is determined from the records of the system;

          (3)  "Employment," for purposes of SDCL 3-12C-809, includes engagement of services by an employer who is not a participating unit and self-employment;

          (4)  "Class B public safety member," an individual who is a Class B member other than a justice, judge, or magistrate judge.

          Source: 2 SDR 17, effective September 9, 1975; 3 SDR 13, effective August 25, 1976; transferred from § 47:07:01:01, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 24 SDR 160, effective May 24, 1998; 34 SDR 297, effective June 2, 2008; SL 2016, ch 31, § 62, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-101, 3-12C-204, 3-12C-801, 3-12C-803.

          62:01:01:02.  Termination of marriage. For purposes of SDCL 3-12C-1001, termination of marriage shall occur upon the issuance by a court of a decree of divorce or annulment.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211, 3-12C-1001.

          Law Implemented: SDCL 3-12C-1001.

          62:01:01:03.  Care of children. For purposes of SDCL 3-12C-901, care of children is the responsibility for the maintenance, education, and supervision of one or more children.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-901.

          62:01:01:04.  Internal Revenue Code. Repealed.

          Source: 39 SDR 227, effective July 1, 2013; 40 SDR 197, effective May 27, 2014; repealed, SL 2015, ch 25, § 5, effective July 1, 2015.

          62:01:02:01.  Determination of Class A or Class B member. A member is a Class A member until proof is supplied to the executive director that a member is a Class B member. The executive director shall change the records when a change of duties requires a change of class.

          Source: 2 SDR 17, effective September 9, 1975; 3 SDR 13, effective August 25, 1976; transferred from § 47:07:02:01, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; SL 2016, ch 31, § 63, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-202, 3-12C-211.

          Law Implemented: SDCL 3-12C-401, 3-12C-1106, 3-12C-1107.

          62:01:02:03.  Penitentiary employees. Repealed.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 18 SDR 185, adopted May 10, 1992, effective July 1, 1992; repealed, SL 2014, ch 18, § 2, effective July 1, 2014.

          62:01:02:04.  Permanent full-time employee -- Probationary period. An employee is a permanent full-time employee if the position held by that employee is classified as a permanent position and the person holding it is required to work 20 or more hours a week and at least 6 months a year. A probationary employee holding such a position is a permanent full-time employee.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-101, 3-12C-401.

          62:01:02:06.  Refund of active contributions made during period of disability -- Granted credited service. If a disabled member receiving credited service pursuant to SDCL 3-12C-808 and § 62:01:04:05.01 becomes employed by a member employer unit, the member and employer shall make active contributions during the period of such employment pursuant to SDCL 3-12C-401. Upon the member's conversion of disabled status to retired status, upon the member's termination of disabled status or upon the member's termination of employment, whichever occurs first, the member may request a refund of the member's accumulated contributions made during that period when the member also was receiving credited service due to the disability. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to July 1, 2015.

          Source: 33 SDR 212, effective June 4, 2007; SL 2014, ch 20, § 34, effective July 1, 2014; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-104, 3-12C-808.

          62:01:02:07.  Leave of absence without pay during service purchase agreement -- Exception for leave of absence for military service. If a member is purchasing credited service pursuant to SDCL 3-12C-508 and the member takes a leave of absence authorized by the member's employer for a period of less than one year, the member's irrevocable agreement shall continue upon the member's return to active employment as though the member had not taken a leave of absence. The completion date of the agreement shall be modified accordingly, but the payment amounts and all other terms of the agreement shall remain the same.

          If a member is purchasing credited service pursuant to SDCL 3-12C-508 and the member takes a leave of absence authorized by the member's employer for purposes other than military service for a period of one year or greater, the member's irrevocable agreement shall terminate and the member shall receive credited service in proportion to the amount the member paid toward the total agreement amount prior to the leave of absence.

          If a member is purchasing credited service pursuant to SDCL 3-12C-508 and the member takes a leave of absence authorized by the member's employer for purposes of military service for a period of time one year or greater, the member's irrevocable agreement shall continue upon the member's return to active employment as though the member had not taken leave of absence. The completion date of the agreement shall be modified accordingly, but the payment amounts and all other terms of the agreement shall remain the same.

          Source: 33 SDR 212, effective June 4, 2007; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-508.

          62:01:02:08.  Active membership defined by period of contributions -- Quarter of service based on contribution. The beginning of a member's period of active membership in the system is established by the date of the employer contribution report to the system that includes the member's initial employee and employer contributions. A member's active membership is terminated when the system receives notice of termination from an employer, accompanied by the member's final employee and employer contributions. If the system receives any employee and matching employer contributions on behalf of a member during a calendar quarter, the member shall be credited with a full calendar quarter of contributory service toward calculating the member's benefits or determining the member's eligibility for benefits, but not for determining whether a member's death was active status or inactive status.

          Source: 33 SDR 212, effective June 4, 2007; 36 SDR 21, effective August 17, 2009; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-401, 3-12C-403, 3-12C-405.

          62:01:02:09.  Contribution reports -- Date -- Transmittal. If a participating unit has one or more than one pay date in a month, the participating unit shall prepare at least one contribution report per month. However, if a participating unit has no pay date for participating employees in a particular month, no report is required for that month. Each contribution report shall be dated no later than the last day of its month. The report shall include any pay date and associated contributions for that month. The contribution report and associated contributions shall be transmitted to the system as outlined in SDCL 3-12C-403.

          Source: 35 SDR 82, effective October 22, 2008; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-401, 3-12C-403, 3-12C-405.

          62:01:02:11.  Reentry into system for purposes of redeposit -- Limit on redeposit. Repealed.

          Source: 37 SDR 214, effective May 30, 2011; SL 2016, ch 31, § 64, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          62:01:03:02.  Determination of eligibility for retirement benefit. Upon receipt of an application for a retirement benefit, the executive director shall determine whether or not the applicant is eligible for the benefit.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; SL 2016, ch 31, § 65, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-212, 3-12C-1106, 3-12C-1107, 3-12C-1113.

          62:01:03:04.  Independent status of the surviving spouse benefit if the member was retired or of retirement age. The benefit to a surviving spouse upon the death of a member who had retired or reached normal retirement age is an independent benefit belonging to the surviving spouse for the purpose of administering an existing qualified domestic relations order.

          Source: 34 SDR 297, effective June 2, 2008; 35 SDR 82, effective October 22, 2008; 45 SDR 45, effective October 8, 2018; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-216, 3-12C-906, 3-12C-1114, 3-12C-1213, 3-12C-1214.

          62:01:04:00.  Application of chapter. The provisions of this chapter apply to any member whose application for disability benefits was received by the system prior to July 1, 2015.

          Source: SL 2014, ch 20, § 35, effective July 1, 2014.

          General Authority: SL 2014, ch 20, § 35.

          Law Implemented: SL 2014, ch 20, § 35.

          62:01:04:02.  Disability -- Beginning of benefits. A member whose application for a disability benefit is approved shall receive the benefit beginning on the first day of the month following the date on which the member's contributory service terminates. If any member fails to terminate contributory service within one year after receiving notice that the members application has been approved, the member's application approval expires.

          Source: 2 SDR 17, effective September 9, 1975; 3 SDR 13, effective August 25, 1976; transferred from § 47:07:04:02, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; SL 2014, ch 20, § 36, effective July 1, 2014; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211, 3-12C-801.

          Law Implemented: SDCL 3-12C-803.

          62:01:04:03.  Disability determination -- Disability advisory committee -- Medical examination. Upon receipt of an application for a disability benefit, with supporting medical evidence, the executive director shall determine whether the applicant is eligible for a disability benefit. The executive director may request the advice of the disability advisory committee with respect to any application. The recommendation of the disability advisory committee is not binding on the executive director. The disability advisory committee or the executive director may require an independent medical examination of an applicant to be conducted by a licensed, disinterested physician selected by the disability advisory committee or the executive director to evaluate the applicant's condition. The disability advisory committee or the executive director may require a functional capacity assessment of the applicant to be conducted by a licensed professional qualified to administer such assessments, and the assessment may be used to evaluate the applicant's qualification for benefits. If the executive director determines that the member is not disabled, a notice of the executive director's determination and the reasons for it shall be sent by certified mail to the applicant's last known address.

          Source: 2 SDR 17, effective September 9, 1975; 3 SDR 13, effective August 25, 1976; transferred from § 47:07:04:03, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 24 SDR 160, effective May 24, 1998; SL 2016, ch 31, § 67, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-801, 3-12C-803.

          62:01:04:05.01.  Termination of disability benefit – Credited service. If a member receiving a disability benefit ceases to be disabled, elects to convert to a retirement benefit, or is converted to a retirement benefit pursuant to SDCL 3-12C-808, the disability benefit shall terminate. The member shall receive credited service for the period during which the member receives a disability benefit, but, except as provided in SDCL 3-12C-808, not beyond the member's normal retirement age.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 24 SDR 160, effective May 24, 1998; 36 SDR 21, effective August 17, 2009; SL 2017, ch 27, § 39, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-803, 3-12C-808.

          62:01:04:05.02.  Credited service as employee while disabled. No member who is receiving a disability benefit and who simultaneously is making contributions to the system may receive more than one year of credited service in any actual year. If the member was contributing for Class B credited service immediately before approval of a disability benefit and then is contributing to the system for Class A credited service while on disability, the member shall be credited with Class B credited service through the member's Class B normal retirement age and Class A credited service for any period that contributions are made after Class B normal retirement age.

          Source: 24 SDR 160, effective May 24, 1998; SL 2017, ch 27, § 40, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-803, 3-12C-808.

               62:01:04:06.  Medical examination of member receiving disability benefit -- Refusal. The executive director may require a member receiving a disability benefit to undergo a medical examination at any time at the expense of the system. If the member refuses to submit to a medical examination within 30 days of receipt of written notice from the executive director, the one-year period outlined in SDCL 3-12C-809 begins to run and continues until the member withdraws the refusal. If the refusal continues for one year, the member forfeits all rights to the disability benefit. If the member agrees to submit to a medical examination, upon completion of the examination by a physician selected by the executive director, the physician shall provide to the executive director a complete report on the condition of the member. If the executive director finds that the member is no longer disabled, the executive director shall notify the member by certified mail and the payment of the disability benefit shall terminate pursuant to SDCL 3-12C-809. A finding by the executive director is subject to appeal and review as a contested case.

          Source: 2 SDR 17, effective September 9, 1975; transferred from § 47:07:04:06, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 24 SDR 160, effective May 24, 1998; 33 SDR 212, effective June 4, 2007; 34 SDR 297, effective June 2, 2008; SL 2016, ch 31, § 68, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-801, 3-12C-803, 3-12C-809.

          62:01:04:07.  Participating unit -- Filing upon return to service. A participating unit employing a member who is receiving a disability benefit shall file notice with the system designating the date the member returns to work.

          Source: 2 SDR 17, effective September 9, 1975; transferred from § 47:07:04:07, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; SL 2017, ch 27, § 41, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211, 3-12C-801.

          Law Implemented: SDCL 3-12C-801, 3-12C-803.

          62:01:04:09.  Criteria for determining disability if contributory service ended before July 1, 1995 -- Position of comparable level. An applicant whose contributory service ends prior to July 1, 1995, shall be granted a disability benefit only if the applicant establishes by a preponderance of evidence:

          (1)  The applicant has a mental or physical impairment which has been diagnosed by a licensed physician;

          (2)  At the time of termination of the applicant's employment, the impairment was of sufficient severity to prevent the applicant from continuing to perform usual duties for the applicant's employer;

          (3)  At the time of termination of the applicant's employment, the impairment was of sufficient severity to prevent the applicant from performing the duties of a position of comparable level for which the applicant is qualified by education, training, and experience; and

          (4)  At the time of termination of the applicant's employment, the disability was expected to last at least one year.

          Evidence that the applicant could actually secure a position of comparable level or that such a position is actually available is not required to support a finding that an applicant is capable of performing the duties of such a position.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 24 SDR 160, effective May 24, 1998; SL 2017, ch 27, § 42, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211, 3-12C-801.

          Law Implemented: SDCL 3-12C-101, 3-12C-801, 3-12C-804.

          62:01:04:09.01.  Criteria for determining disability if contributory service ended after July 1, 1995 – Certification by employer. An applicant whose contributory service ends on or after July 1, 1995, shall be granted a disability benefit only if the applicant establishes subdivisions (1), (2), and (4), below, by a preponderance of evidence, and provides subdivision (3), below:

          (1)  The applicant has a mental or physical impairment which has been diagnosed by a licensed physician;

          (2)  At the time of termination of the applicant's employment, the impairment was of sufficient severity to prevent the applicant from continuing to perform usual duties for the applicant's employer;

          (3)  At the time of termination of the applicant's employment, the impairment was of sufficient severity to prevent the applicant from performing the usual duties of the applicant's position, the usual duties of the applicant's position with accommodations by the employer, or the usual duties of a position of comparable level with the applicant's employer, all as so certified by the employer; and

          (4)  At the time of termination of the applicant's employment, the disability was expected to last at least one year.

          In providing certification pursuant to subdivision (3), above, an employer shall consider the applicant's education, experience, training, work history, impairment, location of residence, and compensation and benefits in relation to positions of possible comparable level.

          Source: 24 SDR 160, effective May 24, 1998; 32 SDR 203, effective June 5, 2006; SL 2017, ch 27, § 43, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211, 3-12C-801.

          Law Implemented: SDCL 3-12C-101, 3-12C-801, 3-12C-803, 3-12C-804.

          62:01:04:10.  Member receiving a disability benefit if service ended before July 1, 1994. For purposes of this chapter, a member is considered to be receiving a disability benefit if the applicant's application for the benefit has been approved, whether SDCL 3-12C-807 prevents the member from receiving any payment from the system. The provisions of this section apply only if the member's contributory service ended before July 1, 1994.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 24 SDR 160, effective May 24, 1998; SL 2017, ch 27, § 44, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-807.

          62:01:04:13.  Income to be included in earned income. For purposes of including earned income in calculations under SDCL 3-12C-810, a disabled member's earned income includes the member's wages, salaries, tips, or other compensation received by performing personal services for an employer, and includes the net earnings from self-employment in a business that the member owns. Earned income does not include payments from disability insurance coverage obtained by either the member or the member's employer.

          Source: 32 SDR 203, effective June 5, 2006; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-810.

          62:01:05:01.  Election of trustees. The board shall hold an election of trustees annually. The executive director may designate a third party to conduct the election. Any designated third party shall keep all information it obtains from any source confidential, and any employee, agent, or representative of that third party is prohibited from disclosing that information to anyone other than the executive director.

          The ballots for the election are due on May 25. Each represented group that has a trustee whose term expires June 30 is entitled to elect a trustee. The board shall announce the results of the election each year at its first meeting following the ballot due date.

          For the purposes of this chapter, the term, ballot, is a printed or electronic method of voting.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:01, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 7 SDR 56, effective December 14, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 10 SDR 58, effective December 11, 1983; 15 SDR 139, effective March 22, 1989; 20 SDR 109, effective January 19, 1994; 31 SDR 191, effective May 22, 2005; 36 SDR 21, effective August 17, 2009; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:01.01.  Terms of trustees. Repealed.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 45 SDR 142, effective July 1, 2019.

          62:01:05:01.02.  Voting by employers. Each employer whose represented group is entitled to elect a trustee is entitled to one vote.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:01.03.  Official election listing -- Voting by members. The board shall compile an official election listing of active, inactive vested, and retired members of the system by classification of employment as of April 13 or the last working day preceding April 13 each year. The official election listing may be modified after April 13 only if a member has been erroneously misclassified. Each member on record is entitled to one vote in that year's election for a candidate running in the member's classification of employment. A member who belongs to more than one classification of employment may vote only for the candidate in the classification for which the member is listed on the official election listing.

          Source: 20 SDR 109, effective January 19, 1994; 24 SDR 160, effective May 24, 1998; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:01.04.  Candidate restricted by official election listing. A candidate seeking election to the board to serve on behalf of a represented group shall be a current member of that group. If the candidate is seeking to serve on behalf of an employee represented group, the candidate's current status within the group must be confirmed under the official election listing compiled pursuant to § 62:01:05:01.03.

          Source: 31 SDR 191, effective May 22, 2005; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:01.05.  Candidate from two represented groups. A candidate seeking election to the board who simultaneously is both retired and a member of another employee represented group shall be deemed a retiree for purposes of §§ 62:01:05:01.03 and 62:01:05:01.04.

          Source: 31 SDR 191, effective May 22, 2005; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:02.  Notice of election and nominating petition. A notice of election shall be provided no later than January 15 to at least one authorized agent of any employer having employees entitled to vote in the election and to all retirees entitled to vote in the election. Nominating petitions shall be provided to all such authorized agents no later than January 15.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:02, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 7 SDR 56, effective December 14, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 15 SDR 139, effective March 22, 1989; 24 SDR 160, effective May 24, 1998; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:03.  Procedure for nomination -- Filing of member petition. A justice, judge, or magistrate judge who is a candidate for nomination for trustee shall file one or more petitions containing, in all, at least five valid signatures of members of the candidate's represented member group. Each other member candidate for nomination for trustee shall file one or more petitions containing, in all, at least 20 valid signatures of members of the candidate's represented group. In addition to the required signatures, each petition shall contain the name, address, and a declaration of candidacy signed by the candidate. Each nominating petition must be in the possession of the office of the executive director by 5:00 p.m. Central Time on February 23.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:03, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 7 SDR 56, effective December 14, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 10 SDR 58, effective December 11, 1983; 15 SDR 139, effective March 22, 1989; 24 SDR 160, effective May 24, 1998; 31 SDR 191, effective May 22, 2005; SL 2016, ch 31, § 69, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:03.01.  Procedure for nomination – Filing of employer petition. Each employer candidate for nomination for trustee shall file one or more petitions containing, in all, at least 20 valid signatures of members of the candidate's represented group. In addition to the required signatures, each petition shall contain the name, address, and represented employer group of the candidate and a declaration of candidacy signed by the candidate. Each nominating petition must be in the possession of the office of the executive director by 5:00 p.m. Central Time on February 23.

          Source: 24 SDR 160, effective May 24, 1998; SL 2016, ch 31, § 70, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:05.  Validity of nominating petition. The board of trustees, a committee of board members, or system staff appointed by the chair shall determine the validity of each nominating petition.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 7:07:05:05, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 36 SDR 21, effective August 17, 2009; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:05.01.  Special election newsletter -- Circulation -- Candidate biographies. Each year the system's staff shall prepare a special election edition of the newsletter. The special edition shall be provided to each employer unit or each member of a represented group whose representative position on the board is subject to election that year, even if there is only a single candidate for election to the position. Each candidate, even if unopposed and even if the candidate is an incumbent, shall provide to the system a recent photograph and a biography for inclusion in the special edition. The biography shall contain 200 words or less. The biography shall include general background information and may include the candidate's position on any particular system issue if the candidate so chooses. However, a biography may not make reference to another candidate, either by name or indirectly, and may not make reference to another candidate's or trustee's position on any system issue. The board or any person designated by the board shall review each biography. If, upon review, a biography is determined to be out of compliance with the provisions of this section, the board or person reviewing the biography shall communicate with the candidate to prepare a biography that is in compliance with this section. If a candidate refuses to provide a biography that is in compliance, no biography may be printed.

          Source: 31 SDR 191, effective May 22, 2005; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:06.  Preparation of ballots. Separate ballots shall be prepared for each represented group entitled to vote in the election. Each ballot shall contain the appropriate designation of the represented group and the names, in alphabetical order, and the municipality associated with the address of each candidate. No ballot may be prepared if less than two candidates have filed valid nominating petitions to represent a represented group.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:06, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; SL 2016, ch 31, § 71, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:07.  Mailing of ballots. Before May 1 the applicable ballot shall be sent, by postal mail or electronically, to each member entitled to vote in the election and to each employer entitled to vote in the election.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:07, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 10 SDR 58, effective December 11, 1983; 15 SDR 139, effective March 22, 1989; 20 SDR 109, effective January 19, 1994; SL 2016, ch 31, § 72, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:08.  Validity of ballot. To be valid, a ballot must be in the possession of the office of the executive director or, if the election is being conducted by a third party, in the possession of the third party, by 5:00 p.m. Central Time on May 25. A printed ballot may be returned enclosed in an envelope.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:08, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 7 SDR 56, effective December 14, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 20 SDR 109, effective January 19, 1994; 31 SDR 191, effective May 22, 2005; 36 SDR 21, effective August 17, 2009; SL 2016, ch 31, § 73, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:09.  Validity of employer ballot. Repealed.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:09, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 20 SDR 109, effective January 19, 1994; 31 SDR 191, effective May 22, 2005; 36 SDR 21, effective August 17, 2009; SL 2016, ch 31, § 74, effective July 1, 2016; 43 SDR 57, effective October 17, 2016.

          62:01:05:09.01.  No write-in candidates. No write-in candidates may be recognized.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 20 SDR 109, effective January 19, 1994; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: 3-12C-211.

          Law Implemented: 3-12C-204.

          62:01:05:10.  Issuance of new ballot. A replacement ballot may only be issued to a voter upon receipt of an affidavit from the member or employer eligible to vote that certifies that an original ballot was not received or the original ballot was lost or misplaced.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:10, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 15 SDR 139, effective March 22, 1989; 20 SDR 109, effective January 19, 1994; SL 2016, ch 31, § 75, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:12.  Counting of ballots -- Void ballots. All ballots shall be counted no later than the final business day in May. For each vacancy to be filled, the candidate receiving the highest number of votes is elected.

          Any ballot from which it is impossible to determine the voter's choice is void and may not be counted. However, if the voter's mark on a ballot is sufficiently plain to determine the voter's intention, the vote shall be counted. This section shall be construed liberally to assure that each vote is counted. Any void ballot shall be maintained separately from the other ballots.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:12, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 20 SDR 109, effective January 19, 1994; 31 SDR 191, effective May 22, 2005; 32 SDR 203, effective June 5, 2006; 36 SDR 21, effective August 17, 2009; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:13.  Results of election. The board shall certify the results of the election at the first board meeting after ballot counting pursuant to § 62:01:05:12 is completed. However, the executive director shall notify all the candidates and the members of the board of the tentative election results within three business days after the ballot counting is completed. No person may disclose the tentative election results to the public until after the board certifies the results. If no election is required, the board shall declare the nominee elected.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:13, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 20 SDR 109, effective January 19, 1994; 31 SDR 191, effective May 22, 2005; SL 2016, ch 31, § 76, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 45, effective October 8, 2018; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:14.  Contest of election. An election is considered valid unless a notice of contest is filed with the executive director within 15 days after the election results are announced. If a notice of contest is filed, the board shall hold a hearing pursuant to SDCL chapter 1-26 to determine the validity of the election.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:14, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 20 SDR 109, effective January 19, 1994; SL 2016, ch 31, § 77, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:15.  Storage of ballots. Any ballots received shall be kept secure before the ballots are counted. The printed ballots or electronic ballot results, or both, shall be kept for at least 45 days after the election results are announced or until a contest is finally decided.

          Source: 3 SDR 13, effective August 25, 1976; transferred from § 47:07:05:15, effective July 1, 1979; 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 20 SDR 109, effective January 19, 1994; SL 2016, ch 31, § 78, effective July 1, 2016; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:05:17.  Procedure when designated day falls on weekend or holiday. Except as otherwise specified, if the date designated for any action under this chapter falls on a Saturday, Sunday, or legal holiday, the action may be taken on the next business day.

          Source: 15 SDR 139, effective March 22, 1989; 20 SDR 109, effective January 19, 1994; 31 SDR 191, effective May 22, 2005; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-204.

          62:01:06:04.  Use of teleconference for administrative appeals authorized. Any administrative appeal pursuant to this chapter may be conducted by teleconference.

          Source: 33 SDR 212, effective June 4, 2007; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 1-25-1, 3-12C-213.

          62:01:06:05.  Finality of decision if the executive director does not act -- Time limit. If the executive director does not accept, reject, or modify the hearing examiner's proposed findings of fact, conclusions of law, and decision within 30 days after receiving them, the proposals become the final agency decision unless a party to the proceedings files a petition requesting formal administrative agency review of the proposals.

          Source: 34 SDR 297, effective June 2, 2008; SL 2016, ch 31, § 79, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 1-26D-7, 3-12C-213.

          62:01:06:06.  Written rationale for rejection or modification of a decision or findings -- Time limit. If the executive director rejects or modifies the hearing examiner's proposed findings of fact, conclusions of law, or decision, the executive director shall state the rationale for the rejection or modification in writing within 30 days and shall date the written document and provide it to the interested parties.

          Source: 34 SDR 297, effective June 2, 2008; SL 2016, ch 31, § 80, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 1-26D-8, 3-12C-213.

          62:01:06:07.  Declaratory rulings -- Time limit -- Hearing examiners. A petition for a declaratory ruling pursuant to SDCL 1-26-15 shall be heard in accordance with the procedures in SDCL chapter 1-26. The petition shall be filed within 30 days of the event giving rise to the petition. The executive director may utilize the services of a hearing examiner to hear the arguments of interested parties and to issue a recommended ruling to the executive director.

          Source: 35 SDR 82, effective October 22, 2008; SL 2016, ch 31, § 81, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 1-26-15, 3-12C-213.

          62:01:07:01.  Secretary to board -- Filing. The executive director shall act as secretary to the board. Any document required to be filed with the board shall be filed with the executive director.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; SL 2016, ch 31, § 82, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-209.

          62:01:07:02.  Inspection and correction of files. A member of the system, upon request, may inspect, during regular business hours, any file directly relating to the member. The member may request correction of any alleged errors in the file.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-405.

          62:01:07:03.  Waiver of privilege. A filing of a notice of appeal of an executive director's decision by a member for a hearing to be conducted by a hearing examiner shall be, for the purpose of the hearing and any subsequent appeal, a waiver by the member of any privilege against disclosure of information contained in the files of the system relevant to the subject matter of the hearing.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 34 SDR 297, effective June 2, 2008; SL 2016, ch 31, § 83, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-213, 3-12C-215.

          62:01:07:04.  Authorized agents. Each participating unit may appoint persons to serve as authorized agents. Each person so appointed shall be an employee of the participating unit. An authorized agent shall be the agent of the participating unit and shall provide liaison between the participating unit and the system.

          Source: 6 SDR 87, effective March 2, 1980; 9 SDR 81, 9 SDR 124, effective July 1, 1983; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-403, 3-12C-405.

          62:01:07:05.  Procedure for filling a vacancy on the board. The executive director shall be notified of a vacancy on the board by the vacating board member, by the member's participating unit's governing body, by the member's employer, or by any other board member. Upon the executive director's receipt of notice, the procedure to fill the vacancy shall be as follows:

          (1)  The executive director shall notify all members of the board of the vacancy;

          (2)  If circumstances permit, the executive director shall ask the incumbent to recommend a replacement to serve in the incumbent's stead;

          (3)  If the vacancy is for a trustee to serve on behalf of an employer represented group, the executive director shall notify the governing body of each participating unit affected by the vacancy of the vacancy and request the governing body's input in seeking a qualified candidate. The executive director shall solicit résumés of qualified persons from governing bodies and interested persons. The résumés shall be submitted to the executive director. If a state-wide association exists that is made up of members of the employer represented group, the executive director shall notify the association of the vacancy and request the association's input in seeking a qualified candidate. If the vacancy is for a trustee to serve on behalf of an employee represented group, the executive director shall notify all authorized agents for the group affected by the vacancy of the vacancy and request that all employees affected by the vacancy be advised of the vacancy. Any interested member of the represented group may submit his or her résumé to the executive director. If a state-wide association exists that is made up of members of the employee represented group, the executive director shall notify the association of the vacancy and request the association's input in seeking a qualified candidate;

          (4)  The executive director shall provide to each board member a copy of each résumé received; and

          (5)  At the next board meeting following a sufficient period of time to receive résumés, the board, by secret ballot, shall select a trustee from among those persons who submitted résumés.

          Source: 31 SDR 191, effective May 22, 2005; 33 SDR 212, effective June 4, 2007; SL 2016, ch 31, § 84, effective July 1, 2016; SL 2019, ch 23, § 11, effective July 1, 2019; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-205.

          62:01:07:06.  Beneficiary designated by qualified domestic relations order. If a qualified domestic relations order provides that a member's former spouse shall be treated as a beneficiary for any payment pursuant to SDCL 3-12C-409, the provision shall supersede any contrary beneficiary designation by the member. In any such instance, the provision of the qualified domestic relations order and the member's beneficiary designation shall be administered in a manner to give full effect to the order and both proportional and equitable effect to the member's designation of any beneficiary by the member.

          Source: 32 SDR 203, effective June 5, 2006; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-216, 3-12C-409.

          62:01:07:07.  Prospective nature of qualified domestic relations orders. The provisions of a qualified domestic relations order shall be 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, shall be the responsibility of the parties to the order. However, the executive director may agree to adjust future payments to remedy an error in prior payments if the error in prior payments involved the system.

          Source: 32 SDR 203, effective June 5, 2006; SL 2016, ch 31, § 85, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-216.

          62:01:07:09.  Lump-sum payments subsequent to annuity payments. No member may withdraw accumulated contributions pursuant to SDCL 3-12C-602 if more than one annuity payment has been made to the member pursuant to SDCL 3-12C-601, 3-12C-805, 3-12C-808, 3-12C-1106, 3-12C-1107, or 3-12C-1108.

          Source: 33 SDR 212, effective June 4, 2007; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-602.

          62:01:07:09.01.  Opportunity to rescind election of annuity payment option -- Overpayments. No member may elect to change normal payment of the member's retirement annuity in favor of adjusted payments pursuant to SDCL 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 payment pursuant to SDCL 3-12C-1112 elects to change to the normal method of payment, the system shall deduct in lump-sum the amount of the resulting overpayment from the member's next monthly annuity payment. A deduction may be one hundred percent of the member's normal benefit, if necessary, and may extend to subsequent benefit payments, if necessary, to eliminate the overpayment in the shortest time possible.

          Source: 37 SDR 214, effective May 30, 2011; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-1106, 3-12C-1107, 3-12C-1108, 3-12C-1112.

          62:01:07:09.02.  Rollover of lump-sum distribution by inactive member. A member who elects to withdraw the member's accumulated contributions pursuant to SDCL 3-12C-602 may transfer a portion or all of the member's account by rollover to another plan which is eligible under § 401, 403(b), 408, 408A, or 457(b) of the Internal Revenue Code.

          Source: 37 SDR 214, effective May 30, 2011; 39 SDR 227, effective July 1, 2013; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-603.

          Law Implemented: SDCL 3-12C-603.

          62:01:07:10.  Rollover of beneficiary payment by surviving spouse or other beneficiary. A member's surviving spouse may transfer a portion or all of the member's account by rollover to another plan which is eligible under §§ 401, 403(b), 408, 408A, or 457(b) of the Internal Revenue Code. A member's beneficiary who is not the member's surviving spouse may transfer a portion or all of the member's account by rollover to a plan which is eligible under § 408 or 408A of the Internal Revenue Code.

          Source: 33 SDR 212, effective June 4, 2007; 35 SDR 82, effective October 22, 2008; 39 SDR 227, effective July 1, 2013; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-409, 3-12C-410, 3-12C-603.

          62:01:07:11. Elected official's period of participation -- Notice of nonparticipation or participation -- Presumption -- Appointed official. Repealed.

          Source: 33 SDR 212, effective June 4, 2007; 45 SDR 45, effective October 8, 2018 (effective February 15, 2019).

          62:01:07:12.  Member repayment of overpayments -- Options -- Interest -- Delayed repayment -- Failure to select an option -- Required notice and presumption. 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, including interest at the system's assumed rate of return;

          (3)  Repayment by monthly benefit reductions over a period not to exceed three years, including interest at the system's assumed rate of return; or

          (4)  Repayment by an actuarial equivalent reduction in monthly benefits as follows:

               (a)  If the member is a foundation member and does not have a spouse, the reduction shall continue for the member's lifetime. If the member is a foundation member with a potential surviving spouse benefit payable, the reduction shall reduce both the member's monthly benefits and the surviving spouse's monthly benefits and shall continue for both the member's and the surviving spouse's lifetimes; or

               (b)  If the member is a generational member and elected a single life benefit, the reduction shall continue for the member's lifetime. If the member is a generational member with a joint and survivor benefit payable, the reduction shall reduce both the member's monthly benefits and the surviving spouse's monthly benefits and shall continue for both the member's and the surviving spouse's lifetimes.

          If a member required to repay an overpayment does not choose a repayment option within two months after being given notice of the overpayment, the member is deemed to have chosen to make repayment by an actuarial equivalent reduction in monthly benefits. If repayment is pursuant to an actuarial equivalent reduction by either the member's choice or the member's failure to choose a repayment option, system staff shall inform the member that the reduction is unlikely to result in repayment of the exact amount of the overpayment, plus interest if appropriate, and the member is presumed to so understand.

          If repayment is delayed for more than three months, interest on the overpayment amount shall accrue during the period of delay at the system's assumed rate of return. If any overpayment is due to a system error, the executive director may absolve any interest accrual.

          Source: 36 SDR 21, effective August 17, 2009; SL 2016, ch 31, § 86, effective July 1, 2016; 45 SDR 45, effective October 8, 2018; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211, 3-12C-214.

          Law Implemented: SDCL 3-12C-214.

          62:01:07:12.01.  Repayment of overpayments by person other than member -- Options -- Interest -- Delayed repayment -- Failure to select an option -- Required notice and presumption. 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, including interest at the system's assumed rate of return;

          (3)  Repayment by monthly benefit reductions over a period not to exceed three years, including interest at the system's assumed rate of return; or

          (4)  Repayment by an actuarial equivalent reduction in monthly benefits that shall continue as long as the benefit is paid.

          If the person required to repay an overpayment is receiving a benefit from the system and does not choose a repayment option within two months after being given notice of the overpayment, the person is deemed to have chosen to make repayment by an actuarial equivalent reduction in monthly benefits. If repayment is pursuant to an actuarial equivalent reduction by either the person's choice or the person's failure to choose a repayment option, system staff shall inform the person that the reduction is unlikely to result in repayment of the exact amount of the overpayment plus interest if appropriate, and the person is presumed to so understand.

          If repayment is delayed for more than three months, interest on the overpayment amount shall accrue during the period of delay at the system's assumed rate of return. If any overpayment is due to a system error, the executive director may absolve any interest accrual.

          Source: 45 SDR 45, effective October 8, 2018; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211, 3-12C-214.

          Law Implemented: SDCL 3-12C-214.

          62:01:07:13.  Administration of additional survivor protection contributions and coverage. A member enrolled in the additional survivor protection program pursuant to SDCL 3-12C-1001 before July 1, 2010, may maintain that coverage so long as there is no break in the member's contributions or employment. Any of the following constitutes a break in a member's contributions or employment:

          (1)  Voluntary or involuntary discontinuance of contributions;

          (2)  Required discontinuance pursuant to SDCL 3-12C-1001;

          (3)  Termination of covered employment, even if the member returns to covered employment with the same employer or a different employer;

          (4)  Leave of absence, except for military leave of absence; or

          (5)  A break in service due to a series of two or more contracts for specified months of service.

          A military leave of absence is not a break in contributions or employment. A transfer within an employer unit or from one employer to another without a termination is not a break in contributions or employment.

          Source: 37 SDR 214, effective May 30, 2011; SL 2016, ch 31, § 87, effective July 1, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-1001.

          62:01:08:01.  Maximum annual benefit. Annual benefits payable to a member may not exceed the amount provided in § 415(b) of the Internal Revenue Code, as indexed pursuant to § 415(d)(1) of the Internal Revenue Code.

          Source: 14 SDR 57, effective October 18, 1987; 24 SDR 160, effective May 24, 1998; 28 SDR 111, effective February 14, 2002; 39 SDR 227, effective July 1, 2013; 45 SDR 45, effective October 8, 2018; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-711.

          Law Implemented: SDCL 3-12C-711.

          62:01:09:01.  Definition of participant. For purposes of this chapter, the term, participant, has the same meaning as the term, supplemental pension participant, as defined in SDCL 3-12C-101.

          Source: 34 SDR 297, effective June 2, 2008; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-101.

          62:01:09:02.  System may pay a single monthly payment. The system may pay the participant's monthly supplemental pension benefit and the participant's monthly retirement benefit in a single payment. However, for all other purposes, each shall be regarded as a separate benefit, including provision of a separate Internal Revenue Service Form 1009-R for each by the system.

          Source: 34 SDR 297, effective June 2, 2008; SL 2017, ch 27, § 46, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-1503.

          62:01:09:03.  Proof of participant's marital status. A participant who is married at the time that the participant contracts for a supplemental pension benefit shall provide a copy of the participant's marriage license to the system.

          Source: 34 SDR 297, effective June 2, 2008; 43 SDR 57, effective October 17, 2016; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-1504.

          62:01:09:04.  Increase in supplemental pension spouse's benefit. A supplemental pension spouse's benefit shall receive an annual increase in the same manner as does a participant's benefit.

          Source: 34 SDR 297, effective June 2, 2008; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-1504, 3-12C-1505.

          62:01:09:05.  No increase in value of single premium. For purposes of calculating any beneficiary payment, a participant's single premium does not increase in value during the period of the supplemental pension contract.

          Source: 34 SDR 297, effective June 2, 2008; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-101, 3-12C-1506.

          62:01:09:06.  Participant's status as a retiree. For purposes of this chapter, a member of the system who has received payment of at least one monthly retirement benefit is a retiree, even if the member has returned to employment with a member unit, either with or without suspension of the retirement benefit.

          Source: 34 SDR 297, effective June 2, 2008; SL 2017, ch 27, § 47, effective July 1, 2017; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-101, 3-12C-1503.

          62:01:09:07.  Basis for monthly benefit. A participant's monthly benefit shall be based on the participant's single premium and the current interest rate assumption at the time of purchase, and shall take into account the participant's age, gender, and marital status at the time of purchase. A participant shall have no expectation or fundamental right to any particular monthly benefit amount on any other basis, including the amount of a monthly benefit being paid to another participant.

          Source: 35 SDR 82, effective October 22, 2008; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-1502, 3-12C-1504.

          62:01:09:08.  Distributions deemed reasonable and made in good faith under federal law. Pursuant to Internal Revenue Service Treasury Regulation 1.401(a)(9)-1, any supplemental pension benefit calculation or payment is deemed to be reasonable and made in good faith under § 401(a)(9) of the Internal Revenue Code.

          Source: 37 SDR 214, effective May 30, 2011; 39 SDR 227, effective July 1, 2013; 45 SDR 142, effective July 1, 2019.

          General Authority: SDCL 3-12C-211.

          Law Implemented: SDCL 3-12C-1501, 3-12C-1507, 3-12C-1508.