9-16-1
Petition for adoption of city retirement system--Submission to voters at
election--Adoption on approval by majority.
9-16-2
Conversion of pension law to retirement system without voters' authorization.
9-16-3
Ordinance establishing retirement system--Provisions to be included.
9-16-3.1
Board of Trustees.
9-16-3.2
Change of employee contributions or benefits--Requirements.
9-16-3.3
Pension allowed firefighters for impairment caused by cancer.
9-16-4
Inclusion of firemen in retirement system.
9-16-4.1
Deferred compensation program for volunteer firefighters--Establishment and
management--Participation optional.
9-16-4.2
Deferred compensation program for volunteer advanced life support personnel.
9-16-5
Repealed.
9-16-5.1
Contributions to system--Amount required.
9-16-5.2
Change of benefits--Restrictions.
9-16-5.3
Annual report--Contents--Publication--Filing.
9-16-5.4
Audit of financial statements.
9-16-5.5
Administrator--Qualifications--Employees--Bond.
9-16-5.6
Summary system description--Availability--Contents.
9-16-5.7
Description furnished to member--Charge.
9-16-5.8
Information furnished to members annually.
9-16-5.9
Records of employer.
9-16-5.10
Fiduciary of system--Duties--Definition.
9-16-5.11
Time for compliance--Remedy for noncompliance.
9-16-6
Repealed.
9-16-7
Repealed.
9-16-8
Repealed.
9-16-9
Gifts, devises, and bequests for fund.
9-16-10
Investment of moneys of retirement system.
9-16-11
Previously granted pensions as obligation of retirement system.
9-16-12 to 9-16-19.
Repealed.
9-16-20
First and second class municipalities authorized to pension firemen.
9-16-21, 9-16-22.
Repealed.
9-16-23
Sources of municipal pension fund.
9-16-24
Repealed.
9-16-25
Firemen's contributions to pension fund--Deduction from salary.
9-16-26
Refund of members' contributions on termination of employment prior to
retirement.
9-16-27
Retirement board to administer pension fund--Rules for operation of fund.
9-16-28
City treasurer as custodian of fund--Liability of surety on bond.
9-16-29 to 9-16-33.1. Repealed.
9-16-34
Workmen's compensation benefits deductible from firemen's pensions--Subrogation of first or second class municipality to rights of member or
beneficiary against third party.
9-16-35 to 9-16-39. Repealed.
9-16-40
Repealed.
9-16-41 to 9-16-43. Repealed.
9-16-44
Workers' compensation benefits offset against special death benefits--
Subrogation of first or second class municipality to rights against third party.
9-16-45
Circulatory or respiratory disease presumed occupational in firemen.
9-16-46
Repealed.
9-16-46.1
Postretirement redetermination of pensions--Restrictions.
9-16-47
Benefits and contributions exempt from assignment and process.
9-16-48
Validation of pensions and benefits previously paid.
9-16-1. Petition for adoption of city retirement system--Submission to voters at election--Adoption on approval by majority.
Upon the filing with the auditor of any municipality of the first class of a petition signed by fifteen percent of the registered voters of such municipality, based upon the total number of registered voters at the last preceding general election, the governing body shall submit to the voters of the municipality the question whether such municipality shall adopt a retirement system covering its employees and officers. If such petition is filed not less than twenty nor more than ninety days before the date of the holding of a regular state, county or municipal election, such question shall be submitted at such election, otherwise a special election shall be called for submission of such question. If a majority of the voters voting upon the proposition shall vote in favor of the adoption thereof, the same shall be adopted in such municipality.
Source: SL 1925, ch 239, § 7; SDC 1939, § 45.1204; SL 1949, ch 183, § 4; SL 1987, ch 67, § 15; SL 1992, ch 60, § 2.
9-16-2. Conversion of pension law to retirement system without voters' authorization.
A first or second class municipality which has, prior to July 1, 1949, adopted the city retired employees' and officers' pension law under the provisions of statutes then in force may establish a retirement system under this chapter without further authorization.
Source: SDC 1939, § 45.1204 as added by SL 1949, ch 183, § 4; SL 1992, ch 60, § 2.
9-16-3. Ordinance establishing retirement system--Provisions to be included.
The governing body of any municipality of the first class, after authorization as provided in § 9-16-1 or 9-16-2, may adopt an ordinance establishing a retirement system covering the employees, elective officers, and appointive officers of the municipality. The ordinance shall provide rules and regulations governing the operation of the retirement system; shall prescribe the membership of the retirement system; shall provide for the retirement of members; shall provide for the payment of annuities, pensions, or retirement allowances or may provide for actuarial equivalents thereof in the event of retirement, disability, or death; shall create a Board of Trustees in whom is vested the responsibility for the management of the retirement system; shall provide for the financing of the retirement system by contributions; and shall provide for the investment of the moneys of the retirement system.
Source: SL 1925, ch 239, § 3; SDC 1939, §§ 45.0203 (4), 45.1201; SL 1949, ch 183, § 1; SL 1953, ch 254; SL 1955, ch 201, § 1; SL 1957, ch 253; SL 1967, ch 220, § 1; SL 1984, ch 56, § 1; SL 1992, ch 60, § 2.
9-16-3.1. Board of Trustees.
The Board of Trustees required under the provisions of § 9-16-3 shall be composed as follows:
(1) Members of the governing body of the municipality or other individuals appointed by the governing body to represent it, the number to be set by ordinance;
(2) Members of the retirement and pension system selected by the membership, the number to equal the number of governing body representatives pursuant to subdivision (1) of this section; and
(3) One resident of the municipality who is not an official or employee of the municipality and whose membership on the Board of Trustees creates no conflict of interest. The member shall be nominated and approved by an affirmative majority vote of the trustees selected pursuant to subdivisions (1) and (2) of this section.
Source: SL 1984, ch 56, § 2.
9-16-3.2. Change of employee contributions or benefits--Requirements.
No change may be made in employee contribution levels of a system or present or future benefits of a system, by ordinance or otherwise, without an affirmative vote by both the governing body of the municipality and the membership of that system.
Source: SL 1984, ch 56, § 3.
9-16-3.3. Pension allowed firefighters for impairment caused by cancer.
A pension may be allowed pursuant to § 9-16-3.2 for any condition of impairment of health caused by cancer resulting in total or partial disability to an officer or member of a fire department who, upon entering such service, successfully passed a physical examination which failed to reveal any evidence of such condition. This section pertains solely to pension matters under this chapter and does not restrict a claimant's ability to file for benefits under chapter 62-8 or change the burden of proof established in § 62-8-12.
Source: SL 1991, ch 70.
9-16-4. Inclusion of firemen in retirement system.
A municipality of the first class having a retirement system for its employees and officers may, by ordinance adopted by the governing body of the municipality, include the firemen employed by the municipality in the membership of the employees' and officers' retirement system established under authority given by § 9-16-3 in lieu of a separate firemen's pension fund.
Source: SL 1949, ch 183, § 5; SDC Supp 1960, § 45.1204-1; SL 1978, ch 62, § 4; SL 1984, ch 56, § 4; SL 1992, ch 60, § 2.
9-16-4.1. Deferred compensation program for volunteer firefighters--Establishment and management--Participation optional.
Any municipality with a volunteer fire department may establish a deferred compensation program for its volunteer firefighters. Such a program may be financed by the municipality or by the volunteer firefighters and may be managed through the municipality or through an insurance company or other financial institution. Such program shall be established by ordinance. Each municipality shall establish requirements for participation in the program. Participation in the program of deferred compensation shall be at the option of the volunteer firefighter.
Source: SL 1986, ch 71, § 1.
9-16-4.2. Deferred compensation program for volunteer advanced life support personnel.
Any municipality with volunteer advanced life support personnel may establish a deferred compensation program for its volunteer advanced life support personnel. Such a program may be financed by the municipality or by the volunteer advanced life support personnel and may be managed through the municipality or through an insurance company or other financial institution. Such program shall be established by ordinance. Each municipality shall establish requirements for participation in the program. Participation in the program of deferred compensation shall be at the option of the volunteer advanced life support personnel.
Source: SL 2011, ch 36, § 3.
9-16-5.1. Contributions to system--Amount required.
Total contributions in each year to a retirement system subject to this chapter shall be sufficient to fund the following:
(1) The administrative cost of the plan during the year;
(2) The actuarially determined cost of future benefits accruing to members during the year; and
(3) An amount sufficient to amortize any unfunded liability of the system over a period not to exceed forty years on the basis of reasonable and generally accepted actuarial assumptions.
Source: SL 1984, ch 56, § 6.
9-16-5.2. Change of benefits--Restrictions.
No benefits, present or future, may be changed or modified in any manner unless the system's actuary or actuaries have prepared an actuarial statement showing the effect of those changes on the system. No benefits, present or future, may be changed or modified if the change or modification will bring the system into noncompliance with the provisions of § 9-16-5.1.
Source: SL 1984, ch 56, § 7.
9-16-5.3. Annual report--Contents--Publication--Filing.
Any retirement system subject to the provisions of this chapter shall publish an annual report containing financial statements and an actuarial valuation of the system. The report shall be filed with the Retirement Laws Committee created by § 2-6-8 and shall be available to each member of the system.
Source: SL 1984, ch 56, § 8.
9-16-5.4. Audit of financial statements.
The financial statements contained in the report required by § 9-16-5.3 shall be audited by an independent qualified, certified public accountant. The actuarial valuation required in the report shall include the information required under the provisions of subdivision 3-12C-101(3) and shall be performed by an approved actuary as defined by subdivision 3-12C-101(8).
Source: SL 1984, ch 56, § 9; SL 2019, ch 22, §§ 2, 45.
9-16-5.5. Administrator--Qualifications--Employees--Bond.
The Board of Trustees may appoint an administrator, who shall be qualified by training and experience requirements set by the board. The administrator may hire additional employees as may be required to transact the business of the retirement system. The board shall require bonding of the administrator in an amount set by the board, which may be included under any municipal employees' blanket bond. The bond premium may be paid by the system.
Source: SL 1984, ch 56, § 10.
9-16-5.6. Summary system description--Availability--Contents.
An administrator of a retirement system subject to the provisions of this chapter shall make available to any member of the system and to any beneficiary of the system a summary system description. The summary system description shall be written in a manner to be understood by the average member of the system and shall be sufficiently accurate and comprehensive to appraise participants and beneficiaries of their rights and obligations under the system. The summary system description shall include:
(1) The name and address of the administrator;
(2) Names, titles, and addresses of any trustee or trustees;
(3) A description of the relevant provisions of any applicable collective bargaining agreement;
(4) The system's requirements respecting eligibility for participation and benefits;
(5) A description of provisions providing for nonforfeitable pension benefits;
(6) Circumstances which may result in disqualification, ineligibility, or denial or loss of benefits;
(7) The source of financing of the system and the identity of any organization through which benefits are provided;
(8) The date of the end of the system year and whether the records of the system are kept on a calendar, policy or fiscal year basis; and
(9) The procedures to be followed in presenting claims for benefits under the system and the remedies available under the system for the redress of claims which are denied in whole or in part.
Source: SL 1984, ch 56, § 11.
9-16-5.7. Description furnished to member--Charge.
The administrator of a system shall, upon written request of any participant or beneficiary, furnish a copy of the latest updated summary system description, the latest annual report and any bargaining agreement, trust agreement, contract, or other instrument under which the system is established or operated. The administrator may make a reasonable charge to cover the cost of furnishing such complete copies.
Source: SL 1984, ch 56, § 12.
9-16-5.8. Information furnished to members annually.
Each administrator of a system under this chapter annually shall furnish to each system member or beneficiary a statement showing, on the basis of the latest available information, his total contributions, if any, his total benefits accrued and his nonforfeitable benefits, if any, which have accrued or the earliest date on which his benefits will become nonforfeitable.
Source: SL 1984, ch 56, § 13.
9-16-5.9. Records of employer.
An employer who employs one or more individuals who are members of a system covered under this chapter shall maintain records with respect to each employee sufficient to determine benefits due or which may become due to the employee. The employer shall furnish to the system administrator any information necessary for the administrator to make reports required under the provisions of this chapter.
Source: SL 1984, ch 56, § 14.
9-16-5.10. Fiduciary of system--Duties--Definition.
Every fiduciary of a retirement system subject to the provisions of this chapter shall discharge his duties solely in the interest of the participants and beneficiaries of the system, for the exclusive purpose of providing benefits to participants and their beneficiaries and with the skill, care, prudence, and diligence, under the circumstances then prevailing, of a prudent man, familiar with such matters and acting in a similar capacity. For purposes of this section, the term "fiduciary" means any person or entity which exercises any discretionary authority control over the management of a system or its assets, any person or entity which renders investment advice to a system for a fee or other compensation, or any person or entity which has any discretionary authority or discretionary responsibility in the administration of a system.
Source: SL 1984, ch 56, § 15.
9-16-5.11. Time for compliance--Remedy for noncompliance.
Each retirement system subject to the provisions of this chapter shall be in compliance with § 9-16-3.1 and §§ 9-16-5.1 to 9-16-5.8, inclusive, no later than June 12, 1987. At any time thereafter, if the members of the Retirement Laws Committee determine that any such system is not in compliance with § 9-16-5.1, the Retirement Laws Committee shall so certify in writing to the state treasurer. Upon receipt of the certification, the state treasurer shall pay into that municipality's system funds which are due from the state treasury to the municipality until the system complies with § 9-16-5.1.
Source: SL 1984, ch 56, § 16.
9-16-9. Gifts, devises, and bequests for fund.
The first or second class municipality may accept gifts, devises, and bequests for the pension fund.
Source: SL 1925, ch 239, § 5; SL 1937, ch 177; SDC 1939, § 45.1202; SL 1945, ch 199; SL 1947, ch 204; SL 1949, ch 183, § 2; SL 1955, ch 201, § 2; SL 1967, ch 220, § 2; SL 1992, ch 60, § 2.
9-16-10. Investment of moneys of retirement system.
All moneys belonging to the retirement system not required for the payment of current annuities, pensions, retirement allowances, other benefits, or administrative expenses in lieu thereof may be invested.
Source: SL 1925, ch 239, § 5; SL 1937, ch 177; SDC 1939, § 45.1202; SL 1945, ch 199; SL 1947, ch 204; SL 1949, ch 183, § 2; SL 1955, ch 201, § 2; SL 1967, ch 220, § 2; SL 1979, ch 37, § 4; SL 1984, ch 56, § 19.
9-16-11. Previously granted pensions as obligation of retirement system.
All pensions granted by a first or second class municipality prior to the adoption of a retirement system under § 9-16-3 shall become an obligation of the retirement system adopted by said municipality under said section.
Source: SL 1949, ch 183, § 6; SDC Supp 1960, § 45.1204-2; SL 1992, ch 60, § 2.
9-16-20. First and second class municipalities authorized to pension firemen.
In addition to other powers granted, every municipality of the first class shall have power to establish a firemen's relief and pension fund and to pension firemen as provided in this chapter.
Source: SL 1927, ch 172, § 2; SL 1929, ch 189; SDC 1939, § 45.0204; SL 1992, ch 60, § 2.
9-16-23. Sources of municipal pension fund.
A municipal pension fund shall consist of:
(1) All sums of money or property that are contributed by gifts, devises, and bequests;
(2) In the case of a firemen's system, all money received by its respective first or second class municipality from the Division of Insurance of the State of South Dakota as its proportionate share of the insurance fund collected from the various insurance companies;
(3) All income derived from investments of moneys in the pension fund;
(4) An amount as may be annually designated by the governing body pursuant to law; and
(5) All contributions by members of the pension fund.
Source: SL 1927, ch 172, § 2; SL 1929, ch 189; SDC 1939, § 45.1206; SL 1939, ch 184; SL 1945, ch 200; SL 1955, ch 202, § 1; SDC Supp 1960, § 45.1206 (1) to (3); SL 1984, ch 56, § 30; SL 1992, ch 60, § 2.
9-16-25. Firemen's contributions to pension fund--Deduction from salary.
Each member of the firemen's pension fund may be required to contribute to the fund, as determined by ordinance adopted by the municipality of the first class, the contributions to be deducted from his salary beginning with the date of his entry into city service as a fireman, if required by ordinance, and continuing so long as he remains a member until his retirement, if required by ordinance.
Source: SDC 1939, § 45.1206 (5) (a) as added by SL 1955, ch 202, § 1; SL 1977, ch 69; SL 1984, ch 56, § 32; SL 1992, ch 60, § 2.
9-16-26. Refund of members' contributions on termination of employment prior to retirement.
In the event any member leaves city service before a pension becomes payable on account of his participation in the said pension fund, the total of his contributions to the said fund may be either retained by the said fund or returned to the said individual or his legal representative either with or without interest additions, as the city shall determine by ordinance.
Source: SDC 1939, § 45.1206 (5) (a) as added by SL 1955, ch 202, § 1.
9-16-27. Retirement board to administer pension fund--Rules for operation of fund.
The authority and responsibility for the administration, management, and operation of the pension fund shall be vested in and under the control of a retirement board, which shall consist of two city officials to be selected by the governing body of the first or second class municipality; two members of the fire department to be elected by the members of the fire department, and a citizen, who is neither a city official nor a member of the fire department, to be selected by these four members. The retirement board shall adopt such rules, not inconsistent with this chapter and the pension fund ordinance, as are required in the proper operation of the pension fund.
Source: SL 1927, ch 172, § 3; SDC 1939, § 45.1207; SL 1955, ch 202, § 2; SDC Supp 1960, § 45.1207 (2); SL 1992, ch 60, § 2.
9-16-28. City treasurer as custodian of fund--Liability of surety on bond.
The treasurer of each municipality shall be the custodian of the investments and other moneys in its pension fund, which shall be kept apart from other funds in his custody. The surety on the official bond of the treasurer shall be liable for the safekeeping and due accounting of the moneys, securities, and other property belonging to the pension fund.
The previous requirements of this section shall not apply when such assets are placed with a funding agent or an investment counsel as provided for in this section. The retirement board of a pension fund may select a funding agent or investment counsel to administer and invest the funds of the system. The selection and the appointment of the funding agent or the investment counsel shall be made by the retirement board which shall have the right from time to time to change the funding agent or the investment counsel as to all or any part of the funds. The board shall have the right to determine the form and substance of each agreement under which the funds are to be held, provided that it shall not be inconsistent with the provisions of this section. The term "funding agent" means a corporate or individual trustee or trustees, insurance company or insurance companies authorized to do business in the State of South Dakota, or combination thereof, appointed and acting from time to time pursuant to the provisions of this section in holding, investing and disbursing the funds of the pension fund. The term "investment counsel" means a corporation or individual authorized to do business under the Federal Investment Advisers Act of 1940 and authorized to do business in the State of South Dakota, appointed and acting from time to time pursuant to the provisions of this section in investing the funds of the pension fund.
The retirement board may contract for investment counsel and advice when it deems necessary.
Source: SL 1927, ch 172, § 3; SDC 1939, § 45.1207; SL 1955, ch 202, § 2; SDC Supp 1960, § 45.1207 (3); SL 1970, ch 60; SL 1977, ch 71.
9-16-34. Workmen's compensation benefits deductible from firemen's pensions--Subrogation of first or second class municipality to rights of member or beneficiary against third party.
Any amounts which may be paid or payable under the provisions of any workmen's compensation or similar law to a member or beneficiary or to the dependents of a member or beneficiary on account of any disability shall be offset against and payable in lieu of any pensions payable as provided in this chapter on account of the same disability. In the event any member or beneficiary, or the dependents of any member or beneficiary becomes entitled to a pension as the result of an accident or injury caused by the act of a third party, the said first or second class municipality shall be subrogated to the rights of the said member or beneficiary, or the dependents of the said member or beneficiary against such third party to the extent of benefits which the municipality pays or becomes liable to pay.
Source: SDC 1939, § 45.1208 (4) as added by SL 1955, ch 202, § 3; SL 1992, ch 60, § 2.
9-16-44. Workers' compensation benefits offset against special death benefits--Subrogation of first or second class municipality to rights against third party.
Any amounts which may be paid or payable under the provisions of any workers' compensation or similar law to a member or beneficiary or to the dependents of a member or beneficiary on account of any death shall be offset against and payable in lieu of any pensions payable as provided in this chapter on account of the same death. In the event any member or beneficiary, or the dependents of any member or beneficiary becomes entitled to a pension as the result of an accident or injury caused by the act of a third party, the said first or second class municipality shall be subrogated to the rights of the said member or beneficiary, or the dependents of the said member or beneficiary against such third party to the extent of benefits which the municipality pays or becomes liable to pay.
Source: SDC 1939, § 45.1209 (7) as added by SL 1955, ch 202, § 4; SL 1992, ch 60, § 2.
9-16-45. Circulatory or respiratory disease presumed occupational in firemen.
Notwithstanding the provisions of any general or special law to the contrary, any condition of impairment of health caused by hypertension, heart disease, or respiratory disease resulting in total or partial disability to an officer or member of a fire department who successfully passed physical examination on entering into such service, which examination failed to reveal any evidence of such condition, shall be presumed to have been suffered in line of duty, unless the contrary be shown by competent evidence.
Source: SL 1957, ch 248, § 3; SDC Supp 1960, § 45.1212.
9-16-46.1. Postretirement redetermination of pensions--Restrictions.
Any pension plan for city employees and officers or firemen, adopted under the provisions of this chapter, may provide for annual or less frequent postretirement redetermination of pensions. The application of any provision redetermining pension amounts may be restricted to pensions having an effective date of payment either prior to or subsequent to a specified date. Any postretirement redetermination of one or more pensions within a system shall be prefunded and may not bring the system into noncompliance with the provisions of subdivision 9-16-5.1(3).
Source: SL 1970, ch 58; SL 1984, ch 56, § 50.
9-16-47. Benefits and contributions exempt from assignment and process.
All annuities, pensions, retirement allowances, the accumulated contributions of any member, or any other benefit whatsoever accrued or accruing to any member or beneficiary shall be unassignable and shall not be subject to execution, attachment, garnishment, or any other process of law whatsoever, except as is specifically provided by this chapter.
Source: SL 1927, ch 172, § 7; SDC 1939, § 45.1211; SL 1943, ch 165, § 3; SL 1955, ch 202, § 6.
9-16-48. Validation of pensions and benefits previously paid.
In all cases if a municipal retirement system or a first or second class municipality has, prior to July 1, 1985, paid any pension or other benefit out of funds provided by the municipality, the pensions or other benefits and all proceedings thereon, contracts made or performed, ordinances or regulations established, and any levy and appropriation of taxes or revenues for payment thereof, are hereby declared to be valid and legal, notwithstanding any defect or irregularity, other than constitutional defects, in any of the payments, contracts, ordinances, or regulations, including, but not limited to, any conflict with any state statute existing at the time of payments.
Source: SL 1979, ch 53, § 2; SL 1984, ch 56, § 51; SL 1986, ch 72; SL 1992, ch 60, § 2.
