CHAPTER 3-12C
SOUTH DAKOTA RETIREMENT SYSTEM
PART 1. DEFINITIONS.
3-12C-101 Definitions.
3-12C-102 Actuarial equivalent defined.
3-12C-103 Child defined.
3-12C-104 COLA or cost of living adjustment defined.
3-12C-105 Compensation defined.
3-12C-106 Contributing member defined.
3-12C-107 Disability defined.
3-12C-108 Effective rate of interest defined.
3-12C-109 Minimum actuarial requirement to support benefits defined.
3-12C-110 Spouse defined.
3-12C-111 Terminated defined.
3-12C-112 Vested defined.
3-12C-113 Internal Revenue Code references.
PART 2. ADMINISTRATION
3-12C-201 Citation of chapter.
3-12C-202 System managed by board--Standard of conduct--Legal advice.
3-12C-203 Board of Trustees created--Composition.
3-12C-204 Election of trustees--Terms of office.
3-12C-205 Resignation of trustee due to loss of qualifying status--Filling of vacancy.
3-12C-206 Trustees--Oath of office.
3-12C-207 Compensation and expenses of trustees.
3-12C-208 Meetings of board--Chair and vice chair--Votes required for decision.
3-12C-209 Appointment of executive director--Compensation--Employment of personnel--Bond.
3-12C-210 Expense fund continued--Transfer from retirement system fund--Report of budget--Appropriation and disbursement for expenses.
3-12C-211 Rules for administration.
3-12C-212 Applications for membership or benefits--Picture identification required.
3-12C-213 Grievance procedure--Administrative and judicial review.
3-12C-214 Correction of records--Adjustment for underpayment or overpayment--Limitation.
3-12C-215 Confidentiality of records--Exceptions.
3-12C-216 Exemption of contributions and benefits from taxation and process.
3-12C-217 Domestic relations orders--Determination as to whether qualified--Restrictions on provisions.
3-12C-218 Business name of system--Treasurer.
3-12C-219 Use of fund restricted.
3-12C-220 Diversion of funds prohibited--Legislative policy.
3-12C-221 Rights of members on termination of system or discontinuance of contributions.
3-12C-222 Application of forfeitures.
3-12C-223 Investment of assets by investment council--Pooling of funds--Standards for investment--Compliance with federal divestiture enactments.
3-12C-224 Quadrennial independent report on investment performance.
3-12C-225 Review of investment policy when return lower than average--Report to Governor and Legislature.
3-12C-226 Annual actuarial valuation of system--Scope of valuation.
3-12C-227 Actuarial assumptions on which valuation based--Report of change.
3-12C-228 Funding of system--Review--Report--Corrective action.
3-12C-229 Annual report of funded status of system.
3-12C-230 Record of board proceedings--Annual report.
PART 3. MEMBERSHIP
3-12C-301 Members of system.
3-12C-302 Membership in system--Exclusions.
3-12C-303 Newly elected officials permitted to join system--Requirements--Credited service.
3-12C-304 Continuation of previously established retirement plan--Vote of employees required to participate in consolidated system.
3-12C-305 Newly established retirement plans of political subdivisions and public corporations to participate in consolidated system.
3-12C-306 Election by political subdivision or public corporation to participate in consolidated system.
3-12C-307 Coverage of joint employees of participating and nonparticipating political subdivisions.
3-12C-308 Accrued benefit deposit required when political subdivision or public corporation joins consolidated system--Participation by employees--Deferred payment of deposit.
3-12C-309 Effective date of participation of employees of participating unit.
3-12C-310 Privatization of governmental function.
PART 4. CONTRIBUTIONS
3-12C-401 Rate of contributions--Deduction from pay--Employer to make members' contributions.
3-12C-402 Additional contribution for foundation members by participating unit.
3-12C-403 Monthly transmission of contributions--Deposit in fund.
3-12C-404 Deduction of delinquent contributions from payments due from state--Penalty and interest.
3-12C-405 Service records and employee information furnished by employers.
3-12C-406 Knowing transmission of report with excluded compensation as misdemeanor.
3-12C-407 Accumulated contributions defined for foundation members.
3-12C-408 Accumulated contributions defined for generational members.
3-12C-409 Refund of unpaid accumulated contributions upon termination--Reversion of unclaimed payments to system.
3-12C-410 Lump-sum payments where designated beneficiary does not survive member--Reversion to system of unclaimed payments.
PART 5. SERVICE CREDIT
3-12C-501 Uniform application of service credit rules.
3-12C-502 Credited service defined for foundation members.
3-12C-503 Credited service defined for generational members.
3-12C-504 Purchase of prior service credit--Calculation of amount due.
3-12C-505 Prospective increase for credited service related to years of noncontributory service.
3-12C-506 Refund for purchase cost of noncontributing service.
3-12C-507 Repealed.
3-12C-508 Repealed.
3-12C-509 Purchase of prior service credit for public service not covered by retirement plan.
3-12C-510 Acquisition of credited service through transfer of funds--Requirements.
3-12C-511 Purchase of nonqualified permissive service credit allowed.
3-12C-512 Acquisition of credited service for members mobilized into certain federal military service.
3-12C-513 Service credit for leave of absence--Contributions to cover period of absence.
3-12C-514 Credited service for leave of absence due to qualified military service--Return to employment after discharge.
3-12C-515 Death or disability of member on leave of absence due to qualified military service--Return to service date and benefits.
3-12C-516 Members receiving differential wage payments.
3-12C-517 Valuation of purchased prior service credit--Installment payments--Death of member--Adjustment when installments not paid.
3-12C-518 Conversion of credited service.
3-12C-519 Purchase of certain public service as Class B service.
3-12C-520 Prior service credit on return of nonvested member to employment.
PART 6. TERMINATION AND REEMPLOYMENT BEFORE RETIREMENT
3-12C-601 Retirement benefit to terminated member with vested right--Calculation.
3-12C-602 Withdrawal of accumulated contributions on leaving covered employment--Picture identification required--Limitation.
3-12C-603 Distribution by direct rollover.
3-12C-604 Contributions left in system on termination of employment without vested right--Maximum period--Forfeiture.
3-12C-605 Uncollected payments from system--Reversion.
3-12C-606 Reinstatement of terminated rights.
3-12C-607 Early withdrawal precludes additional refund.
3-12C-608 Eligibility for benefits upon becoming full-time employee within twelve months after withdrawal.
PART 7. BENEFITS GENERALLY
3-12C-701 Benefits only payable monthly--Lump-sum payments prohibited unless specified.
3-12C-702 Person's birthday for purposes of eligibility.
3-12C-703 COLA applied to benefits--COLA elimination.
3-12C-704 Determination of COLA payable.
3-12C-705 Date of application of prorated payment of COLA.
3-12C-706 Modified monthly benefit permitted.
3-12C-707 Highest annual compensation.
3-12C-708 Time of termination of benefits.
3-12C-709 Duplicate benefits prohibited unless from another member's contributions.
3-12C-710 Member who leaves employment--Spouse and minor children.
3-12C-711 Rules regulating maximum annual benefit--Tax qualification--Limitation year defined.
3-12C-712 Compensation limits in Internal Revenue Code § 401(a)(17).
3-12C-713 Contribution credit defined--Payment of contribution credit and credited investment return.
PART 8. DISABILITY BENEFITS
3-12C-801 Criteria for determining disability--Uniform application.
3-12C-802 Disability documentation inadmissible for proceedings relative to workers' compensation.
3-12C-803 Disability benefits eligibility--Applications before July 1, 2015--Required information--Filing deadline.
3-12C-804 Employer certification of inability to provide effective accommodations or comparable employment--Applications before July 1, 2015.
3-12C-805 Amount of monthly disability benefit--Applications before July 1, 2015.
3-12C-806 Elimination or addition of disability benefit pertaining to children--Applications before July 1, 2015.
3-12C-807 Deduction of other public benefits from disability benefit--Reduction when children become ineligible--Applications before July 1, 2015.
3-12C-808 Conversion of disability benefit to retirement benefit at retirement age--Applications before July 1, 2015.
3-12C-809 Termination of disability benefit based on application before July 1, 2015.
3-12C-810 Maximum amount of disability benefit--Reporting earned income--Applications before July 1, 2015.
3-12C-811 Disability benefits for applications received after June 30, 2015.
3-12C-812 Disability benefits eligibility.
3-12C-813 Application for disability benefits--Required information--Filing deadline.
3-12C-814 Employer certification of inability to provide accommodations or comparable employment.
3-12C-815 Health care provider certification of disability.
3-12C-816 Advice of disability advisory committee--Independent examination or assessment--Notice of disapproval of application.
3-12C-817 Notice of approval of disability benefits--Commencement of benefits.
3-12C-818 Calculation of disability benefits--Foundation members.
3-12C-819 Disability benefits for generational members.
3-12C-820 No credited service for disability benefit period.
3-12C-821 Contributions for period of employment while receiving disability benefits.
3-12C-822 Termination of disability benefits.
3-12C-823 Contributions upon return to covered employment.
3-12C-824 Retirement benefit of member who received disability benefits and returned to covered employment.
3-12C-825 Retirement benefit of member whose disability benefits were terminated but who did not return to covered employment.
3-12C-826 Family benefit--Member dies before normal retirement age while receiving disability benefits.
3-12C-827 Surviving spouse benefit where member received disability benefits.
3-12C-828 Surviving spouse benefit where member dies after normal retirement age while receiving disability benefits.
PART 9. BENEFITS PAYABLE AFTER THE DEATH OF A CONTRIBUTING MEMBER
3-12C-901 Family and surviving spouse benefits--Death of contributing member before retirement or death of member receiving disability based on application before July 1, 2015--Amount of benefit--Effective date.
3-12C-902 Payment or delivery to minors.
3-12C-903 Benefits payable directly to child at age eighteen--Elimination upon ineligibility.
3-12C-904 Elimination of family benefit as children become ineligible.
3-12C-905 Deductions of member's primary social security from benefits.
3-12C-906 Family benefits in lieu of other death benefits--Election by designated beneficiary to withdraw accumulated contributions.
3-12C-907 Family benefit--Deceased member who was working--Total benefit--Effective date.
PART 10. ADDITIONAL SURVIVOR PROTECTION
3-12C-1001 Election of additional survivor protection--Commencement and termination of additional contribution.
3-12C-1002 Extension of survivor protection option to current contributing members--Limitation on future extensions.
3-12C-1003 New enrollments in additional survivor protection prohibited.
3-12C-1004 Amount of additional survivor protection benefits--Termination.
PART 11. FOUNDATION MEMBER BENEFITS
3-12C-1101 Final average compensation for foundation members whose contributory service concluded before July 1, 2021.
3-12C-1102 Limitations on final average compensation for foundation members whose contributory service concluded before July 1, 2020.
3-12C-1103 Final average compensation for foundation members whose contributory service concludes after June 30, 2021.
3-12C-1104 Limitations on final average compensation for foundation members whose contributory service concludes after June 30, 2020.
3-12C-1105 Normal retirement age for foundation members.
3-12C-1106 Normal retirement benefit for foundation members for Class A credited service.
3-12C-1107 Normal retirement benefit for foundation members for Class B credited service other than justice, judge, or magistrate judge.
3-12C-1108 Normal retirement benefit for foundation members for Class B credited service as justice, judge, or magistrate judge.
3-12C-1109 Adjustments in benefit for certain retirees based on time and circumstances of retirement.
3-12C-1110 Reduction age defined for foundation members.
3-12C-1111 Early retirement benefits for foundation members.
3-12C-1112 Adjustment of early retirement benefits for foundation members who retire before eligible for social security.
3-12C-1113 Effective date of retirement benefit of foundation member--Last payment--Retroactive retirement benefits.
3-12C-1114 Surviving spouse benefit--Retired foundation member--Effective dates.
3-12C-1115 Surviving spouse benefit--Foundation member--Calculation of benefit.
3-12C-1116 Early surviving spouse benefit for foundation member's spouse.
PART 12. GENERATIONAL MEMBER BENEFITS
3-12C-1201 Final average compensation defined for generational members.
3-12C-1202 Limitations on final average compensation for generational members.
3-12C-1203 Normal retirement age for generational members.
3-12C-1204 Normal retirement benefit for generational members for Class A credited service.
3-12C-1205 Normal retirement benefit for generational members for Class B credited service other than justice, judge, or magistrate judge.
3-12C-1206 Normal retirement benefit for generational members for Class B credited service as justice, judge, or magistrate judge.
3-12C-1207 Early retirement benefits for generational members.
3-12C-1208 Application for retirement benefit required--Picture identification required.
3-12C-1209 Monthly benefit options for generational members.
3-12C-1210 Irrevocable benefit election by generational members.
3-12C-1211 Effective date of retirement benefit of generational member--Last payment.
3-12C-1212 Retroactive retirement benefits for generational members.
3-12C-1213 Surviving spouse benefit--Retired generational member--Amount of benefit.
3-12C-1214 Surviving spouse benefit--Generational member dying after normal retirement age but before start of benefit--Amount of benefit.
3-12C-1215 Amount of surviving spouse benefit for generational member.
3-12C-1216 Early surviving spouse benefit for generational member's spouse.
PART 13. VARIABLE RETIREMENT ACCOUNTS
3-12C-1301 Variable retirement accounts of generational members--Contributions and credited investment return.
3-12C-1302 Variable retirement contributions of generational members.
3-12C-1303 Distributions from generational member's variable retirement account.
PART 14. REEMPLOYMENT AFTER RETIREMENT
3-12C-1400 Three consecutive calendar months of separation described.
3-12C-1401 Reemployment of retired member--Separation of service required--Hiring procedures.
3-12C-1401.1 Reemployment of retired member--Limited exception to separation of service requirement.
3-12C-1402 Reduction of retirement benefit during reemployment before July 1, 2004--Recalculation of additional benefit.
3-12C-1403 Retirement benefits for members who reentered covered employment after June 30, 2004 and before April 1, 2010.
3-12C-1404 Reduction of retirement benefit during reemployment for members who reentered employment between July 1, 2004 and April 1, 2010--Benefit upon subsequent retirement.
3-12C-1405 Retired members--Reentrance to covered employment--Benefits and membership.
3-12C-1405.1 Reemployment of retired member--Limited exception to benefit and membership provisions for part-time employment.
3-12C-1405.2 Reemployment of retired member--Employer tracking.
3-12C-1406 Invalid retirement--Repayment of retirement benefit payments.
PART 15. SUPPLEMENTAL PENSION BENEFIT
3-12C-1501 Supplemental pension benefit created.
3-12C-1502 Interest rate assumption--Suspension of new supplemental pension contracts--No right to particular price.
3-12C-1503 Rollover of funds--Single premium--Contract effective upon signing--Payment of benefits.
3-12C-1504 Types of supplemental pension benefits.
3-12C-1505 COLA applicable to supplemental pension benefits.
3-12C-1506 Death of participant or spouse--Lump sum distribution to beneficiaries--Time for making claim.
3-12C-1507 Contract purchases and benefit payments deemed qualified plan distributed annuity contracts.
3-12C-1508 Minimum distribution rules--Annual benefit limitations.
3-12C-1509 Applicability of certain retirement system provisions.
3-12C-1510 Exemption from Title 58 and from securities and agent registration.
PART 16. MEMBERSHIP BY CONSOLIDATION AND ELECTION
3-12C-1601 Previous retirement systems consolidated--Purpose.
3-12C-1602 Intent to provide increased benefits to previously retired members of systems.
3-12C-1603 Increase in benefits for previously retired members of systems.
3-12C-1604 Adjustment of increase for retired members electing optional payment or early retirement.
3-12C-1605 Previously retired members paid from consolidated fund.
3-12C-1606 Members of consolidated systems entitled to benefits of prior law--Retention of Codified Laws.
3-12C-1607 Amount of benefits for justice or judge mandatorily retired.
3-12C-1608 Board of Regents employees--Definition of balances.
3-12C-1609 Existing regents' contracts preserved--Expansion of retirement plan--Transition.
3-12C-1610 Contract for purchase of service for Board of Regents.
3-12C-1611 Contributory service credited to Board of Regents employees--Eligibility of nonparticipating employees--Qualification for prior credited service.
3-12C-1612 Normal retirement allowance reduced by actuarial equivalent--Deposit of individual balance--Member contributions.
3-12C-1613 Allowance to surviving spouse of law enforcement officer retired for disability.
3-12C-1614 Repealed.
3-12C-1615 Rapid City firefighter membership in system--Benefits and credited service.
3-12C-1616 Rapid City firefighter retirement benefits--Normal retirement age.
3-12C-1617 Payments from public employees retirement fund to Rapid City firefighters.
3-12C-1618 Payments by Rapid City.
3-12C-1619 Crediting of transfers from Rapid City pension fund.
3-12C-1620 Retirement benefits for certain city of Aberdeen employees.
3-12C-1621 Aberdeen firefighters to participate in system.
3-12C-1622 Eligible benefits for Aberdeen firefighters.
3-12C-1623 Amount to be paid by municipality of Aberdeen.
3-12C-1624 Funds from Aberdeen municipality considered member contributions.
3-12C-1625 Watertown firefighters pension fund members--Credited service.
3-12C-1626 Watertown firefighters benefits paid from the system--Minimum benefit.
3-12C-1627 Payments by Watertown.
3-12C-1628 Crediting transfers from city of Watertown firemen pension fund.
3-12C-1629 Mitchell firefighters as members of system.
3-12C-1630 Benefits for Mitchell firefighters.
3-12C-1631 Calculation of Mitchell firefighter benefits.
3-12C-1632 Amount of payment to system by city of Mitchell.
3-12C-1633 Transfer of city of Mitchell firemen's pension plan funds as member contributions.
3-12C-1634 Information required of city of Mitchell.
3-12C-1635 Huron firefighters as members of system.
3-12C-1636 Benefits for Huron firefighters.
3-12C-1637 Calculation of Huron firefighter benefits.
3-12C-1638 Amount of payment to system by City of Huron.
3-12C-1639 Transfer of city of Huron firemen's pension plan funds as member contributions.
3-12C-1640 Information required of city of Huron.
3-12C-1641 Election by municipality of Sioux Falls to be participating unit.
3-12C-1642 Transfer of funds in cement plan retirement fund.
3-12C-1643 Members of cement plant retirement plan to be Class C members of system.
3-12C-1644 Class C members to receive benefits as provided under cement plant retirement plan.
3-12C-1645 Funds transferred from cement plant retirement fund considered member contributions.
3-12C-1646 Payment of benefits and operational expenses related to Class C members.
3-12C-1647 Promulgation of rules to administer retirement benefits for Class C members.
3-12C-1648 Member election to receive lump sum trustee-to-trustee payment in lieu of monthly payments.
3-12C-1649 Surviving spouse election to receive lump sum trustee-to-trustee payment in lieu of monthly payments.
3-12C-1650 Department of Labor and Regulation employees' retirement plan--Membership with system--Class D.
3-12C-1651 Class D membership--Benefits received.
PART 17. RECLASSIFICATION
3-12C-1701 Correctional security staff benefits.
3-12C-1702 Calculation of benefits for sheriffs and deputies--Prior elective rights preserved.
3-12C-1703 Calculation of benefits of parole agent.
3-12C-1704 Calculating benefits of air rescue firefighter.
3-12C-1705 Foundation member conservation officers.
3-12C-1706 Benefits of conservation officers employed by Department of Game, Fish and Parks, Division of Custer State Park, and park rangers--Credited service.
PART 18. QUALIFIED BENEFIT PRESERVATION ARRANGEMENT
3-12C-1801 Participant--Definition.
3-12C-1802 Qualified benefit preservation arrangement--Definition.
3-12C-1803 Qualified benefit preservations arrangement--Establishment--Purpose.
3-12C-1804 Eligibility to participate.
3-12C-1805 Benefit payable.
3-12C-1806 Cost of living adjustment after benefit begins--Change in benefit payable.
3-12C-1807 Qualified benefit preservation arrangement--Funding.
3-12C-1808 Contributions.
3-12C-1809 Qualified benefit preservation arrangement trust fund--Establishment--Purpose.
3-12C-1810 Qualified benefit preservation arrangement assets--Income.
3-12C-1811 Qualified benefit preservation arrangement--Administration.
3-12C-1812 Qualified benefit preservation arrangement--No assignment.
3-12C-1813 Conflicts.
3-12C-1814 Limitation of rights.
3-12C-1815 Erroneous payments--Corrections.
3-12C-1816 Administration of benefit--Release and receipt.
3-12C-1817 Reservation of power to change.
3-12C-1901 General rule.
3-12C-1902 Member's death after distributions begun.
3-12C-1903 Member's death before required distributions begun.
3-12C-1904 Incidental benefit rule.
3-12C-1905 Reasonable and made in good faith.