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.

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    Oath of office of trustees.

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 .

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--Exception .

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    Benefits increased by COLA--Increase 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    Excess contributions defined--Payment of excess contributions 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 for 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 where 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    Benefits payment on minor's behalf to be made to custodian or conservator.

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.

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    Suspension 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    Suspension 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    Annual increase in 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 and 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    Required minimum distributions--General rule.

3-12C-1902    Required minimum distributions--Member's death after distributions begun.

3-12C-1903    Required minimum distributions--Member's death before required distributions begun.

3-12C-1904    Required minimum distributions--Incidental benefit rule.

3-12C-1905    Required minimum distributions--Reasonable and made in good faith.