3-12C-1405. Retired members--Reentrance to covered employment--Benefits and membership.

Except as provided in § 3-12C-1405.1, if a retired member reenters covered employment at some time after the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement benefits and continued membership shall be administered pursuant to this section.

The member's monthly retirement benefit shall be reduced by fifteen percent and the COLA shall be eliminated throughout the period that the member reenters covered employment. The reduction and elimination shall cease if the member again terminates covered employment. However, the reduction and elimination do not apply if the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reenters covered employment as a Class A member.

The contributions required of the member shall be deposited by the member's participating unit with the system for the benefit of the member to be transferred to an account within the deferred compensation program established pursuant to chapter 3-13. The contributions shall be governed by § 457 of the Internal Revenue Code. However, the contributions required of the member's employer unit shall be deposited into the fund created by this chapter, but with no association or credit to the member. The member may not earn any additional benefits associated with the period that the member reenters covered employment.

The provisions of this section do not apply to a Class D member who reenters covered employment.

Source: SL 2010, ch 23, § 2, eff. Apr. 1, 2010; SL 2013, ch 20, § 16; SL 2016, ch 31, § 35; SDCL § 3-12-200; SL 2019, ch 22, §§ 41, 45; SL 2020, ch 13, § 6; SL 2021, ch 29, § 4, eff. Apr. 1, 2021; SL 2021, ch 26, § 7.



SDLRC - Codified Law 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.

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The provisions of § 3-12C-1405 do not apply if the retired member is reemployed for less than twelve hundred fifty hours during the fiscal year of the participating unit. However, if the retired member completes twelve hundred fifty hours or more during a fiscal year of the participating unit, the provisions of § 3-12C-1405 apply immediately.

Source: SL 2021, ch 29, § 5, eff. Apr. 1, 2021.



SDLRC - Codified Law 3-12C-1405 - Retired members--Reentrance to covered employment--Benefits and membership.

3-12C-1405.2. Reemployment of retired member--Employer tracking.

Any participating unit employing a retired member for less than twelve hundred fifty hours during the fiscal year of the participating unit is responsible for tracking the hours of the employee and certifying the hours to the system on a monthly basis.

Source: SL 2021, ch 29, § 6, eff. Apr. 1, 2021.