62:04:01:02.  Definition of specific terms. Terms used in this article mean:

          (1)  "Direct rollover," a payment by the program to an eligible retirement plan specified by the participant;

          (2)  "Distributee," a participant or former participant; a participant's or former participant's surviving spouse with regard to the interest of the surviving spouse; or a participant's or former participant's former spouse who is an alternate payee under a qualified domestic relations order, as defined in § 414(p) of the code, with regard to the interest of the former spouse;

          (3)  "Eligible retirement plan," an individual retirement account described in § 408(a) of the code; an individual retirement annuity described in § 408(b) of the code; a Roth individual retirement plan described in § 408A of the code; an annuity plan described in § 403(a) of the code; or a qualified plan described in § 401 of the code, any of which accepts a participant's or a participant's surviving spouse's rollover distribution, except that in the case of an eligible rollover distribution to a beneficiary who is not a participant's surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity;

          (4)  "Eligible rollover distribution," any distribution of all or any portion of the balance to the credit of the participant, except that an eligible rollover distribution does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life or life expectancy of the participant or the joint lives or joint life expectancies of the participant and the participant's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent the distribution is required under § 401(a)(9) of the code; or any other distribution that is reasonably expected to total less than two hundred dollars during a single plan year;

          (5)  "Plan year," a calendar year ending on December 31.

          Source: 31 SDR 191, effective May 22, 2005; 34 SDR 297, effective June 2, 2008.

          General Authority: SDCL 3-13A-4.

          Law Implemented: SDCL 3-13A-4.

          62:04:03:01.  Direct rollovers. Pursuant to SDCL 3-13A-20, a participant or a participant's surviving spouse may elect, at the time and in the manner prescribed by the third-party administrator, to have any portion of an eligible rollover distribution paid in a direct rollover to an eligible retirement plan specified by the participant or the surviving spouse if the plan is an eligible plan under § 401, 403(b), 408, 408A, or 457 of the code. A participant's beneficiary who is not the participant's surviving spouse may elect, at the time and in the manner prescribed by the third-party administrator, to have any portion of an eligible rollover distribution paid in a direct rollover to a plan specified by the beneficiary if the plan is an eligible plan under § 408 or 408A of the code.

          Source: 31 SDR 191, effective May 22, 2005; 33 SDR 212, effective June 4, 2007; 35 SDR 82, effective October 22, 2008.

          General Authority: SDCL 3-13A-4.

          Law Implemented: SDCL 3-13A-20.