<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 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.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s4e65dff52ce7442197feba50ace7d3dbNormal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s4e65dff52ce7442197feba50ace7d3dbSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s4e65dff52ce7442197feba50ace7d3dbCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s4e65dff52ce7442197feba50ace7d3dbStatute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s4e65dff52ce7442197feba50ace7d3db000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s4e65dff52ce7442197feba50ace7d3dbNoIndent { text-indent: 0.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s4e65dff52ce7442197feba50ace7d3dbSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 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."><meta property="og:description" content="SDLRC Codified Law 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."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=3-12C-1404"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s4e65dff52ce7442197feba50ace7d3dbNormal"><a href="https://sdlegislature.gov/Statutes?Statute=3-12C-1404" rel="noopener"><span class="s4e65dff52ce7442197feba50ace7d3dbSENU">3-12C-1404</span></a><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3dbSENU">. </span><span class="s4e65dff52ce7442197feba50ace7d3dbCL">Reduction of retirement benefit during reemployment for members who reentered employment between July 1, 2004 and April 1, 2010--Benefit upon subsequent retirement.</span></p><p dir="ltr" class="s4e65dff52ce7442197feba50ace7d3dbStatute"><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont">If a retired member whose benefits have been reduced pursuant to § </span><a href="https://sdlegislature.gov/Statutes?Statute=3-12C-1111" rel="noopener"><span class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont">3-12C-1111</span></a><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont"> becomes employed as a permanent full-time employee by a participating unit on or after July 1, 2004, but before April 1, 2010, the member's monthly retirement benefit must be reduced by fifteen percent and the COLA must be eliminated throughout the period that the member reenters covered employment. If the member remains in reemployment for at least three years pursuant to the provisions of § </span><a href="https://sdlegislature.gov/Statutes?Statute=3-12C-1403" rel="noopener"><span class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont">3-12C-1403</span></a><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont">, the member upon subsequent retirement must receive an additional benefit based upon the member's credited service and final average compensation earned during the reentry. Only the member's credited service from the subsequent employment must be taken into account in calculating a reduction pursuant to § </span><a href="https://sdlegislature.gov/Statutes?Statute=3-12C-1111" rel="noopener"><span class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont">3-12C-1111</span></a><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont">, if any, in the member's additional benefit. If the member remains in reemployment for a period of less than three years, the member upon subsequent retirement must receive a refund of the member's accumulated contributions. No matter the duration of the member's reemployment, the COLA applied to the original benefit pursuant to § </span><a href="https://sdlegislature.gov/Statutes?Statute=3-12C-703" rel="noopener"><span class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont">3-12C-703</span></a><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont"> must be eliminated for the period of reemployment.</span></p><p dir="ltr" class="s4e65dff52ce7442197feba50ace7d3dbNormal"><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3db000000"> </span></p><p dir="ltr" class="s4e65dff52ce7442197feba50ace7d3dbNoIndent"><span xml:space="preserve" class="s4e65dff52ce7442197feba50ace7d3dbDefaultParagraphFont-000001">Source: </span><span class="s4e65dff52ce7442197feba50ace7d3dbSCL">SL 2004, ch 38, § 4; SL 2010, ch 20, § 13; SL 2010, ch 23, § 7, eff. Apr. 1, 2010; SL 2017, ch 27, § 21; SDCL § 3-12-111.1; SL 2019, ch 22, § 1; SL 2021, ch 26, § 6; SL 2022, ch 15, § 10.</span></p></div></body></html>