TITLE 3
PUBLIC OFFICERS AND EMPLOYEES
Chapter
01 Qualification And Terms Of Office
01A Officers Statements Of Financial Interest
02 Deputies And Assistants
03 Veterans Preference In Employment
04 Vacancies In Office
05 Official Bonds
06 Conditions Of Employment [Repealed And Transferred]
06A Career Service Personnel Management System [Repealed]
06B Student Intern Program [Repealed]
06C State Employment General Provisions
06D State Civil Service
06E State Employees Health And Life Insurance
06F State Employees Drug Testing
07 Law Enforcement Civil Service [Repealed]
08 Compensation Of Officers And Employees
09 Travel Expenses And Allowances
10 Voluntary Salary Deductions
11 Social Security Coverage
12 South Dakota Retirement System [Repealed And Transferred]
12A Public Employees Health And Life Insurance [Repealed]
12B Senior Citizen Prescription Drug Benefit Program [Repealed]
12C South Dakota Retirement System
13 Deferred Compensation Plan For Public Employees
13A South Dakota Special Pay Retirement Program
13B State Cement Plant Employee Retirement [Repealed]
13C Department Of Labor And Regulation Employee Retirement
14 Expiration Of Term Of Office
15 Bribery And Interference With Officers [Repealed]
16 Malfeasance Misfeasance And Nonfeasance In Office
17 Removal From Office
18 Public Employees Unions
19 Indemnification Of Officers And Employees
20 Reduced Tuition At State Colleges And Universities
21 Liability Of Public Entities And Public Officials
22 Liability Coverage Program For Public Entities
23 Conflicts Of Interest
24 State Government Accountability Board
3-1-1
Officers to qualify as provided by chapters--Reelected incumbents.
3-1-1.1
Draft registration compliance required for hiring.
3-1-2
Time of commencement of term of office.
3-1-3
Time allowed for qualification after decision of contest or removal of obstruction.
3-1-4
Repealed.
3-1-5
Oath of office for civil officers--Bond.
3-1-6
Repealed.
3-1-7
Omitted.
3-1-8
Acting as officer without qualifying as misdemeanor--Validity of acts of de facto officer.
3-1-9
Falsely pretending to be public officer as misdemeanor.
3-1-10
Definitions.
3-1-1. Officers to qualify as provided by chapters--Reelected incumbents.
Except when otherwise expressly provided all civil officers shall qualify substantially in the manner and form prescribed by this chapter and chapter 3-5. When the incumbent of an office is reelected he shall qualify as required in such chapters.
Source: PolC 1877, ch 5, §§ 1, 13; CL 1887, §§ 1370, 1383; RPolC 1903, §§ 1787, 1800; RC 1919, §§ 7024, 7037; SDC 1939, §§ 48.0301, 48.0316.
3-1-1.1. Draft registration compliance required for hiring.
No person who is required by the Military Selective Service Act, 50 U.S.C. § 453, as amended and in effect on January 1, 2012, to register with the selective service system and who has not done so, may be hired by the state or a county, township, municipality, school district, or any other governmental unit or department in any capacity.
Source: SL 1988, ch 159, § 3; SL 2012, ch 23, § 9.
3-1-2. Time of commencement of term of office.
Except as otherwise expressly provided, all state, district, and county officers shall qualify and enter upon the duties of their office on the first Monday of January succeeding their election or within twenty days thereafter. However, a state officer may qualify and enter upon the duties of office on the Saturday immediately preceding the second Tuesday of January that succeeds the state officer's election.
Source: CL 1887, § 1380; SL 1897, ch 109, § 1; RPolC 1903, § 1797; RC 1919, § 7033; SDC 1939, § 48.0312; SL 2018 (SS), ch 1, § 1, eff. Dec. 12, 2018.
3-1-3. Time allowed for qualification after decision of contest or removal of obstruction.
If there is a contest for such office, or if the person elected to such office is prevented or obstructed in any manner from entering upon the duties of such office, the time prescribed in which he shall qualify and enter upon the duties of his office shall not govern, and he shall be allowed twenty days after the day of such decision or the termination of such preventing or obstructing cause in which to qualify.
Source: SL 1874-5, ch 73, § 2; PolC 1877, ch 5, § 11; CL 1887, § 1381; RPolC 1903, § 1798; RC 1919, § 7034; SDC 1939, § 48.0313.
3-1-4. Repealed by SL 1989, ch 30, § 10.
3-1-5. Oath of office for civil officers--Bond.
Every person elected or appointed to any civil office shall, before entering upon the duties thereof, qualify by taking an oath or affirmation to support the Constitution of the United States and of this state, and faithfully to discharge the duties of his office, naming it; and by giving a bond, when one is required, conditioned that he will faithfully and impartially discharge the duties of his office, naming it, and render a true account of all money, credits, accounts, and public personal property requiring inventory, as defined in rules issued by the commissioner of human resources and administration, that shall come into his hands as such officer, and pay over and deliver the same according to law.
Source: PolC 1877, ch 5, §§ 2 to 4; CL 1887, § 1371; RPolC 1903, §§ 1788, 1789; RC 1919, § 7025; SDC 1939, § 48.0302; SL 1974, ch 55, § 1; SL 1975, ch 32; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.
3-1-6. Repealed by SL 1974, ch 55, § 50.
3-1-7. Omitted.
3-1-8. Acting as officer without qualifying as misdemeanor--Validity of acts of de facto officer.
Every person who executes any of the functions of a public office without having taken and duly filed the required oath of office, or without having executed and duly filed the required security, is guilty of a Class 2 misdemeanor; and in addition to the punishment prescribed therefor, he forfeits his right to the office. Nothing in this section shall be construed to affect the validity of acts done by a person exercising the functions of a public office in fact, where other persons than himself are interested in maintaining the validity of such acts.
Source: PenC 1877, §§ 96, 97; CL 1887, §§ 6296, 6297; RPenC 1903, §§ 101, 102; RC 1919, §§ 3684, 3685; SDC 1939, § 13.1102; SL 1980, ch 24, § 30.
3-1-9. Falsely pretending to be public officer as misdemeanor.
Every person who shall falsely assume or pretend to be any public executive or administrative officer, or who shall knowingly take upon himself to act as such, or to require any person to act as such, or assist him in any matter pertaining to such office, is guilty of a Class 1 misdemeanor.
Source: PenC 1877, § 98; CL 1887, § 6298; RPenC 1903, § 103; RC 1919, § 3686; SDC 1939, § 13.1105; SL 1980, ch 24, § 31.
3-1-10. Definitions.
The terms "office," "officer," "executive," and "administrative," when used in § 3-1-8 or 3-1-9 mean and apply to any executive or administrative officer of the state; to any county, municipality, township, or school district; and to any district, board, bureau, commission, department, or other body or office, exercising executive or administrative powers as part of the government, or any arm of the government, of the state. The terms "executive" and "administrative" apply interchangeably to any or all of said offices.
Source: SL 1985, ch 15, § 13; SL 1992, ch 60, § 2.
CHAPTER 3-1A
OFFICERS' STATEMENTS OF FINANCIAL INTEREST
3-1A-1 Definition of terms.
3-1A-2 Additions and corrections filed on assumption of elective state office.
3-1A-3 Statements required of appointive state officers.
3-1A-4 Additions and corrections filed on assumption of elective local office.
3-1A-5 Forms provided--Value not required--Verification--Open to public inspection.
3-1A-5.1 Certain personally identifiable information of judicial officers not a public record.
3-1A-6 Violation as misdemeanor or petty offense.
3-1A-1. Definition of terms.
Terms used in this chapter mean:
(1) "Any member of the individual's immediate family," a spouse or minor children living at home;
(2) "Close economic interest," any enterprise that, in the calendar year preceding the filing of any statement of financial interest under this chapter, contributes more than ten percent of or more than two thousand dollars to the gross income of the family, including the individual required to file the statement and any member of the individual's immediate family. The term also includes any enterprise in which the individual or any member of the individual's immediate family controls more than ten percent of the capital or stock;
(3) "Enterprise," any business or economic relationship;
(4) "Statement of financial interest," a description of the type of financial activity and the nature of the association with any enterprise as defined in this section.
Source: SL 1974, ch 121, § 1; SL 2010, ch 19, § 2; SL 2017, ch 23, § 7.
3-1A-2. Additions and corrections filed on assumption of elective state office.
Any person who assumes the Office of Governor, lieutenant governor, state treasurer, attorney general, secretary of state, state auditor, commissioner of school and public lands, Public Utilities Commissioner, Supreme Court justice, circuit court judge, or state legislator shall, within fifteen days after the person assumes office, file a statement of financial interest setting forth any additions or corrections to any previous statement of financial interest filed pursuant to § 12-25-28 or 12-25-29.
Source: SL 1974, ch 121, § 5; SL 2017, ch 23, § 1; SL 2019, ch 20, § 1.
3-1A-3. Statements required of appointive state officers.
Any gubernatorial appointee for whom Senate confirmation is required shall file with the secretary of state a statement of financial interest before confirmation.
Source: SL 1974, ch 121, § 6; SL 2010, ch 19, § 3.
3-1A-4. Additions and corrections filed on assumption of elective local office.
Any person who assumes the office of a county commissioner, school board member of a school district with a total enrollment of more than two thousand students, or commissioner, councilman, or mayor in municipalities of the first class, shall, within fifteen days after the person assumes office, file a statement of financial interest setting forth any additions or corrections to any previous statement of financial interest filed pursuant to § 12-25-30.
Source: SL 1974, ch 121, § 7; SL 1977, ch 68, § 13; SL 1992, ch 60, § 2; SL 2017, ch 23, § 2; SL 2019, ch 20, § 2.
3-1A-5. Forms provided--Value not required--Verification--Open to public inspection.
The secretary of state shall prescribe and provide forms for the reporting of close economic interest. The value of a close economic interest need not be reported. Each individual filing a statement of financial interest shall subscribe to an oath or affirmation verifying the contents of the statement. All statements of financial interest shall be open to public inspection, except pursuant to § 3-1A-5.1.
Source: SL 1974, ch 121, §§ 8 to 10; SL 2022, ch 11, § 1.
3-1A-5.1. Certain personally identifiable information of judicial officers not a public record.
Any personally identifiable information of a circuit court judge or justice of the Supreme Court contained in a statement of financial interest filed pursuant to this chapter is not open to public inspection. For purposes of this section, the term, personally identifiable information, means any home address, home or personal telephone number, or personal e-mail address. The county of residence of the circuit court judge or justice is a public record.
Source: SL 2022, ch 11, § 2, eff. Feb. 14, 2022.
3-1A-6. Violation as misdemeanor or petty offense.
Any person who violates any of the provisions of this chapter commits a petty offense. However, any person who intentionally violates any provision of this chapter is guilty of a Class 2 misdemeanor.
Source: SL 1974, ch 121, § 11; SL 1980, ch 24, § 32; SL 2010, ch 19, § 4.
3-2-1
Appointment of deputy to be in writing--Revocation--Filing.
3-2-2
Dual offices to be avoided in appointment of deputies.
3-2-3
Oath required of deputies and assistants.
3-2-4
Bond required of deputies and assistants.
3-2-1. Appointment of deputy to be in writing--Revocation--Filing.
The appointment of every deputy must be in writing and shall be revocable in writing at the pleasure of the principal, and all such appointments and revocations shall be filed as and where required for the bond and oath of the principal.
Source: SL 1872-3, ch 49, § 1; SL 1874-5, ch 27, § 37; PolC 1877, ch 6, § 1; CL 1887, § 1397; SL 1891, ch 108, § 1; RPolC 1903, § 1816; RC 1919, § 7045; SDC 1939, § 48.0401.
3-2-2. Dual offices to be avoided in appointment of deputies.
No state officer may appoint as a deputy any other state or district officer. No state treasurer may appoint as a deputy any county treasurer, register of deeds, sheriff, or county commissioner.
Source: PolC 1877, ch 6, § 4; CL 1887, § 1400; RPolC 1903, § 1819; RC 1919, § 7047; SDC 1939, § 48.0403; SL 1969, ch 195; SL 2010, ch 19, § 5.
3-2-3. Oath required of deputies and assistants.
Each deputy or assistant shall take and subscribe the same oath as his or her principal, naming the deputyship. The oath shall be endorsed upon and filed with the deputy's or assistant's certificate of appointment.
Source: PolC 1877, ch 6, § 3; CL 1887, § 1399; RPolC 1903, § 1818; RC 1919, § 7046; SDC 1939, § 48.0402; SL 2010, ch 19, § 6.
3-2-4. Bond required of deputies and assistants.
Unless otherwise expressly provided, each officer required to give bond may require a bond from the officer's deputy or assistant in a penal sum not greater than half the penal sum of the officer's own bond. The officer may retain the deputy's or assistant's bond for the officer's own protection.
Source: SL 1872-3, ch 49, § 1; SL 1874-5, ch 27, § 37; PolC 1877, ch 6, § 1; CL 1887, § 1397; SL 1891, ch 108, § 1; RPolC 1903, § 1816; RC 1919, § 7045; SDC 1939, § 48.0401; SL 2010, ch 19, § 7.
CHAPTER 3-3
VETERANS' PREFERENCE IN EMPLOYMENT
3-3-1 Veterans preferred in public employment--Age or physical impairment not disqualifying--Veterans with service-connected disabilities preferred .
3-3-2 Investigation and interview of veteran applicants.
3-3-3 Mandamus available to enforce veterans' preference.
3-3-4 Restrictions on removal of veteran from employment--Hearing and review--Burden of proof.
3-3-5 Noncompliance as misdemeanor.
3-3-6 Confidential and policy-making positions exempt from chapter.
3-3-7 Unmarried spouse of deceased veteran--Entitlement to preference under certain conditions.
3-3-8 Spouse of disabled veteran--Entitlement to preference under certain conditions.
3-3-9 Distribution of information about state laws on veterans' preference in employment.
3-3-1. Veterans preferred in public employment--Age or physical impairment not disqualifying--Veterans with service-connected disabilities preferred .
In all public departments and subdivisions and upon all public works of this state and of the counties, municipalities, and school districts of this state, any veteran, as defined in § 33A-2-1, who is a citizen of the United States, shall receive preference for appointment, employment, and promotion. Age, loss of limb, or other physical impairment which does not in fact incapacitate does not disqualify the veteran if the veteran possesses the qualifications and business capacity necessary to discharge the duties of the position involved. A veteran who has a service-connected disability shall be given a preference over a nondisabled veteran. In order to determine if the veterans' preference applies, each applicant for employment under this chapter shall complete an employment application on which the applicant is asked if the applicant is a veteran as defined by § 33A-2-1.
Source: SL 1935, ch 188, §§ 1, 2; SL 1937, ch 227, § 1; SDC 1939, §§ 41.0501, 41.0502; SL 1939, ch 159, § 1; SL 1943, ch 147, § 1; SL 1951, ch 214, § 1; SDC Supp 1960, § 41.0508; SL 1980, ch 27, § 1; SL 1992, ch 60, § 2; SL 2010, ch 19, § 8; SL 2011, ch 1 (Ex. Ord. 11-1), § 20, eff. Apr. 12, 2011; SL 2015, ch 20, § 1; SL 2015, ch 21, § 1; SL 2016, ch 30, § 1.
3-3-2. Investigation and interview of veteran applicants.
If a veteran as defined in § 33A-2-1 applies for appointment for employment under this chapter, the officer, board, or person whose duty it is to appoint or employ some person to fill the position shall investigate the qualifications of the applicant. If the applicant possesses at least the minimum qualifications necessary to fill the position, the officer, board, or person shall interview the applicant.
Source: SL 1935, ch 188, § 3; SDC 1939, § 41.0503; SL 2010, ch 19, § 9; SL 2011, ch 1 (Ex. Ord. 11-1), § 20, eff. Apr. 12, 2011; SL 2016, ch 30, § 2.
3-3-3. Mandamus available to enforce veterans' preference.
A refusal to allow the preference provided for in this chapter, or a reduction of the salary for the position with intent to bring about the resignation or discharge of the incumbent, entitles the applicant or incumbent to maintain an action of mandamus to right the wrong.
Source: SL 1935, ch 188, § 4; SDC 1939, § 41.0504; SL 2010, ch 19, § 10.
3-3-4. Restrictions on removal of veteran from employment--Hearing and review--Burden of proof.
No person holding a public position by appointment or employment, and belonging to any of the classes of persons to whom a preference is granted pursuant to this chapter, may be removed from the position or employment unless replaced by another person of a class to whom such preference is granted. However, the person may be removed for incompetency or misconduct shown after a hearing, upon due notice, upon stated charges, and with the right of the employee or appointee to a review by writ of certiorari. The burden of proving incompetency or misconduct rests upon the party alleging the incompetency or misconduct.
Source: SL 1935, ch 188, §§ 5, 6; SL 1937, ch 227, § 2; SDC 1939, §§ 41.0505, 41.0506; SL 2010, ch 19, § 11.
3-3-5. Noncompliance as misdemeanor.
Any person in the public service who neglects or refuses to comply with the provisions of this chapter is guilty of a Class 1 misdemeanor.
Source: SL 1935, ch 188, § 8; SDC 1939, § 41.9903; SL 1980, ch 24, § 33; SL 2010, ch 19, § 12.
3-3-6. Confidential and policy-making positions exempt from chapter.
Nothing in this chapter applies to department heads, to policy-forming officials, to the position of private secretary of any official or department, or to any person holding a strictly confidential relation to the appointing officer.
Source: SL 1935, ch 188, § 7; SDC 1939, § 41.0507; SL 1939, ch 159, § 2; SL 1943, ch 147, § 2; SL 1951, ch 214, § 2; SDC Supp 1960, § 41.0508; SL 2010, ch 19, § 13.
3-3-7. Unmarried spouse of deceased veteran--Entitlement to preference under certain conditions.
The unmarried spouse of a veteran who died while in service, or later died from a service connected cause, is entitled to the preferences given to the veteran in § 3-3-1 if the spouse possesses the qualifications and business capacity necessary to discharge the duties of the position involved.
Source: SL 1980, ch 27, § 2; SL 2010, ch 19, § 14.
3-3-8. Spouse of disabled veteran--Entitlement to preference under certain conditions.
If a veteran disabled due to a service connected cause is unable to exercise the right to a veteran employment preference due to the disability, the veteran's spouse is entitled to the preferences given in § 3-3-1 if the spouse possesses the qualifications and business capacity necessary to discharge the duties of the position involved.
Source: SL 1980, ch 27, § 3; SL 2010, ch 19, § 15.
3-3-9. Distribution of information about state laws on veterans' preference in employment.
Beginning on July 1, 2016, the Department of Veterans Affairs shall create informative materials about current state laws pertaining to veterans' preference in employment to be both posted on the Department of Veterans Affairs website for public access and for distribution by the council and its member organizations.
Source: SL 2016, ch 30, § 3; SL 2020, ch 140, § 2.
CHAPTER 3-4
VACANCIES IN OFFICE
3-4-1 Events causing vacancy in office.
3-4-2 Resignation of office--To whom made.
3-4-3 Appointments to fill vacancies--By whom made.
3-4-4 Filling vacancies in board of county commissioners.
3-4-5 Vacancies occurring immediately prior to election.
3-4-6 Appointments in writing--Duration of appointment--Filling of vacancies--Office where filed.
3-4-7 Qualification by persons appointed to fill vacancies.
3-4-8 Temporary resignation for members of National Guard or reserves--Notice--Temporary replacement--Length of term.
3-4-9 Temporary resignation of elected official--Notice--Temporary replacement--Length of term.
3-4-10 Replacement of vacancy on appointed board or commission--Time limitation--Person deemed reappointed.
3-4-11 Replacement of vacancy requiring consent of Senate--Time limitation--Person deemed reappointed.
3-4-1. Events causing vacancy in office.
An office becomes vacant if one of the following events applies to a member of a governing body or elected officer before the expiration of the term of the office; the person:
(1) Dies;
(2) Resigns;
(3) Is removed from office;
(4) Fails to qualify as provided by law;
(5) Ceases to be a resident of the state, district, county, municipality, township, ward, or precinct in which the duties of the office are to be exercised or for which elected;
(6) Is convicted of any infamous crime or of any offense involving a violation of the official oath of the office; or
(7) Has a judgment obtained against the person for a breach of an official bond.
Source: SL 1864-5, ch 12, § 2; PolC 1877, ch 22, § 2; CL 1887, § 1385; RPolC 1903, § 1802; RC 1919, § 7007; SDC 1939, § 48.0101; SL 2015, ch 22, § 1.
3-4-2. Resignation of office--To whom made.
Resignations may be made as follows:
(1) Of all state and district officers, either elective or appointive, to the Governor;
(2) Of all members of the Legislature to the presiding officer of its branches respectively when in session, and when not in session to the Governor; and when made to the presiding officer he shall at once notify the Governor;
(3) Of all officers of the Legislature to the respective branches thereof;
(4) Of all elective county officers, by filing with the county auditor such resignation in writing, which shall be filed or deposited with the board of county commissioners, which resignation unless a different time is fixed therein shall take effect upon such filing;
(5) Of officers of civil township to the board of supervisors of the township, except of members of such board, which shall be to the township clerk; and notice shall forthwith be given by the township clerk to the county auditor of the resignation of all officers whose bonds are filed with that officer;
(6) Of all officers holding office by appointment to the body, board, court, or officer that appointed them.
Source: SL 1864-5, ch 12, § 2; PolC 1877, ch 22, § 1; CL 1887, § 1386; SL 1881, ch 137, § 1; RPolC 1903, § 1803; RC 1919, § 7008; SDC 1939, § 48.0102; SL 1974, ch 55, § 2.
3-4-3. Appointments to fill vacancies--By whom made.
All vacancies, except in the office of a member of the Legislature, representative in Congress, and United States Senator, shall be filled by appointment, as follows:
(1) The attorney general, secretary of state, state auditor, state treasurer, and commissioner of school and public lands, by the Governor with the advice and consent of the Senate. However, if a vacancy occurs in any of the offices listed in this subdivision while the Legislature is in recess, the Governor shall make a temporary appointment until the next session of the Legislature;
(2) In other state and district offices, and the Office of Supreme Court Justice and Circuit Judge, by the Governor;
(3) In county and precinct offices, by the board of county commissioners, except vacancies on such board;
(4) In civil township offices, by the board of supervisors or a majority of them, by warrant under their hands; and if a vacancy occurs from any cause in the foregoing board of appointment the remaining officers of such board shall fill any vacancy therein; and
(5) In special purpose districts, unless otherwise provided, by the remaining board of trustees.
Source: SDC 1939, § 48.0103; SL 1974, ch 153, § 1; SL 2002, ch 144, § 9; SL 2021, ch 21, § 1.
3-4-4. Filling vacancies in board of county commissioners.
When a vacancy occurs in the board of county commissioners, it shall be the duty of the remaining member or members of such board to appoint immediately some suitable person to fill such vacancy from the district where the vacancy occurs. If there be an even number of county commissioners remaining on the board of county commissioners, the county auditor shall be called in and shall act as a member of such board to fill such vacancy.
Source: SL 1874-5, ch 57, § 53; PolC 1877, ch 22, § 9; SL 1885, ch 148, § 1; CL 1887, § 1393; RPolC 1903, § 1812; RC 1919, § 7018; SDC 1939, § 48.0104; SL 1967, ch 236; SL 1974, ch 55, § 3.
3-4-5. Vacancies occurring immediately prior to election.
If a vacancy occurs within thirty days preceding an election day at which it may be filled, no appointment shall be made unless it be necessary to carry out such election and the canvass of the same according to law; in that case an appointment may be made at any time previous to such election to hold until after such election or until a successor is elected and qualified.
Source: SL 1864-5, ch 12, § 4; PolC 1877, ch 22, § 10; CL 1887, § 1394; RPolC 1903, § 1813; RC 1919, § 7019; SDC 1939, § 48.0105.
3-4-6. Appointments in writing--Duration of appointment--Filling of vacancies--Office where filed.
Appointments to state offices shall be made in writing and shall continue for the remainder of the unexpired term of office. Unless otherwise provided by law, all other appointments shall be made in writing and shall continue until the next general election and until a successor is elected and qualified. A vacancy must occur prior to May first in an even-numbered year, other than in a year when the term of office would normally expire, for the office to be filled by election for the remainder of the unexpired term. Any person elected to an office that was previously vacant shall take office in the year following the election on the day of that year when a full term for that office would normally commence.
Appointments to state offices shall be filed with the secretary of state. Appointments to county offices shall be filed in the office of the county auditor and entered in the minutes of the commissioners' proceedings.
Source: SDC 1939, § 48.0106; SL 1984, ch 19; SL 1994, ch 31; SL 2001, ch 21, § 1; SL 2002, ch 74, § 3.
3-4-7. Qualification by persons appointed to fill vacancies.
Persons appointed to offices as herein provided shall qualify in the same manner as is required of those elected, the time of which shall be prescribed in their appointment.
Source: SL 1864-5, ch 12, § 6; PolC 1877, ch 22, § 12; CL 1887, § 1396; RPolC 1903, § 1815; RC 1919, § 7021; SDC 1939, § 48.0107.
3-4-8. Temporary resignation for members of National Guard or reserves--Notice--Temporary replacement--Length of term.
If any member of a governing body of a county, municipality, school district, township, or special purpose district, who is also a member of the South Dakota National Guard or another reserve component of the armed forces of the United States, is called into active duty which causes the member to be unable to attend meetings of the governing body, the member may elect to temporarily resign from the governing body. Notice of temporary resignation may be given in the same manner as giving notice of resignation from such governing body. A temporary replacement may be made in accordance with the provisions of statute applying to the governing body. The temporary member shall serve until the member returns from active duty or until the expiration of the member's term, whichever occurs first.
Source: SL 2003, ch 23, § 1.
3-4-9. Temporary resignation of elected official--Notice--Temporary replacement--Length of term.
If any member of a governing body or any other elected officer of a county, municipality, school district, township, or special purpose district, who is incapacitated by illness or an accident which causes the member or officer to be unable to attend meetings of the governing body or fulfill the duties of the office, the member may elect to temporarily resign from the governing body or office. Notice of temporary resignation may be given in the same manner as giving notice of resignation from the governing body or office. If the member or officer is unable to give notice, the member's or officer's spouse or guardian or any person who has durable power of attorney for the member or officer may give notice of resignation. A temporary replacement may be made in accordance with the provisions of statute applying to the governing body or office. The temporary member or officer shall serve until the member or officer is able to fulfill the requirements of office or until the expiration of the member's or officer's term, whichever comes first.
Source: SL 2004, ch 32, § 1.
3-4-10. Replacement of vacancy on appointed board or commission--Time limitation--Person deemed reappointed.
If any position on a board or commission whose members are appointed by the Governor without the consent of the Senate becomes vacant pursuant to § 3-4-1, the Governor must appoint a person to fill the vacancy within one hundred twenty days of the occurrence of the vacancy. If the vacancy is the result of a resignation, the person who has resigned remains on the board or commission until the Governor appoints a person to fill the vacancy or until a date set in writing by the person who resigned, whichever is sooner.
Except as provided below, if a person's term on the board or commission has expired, the person remains on the board or commission until the Governor appoints a person to the new term, and if the Governor has not appointed a person to the new term within one hundred twenty days after the term expired, the person is deemed to be reappointed for another term. If a person is unable to serve an additional term due to a term limit, the person may not remain on the board or commission after the person's term has expired and may not be deemed reappointed under this section.
This section applies to any board or commission whose members are appointed by the Governor without the consent of the Senate unless the board or commission is specifically exempted from this section by law.
Source: SL 2024, ch 19, § 1.
3-4-11. Replacement of vacancy requiring consent of Senate--Time limitation--Person deemed reappointed.
If any position on a board or commission whose members are appointed by the Governor with the consent of the Senate becomes vacant pursuant to § 3-4-1, the Governor may make an interim appointment to fill the vacancy, but any interim appointment expires when the Senate acts upon the appointee's nomination. If the vacancy is the result of a resignation, the person who has resigned remains on the board or commission until the Governor appoints a person with the consent of the Senate or makes an interim appointment to fill the vacancy or until a date set in writing by the person who resigned, whichever is sooner.
If a person's term on the board or commission has expired, the person remains on the board or commission until the Senate consents to the appointment of the Governor's nominee or until the Senate acts upon the renomination of the person whose term has expired. If the Governor does not nominate a person for the new term by the tenth legislative day after the Legislature convenes, the person whose term has expired is deemed to be renominated for the new term and the Senate may act on the nomination accordingly. If a person is unable to serve an additional term due to a term limit, the person is not deemed renominated pursuant to this section and may not remain on the board or commission pursuant to this section after the adjournment of the next legislative session after the person's term expires.
This section applies to any board or commission whose members are appointed by the Governor with the consent of the Senate unless the board or commission is specifically exempted from this section by law.
Source: SL 2024, ch 19, § 2.
3-5-1
Bonds of state officers and employees--Approval, recording, and safekeeping.
3-5-2
Bonds of county officers--Approval and filing.
3-5-3
Amount of bonds.
3-5-4
Sureties on bonds.
3-5-5
Premiums on corporate surety bonds.
3-5-5.1
Blanket or individual bonds for state officers and employees.
3-5-6
Limitation of liability by surety.
3-5-7
Reelected incumbent to account for funds and property before new bond approved.
3-5-8
Endorsement of approval of bonds.
3-5-9
Recording of bonds of county and precinct officers.
3-5-10
Repealed.
3-5-11
Bonds and oaths to cover all duties of office--Noncomplying bonds valid as to matter
contained.
3-5-12
New bond or restoration of bond becoming insufficient.
3-5-13
Bond found insufficient by county commissioners--Determination of sufficiency by
circuit court.
3-5-14
Local government purchase of bonds or insurance coverage for faithful performance
of officials and employees.
3-5-1. Bonds of state officers and employees--Approval, recording, and safekeeping.
The bonds of all state officers, appointees of the Governor or employees of the state, required to give bonds, shall be given to the State of South Dakota, and shall be approved by the Governor as to sufficiency and by the attorney general as to form, except that the form of the attorney general's bond shall be approved by one of the justices of the Supreme Court, and all such bonds when so approved, shall be recorded in the Office of the Secretary of State in a book to be known as the "Bond Record" and when such bonds have been recorded the secretary of state shall immediately deliver same to the auditor-general for safekeeping in the State Department of Legislative Audit, who shall index the same alphabetically and file numerically, except the bond of the auditor-general and his employees, which shall be delivered to the state auditor and kept on file in his office. The state auditor's and auditor-general's receipts for said bonds shall be filed with the secretary of state.
Source: CL 1887, § 1373; SL 1895, ch 147, § 1; RPolC 1903, § 1790; SL 1913, ch 283; RC 1919, § 7026; SL 1919, ch 285; SDC 1939, § 48.0303; SL 1955, ch 222.
3-5-2. Bonds of county officers--Approval and filing.
The bonds of all county officers shall be approved by the board of county commissioners, except bonds of the county commissioners, which shall be approved by the auditor, and shall, together with the oaths of office be filed in the office of the county auditor.
Source: CL 1887, § 1373; SL 1895, ch 147, § 1; RPolC 1903, § 1790; SL 1913, ch 283; RC 1919, § 7026; SL 1919, ch 285; SDC 1939, § 48.0303; SL 1955, ch 222, § 1; SL 1974, ch 55, § 4.
3-5-3. Amount of bonds.
The bond of the state auditor shall be in the penal sum of ten thousand dollars, of the state treasurer in the penal sum of five hundred thousand dollars, of the secretary of state in the penal sum of five thousand dollars, of the commissioner of school and public lands in the penal sum of twenty thousand dollars, of the attorney general in the penal sum of three thousand dollars, of county commissioners in the penal sum of one thousand dollars, of the state's attorney in the penal sum of one thousand dollars; the bonds of registers of deeds, county auditors, sheriffs, coroners, treasurers, and constables, whether of the county or any civil township therein, shall each be in the penal sum to be fixed by the board of county commissioners in each county; but that of the county auditor shall not be in a less penal sum than two thousand dollars, and that of the county treasurer shall not be in a less penal sum than four thousand dollars, except when the total amount of taxes to be by him collected in any year is less than two thousand dollars, and then in double the amount of taxes to be by him collected. In no case shall the bond of the county treasurer be less than the sum of one thousand dollars; and those of constables shall not be in a less penal sum than two hundred dollars each.
Source: CL 1887, § 1374; SL 1891, ch 93, § 1; RPolC 1903, §§ 889, 1791; SL 1903, ch 82; RC 1919, § 7027; SDC 1939, § 48.0304; SL 1974, ch 55, § 5; SL 1975, ch 33.
3-5-4. Sureties on bonds.
Every official bond shall be given with at least two sureties, and the bond of the state treasurer shall have at least four sureties, and that of the county treasurer at least three sureties.
In lieu of a bond with personal sureties a bond executed by a surety company legally authorized to transact business in this state may be approved.
Source: PolC 1877, ch 5, § 7; CL 1887, § 1375; RPolC 1903, § 1792; SL 1909, ch 225; RC 1919, § 7028; SDC 1939, § 48.0305.
3-5-5. Premiums on corporate surety bonds.
Whenever an officer, deputy, or employee of the State of South Dakota, or its subdivisions including counties, school districts, townships, municipal corporations, and all other governmental subdivisions and departments, in furnishing a bond required by law or rules or regulations of any board, or department, or governmental subdivision of this state, shall furnish a bond executed by a surety company legally authorized to transact business in this state, the state or any of its said departments or subdivisions is hereby authorized and required to pay the premium thereon out of its general funds, upon the lawful approval of said bond.
Source: SL 1933 (SS), ch 5, § 1; SDC 1939, § 48.0306.
3-5-5.1. Blanket or individual bonds for state officers and employees.
The Bureau of Human Resources and Administration, with the approval and advice of the attorney general and director of the division of insurance, shall purchase a blanket bond or individual bonds, issued to the state as the insured, covering the honesty and faithful performance of all state employees, officers, members of state boards and commissions, and appointees of the Governor. The terms of bonds authorized under this section may be up to five years. If the bureau purchases a blanket bond pursuant to this section no officer or employee of the state shall be required to furnish an individual bond to qualify for office.
Source: SL 1970, ch 22; SL 1972, ch 17; SL 1988, ch 28; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.
3-5-6. Limitation of liability by surety.
Any surety on any official bond running to the state or any county, may limit his liability by inserting after his name the words "not to exceed" naming the amount to which he desires to limit his liability. Any surety may also limit its or his liability as to time by inserting in the bond a provision that it or he shall not be liable for any acts of the principal prior to the date of the bond.
Source: SL 1907, ch 79; RC 1919, § 7039; SL 1929, ch 206, § 1; SDC 1939, § 48.0307.
3-5-7. Reelected incumbent to account for funds and property before new bond approved.
When the incumbent of an office is reelected, his bond shall not be approved until he has produced and fully accounted for all public funds and property in his control under color of his office during the expiring term, to the person or authority to whom he should account, and the fact and date of such satisfactory exhibit shall be endorsed upon the new bond before its approval.
Source: PolC 1877, ch 5, § 13; CL 1887, § 1383; RPolC 1903, § 1800; RC 1919, § 7037; SDC 1939, § 48.0316.
3-5-8. Endorsement of approval of bonds.
The approval of official bonds shall in all cases be endorsed upon the bond and signed by the officer approving, or by the chairman of the board of county commissioners.
Source: PolC 1877, ch 5, § 8; CL 1887, § 1376; RPolC 1903, § 1793; RC 1919, § 7029; SDC 1939, § 48.0308.
3-5-9. Recording of bonds of county and precinct officers.
The bonds of all county and precinct officers immediately after the approval of the same, shall be recorded at length in the office of the register of deeds of the county to which such bonds are given, in a book to be provided and kept for that purpose. When such bonds are so recorded they shall be forthwith filed respectively as provided in this chapter.
Source: SL 1885, ch 120, § 1; CL 1887, § 1377; RPolC 1903, § 1794; SL 1913, ch 283; RC 1919, § 7030; SDC 1939, § 48.0309.
3-5-11. Bonds and oaths to cover all duties of office--Noncomplying bonds valid as to matter contained.
The bonds and oaths of all civil officers shall be construed to cover duties required by law subsequent to giving them. No official bond shall be void for want of compliance with the statute, but it shall be valid in law for the matter contained therein.
Source: PolC 1877, ch 5, § 12; CL 1887, § 1382; RPolC 1903, § 1799; RC 1919, § 7036; SDC 1939, § 48.0315.
3-5-12. New bond or restoration of bond becoming insufficient.
When any official bond running to the state or any county becomes insufficient for the purpose thereof, the approving authority shall require a new bond or additional surety or sureties, as shall be necessary to restore the bond to the full amount of liability required by law.
Source: SL 1907, ch 79; RC 1919, § 7039; SL 1929, ch 206, § 1; SDC 1939, § 48.0307.
3-5-13. Bond found insufficient by county commissioners--Determination of sufficiency by circuit court.
In case the board of county commissioners should decide that a bond presented to it is insufficient, a reasonable time, not to exceed five days, shall be allowed the officer to supply a sufficient bond, and such board may take three days to consider the approval of any bond. If such board refuse or neglect to approve the bond of any county officer or township officer elect, he may present the same to the judge of the circuit court and serve notice of a time of hearing thereof upon the board. Upon due proof of such service being made to the judge at the time therein named, he shall, unless good cause for delay appear, proceed to hear and determine the sufficiency of the bond, and may approve the same, and such approval shall be in all respects valid.
Source: PolC 1877, ch 5, § 8; CL 1887, § 1376; RPolC 1903, § 1793; RC 1919, § 7029; SDC 1939, § 48.0308.
3-5-14. Local government purchase of bonds or insurance coverage for faithful performance of officials and employees.
The governing board of any political subdivision of this state, may purchase a blanket bond, blanket crime coverage, an insurance policy, or an individual bond, issued to the political subdivision as the insured, covering the faithful performance of each officer, member, and employee. If the governing board purchases a blanket bond, blanket crime coverage, or an insurance policy that is equal to or exceeds the individual bond requirements established in law, no officer, member, and employee of the political subdivision is required to furnish an individual bond to qualify for office. Blanket coverage may not be less than the total coverage of all individual bonds purchased for the year prior to January 1, 2015.
Source: SL 2015, ch 23, § 1.
3-6-1 to 3-6-5. Repealed.
3-6-5.1 to 3-6-10.1. Repealed.
3-6-11 to 3-6-16. Repealed.
3-6-17
Transferred.
3-6-18 to 3-6-27. Repealed.
3-6-28
Repealed.
3-6-29
Repealed.
3-6-30 to 3-6-32. Repealed.
3-6-1 to 3-6-5. Repealed by SL 1973, ch 23, § 30.
3-6-5.1 to 3-6-10.1. Repealed by SL 2012, ch 23, § 10.
3-6-11 to 3-6-16. Repealed by SL 1973, ch 23, § 30.
3-6-18 to 3-6-27. Repealed by SL 2012, ch 23, § 10.
3-6-28. Repealed by SL 1987, ch 31, § 2.
3-6-29. Repealed by SL 1999, ch 12, § 1.
3-6-30 to 3-6-32. Repealed by SL 2012, ch 23, § 10.
3-6A-1, 3-6A-2. Repealed.
3-6A-3
Repealed.
3-6A-4 to 3-6A-6. Repealed.
3-6A-7
Repealed.
3-6A-8 to 3-6A-19. Repealed.
3-6A-20
Repealed.
3-6A-21 to 3-6A-24. Repealed.
3-6A-25
Repealed.
3-6A-26 to 3-6A-33. Repealed.
3-6A-34
Repealed.
3-6A-35, 3-6A-36. Repealed.
3-6A-36.1, 3-6A-36.2. Repealed.
3-6A-37 to 3-6A-44. Repealed.
3-6A-45
Repealed.
3-6A-46
Repealed.
3-6A-47
Repealed.
3-6A-48
Repealed.
3-6A-49
Repealed.
3-6A-50
Repealed.
3-6A-51
Repealed.
3-6A-52
Repealed.
3-6A-1, 3-6A-2. Repealed by SL 2012, ch 23, § 10.
3-6A-3. Repealed by SL 1985, ch 21, § 1.
3-6A-4 to 3-6A-6. Repealed by SL 2012, ch 23, § 10.
3-6A-7. Repealed by SL 1988, ch 312, § 3.
3-6A-8 to 3-6A-19. Repealed by SL 2012, ch 23, § 10.
3-6A-20. Repealed by SL 1975, ch 16, § 25.
3-6A-21 to 3-6A-24. Repealed by SL 2012, ch 23, § 10.
3-6A-25. Repealed by SL 1985, ch 21, § 4.
3-6A-26 to 3-6A-33. Repealed by SL 2012, ch 23, § 10.
3-6A-34. Repealed by SL 1985, ch 21, § 6.
3-6A-35, 3-6A-36. Repealed by SL 2012, ch 23, § 10.
3-6A-36.1, 3-6A-36.2. Repealed by SL 1987, ch 31, §§ 4, 5.
3-6A-37 to 3-6A-44. Repealed by SL 2012, ch 23, § 10.
3-6A-45. Repealed by SL 1976, ch 158, § 12A-11.
3-6A-46. Repealed by SL 2012, ch 23, § 10.
3-6A-47. Repealed by SL 1980, ch 24, § 38.
3-6A-48. Repealed by SL 2012, ch 23, § 10.
3-6A-49. Repealed by SL 1982, ch 16, § 8.
3-6A-50. Repealed by SL 1982, ch 16, § 12.
3-6A-52. Repealed by SL 2012, ch 23, § 10.
3-6B-1 to 3-6B-5. Repealed.
3-6B-6
Repealed.
3-6B-1 to 3-6B-5. Repealed by SL 2012, ch 23, § 10.
3-6B-6. Repealed by SL 1990, ch 31, § 3.
CHAPTER 3-6C
STATE EMPLOYMENT GENERAL PROVISIONS
3-6C-1 Definition of terms in chapters 3-6C to 3-6F.
3-6C-2 Human resources functions of bureau--Delegation.
3-6C-3 Temporary, patient, and student employees' holiday compensation.
3-6C-4 Vacation leave--Accrual and accumulation--Advanced leave.
3-6C-5 Repealed.
3-6C-6 Vacation on retirement or resignation--Lump-sum payment option--Payment upon death.
3-6C-7 Sick leave--Accrual and accumulation--Medical certificate--Vacation leave used for sickness--Personal emergency leave--Promulgation of rules.
3-6C-7.1 Paid family leave.
3-6C-8 Accrual of leave while receiving workers' compensation.
3-6C-9 Advanced sick leave.
3-6C-10 Workers' compensation not payable while on vacation or sick leave.
3-6C-11 Use of sick pay or vacation pay to supplement workers' compensation.
3-6C-12 Payment for accrued unused sick leave on termination of employment.
3-6C-13 Donation of accrued vested leave to another employee--Approval by bureau.
3-6C-14 Restrictions on donation of leave.
3-6C-15 Donation of vacation leave to recipient caring for terminally ill family member--Approval by bureau.
3-6C-16 Accrued leave transferred when employee transferred between agencies.
3-6C-17 Leave of absence without pay.
3-6C-18 Leave and other benefits--Promulgation of rules.
3-6C-19 Freedom of speech of officers and employees--Restrictive rules prohibited.
3-6C-20 Holiday benefit eligibility.
3-6C-21 Leave from work for American Red Cross disaster service volunteers.
3-6C-22 Disaster service not to affect other benefits.
3-6C-23 Appointing authority to have exclusive authority over final selection of employees.
3-6C-24 Personnel records.
3-6C-25 Student intern preference to South Dakota residents or students.
3-6C-26 Executive branch employees--Access to confidential information--Criminal background checks--Promulgation of rules.
3-6C-1. Definition of terms in chapters 3-6C to 3-6F.
Terms as used in chapters 3-6C to 3-6F, inclusive, mean:
(1) "Appointing authority," the hiring entity;
(2) "Commission," the Civil Service Commission;
(3) "Bureau," the Bureau of Human Resources and Administration;
(4) "Bureau commissioner," a person appointed by and serving at the pleasure of the Governor to administer one of the bureaus of the executive branch of state government;
(5) "Civil service," a system of human resource management for the executive branch of state government based on merit principles governing the appointment, promotion, compensation, removal, transfer, and other matters related to human resource management;
(6) "Civil service employee," a permanent employee not otherwise exempted by the provisions of chapter 3-6D;
(7) "Change in family status," marriage, divorce, or death of the member, spouse, or any covered dependent; birth or adoption of a child; or a change in the employment status of the member, spouse, or any covered dependent;
(8) "Class of positions," all civil service positions that are sufficiently similar in kind or subject matter of work performed, level of difficulty and responsibility, and knowledge, skills, and abilities to warrant similar treatment in personnel and pay administration;
(9) "Compensation," the total compensation, which includes direct salary and fringe benefits. Fringe benefits includes employer paid retirement programs, social security, health insurance, life insurance, and any other programs offering a benefit to the employee in which the employer participates;
(10) "Contribution," the dollar amount established by the human resources commissioner sufficient to cover the cost of the insurance plan;
(11) "Department secretary," a person appointed by and serving at the pleasure of the Governor to administer one of the major departments of the executive branch of state government;
(12) "Dependent," a person who is:
(a) An employee's spouse who is not divorced or legally separated from the employee; or
(b) An employee's child who is:
(i) Under the age of twenty-six or under the age of twenty-nine if a full-time student; and
(ii) Not in military service;
(13) "Deputy," a person who serves as first assistant to, and at the pleasure of, a department secretary, bureau commissioner, or division director if allowed by law;
(14) "Division director," a person appointed by and serving at the pleasure of the department secretary or bureau commissioner to administer a division within a major department or bureau of the executive branch of state government;
(15) "Employee," any person working for state government, paid by the state, or remunerated by other funds raised, appropriated, or otherwise generated by the state. The term does not include any person working for any authority authorized by law;
(16) "Employer," the State of South Dakota;
(17) "Executive branch employee," any employee working for state government except those working for the legislative or judicial branches of state government;
(18) "Human resources commissioner," the commissioner of the bureau;
(19) "Law enforcement employee," any certified law enforcement officer working for the Division of Criminal Investigation or the Highway Patrol;
(20) "Member," a state employee or retiree who is covered by the plan as the primary insured and who may elect to have his or her dependents covered by the plan;
(21) "Permanent employee," an active employee placed in a permanent position, employed by a participating agency. This term does not include temporary, emergency, patient, or student employees;
(22) "Plan," the state employee's benefit insurance plan as created by chapter 3-6E;
(23) "Plan-eligible employee," a permanent employee who is scheduled to work twenty or more hours a week at least six months of the year or an employee employed by an appointing authority who has worked an average of thirty hours or more per week during a twelve-month standard measurement period, as defined by the Patient Protection and Affordable Care Act of 2010, as amended to January 1, 2019;
(24) "Position," a collection of duties and responsibilities assigned by the appointing authority to one person;
(25) "Safety-sensitive position," any law enforcement officer authorized to carry firearms and any custody staff employed by any agency responsible for the rehabilitation or treatment of any adjudicated adult or juvenile;
(26) "Self-insured," a state-supported benefit plan in which the initial risk for any losses is born by the plan;
(27) "Spouse," an employee's husband or wife as a result of marriage that is legally recognized in this state or under the laws of the state where the marriage occurred. The term does not include a spouse as a result of a common-law marriage;
(28) "Substance," marijuana as defined in subdivision 22-42-1(7) and any controlled drug or substance as defined in chapter 34-20B.
Source: SL 2012, ch 23, § 12; SL 2019, ch 21, § 1; SL 2021, ch 22, § 1; SL 2024, ch 1 (Ex. Ord. 24-1), § 35, eff. Apr. 8, 2024.
3-6C-2. Human resources functions of bureau--Delegation.
The bureau shall perform human resource functions for the following agencies:
(1) Board of Regents;
(2) Board of Trustees of the South Dakota Retirement System; and
(3) All other state departments, bureaus, divisions, boards, and commissions of the executive branch.
The bureau may delegate human resource functions to either the Board of Regents or the Board of Trustees of the South Dakota Retirement System through agreements entered into pursuant to chapter 1-24.
Source: SL 2012, ch 23, § 13; SL 2019, ch 21, § 2.
3-6C-3. Temporary, patient, and student employees' holiday compensation.
A temporary, patient, or student employee, as defined by rules promulgated by the commission pursuant to chapter 1-26, may not receive any compensation for any holiday as defined in § 1-5-1. However, the employee shall be compensated for any hours actually worked on holidays.
Source: SL 2012, ch 23, § 14; SL 2019, ch 21, § 3.
3-6C-4. Vacation leave--Accrual and accumulation--Advanced leave.
Each permanent employee shall earn up to one hundred twenty hours vacation leave per full year of employment. A permanent employee with more than fifteen years employment shall earn up to one hundred sixty hours vacation leave per full year of employment. Vacation leave shall be accrued on an hourly, biweekly, semimonthly, or monthly basis as determined by the human resources commissioner. Vacation leave is cumulative only to the extent of that which may be earned in a period of time not exceeding two years of regular and continuous state employment. Vacation leave may not be advanced to an employee at any time.
Source: SL 2012, ch 23, § 15; SL 2019, ch 21, § 4; SL 2020, ch 17, § 1.
3-6C-6. Vacation on retirement or resignation--Lump-sum payment option--Payment upon death.
An employee who retires or voluntarily resigns may terminate employment at the end of the employee's accrued vacation leave or receive a lump-sum payment for the unused vacation leave which has accrued as of the employee's final day on the payroll. An employee meeting the definition of a participant in subdivision 3-13A-2(7) shall have such lump-sum payment transmitted to the fund pursuant to the provisions of § 3-13A-5. However, if the employee dies, payment for the accumulated vacation leave shall be paid according to §§ 3-8-8 to 3-8-11, inclusive.
Source: SL 2012, ch 23, § 17; SL 2019, ch 21, § 6.
3-6C-7. Sick leave--Accrual and accumulation--Medical certificate--Vacation leave used for sickness--Personal emergency leave--Promulgation of rules.
Each permanent employee shall earn up to one hundred twelve hours sick leave per full year of employment. Sick leave shall be accrued on an hourly, biweekly, semimonthly, or monthly basis as determined by the human resources commissioner and shall accumulate without limit as to the number of hours of such accumulation. The use of sick leave shall be supported by a medical certificate upon the request of the human resources commissioner. An employee is not entitled to more than the employee's accrued sick leave without first using all of the employee's accumulated vacation leave.
The commission, pursuant to chapter 1-26, shall promulgate rules to implement this provision.
Adoption of a child by an employee is treated as natural childbirth for leave purposes.
Source: SL 2012, ch 23, § 18; SL 2019, ch 21, § 7; SL 2020, ch 17, § 3.
3-6C-7.1 . Paid family leave.
Each permanent employee who has been employed by the state for a continuous period of six months is entitled to paid family leave following the birth of a child or placement of a child for adoption.
Source: SL 2020, ch 17, § 4.
3-6C-8. Accrual of leave while receiving workers' compensation.
A permanent employee may accrue vacation leave, but not sick leave, while receiving workers' compensation under § 62-4-3.
Source: SL 2012, ch 23, § 19; SL 2019, ch 21, § 8.
3-6C-9. Advanced sick leave.
Sick leave may be advanced to a permanent employee who has been in regular continuous employment of the state for at least one full year if the employee has used all of the employee's accrued vacation and sick leave. If an employee receives advanced sick leave, any subsequent sick leave accrued by the employee shall be credited against the employee's negative sick leave balance until the advanced sick leave is repaid. The employee's advanced negative sick leave balance may not exceed two hundred twenty-eight hours. Advanced sick leave is within the discretion of the bureau under rules promulgated by the commission pursuant to chapter 1-26, and is authorized only if the bureau's consent has first been obtained.
Source: SL 2012, ch 23, § 20; SL 2019, ch 21, § 9.
3-6C-10. Workers' compensation not payable while on vacation or sick leave.
An employee may not be compensated under § 62-4-3 for a period for which the employee has also received sick pay authorized by § 3-6C-7 or 3-6C-9 or vacation pay authorized by § 3-6C-4. Nothing in this section limits any other compensation or benefits due to an employee under Title 62.
Source: SL 2012, ch 23, § 21; SL 2019, ch 21, § 10.
3-6C-11. Use of sick pay or vacation pay to supplement workers' compensation.
If an injured permanent employee's workers' compensation benefits are not equal to the employee's salary, the employee may, notwithstanding any provision in § 3-6C-10, use paid sick or vacation leave in an amount necessary to make up the difference between the employee's salary and the workers' compensation benefits.
Source: SL 2012, ch 23, § 22; SL 2019, ch 21, § 11.
3-6C-12. Payment for accrued unused sick leave on termination of employment.
A permanent employee, who has been continuously employed in a permanent position for at least seven years prior to the date of the employee's retirement, voluntary resignation, layoff, termination for inability to perform job functions due to physical disability, or death, shall receive payment for one-fourth of the unused sick leave which has accrued as of the employee's final day on payroll. The payment may not exceed the sum of four hundred eighty hours. Payment shall be made in a lump sum with the employee's last payroll warrant. An employee meeting the definition of a participant in subdivision 3-13A-2(7) shall have the lump-sum payment transmitted to the fund pursuant to the provisions of § 3-13A-5. However, if the employee dies, payment for the accumulated sick leave shall be paid in accordance with §§ 3-8-8 to 3-8-11, inclusive.
Source: SL 2012, ch 23, § 23; SL 2019, ch 21, § 12.
3-6C-13. Donation of accrued vested leave to another employee--Approval by bureau.
A permanent employee may donate accrued vested leave to another permanent employee who has exhausted all accrued vacation and sick leave and who meets one of the following criteria:
(1) The recipient employee is terminally ill and the employee's condition does not allow a return to work; or
(2) The recipient employee is suffering from an acutely life threatening illness or injury which has been certified by a licensed physician as having a significant likelihood of terminating fatally and the employee's physical condition does not allow a return to work for a period of at least ninety consecutive days.
The recipient employee may not receive donated leave once the employee is able to return to work or is approved for disability benefits provided for in § 3-12C-803 or any other public disability benefits.
The donation of accrued vested leave may not exceed two thousand eighty hours per recipient employee as defined in subdivision (1) of this section or one thousand forty hours per illness or injury for a recipient employee as defined in subdivision (2) of this section, not to exceed two thousand eighty hours per recipient. The donation shall be approved by the bureau under rules promulgated by the commission pursuant to chapter 1-26, including number of hours to be donated, confidentiality of a donation, definition of terminally ill, definition of life threatening illness or injury, criteria for determining employee eligibility to receive or donate leave, coordination of leave donation with disability and other public benefits and in compliance with the provisions of § 3-6C-12, and procedures for approval of the donation.
Source: SL 2012, ch 23, § 24; SL 2019, ch 21, § 13.
3-6C-14. Restrictions on donation of leave.
Any donation of leave pursuant to § 3-6C-13 or 3-6C-15 may be restricted as follows:
(1) The donating employee may only donate leave to an employee who is at the same or lower pay grade as the donating employee; and
(2) The donation may be denied based upon funding considerations within the agency, at the discretion of the human resources commissioner.
Source: SL 2012, ch 23, § 25; SL 2019, ch 21, § 14.
3-6C-15. Donation of vacation leave to recipient caring for terminally ill family member--Approval by bureau.
A permanent employee may donate accrued vested vacation leave to another permanent employee who meets all of the following criteria:
(1) The recipient employee will use the donated leave to care for the recipient employee's spouse, child, or parent who is terminally ill;
(2) The recipient employee's spouse, child, or parent is suffering from an acutely life threatening illness or injury which has been certified by a licensed physician as having a significant likelihood of terminating fatally; and
(3) The recipient employee has exhausted all accrued vacation and sick leave.
The total paid leave, including the donated vacation leave pursuant to this section, may not exceed twelve weeks annually per recipient employee. The donation shall be approved by the bureau under rules promulgated pursuant to chapter 1-26 by the commission, including number of hours to be donated, confidentiality of a donation, definition of terminally ill, definition of life threatening illness or injury, criteria for determining employee eligibility to receive or donate leave and for prorating donated leave for part-time employees, and procedures for approval of the donation. Any donation shall be in compliance with the provisions of § 3-6C-4.
Source: SL 2012, ch 23, § 26; SL 2019, ch 21, § 15; SL 2020, ch 17, § 5.
3-6C-16. Accrued leave transferred when employee transferred between agencies.
If a permanent employee transfers from one state department, institution, agency, or office to another state department, institution, agency, or office, the employee may transfer all unused accrued vacation and sick leave as was allowed the employee under the provisions of §§ 3-6C-4 and 3-6C-7.
Source: SL 2012, ch 23, § 27; SL 2019, ch 21, § 16.
3-6C-17. Leave of absence without pay.
The provisions of §§ 3-6C-4 to 3-6C-16, inclusive, do not prohibit the taking of leave of absence for vacation or sickness without pay if the leave of absence is authorized and approved by the board, commission, agency, department, office, or officer employing the employee, pursuant to rules promulgated pursuant to chapter 1-26 by the human resources commissioner.
Source: SL 2012, ch 23, § 28; SL 2019, ch 21, § 17.
3-6C-18. Leave and other benefits--Promulgation of rules.
The commission may, pursuant to chapter 1-26, promulgate rules to further define and administer the types of leave permitted to be taken as sick leave, vacation leave, paid family leave, and leave of absence, including the following: child care, jury duty, military service, maternity, and education and other fringe benefits.
Source: SL 2012, ch 23, § 29; SL 2019, ch 21, § 18; SL 2020, ch 17, § 6.
3-6C-19. Freedom of speech of officers and employees--Restrictive rules prohibited.
It is the policy of the State of South Dakota that citizens of this state and of the United States may not be deprived of their freedom of speech guaranteed them by the constitutions of the United States of America and of the State of South Dakota, by reason of the fact that they are state officers and employees. No state agency may pass a rule restricting or prohibiting the constitutionally guaranteed right of its employees and officers to express their opinions.
Source: SL 2012, ch 23, § 30.
3-6C-20. Holiday benefit eligibility.
Holidays, other than Sundays, enumerated in § 1-5-1, are a benefit for permanent employees including those who are not scheduled to work the day on which a holiday falls. A permanent employee shall receive holiday pay if the employee works at least one shift or is on approved paid leave during the calendar week in which the holiday falls. Part-time permanent employees shall receive prorated holiday pay. For payroll and leave purposes, a holiday on which an employee does not work is no more than eight hours long. When an hourly employee must work on the date a holiday is observed, the holiday pay is the greater of either eight hours or the total hours worked. Holiday pay for an hourly, permanent, part-time employee who must work on the date a holiday is observed is the greater of either the prorated amount or total hours worked.
Source: SL 2012, ch 23, § 31; SL 2019, ch 21, § 19; SL 2022, ch 12, § 1.
3-6C-21. Leave from work for American Red Cross disaster service volunteers.
A permanent employee who is a certified disaster service volunteer of the American Red Cross may be granted leave from work with pay not to exceed ten days in any one calendar year to participate in disaster relief services for the American Red Cross during a State of South Dakota declared disaster, upon the request of the American Red Cross for the services of the employee and upon approval of that employee's appointing authority. However, an employee who is needed by the employee's appointing authority to perform job-related disaster services may not be granted this leave. The appointing authority shall compensate an employee granted leave under this section at the employee's regular rate of pay for regular work hours during which the employee is absent from work.
Source: SL 2012, ch 23, § 32; SL 2019, ch 21, § 20.
3-6C-22. Disaster service not to affect other benefits.
Any absence approved pursuant to § 3-6C-21 for disaster service volunteers does not affect a permanent employee's right to receive normal vacation and sick leave, bonus, advancement, and other advantages of employment.
Source: SL 2012, ch 23, § 33; SL 2019, ch 21, § 21.
3-6C-23. Appointing authority to have exclusive authority over final selection of employees.
Each appointing authority shall have exclusive authority to make the final selection of employees in the authority's respective department, bureau, division, and institution.
Source: SL 2012, ch 23, § 34.
3-6C-24. Personnel records.
The human resources commissioner shall establish and maintain appropriate records on all employees relating to the several provisions of this chapter. The commission may promulgate rules, pursuant to chapter 1-26, to regulate the records maintained by the bureau. Any records required or maintained by the bureau, including performance appraisals, that pertain to an employee shall be available and open to inspection by the employee during normal business hours.
Source: SL 2012, ch 23, § 35; SL 2019, ch 21, § 22.
3-6C-25. Student intern preference to South Dakota residents or students.
Preference in the selection of student interns shall be given to those students who are residents of South Dakota or attending an institution of higher education within this state.
Source: SL 2012, ch 23, § 36.
3-6C-26. Executive branch employees--Access to confidential information--Criminal background checks--Promulgation of rules.
Each current or new executive branch employee, whose duties include access to confidential information obtained from the United States Internal Revenue Service or from an authorized secondary source, shall submit to and successfully pass a state and federal criminal background investigation. The employee shall submit to a fingerprint check by the Division of Criminal Investigation and the Federal Bureau of Investigation before being granted access to any confidential information. The appointing authority shall submit the completed fingerprint card to the Division of Criminal Investigation. In addition to the initial criminal background investigation, each employee shall submit to a criminal background investigation every five years thereafter. The human resources commissioner may promulgate rules, pursuant to chapter 1-26, to establish policies for exempt employees concerning the procedure for submitting fingerprints and completing the criminal background investigation. The commission may promulgate rules, pursuant to chapter 1-26, to establish policies for civil service employees concerning the procedure for submitting fingerprints and completing the criminal background investigation.
The appointing authority may pay any fee charged for the cost of fingerprinting or the criminal background investigation for any person whose employment is subject to the requirements of this section.
Source: SL 2017, ch 24, § 1; SL 2020, ch 16, § 1.
3-6D-1
Civil Service Commission--Members--Appointment--Terms--Vacancies.
3-6D-2
Removal of commission member--Procedure.
3-6D-3
Meetings--Chair--Quorum--Law enforcement officer discipline.
3-6D-4
Employees covered by chapter--Exemptions.
3-6D-5
Protections for applicants and employees.
3-6D-6
Merit standards for personnel management actions.
3-6D-7
Promulgation of rules regarding recruitment, examination, selection, and promotion.
3-6D-8
Appointment of best qualified applicants--Eligibility lists--Misdemeanor.
3-6D-9
Delegation of administrative functions to institutions and departments.
3-6D-10
Promulgation of position classification rules.
3-6D-11
Promulgation of pay system rules.
3-6D-12
Payroll approval.
3-6D-13
Approval or rejection of labor contracts and settlements.
3-6D-14
Promulgation of rules governing discipline, conditions of work, and grievance
procedures.
3-6D-15
Grievances--Hearing--Notice--Summary disposition.
3-6D-16
Good cause for employee discipline--Order upholding or reversing agency decision.
3-6D-17
Award of back pay and benefits to employees disciplined without good cause--Reinstatement--Adverse impact on budget.
3-6D-18
Assistance of agencies--Agency level procedures.
3-6D-19
Records of administrative costs--Billing of agencies.
3-6D-20
Prohibited conduct by applicants--Misdemeanor.
3-6D-21
Interference with rights under chapter--Secret information--Misdemeanor.
3-6D-22
Grievance for retaliation against whistleblower.
3-6D-23
Probationary period--Dismissal without cause
.
3-6D-24
Records on law enforcement employees.
3-6D-25
Government Operations and Audit Committee to investigate matters referred by
Division of Criminal Investigation.
3-6D-1. Civil Service Commission--Members--Appointment--Terms--Vacancies.
There is hereby created a Civil Service Commission. The commission consists of seven members, not all of whom may be of the same political party. Three of the members shall be experienced in law enforcement. The Governor shall appoint each member for a term of four years, beginning on the first day of July. Any member appointed to fill a vacancy arising from other than the natural expiration of a term shall serve for only the unexpired portion of the term.
Source: SL 2012, ch 23, § 38; SL 2019, ch 21, § 23.
3-6D-2. Removal of commission member--Procedure.
A member of the commission may be removed by the Governor only for cause after being given a copy of the charges and an opportunity to be heard publicly on the charges before the Governor. A copy of the charges and a transcript of the record of the hearing shall be filed with the secretary of state.
Source: SL 2012, ch 23, § 39; SL 2019, ch 21, § 24.
3-6D-3. Meetings--Chair--Quorum--Law enforcement officer discipline.
The commission shall hold meetings as necessary to carry out its duties under this chapter. The commission shall elect one of its members as chair at the first meeting in each year. Four members shall constitute a quorum for the conduct of business. If the subject of any meeting is the discipline of any law enforcement officer, at least two of the members of the commission in attendance shall be experienced in law enforcement.
Source: SL 2012, ch 23, § 40; SL 2019, ch 21, § 25.
3-6D-4. Employees covered by chapter--Exemptions.
This chapter applies to all executive branch employees of state government, but excluding:
(1) Elected officers and all employees in the offices of the secretary of state, state treasurer, state auditor, commissioner of school and public lands, and public utilities commission;
(2) The members of boards and commissions;
(3) Department secretaries, bureau commissioners, division directors, deputy secretaries, deputy bureau commissioners, deputy division directors, and supervisors who determine and publicly advocate substantive program policy, attorneys, physicians, confidential assistants to exempt employees and other directors or administrative policy-making positions of executive branch institutions, commissions, boards and agencies;
(4) All positions in the Office of the Governor and Bureau of Finance and Management;
(5) Presidents, deans, administrative and policy-making positions, student health service physicians, teaching and professional research positions under the jurisdiction of the State Board of Regents and other directors or administrative policy-making positions of such institutions as determined by the human resources commissioner;
(6) Teachers of the several institutions under the jurisdiction of the executive branch;
(7) A person hired to fill the position of an employee who is deployed or activated under circumstances requiring reinstatement under the Uniform Services Employment and Reemployment Rights Act, 38 U.S.C. § 4301 as in effect January 1, 2012;
(8) Patients who are employed by state institutions under the executive branch;
(9) Temporary employees and interns; and
(10) The attorney general and all employees within its office except certified law enforcement officers within the division of criminal investigation.
The commission may promulgate rules, pursuant to chapter 1-26, that establish criteria to implement this section for exemptions from the civil service. The human resources commissioner may determine which positions are eligible for exemption under the provisions of this chapter. Any decision of the human resources commissioner relating to exemptions from the civil service may be appealed to the commission pursuant to chapter 1-26.
Source: SL 2012, ch 23, § 41; SL 2019, ch 21, § 26.
3-6D-5. Protections for applicants and employees.
Each civil service applicant and civil service employee shall be accorded the following protections:
(1) Discrimination on the basis of political affiliation in regard to the hiring, promotion, termination, or any other tangible employment action relating to a civil service employee is prohibited;
(2) A civil service employee may not be required to participate in partisan political activities;
(3) A civil service employee may not be obliged, by reason of that employment, to contribute to any political funds or collections or render political service. A civil service employee refusing to contribute funds or to render that political service may not be removed or otherwise disciplined or prejudiced for the refusal;
(4) A civil service employee retains the right of free speech;
(5) A civil service employee may not be disciplined for the reporting of any violation of state or federal law to any local, state or federal authority;
(6) A civil service employee has the right to obtain a copy of the employee's personnel file or any other pertinent data that directly relates to the employee held in the state's files. The cost of the copy shall be borne by the employee;
(7) Prior to any disciplinary action, a civil service employee shall be given verbal or written notice and an opportunity to present reasons, either in person or in writing, why the proposed action should not be taken; and
(8) Other rights and protections as enumerated by state or federal statute or rule.
Source: SL 2012, ch 23, § 42; SL 2019, ch 21, § 27.
3-6D-6. Merit standards for personnel management actions.
Any personnel management actions taken under the provisions of this chapter shall comply with merit standards as follows:
(1) Recruiting, selecting, and advancing civil service employees through open consideration of qualified applicants for initial appointments and promotions. Selection of qualified applicants is based on relative ability, knowledge, and skills;
(2) Providing equitable and adequate compensation;
(3) Training civil service employees to assure high quality performance;
(4) Retaining civil service employees based on performance, correcting inadequate performance, and separating employees whose performance cannot be improved; and
(5) Assuring fair treatment without regard to age, political affiliation, race, color, national origin, sex, or religious creed.
Source: SL 2012, ch 23, § 43; SL 2019, ch 21, § 28.
3-6D-7. Promulgation of rules regarding recruitment, examination, selection, and promotion.
The commission shall promulgate rules, pursuant to chapter 1-26, in the areas of recruitment, examination, selection, and promotion of civil service employees to be administered by the human resources commissioner. Each examination shall relate to matters that will fairly test the relative capacity of the person examined to discharge the duties of the position and may include tests of physical qualifications, training and experience, written examinations, and health and, if appropriate, technical or manual skill. The human resources commissioner shall designate the times and places for each examination.
Source: SL 2012, ch 23, § 44; SL 2019, ch 21, § 29.
3-6D-8. Appointment of best qualified applicants--Eligibility lists--Misdemeanor.
Each civil service appointment shall be made from among the best qualified persons from a list of eligible applicants. Any person who makes an appointment contrary to the provisions of this section is guilty of a Class 1 misdemeanor.
Source: SL 2012, ch 23, § 45; SL 2019, ch 21, § 30.
3-6D-9. Delegation of administrative functions to institutions and departments.
The human resources commissioner may delegate the administration of this chapter to state institutions and departments throughout the state. However, the human resources commissioner shall delegate to institutions under the jurisdiction of the Board of Regents the administration of recruitment, examining, and selection of employees for institutions under the jurisdiction of the Board of Regents. All delegated administrative authority shall be exercised in accordance with the provisions of this chapter and commission rules.
Source: SL 2012, ch 23, § 46; SL 2019, ch 21, § 31.
3-6D-10. Promulgation of position classification rules.
The commission shall promulgate rules, pursuant to chapter 1-26, to develop a position classification system for all positions in the civil service, based upon similarity of duties performed and responsibilities assumed, so that the same qualifications and pay may reasonably be required and established for positions allocated to the same class.
Source: SL 2012, ch 23, § 47; SL 2019, ch 21, § 32.
3-6D-11. Promulgation of pay system rules.
The commission shall promulgate rules, pursuant to chapter 1-26, to develop a statewide pay system which assures the principle of equal pay for equal work applying to positions existing in the civil service.
Source: SL 2012, ch 23, § 48; SL 2019, ch 21, § 33.
3-6D-12. Payroll approval.
The human resources commissioner shall approve the payroll for all departments and institutions of the executive branch to ensure compliance with this chapter and chapter 3-6C.
Source: SL 2012, ch 23, § 49; SL 2019, ch 21, § 34.
3-6D-13. Approval or rejection of labor contracts and settlements.
The human resources commissioner shall give final approval or rejection to all negotiated labor contracts and settlements for civil service employees based on compliance with this chapter and commission rules.
Source: SL 2012, ch 23, § 50; SL 2019, ch 21, § 35.
3-6D-14. Promulgation of rules governing discipline, conditions of work, and grievance procedures.
The commission shall promulgate rules, pursuant to chapter 1-26, governing civil service employees in matters of discipline, retirement, standards of conduct, adverse actions, political activity in employment, hours of work, equal opportunity, complaints, grievances and appeals to the commission, and reductions in force due to nondisciplinary reasons.
Source: SL 2012, ch 23, § 51; SL 2019, ch 21, § 36.
3-6D-15. Grievances--Hearing--Notice--Summary disposition.
If a grievance remains unresolved after exhaustion of an agency grievance procedure, a civil service employee may demand a hearing before the commission as provided for in contested cases in chapter 1-26. The proceedings shall be held as provided in chapter 1-26. The commission shall provide notice of the hearing within thirty calendar days of an employee's request for a hearing. The commission shall conduct a hearing within thirty calendar days of the notice of the hearing unless the hearing is continued for good cause or unless the commission determines, upon the motion of any party, that the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that a grievance, defense, or claim presents no genuine issue as to any material fact and a party is entitled to a judgment as a matter of law. The commission, upon the motion of any party, may dispose of any grievance, defense, or claim at the close of the evidence offered by the proponent of the grievance, defense, or claim if the commission determines that the evidence offered by the proponent of the grievance, defense, or claim is legally insufficient to sustain the grievance, defense, or claim. The human resources commissioner shall schedule the hearing to ensure compliance with the time frames provided in this section. If the grievant agrees, the commissioner may appoint a hearing examiner as authorized in § 1-26-18.3.
Any final action or decision may be appealed pursuant to chapter 1-26.
Source: SL 2012, ch 23, § 52; SL 2018, ch 12, § 4; SL 2019, ch 21, § 37.
3-6D-16. Good cause for employee discipline--Order upholding or reversing agency decision.
In resolving grievances involving the discipline of a civil service employee, the commission shall determine and decide whether the action was made for good cause. If the commission finds that the action was made for good cause, the commission shall enter an order upholding the decision of the agency disciplining the employee. If, however, the commission finds that the action was made without good cause, the commission shall enter an order reversing the decision of the agency.
Source: SL 2012, ch 23, § 53; SL 2019, ch 21, § 38.
3-6D-17. Award of back pay and benefits to employees disciplined without good cause--Reinstatement--Adverse impact on budget.
In resolving a grievance, the commission may reinstate a civil service employee who has been disciplined without good cause. If reinstatement is ordered by the commission, the order shall include one or more of the following forms of relief: an award of back pay, an award of back benefits, placement in the same position and location that the employee held before the discipline, or placement in a comparable position and location that the employee held before the discipline. Any award of back pay and benefits shall include the employer's contribution pursuant to § 3-12C-401. Any award of back pay and benefits which adversely affects an agency's budget shall be considered advisory and submitted by the affected agency to the committee created by chapter 4-8A or the next session of the Legislature.
Source: SL 2012, ch 23, § 54; SL 2012, ch 26, § 16; SL 2019, ch 21, § 39.
3-6D-18. Assistance of agencies--Agency level procedures.
Each agency shall adhere to, and assist the human resources commissioner in administering the provisions of this chapter. An agency may formulate agency level procedures within the limitations of those rules promulgated pursuant to chapter 1-26 by the commission or the human resources commissioner. The procedures shall be reviewed and approved by the human resources commissioner before implementation.
Source: SL 2012, ch 23, § 55; SL 2019, ch 21, § 40.
3-6D-19. Records of administrative costs--Billing of agencies.
The human resources commissioner shall maintain accurate records reflecting the costs of administering the provisions of this chapter. The human resources commissioner shall summarize the cost and shall bill each department, office, institution, or bureau for a pro rata share of the administrative cost.
Source: SL 2012, ch 23, § 56; SL 2019, ch 21, § 41.
3-6D-20. Prohibited conduct by applicants--Misdemeanor.
An applicant for a civil service position may not:
(1) Directly or indirectly give, render, or pay, or promise to give, render, or pay any money, service, or other thing to any person, for or on account of, or in connection with an examination, appointment, or proposed appointment; or
(2) Submit, with the intent to deceive, any false application, credential, test, or examination to a hiring authority for the purpose of obtaining any appointment or proposed appointment or promotion.
A violation of this section is a Class 1 misdemeanor.
Source: SL 2012, ch 23, § 57; SL 2019, ch 21, § 42.
3-6D-21. Interference with rights under chapter--Secret information--Misdemeanor.
An employee of the bureau or any other person may not defeat, deceive, or obstruct any person's right to examination, eligibility, certification, or appointment pursuant to this chapter, or furnish to any person any special or secret information for the purpose of affecting the rights or prospects of any person with respect to employment in the civil service. A violation of this section is a Class 1 misdemeanor.
Source: SL 2012, ch 23, § 58; SL 2019, ch 21, § 43.
3-6D-22. Grievance for retaliation against whistleblower.
A civil service employee may file a grievance with the commission if the employee believes that there has been retaliation because of reporting a violation of state law through the chain of command of the employee's agency, to the attorney general's office, the State Government Accountability Board, or because the employee has filed a suggestion pursuant to this section.
Source: SL 2012, ch 23, § 59; SL 2017, ch 32, § 12; SL 2019, ch 21, § 44.
3-6D-23. Probationary period--Dismissal without cause.
A person upon accepting civil service employment with any agency covered by this chapter shall be placed on a probationary period. For a law enforcement officer, the probationary period shall be twelve months. For all other civil service employment, the probationary period shall be six months. During this time the person may be dismissed without cause.
Source: SL 2012, ch 23, § 60.
3-6D-24. Records on law enforcement employees.
The director of the Division of Criminal Investigation shall establish and maintain records on law enforcement employees within the Division of Criminal Investigation relating to the provisions of this chapter.
Source: SL 2012, ch 23, § 61.
3-6D-25. Government Operations and Audit Committee to investigate matters referred by Division of Criminal Investigation.
The Government Operations and Audit Committee shall review and investigate any matter referred to the committee by the Division of Criminal Investigation and may recommend appropriate action. The committee shall promptly notify the subject of the affidavit and resolve the matter in a reasonable time.
Source: SL 2017, ch 73, § 5.
CHAPTER 3-6E
STATE EMPLOYEES' HEALTH AND LIFE INSURANCE
3-6E-1 Benefits plan for employees--Self-funded or group health insurance--Flexible benefit plan.
3-6E-2 Self-funded plan.
3-6E-3 Reinsurance.
3-6E-4 Enrollment of all eligible employees--Exception.
3-6E-5 Effective date of enrollment.
3-6E-6 Coverage of eligible dependents.
3-6E-7 Repealed
3-6E-8 State contributions to health plan--Crediting and disbursement.
3-6E-9 Employee contributions to benefits plan--Crediting and disbursement.
3-6E-10 Funds transferred to trust fund--Disbursements.
3-6E-11 Certificate of benefits.
3-6E-12 Persons to whom benefits payable.
3-6E-13 Promulgation of rules regarding benefits plan.
3-6E-14 State employee workers' compensation program--Crediting receipts and disbursement.
3-6E-15 State Cement Plant former employee workers' compensation claims.
3-6E-16 State contribution of workers' compensation premium--Crediting and disbursement.
3-6E-17 State employee workers' compensation program fund.
3-6E-18 Promulgation of rules regarding workers' compensation program.
3-6E-19 State Cement Plant former employee life insurance benefits.
3-6E-1. Benefits plan for employees--Self-funded or group health insurance--Flexible benefit plan.
The bureau may establish a benefits plan for plan-eligible employees of the state. The plan may either be self-funded or established as a group health insurance program. The plan may provide for group health coverage against the financial cost of hospital, surgical, pharmacy, and medical treatment and care, and any other coverage or benefits the human resources commissioner determines is appropriate and desirable. The human resources commissioner may include a flexible benefit plan which allows an employee to choose the employee's own benefits or levels of coverage.
Source: SL 2012, ch 23, § 63; SL 2019, ch 21, § 45.
3-6E-2. Self-funded plan.
The human resources commissioner may provide all, or any part of, the benefits under the plan or plans provided pursuant to this chapter by means of a plan which is self-funded in whole or in part.
Source: SL 2012, ch 23, § 64; SL 2019, ch 21, § 46.
3-6E-3. Reinsurance.
The human resources commissioner may authorize the purchase of reinsurance to cover against losses incurred by the plan.
Source: SL 2012, ch 23, § 65; SL 2019, ch 21, § 47.
3-6E-4. Enrollment of all eligible employees--Exception.
Each plan-eligible employee shall be enrolled in the plan unless the employee is covered by another group health plan or is covered by Medicare and the employee provides notice to the plan administrator.
Source: SL 2012, ch 23, § 66; SL 2019, ch 21, § 48; SL 2020, ch 18, § 1, eff. Mar. 2, 2020.
3-6E-5. Effective date of enrollment.
Each plan-eligible employee shall be enrolled in the plan on the effective dates established by the human resources commissioner.
Source: SL 2012, ch 23, § 67; SL 2019, ch 21, § 49.
3-6E-6. Coverage of eligible dependents.
A plan-eligible employee may elect to have any of the employee's eligible dependents covered by the plan. The election shall be made at the time the employee becomes enrolled in the plan, or at another time as the human resources commissioner allows.
Source: SL 2012, ch 23, § 68; SL 2019, ch 21, § 50.
3-6E-8. State contributions to health plan--Crediting and disbursement.
The State of South Dakota shall either make a monthly contribution to the system or otherwise provide for the amount necessary to make payment to the system for the full single rate monthly health insurance premium or contribution for the plan with the lowest actuarial value for each plan-eligible employee. This amount shall be transmitted to the account of the state employees' benefits plan in the Office of the State Treasurer. The state treasurer, after making a record of the receipts, shall credit the plan with an amount equal to that remitted or otherwise provided. Costs beyond this amount for other plans offered by the state shall be paid by the employee through premiums. After the contribution has been assigned to the plan, the bureau shall disburse the contribution in accordance with this chapter and the rules promulgated pursuant to chapter 1-26 by the human resources commissioner.
Source: SL 2012, ch 23, § 70; SL 2019, ch 21, § 52; SL 2021, ch 22, § 3.
3-6E-9. Employee contributions to benefits plan--Crediting and disbursement.
The State of South Dakota shall deduct on each payroll of a member for each payroll period the amount of the contribution or premium, including any administrative expense. The state shall make deductions from salaries of plan-eligible employees and shall transmit monthly the amount specified to be deducted to the state treasurer. The state treasurer, after making a record of receipts, shall credit the benefits plan with an amount equal to that remitted by the state. After the credit has been assigned to the benefits plan, the human resources commissioner shall disburse credit in accordance with this chapter and the rules promulgated pursuant to chapter 1-26 by the human resources commissioner.
Source: SL 2012, ch 23, § 71; SL 2019, ch 21, § 53.
3-6E-10. Funds transferred to trust fund--Disbursements.
Any funds transmitted to the Office of the State Treasurer as designated transfers to the state employees' benefits plan shall be placed in the trust fund established by this chapter and entitled the state employees' benefits plan fund. Disbursements from the fund shall be made by warrants drawn by the state auditor upon itemized vouchers duly approved by the human resources commissioner.
Source: SL 2012, ch 23, § 72; SL 2019, ch 21, § 54.
3-6E-11. Certificate of benefits.
The bureau shall make available upon request, to each member, a certificate setting forth the benefits to which the member and the member's dependents are entitled under this chapter, to whom the benefits are payable, to whom claims shall be submitted, and a summary of the provisions of the plan's benefits as they affect the member and the member's dependents.
Source: SL 2012, ch 23, § 73; SL 2019, ch 21, § 55.
3-6E-12. Persons to whom benefits payable.
Any benefits payable under the plan may be paid either directly to the attending physician, dentist, hospital, medical, or dental group, or other person, corporation, limited liability company, association, or firm furnishing the service upon which the claim is based, or to the member upon presentation of receipted bills for such service.
Source: SL 2012, ch 23, § 74; SL 2019, ch 21, § 56.
3-6E-13. Promulgation of rules regarding benefits plan.
The human resources commissioner is responsible for the administration of this chapter and shall promulgate rules required for the effective administration of the provisions of this chapter pursuant to chapter 1-26. The rules may be promulgated in the following areas:
(1) To establish what benefits will be offered pursuant to this chapter;
(2) Participation in the plan by employees, retired employees, and dependents;
(3) Procedures for election of coverage;
(4) Effective dates of coverage if not specified by statute;
(5) Termination of coverage;
(6) Changes in dependent coverage;
(7) Collection of premiums and contributions;
(8) To coordinate the benefits plan with the health insurance plan authorized in this chapter; and
(9) Other provisions as required to meet federal law.
Source: SL 2012, ch 23, § 75; SL 2019, ch 21, § 57.
3-6E-14. State employee workers' compensation program--Crediting receipts and disbursement.
The State of South Dakota shall provide for the amount necessary to make payment to the state employee workers' compensation program for the claims of employees of the state arising under title 62. This amount shall be transmitted to the account of the state employee workers' compensation program in the Office of the State Treasurer. The state treasurer, after making a record of the receipts, shall credit the state employee workers' compensation program with an amount equal to that remitted or otherwise provided. After the contribution has been assigned to the state employee workers' compensation program, the bureau shall disburse the funds according to the provisions of title 62 and the rules promulgated by the human resources commissioner pursuant to chapter 1-26.
Source: SL 2012, ch 23, § 76; SL 2019, ch 21, § 58.
3-6E-15. State Cement Plant former employee workers' compensation claims.
Responsibility for the administration and payment of workers' compensation claims of former employees of the South Dakota State Cement Plant Commission is hereby transferred to the state employee workers' compensation program.
Source: SL 2012, ch 23, § 77; SL 2019, ch 21, § 59.
3-6E-16. State contribution of workers' compensation premium--Crediting and disbursement.
The state shall contribute on each payroll for an employee for each payroll period the amount of the state employee workers' compensation program premium, including any administrative expense. The state shall transmit monthly the amount specified to be paid to the state treasurer. The state treasurer, after making a record of receipts, shall credit the state employee workers' compensation program with an amount equal to that remitted by the state. The credit shall be assigned to the state employee workers' compensation program. The human resources commissioner shall disburse the funds according to title 62 and the rules promulgated by the Department of Labor and Regulation and the commissioner pursuant to chapter 1-26.
Source: SL 2012, ch 23, § 78; SL 2019, ch 21, § 60.
3-6E-17. State employee workers' compensation program fund.
Any funds transmitted to the Office of the State Treasurer as designated transfers to the state employee workers' compensation program shall be placed in the trust fund established by this section and entitled the state employee workers' compensation program fund. Disbursements from this fund shall be made by warrants drawn by the state auditor.
Source: SL 2012, ch 23, § 79; SL 2019, ch 21, § 61.
3-6E-18. Promulgation of rules regarding workers' compensation program.
The human resources commissioner may promulgate rules, pursuant to chapter 1-26, with respect to the adjustment, administration, and management of the state employee workers' compensation program.
Source: SL 2012, ch 23, § 80; SL 2019, ch 21, § 62.
3-6E-19. State Cement Plant former employee life insurance benefits.
Responsibility for the administration and payment of life insurance plan benefits of former employees of the South Dakota State Cement Plant Commission is hereby transferred to the bureau.
Source: SL 2012, ch 23, § 81; SL 2019, ch 21, § 63.
CHAPTER 3-6F
STATE EMPLOYEES DRUG TESTING
3-6F-1 Drug screening program for applicants to certain positions--Program for employees in those positions.
3-6F-2 Solicitation for employment--Notice of drug screening program requirements.
3-6F-3 Confidentiality of results.
3-6F-4 Disclosure of information prohibited--Misdemeanor.
3-6F-5 Promulgation of rules.
3-6F-1. Drug screening program for applicants to certain positions--Program for employees in those positions.
The human resources commissioner shall establish and implement a drug screening program for applicants who seek the following employment:
(1) Positions at the Human Services Center or the South Dakota Developmental Center whose primary duty includes patient or resident care or supervision;
(2) Positions at the South Dakota State Veterans' Home whose primary duty includes patient or resident care or supervision;
(3) Safety sensitive positions; and
(4) Positions in the Department of Public Safety, Wildland Fire Suppression Division whose duties include firefighting.
The human resources commissioner may also establish and implement a drug screening program for employees holding those positions based upon reasonable suspicion of illegal drug use by any employee.
Source: SL 2012, ch 23, § 83; SL 2019, ch 21, § 64; SL 2021, ch 1 (Ex. Ord. 21-3), §§ 14, 68, eff. Apr. 19, 2021.
3-6F-2. Solicitation for employment--Notice of drug screening program requirements.
Any printed public announcement or advertisement soliciting applications for the positions listed in § 3-6F-1 shall include a statement of the requirements of the drug screening program.
Source: SL 2012, ch 23, § 84.
3-6F-3. Confidentiality of results.
Individual test results and medical information collected pursuant to this chapter are confidential. This information may be revealed only as authorized by the human resources commissioner. An applicant or employee may have access to the information or test results upon written request to the human resources commissioner.
Source: SL 2012, ch 23, § 85; SL 2019, ch 21, § 65.
3-6F-4. Disclosure of information prohibited--Misdemeanor.
Except as provided in § 3-6F-3, any person responsible for recording, reporting, or maintaining medical information required pursuant to the provisions of this chapter, who knowingly or intentionally discloses or fails to protect medical information declared to be confidential pursuant to § 3-6F-3, or who compels another person to disclose such medical information, is guilty of a Class 2 misdemeanor.
Source: SL 2012, ch 23, § 86.
3-6F-5. Promulgation of rules.
The human resources commissioner may promulgate rules, pursuant to chapter 1-26, necessary to carry out the provisions of this chapter with regard to:
(1) Listing of positions whose primary duty includes patient or resident care or supervision; safety-sensitive positions; and positions at the Department of Public Safety, Division of Wildland Fire, whose duties include firefighting;
(2) Substances to be screened;
(3) Drug screening procedures;
(4) Procedures for collecting, analyzing, and evaluating test samples;
(5) Confidentiality of testing procedures;
(6) Referral for education or treatment; and
(7) Consequences that may result from valid positive test results or from failure to submit to a test.
Source: SL 2012, ch 23, § 87; SL 2019, ch 21, § 66; SL 2020, ch 19, § 1; SL 2021, ch 1 (Ex. Ord. 21-3), § 61, eff. Apr. 19, 2021.
3-7-1 to 3-7-3. Repealed.
3-7-4
Repealed.
3-7-5 to 3-7-7.1. Repealed.
3-7-8
Repealed.
3-7-9
Repealed.
3-7-10
Repealed.
3-7-11
Repealed.
3-7-12
Repealed.
3-7-13
Repealed.
3-7-14
Repealed.
3-7-14.1
Repealed.
3-7-15
Repealed.
3-7-16 to 3-7-18. Repealed.
3-7-19
Repealed.
3-7-20 to 3-7-25. Repealed.
3-7-1 to 3-7-3. Repealed by SL 2012, ch 23, § 10.
3-7-4. Repealed by SL 1971, ch 23, § 2.
3-7-5 to 3-7-7.1. Repealed by SL 2012, ch 23, § 10.
3-7-8. Repealed by SL 1980, ch 29, § 5.
3-7-9. Repealed by SL 2012, ch 23, § 10.
3-7-10. Repealed by SL 1980, ch 29, § 7.
3-7-11. Repealed by SL 2012, ch 23, § 10.
3-7-12. Repealed by SL 1980, ch 29, § 9.
3-7-13. Repealed by SL 2012, ch 23, § 10.
3-7-14. Repealed by SL 1980, ch 29, § 11.
3-7-14.1. Repealed by SL 2012, ch 23, § 10.
3-7-15. Repealed by SL 1980, ch 29, § 12.
3-7-16 to 3-7-18. Repealed by SL 2012, ch 23, § 10.
3-7-19. Repealed by SL 1980, ch 24, § 40.
3-7-20 to 3-7-25. Repealed by SL 2012, ch 23, § 10.
CHAPTER 3-8
COMPENSATION OF OFFICERS AND EMPLOYEES
3-8-1 Constitutional officers to devote full time to office--Compensation limited to salaries--Businesses engaged in prior to taking office.
3-8-1.1 Repealed by SL 1992, ch 2, §§ 2 to 12.
3-8-1.13 Compensation defined.
3-8-2 Annual appropriation for salaries of constitutional officers.
3-8-2.1 Adjustment of salaries of constitutional officers and judges.
3-8-2.2 Additional adjustment of the salaries of the secretary of state, the state auditor, the state treasurer, the commissioner of school and public lands, the Governor, and the attorney general.
3-8-2.3 Additional adjustment of the salaries of justices and circuit judges.
3-8-3 Salaried state officer retaining money received as theft.
3-8-4 Dual salaries prohibited.
3-8-4.1 Salary or per diem prohibited for service by state employee on board, commission, committee, or council--Reimbursement of expenses.
3-8-4.2 Compensation permitted for other state employment--During off duty hours--During state active duty.
3-8-4.3 Compensation permitted for other state employment during unpaid leave of absence.
3-8-5 Repealed by SL 1973, ch 23, § 30.
3-8-5.1 Repealed by SL 1997, ch 23, §§ 2 to 5.
3-8-6 Time of payment of compensation and expenses of state officers and employees.
3-8-6.1 Repealed by SL 1971, ch 28, § 2.
3-8-6.2 Central payroll system administered by Bureau of Finance and Management--Rules and regulations.
3-8-6.3 Repealed by SL 2012, ch 24, § 1.
3-8-7 3-8-7. Repealed by SL 2014, ch 17, § 1.
3-8-8 Accrued compensation payable to spouse and children of deceased employee if estate exempt from creditors' claims.
3-8-9 Information required for payment to spouse or children of deceased employee.
3-8-10 Probate proceedings not required for payment to spouse or children of deceased employee--Discharge of liability.
3-8-11 Cancellation and replacement of warrant payable to deceased employee.
3-8-12 Salary increase of full-time elected official who may vote on own salary delayed.
3-8-13 Longevity pay for state employees.
3-8-14 Salary differences for certain National Guard and reserve members to be paid by state.
3-8-1. Constitutional officers to devote full time to office--Compensation limited to salaries--Businesses engaged in prior to taking office.
The Governor, justices of the Supreme Court, judges of the circuit courts, attorney general, secretary of state, state treasurer, state auditor, and commissioner of school and public lands shall devote full time to the duties of their respective offices and such officers shall not be entitled to, or authorized to take or receive for any of their official services any other compensation, emoluments, or perquisites than the salaries provided by law. Said constitutional state officers shall, however, be authorized to retain an interest in a business or occupation that said officer was engaged in prior to taking office, provided, however, that said business or occupation does not cause the creation of a benefit or the making of a profit directly or indirectly by the use of state moneys or using the same for a purpose not authorized by law.
Source: SL 1947, ch 241, § 6; SDC Supp 1960, § 48.0611; SL 1963, ch 288.
3-8-1.1 to 3-8-1.12. Repealed by SL 1992, ch 2, §§ 2 to 12.
3-8-1.13. Compensation defined.
The term, compensation, for state employees, means total compensation, which includes direct salary and fringe benefits. Fringe benefits includes employer paid retirement programs, social security, health insurance, life insurance, and any other programs offering a benefit to the employee in which the employer participates.
Source: SL 1993, ch 37.
3-8-2. Annual appropriation for salaries of constitutional officers.
There is hereby annually appropriated out of any money in the state treasury not otherwise appropriated the sums necessary to meet the expenditures authorized by § 3-8-1, and payments shall be made therefrom upon approved vouchers filed in the Office of the State Auditor.
Source: SL 1947, ch 241, § 8; SDC Supp 1960, § 48.0612.
3-8-2.1. Adjustment of salaries of constitutional officers and judges.
The annual salaries of the Governor, the lieutenant governor, the secretary of state, the state auditor, the state treasurer, the attorney general, the commissioner of school and public lands, each justice of the Supreme Court and each circuit judge shall be adjusted annually by the same rate appropriated as the across-the-board increase to base salaries of state employees under the General Appropriations Act in each corresponding year.
Source: SL 1992, ch 2, § 1.
3-8-2.2. Additional adjustment of the salaries of the secretary of state, the state auditor, the state treasurer, the commissioner of school and public lands, the Governor, and the attorney general.
On July 1, 2023, prior to the adjustment required pursuant to § 3-8-2.1, the base annual salaries of the following constitutional officers shall be set to the following values:
(1) The secretary of state, the state auditor, the state treasurer, and the commissioner of school and public lands, one hundred thirteen thousand dollars;
(2) The Governor, one hundred thirty thousand dollars;
(3) The attorney general, one hundred twenty-five thousand dollars.
The salaries, as adjusted pursuant to this section and § 3-8-2.1, shall be the base salaries for the next adjustment required pursuant to § 3-8-2.1. Thereafter, the base salaries of these constitutional officers that are to be annually adjusted in all subsequent years, pursuant to § 3-8-2.1, will be the total of the base salary and adjustment amount established by the prior annual adjustment.
Source: SL 2021, ch 23, § 1.
3-8-2.3. Additional adjustment of the salaries of justices and circuit judges.
The base annual salary of each justice of the Supreme Court and each circuit judge shall be adjusted upward six percent on July 1, 2021, and the subsequent base annual salary shall be adjusted upward an additional six percent on July 1, 2022. Each adjustment is based on the justice's or judge's salary as of the date of the increase and is in addition to any across-the-board increase to the base salary as provided pursuant to § 3-8-2.1.
Source: SL 2021, ch 24, § 1.
3-8-3. Salaried state officer retaining money received as theft.
Any officer receiving a salary from the state who shall keep or retain any money, emolument, fee, or perquisite, paid to or received by him for the performance of any duty or duties connected with his office, or in any manner paid to him as such officer or by reason of his holding such office is guilty of theft. It is the intent and meaning of this section that no officer receiving a salary from the state shall keep or retain any money, emolument, fee, or perquisite paid to him by reason of his holding such office, other than the annual salary payable to such officer as provided by the Constitution.
Source: SL 1901, ch 127, § 1; RPolC 1903, § 314; RC 1919, § 6965; SDC 1939, § 55.2304; SL 1980, ch 24, § 41.
3-8-4. Dual salaries prohibited.
Except as provided in §§ 3-8-4.1 to 3-8-4.3, inclusive, no person receiving a salary payable out of the state treasury or from the funds of any state institution or department, may, during the period for which such salary has been or is to be paid, receive any other salary from the state or any institution or department thereof.
Source: SDC 1939, § 48.0603; SL 1976, ch 37, § 1; SL 1997, ch 23, § 1.
3-8-4.1. Salary or per diem prohibited for service by state employee on board, commission, committee, or council--Reimbursement of expenses.
No employee of the state including any institution thereof serving on a board, commission, committee, or council of the state may receive salary or per diem compensation for serving on such body. Allowable expense reimbursement shall be paid pursuant to § 4-7-10.4.
Source: SDCL, § 3-8-4 as added by SL 1976, ch 37, § 1.
3-8-4.2. Compensation permitted for other state employment--During off duty hours--During state active duty.
Any state employee, with the approval of the department head, agency head, or head of the state institution involved, may use annual leave, military service leave, weekends, legal holidays, and hours after normal working hours for performing compensable services to a state institution, department, office, or agency other than the institution, department, office, or agency that is the employee's primary employer. Compensation for such additional services performed during such times does not constitute dual compensation prohibited by § 3-8-4 or 3-8-4.1. Any state employee who is called to state active duty, as defined in § 33-10-20, may receive dual compensation from the state.
Source: SL 1976, ch 37, § 4; SL 2010, ch 19, § 78; SL 2021, ch 25, § 1.
3-8-4.3. Compensation permitted for other state employment during unpaid leave of absence.
Any state employee who takes leave of absence without pay from his or her primary employment with the state may accept payment from the funds of other state institutions, departments, offices, or agencies for services rendered to such other institution, department, office, or agency. Compensation for additional services performed while on leave of absence without pay does not constitute dual compensation within the purview of § 3-8-4 or 3-8-4.1.
Source: SL 1976, ch 37, § 5; SL 2010, ch 19, § 79.
3-8-5. Repealed by SL 1973, ch 23, § 30.
3-8-5.1 to 3-8-5.4. Repealed by SL 1997, ch 23, §§ 2 to 5.
3-8-6. Time of payment of compensation and expenses of state officers and employees.
The compensation and expenses of all officers and employees, payable out of the state treasury, shall be paid at least once each calendar month, but no officer or employee may be paid in advance for any period of service. The Bureau of Finance and Management shall designate pay periods for all payroll systems utilizing funds from the state treasury.
Source: RC 1919, § 7057; SDC 1939, § 48.0601; SL 1972, ch 19; SL 1976, ch 51, § 1; SL 1985, ch 33, § 16; SL 2007, ch 21, § 1.
3-8-6.1. Repealed by SL 1971, ch 28, § 2.
3-8-6.2. Central payroll system administered by Bureau of Finance and Management--Rules and regulations.
The Bureau of Finance and Management, at the direction and under the control of the Governor, shall develop, maintain, and administer a central payroll system for the efficient compensation payment of officials and employees of the State of South Dakota. The commissioner of the Bureau of Finance and Management may, upon approval of the Governor, issue such rules and regulations as he deems necessary for carrying out of the provisions and intent of this section.
Source: SL 1976, ch 51, § 2; SL 1978, ch 27, § 1.
3-8-6.3. Repealed by SL 2012, ch 24, § 1.
3-8-8. Accrued compensation payable to spouse and children of deceased employee if estate exempt from creditors' claims.
It shall be lawful for the disbursing officers of the state or any of its political subdivisions to pay, or cause to be paid, any lawful claim for salaries, wages, compensation, fees, and expenses due from the state or any of its political subdivisions to any deceased employee thereof, to the spouse or minor children of such employee. Provided, that such claim for salaries, wages, compensation, fees, or expenses has accrued within sixty days prior to the death of such deceased employee. The provisions of this section shall apply only in cases where such deceased employee died possessed of no property, real or personal, except such as is exempt from claims of the creditors of such deceased employee.
Source: SL 1953, ch 491, §§ 1, 2; SDC Supp 1960, § 55.2919 (1), (2).
3-8-9. Information required for payment to spouse or children of deceased employee.
The disbursing officers shall be authorized to issue and pay such claim by the issuance of a warrant upon presentation to, and filing with the disbursing officers of the state or any of its political subdivisions of a verified claim, executed by such surviving spouse or circuit court judge as hereafter provided together with a showing in respect to:
(1) The time and place of death of the deceased employee;
(2) The department or branch of service of the state, or any political subdivision where the deceased was employed;
(3) The total amount of property, real and personal, owned by the deceased employee at the time of his death;
(4) The amount of her claim and the date of accrual thereof;
(5) And such other information as the disbursing officer may require.
In case the deceased employee left no surviving spouse, the circuit court judge is designated as a person to execute and present the verified claim, required under this section, and to receive and pay over the proceeds for the benefit of the minor children if the same be exempt.
Source: SL 1953, ch 491, §§ 2, 5; SDC Supp 1960, § 55.2919 (2), (5).
3-8-10. Probate proceedings not required for payment to spouse or children of deceased employee--Discharge of liability.
No probate proceeding of any kind, nor the appointment of an administrator or agent shall be required and the presentation of a sworn statement by such spouse or circuit court judge shall be sufficient authority for the disbursing officer to pay or to cause to be paid such claims, and the payment of the same shall relieve and discharge the state, or any of its political subdivisions and all disbursing officers thereof, of any liability whatsoever in respect to such claim.
Source: SL 1953, ch 491, § 4; SDC Supp 1960, § 55.2919 (4).
3-8-11. Cancellation and replacement of warrant payable to deceased employee.
In case a warrant has already issued, payable to such deceased employee, which has not been paid on account of the death of such employee, such disbursing officer shall be authorized to request the return of such warrant to his office by cancellation, and such disbursing officer shall be authorized to cancel the same and issue another warrant payable direct to the surviving spouse or circuit court judge for the benefit of the minor children.
Source: SL 1953, ch 491, § 3; SDC Supp 1960, § 55.2919 (3).
3-8-12. Salary increase of full-time elected official who may vote on own salary delayed.
If the salary of any full-time elected official who may vote on his own salary is increased, the increase for that elected official may not commence until the expiration of the term for which such official was elected, or until two years after the passage of such increase, whichever is less.
Source: SL 1985, ch 22; SL 1986, ch 34.
3-8-13. Longevity pay for state employees.
Any state employee who is employed in a position that is eligible for longevity pay and has at least seven years of employment with the State of South Dakota is entitled to longevity compensation. The longevity compensation for years of employment seven to ten, inclusive, is one hundred dollars. The longevity compensation for years of employment eleven to fourteen, inclusive, is equal to ten dollars per year of employment until the fifteenth year of service at which time the longevity pay shall be equal to fifteen dollars per year of service. Longevity pay shall increase at five dollar increments thereafter for each additional five years of employment. The longevity compensation may not be affected by any other compensation and classification plan except that the longevity compensation shall be distributed in the same manner and form as prescribed in § 3-8-6. Longevity compensation is payable annually in one lump sum. Any employee due any portion of the employee's longevity payment upon retirement and meeting the definition of a participant as set out in subdivision 3-13A-2(8) shall have any such lump-sum payment transmitted to the fund pursuant to the provisions of § 3-13A-5. The commissioner of human resources and administration shall promulgate rules pursuant to chapter 1-26 to determine the state employee position categories that are eligible for longevity pay, the criteria for payment for prior years of service, the date for payment, and the type of service that may be used to calculate longevity. The only employees of the Board of Regents eligible for longevity pay are those nonfaculty permanent full-time employees who are customarily employed for twenty hours or more a week at least six months a year.
Any agent, patrolman, or employee of the Division of Highway Patrol of the Department of Public Safety may elect to receive longevity pay under this section or under § 32-2-10, but may not receive longevity pay under both provisions at the same time.
Source: SL 1990, ch 32, § 1; SL 1991, ch 34; SL 1995, ch 16; SL 2003, ch 272 (Ex. Ord. 03-1), § 21; SL 2004, ch 43, § 27; SL 2012, ch 23, § 94; SL 2024, ch 1 (Ex. Ord. 24-1), §§ 13, 35, eff. Apr. 8, 2024.
3-8-14. Salary differences for certain National Guard and reserve members to be paid by state.
Any employee of the State of South Dakota who, as a member of the South Dakota National Guard or any other reserve component of the armed forces of the United States, is ordered into Title 10 and Title 32 service, after January 1, 2002, other than for training purposes, shall receive the difference between the employee's state salary or wage rate at the time the employee was activated and the employee's military salary and allowances for the time the employee is engaged in such active federal service. The salary or wage difference shall be paid on at least a quarterly basis.
Source: SL 2004, ch 33, § 1.
CHAPTER 3-9
TRAVEL EXPENSES AND ALLOWANCES
3-9-1 Mileage reimbursement--Private vehicle on state business--Individual with special needs--Publication.
3-9-1.1 Mileage reimbursement--Private vehicle on state business--Available state vehicle--Approval--Exceptions.
3-9-1.2 Mileage reimbursement--Designated city area.
3-9-2 Meals and lodging allowance--Maximum--Publication--Actual costs--Form--Hardship exemption.
3-9-2.1 Meals and lodging actual cost reimbursement regardless of whether away from residence or headquarters.
3-9-2.2 Home station meal expense reimbursement regardless of whether away from residence or headquarters.
3-9-2.3 Promulgation of rules regarding allowances for lodging, meals, and per diem.
3-9-2.4 Meals allowance--Uniformed highway patrol officers.
3-9-3 Trip insurance on flights.
3-9-4 Consent of responsible officer or department required for out-of-state travel.
3-9-5 Authorization of out-of-state travel by members and officers of Legislature.
3-9-5.1 Authorization of out-of-state travel by officers and employees of Department of Legislative Audit and Legislative Research Council.
3-9-5.2 Authorization of out-of-state travel by employees delegated by Board of Regents.
3-9-6 Delegation to responsible officers of power to authorize out-of-state travel--Federal regulations applicable.
3-9-7 Expenses for political meetings not reimbursable--Rules for receipt of expenses for attending fairs and other public meetings.
3-9-8 Accounting for reimbursable expenses--When receipts required.
3-9-9 Household moving allowance--State transfers--Eligibility and amount.
3-9-10 Claims for household moving allowance--State transfer or hire--Application form.
3-9-11 Travel and moving expenses--Promulgate rules--Prior approval required.
3-9-12 Household moving allowance--State hiring--Eligibility and amount.
3-9-13 Travel advances authorized.
3-9-14 Advances from appropriated funds--Limitation.
3-9-15 Itemized statement of expenses--Repayment of excess--Crediting of repayments.
3-9-16 Immediate accounting on termination of state employment.
3-9-17 Withholding from payments to employee not accounting for travel advance.
3-9-18 Rules governing travel advances.
3-9-19 Bank cards for employees--Annual fees--Rules.
3-9-1. Mileage reimbursement--Private vehicle on state business--Individual with special needs--Publication.
In lieu of actual transportation expenses and except as provided in § 3-9-1.1, the mileage reimbursement rate for using a privately owned motor vehicle on state business is fifty-one cents per mile or the standard mileage rate for business authorized by the United States Internal Revenue Service as of October first each year, whichever is greater. However, if no state vehicle is equipped for the transportation of a person with special needs, the mileage reimbursement rate for using a privately owned motor vehicle is based on the type of vehicle. If a privately owned passenger or cargo van, pickup truck, or sport utility vehicle is used to transport an individual with special needs for state business, the mileage reimbursement rate is sixty-eight cents per mile or one-hundred-and-thirty percent of the standard mileage rate for business authorized by the United States Internal Revenue Service as of October first each year, whichever is greater. If any other vehicle is used to transport an individual with special needs for state business, the mileage reimbursement rate is fifty-one cents per mile or the standard mileage rate for business authorized by the United States Internal Revenue Service as of October first each year, whichever is greater. For the purposes of this section, the term "individual with special needs" means a person with a disability that makes the person unable to operate an unmodified motor vehicle but allows the person to operate a personal motor vehicle modified to accommodate the disability.
The mileage reimbursement rate covers all expenses incidental to the operation of a motor vehicle.
The Bureau of Finance and Management shall publish in writing the mileage reimbursement rate to be effective as of October first each year. The state auditor shall issue warrants for using a privately owned motor vehicle on state business at the rate specified upon the sworn statement of the party using the vehicle.
Source: SL 1920 (SS), ch 85, § 2; SL 1925, ch 115; SL 1931, ch 241; SL 1933, ch 179; SDC 1939, § 55.2704; SL 1949, ch 219; SL 1955, ch 247; SL 1968, ch 203; SL 1974, ch 32, § 1; SL 2004, ch 34, § 1; SL 2017, ch 26, § 1; SL 2024, ch 20, § 1.
3-9-1.1. Mileage reimbursement--Private vehicle on state business--Available state vehicle--Approval--Exceptions.
If an Office of Fleet and Travel Management or Department of Transportation pool motor vehicle is available within ten miles of a person's place of residence or headquarters station but the person uses a privately owned vehicle instead for state business, the mileage reimbursement rate is forty-five percent of the standard mileage rate for business authorized by the United States Internal Revenue Service as of October first each year.
The Office of Fleet and Travel Management must approve mileage reimbursement paid at the rate set pursuant to § 3-9-1 if there are Office of Fleet and Travel Management or Department of Transportation pool motor vehicles available within ten miles of a person’s place of residence or headquarters station.
This section does not apply to elected officers, departmental secretaries, and chairs of state boards and commissions.
Source: SL 2024, ch 20, § 2.
3-9-1.2. Mileage reimbursement--Designated city area.
Upon written request of the head of a state agency or institution, the state auditor may reimburse a person using a motor vehicle on state business for mileage within a designated city area if the required travel is not compensated through the person’s salary. For the purposes of this section, the term "designated city area" means an area extending five miles beyond the municipal boundaries of Pierre, Sioux Falls, Aberdeen, Watertown, Brookings, and Rapid City.
Source: SL 2024, ch 20, § 3.
3-9-2. Meals and lodging allowance--Maximum--Publication--Actual costs--Form--Hardship exemption.
The State Board of Finance may fix the maximum amount that may be allowed per day or fraction of a day as reimbursement for meal and lodging expenses necessarily incurred by state officers and employees in the performance of their duties while away from their places of residence or headquarters station, and change the maximum allowance as the board deems just and proper under existing conditions. The State Board of Finance may authorize reimbursement on a per diem basis, in lieu of the method described in this section or any other method provided by law, and fix the amount per day or fraction of a day that may be allowed, and may change the amount as the board deems just and proper under existing conditions.
The maximum amount allowed as reimbursement for the actual cost of in-state lodging incurred by state officers and employees in the performance of their duties while away from their places of residence or headquarters station is seventy-five dollars per night, plus taxes and mandatory fees, or the rate established by the United States General Services Administration for the primary destination as of October first each year, plus taxes and mandatory fees, whichever is greater. The Bureau of Finance and Management shall publish in writing the maximum reimbursement rate for in-state lodging to be effective as of October first each year.
The chair of a commission or council created by chapters 38-10, 38-27, 38-29, and 38-32 may authorize an employee to be reimbursed for actual costs of lodging and meals, excluding alcoholic beverage as defined in § 35-1-1 if:
(1) The lodging and meals are in furtherance of the state's interests, concerns, and activities;
(2) The activities for which the lodging and meals are required fall within the scope of the commission's or council's responsibilities; and
(3) The employee is performing official duties related to trade servicing or promotional activities.
The authorization must be made on a form prescribed by the Governor and supported by receipts and must accompany the claim filed pursuant to § 3-9-8. The provisions of this section, §§ 3-9-2.1 and 3-9-2.2, and the amounts fixed by the State Board of Finance prevail notwithstanding the provisions of other statutes.
Upon the written request of a department or office head, the State Board of Finance may, through a majority vote of its membership, grant relief from the per diem allowances for any officer or employee who would otherwise suffer hardship from the limitations of this section or the board's rules while furthering the state's interests, concerns, and activities.
Source: SL 1949, ch 258, §§ 1 to 3; SDC Supp 1960, § 55.2001-1; SL 1999, ch 13, § 1; SL 2015, ch 24, § 1; SL 2024, ch 20, § 4.
3-9-2.1. Meals and lodging actual cost reimbursement regardless of whether away from residence or headquarters.
The State Board of Finance may authorize reimbursement of the actual costs of lodging and meals, excluding any alcoholic beverage as defined in subdivision 35-1-1(1), but including a gratuity incurred by a state officer or employee in the performance of his or her duties, regardless of whether the officer or employee is away from his or her place of residence or headquarters station, if:
(1) The lodging and meals are in furtherance of the state's interests, concerns, and activities;
(2) The activity for which the lodging and meal is required is related specifically to hosting a prospect for any business development, trade, or tourism promotional activity; and
(3) The officer or employee is performing an official duty at the direction of the head of the officer's or employee's department or office, which approval is certified in writing by the department or office head, or by the Governor.
The authorization shall be made on a form prescribed by the Governor and supported by receipts and the certification of the department or office head and shall accompany the claim filed pursuant to § 3-9-8.
The reimbursement for a gratuity authorized by this section may either be a voluntary service gratuity, not to exceed eighteen percent, or a mandatory service gratuity added to the bill by the establishment, not to exceed twenty percent.
Source: SL 2015, ch 24, § 2.
3-9-2.2. Home station meal expense reimbursement regardless of whether away from residence or headquarters.
The State Board of Finance may authorize a meal expense reimbursement at the per diem rate to any agency, state officer, or employee conducting state business at an event extending entirely through a meal time without interruption, regardless of whether the attending officer or employee is away from his or her place of residence or headquarters station. The reimbursement request may be made by an agency representative, state officer, or employee only if the attending officer's or employee's participation in the event is approved by the head of the officer's or employee's department or office and if the event includes provision of a meal for which the agency, officer, or employee is billed.
The authorization shall be made on a form prescribed by the Governor. A certification of the approval of the department or office head shall accompany the claim filed pursuant to § 3-9-8.
Source: SL 2015, ch 24, § 3; SL 2023, ch 13, § 1.
3-9-2.3. Promulgation of rules regarding allowances for lodging, meals, and per diem.
The State Board of Finance may promulgate rules, pursuant to chapter 1-26, to establish amounts that may be allowed for lodging, meals, and per diem pursuant to the provisions of §§ 3-9-2, 3-9-2.1, and 3-9-2.2.
Source: SL 2017, ch 26, § 2.
3-9-2.4. Meals allowance--Uniformed highway patrol officers.
Notwithstanding §§ 3-9-2 to 3-9-2.2, inclusive, the daily meal allowance of uniformed highway patrol officers when assigned to field duties is seventeen dollars per day.
Source: SL 2024, ch 20, § 5.
3-9-3. Trip insurance on flights.
Any division of state government may participate in the cost of insurance for any full- or part-time employee when they are performing duties while using aircraft as a means of travel.
Source: SL 1957, ch 318; SDC Supp 1960, § 55.2705.
3-9-4. Consent of responsible officer or department required for out-of-state travel.
No state officer or employee shall incur any expense payable out of any appropriated funds or other agency funds for travel or other personal expense, including meals, lodging, transportation, or other miscellaneous expenses, except on official state business. Whenever any state officer or state employee, other than the Governor, has official business requiring travel outside the boundaries of this state, the provisions of §§ 3-9-5 to 3-9-6, inclusive, shall be adhered to.
Source: SL 1913, ch 330; RC 1919, § 7059; SDC 1939, § 48.0604; SL 1961, ch 259; SL 1964, ch 150; SL 1968, ch 194.
3-9-5. Authorization of out-of-state travel by members and officers of Legislature.
Members of the Legislature, and officers of the Legislature who are not members may incur traveling and personal expenditures outside the boundaries of this state by and with the consent of the speaker of the House of Representatives and the president pro tempore of the Senate when the Legislature is in session, and, when the Legislature is not in session, by and with the written consent of the Executive Board of the State Legislative Research Council.
Source: SDC 1939, § 48.0604 (1) as added by SL 1964, ch 150; SL 1968, ch 194.
3-9-5.1. Authorization of out-of-state travel by officers and employees of Department of Legislative Audit and Legislative Research Council.
Officers and employees of the Department of Legislative Audit and the State Legislative Research Council may incur traveling and personal expenditures outside the boundaries of this state by and with the written consent of the chairman of the Executive Board of the State Legislative Research Council.
Source: SDC 1939, § 48.0604 (2) as enacted by SL 1968, ch 194.
3-9-5.2. Authorization of out-of-state travel by employees delegated by Board of Regents.
The Board of Regents, under policy and procedures developed for such purpose, shall delegate to its executive director and to the head of each institution or other responsible officer, the authority to grant written consent to employees of each institution to incur traveling and personal expenditures for travel outside the boundaries of this state.
Source: SDC 1939, § 48.0604 (2) as added by SL 1964, ch 150; SDCL, § 3-9-6; SDC 1939, § 48.0604 (3) as enacted by SL 1968, ch 194; SL 1970, ch 23, § 1; SL 1985, ch 23.
3-9-6. Delegation to responsible officers of power to authorize out-of-state travel--Federal regulations applicable.
The Governor may delegate to each responsible officer of any other department, agency, or institution the authority to grant written consent for official travel outside this state. The Governor may establish general guidelines for travel outside the state as the Governor deems appropriate. For each outside-the-state expenditure, there must be a record signed by the appropriate responsible officer authorizing the same. State agencies are permitted to follow federal regulations for payment of travel and other allowances to state employees, dependents of state employees, or to foreign nationals where the travel and other allowances are funded entirely by federal or private grants in support of international programs.
Source: SDC 1939, § 48.0604 (4) as enacted by SL 1968, ch 194; SL 1979, ch 24; SL 2023, ch 3, § 19.
3-9-7. Expenses for political meetings not reimbursable--Rules for receipt of expenses for attending fairs and other public meetings.
No state officer or employee who attends a political meeting, the state fair, the inaugural, or other public meeting of like character, shall be entitled to be reimbursed from state funds for travel expenses to such meetings unless the officer's or employee's duties necessarily require that he be present at the meeting.
The Board of Finance shall promulgate rules pursuant to chapter 1-26 to specify the eligibility of state officers and employees to attend the meetings referred to in this section, except that no state officer or employee shall be paid travel for attendance at any political meeting.
Source: SL 1913, ch 358; RC 1919, § 5351; SDC 1939, § 55.1303; SL 1976, ch 38, §§ 1, 2.
3-9-8. Accounting for reimbursable expenses--When receipts required.
No warrant shall be issued by the state auditor for the payment of any expense or expenses paid out by any department officer or employee of the state, until such department officer or employee shall have presented to the state auditor an itemized statement and account of such expenses duly verified under oath as to the authenticity of such expenses. Such claims shall be filed in the Office of the State Auditor, together with receipt or receipts from the person or persons to whom such payments shall have been made; provided, however, that receipts shall be required only upon a rule passed by the state auditor pursuant to chapter 1-26.
Source: SL 1899, ch 135, § 1; RPolC 1903, § 76; SL 1909, ch 189; SL 1917, ch 281, § 55; SL 1917, ch 366; RC 1919, § 5345; SDC 1939, § 55.1302; SL 1951, ch 263; SL 1970, ch 24; SL 1975, ch 10, § 2.
3-9-9. Household moving allowance--State transfers--Eligibility and amount.
A current full-time officer or employee, except an elected constitutional officer of the State of South Dakota, may receive a household moving allowance.
The officer or employee is eligible for the allowance if the officer or employee is transferred by the department, institution, board, commission, or other state agency to move from the officer's or employee's headquarter duty station in South Dakota to another headquarter duty station in South Dakota, if the duty stations are at least fifty miles apart. The officer or employee may be paid up to an amount equal to three months of the officer’s or employee’s salary but not to exceed fifteen thousand dollars. The amount must be provided by the agency head in the offer letter to the officer or employee.
Source: SL 1963, ch 292; SL 1968, ch 195, § 1; SL 1972, ch 20; SL 1976, ch 35; SL 1979, ch 25; SL 1981, ch 21; SL 1984, ch 30, § 83; SL 2022, ch 13, § 1; SL 2023, ch 13, § 2.
3-9-10. Claims for household moving allowance--State transfer or hire--Application form.
Each officer or employee who may be entitled to an allowance under § 3-9-9 or 3-9-12 shall submit a claim voucher to the state auditor with an application for payment of the household moving allowance and a copy of the offer letter of the department, institution, board, commission, or other state agency authorizing the transfer or hire. A household moving allowance application must be made on a form prescribed by the Governor and requires the approval of the department head.
Source: SL 1963, ch 292; SL 2023, ch 13, § 3.
3-9-11. Travel and moving expenses--Promulgate rules--Prior approval required.
The State Board of Finance shall promulgate rules pursuant to chapter 1-26 necessary to implement the provisions of §§ 3-9-9, 3-9-10, and 3-9-12. The State Board of Finance shall require that a request for a moving allowance, including reimbursement of travel expenses, be submitted to the state auditor for approval or disapproval before a moving allowance is authorized. The board shall designate what classification of officers and employees may or may not be authorized for the moving allowance.
Source: SL 1963, ch 292; SL 1975, ch 36; SL 2012, ch 25, § 1; SL 2022, ch 13, § 2.
3-9-12. Household moving allowance--State hiring--Eligibility and amount.
For the purpose of assisting in the recruitment of new state employees, a person being recruited, if the person is not a current state employee, may receive a household moving allowance for moving greater than fifty miles to the person's headquarter duty station in the same manner and amount as established in § 3-9-9 for the transfer of state employees.
Source: SL 1963, ch 292 as added by SL 1968, ch 195, § 2; SL 1977, ch 27; SL 2012, ch 25, § 2; SL 2023, ch 13, § 4.
3-9-13. Travel advances authorized.
All budget units of the state are authorized to advance moneys to their officers and employees for authorized travel expenses.
Source: SL 1974, ch 45, § 1.
3-9-14. Advances from appropriated funds--Limitation.
Such advances shall be made from appropriated funds of the budget units in the manner provided for under the rules and regulations promulgated pursuant to § 3-9-18. No advance shall exceed an amount set forth and under the conditions specified in the rules and regulations promulgated pursuant to § 3-9-18.
Source: SL 1974, ch 45, § 2; SL 1975, ch 37, § 1.
3-9-15. Itemized statement of expenses--Repayment of excess--Crediting of repayments.
Each person receiving a travel advance shall submit an itemized statement meeting the requirements of §§ 3-9-8, 4-9-4, and the rules promulgated pursuant to § 3-9-18. If the advance exceeds the actual expenses, the difference shall be repaid as set forth and under the conditions specified in the rules and regulations promulgated pursuant to § 3-9-18. All amounts repaid pursuant to this section shall be credited back to the budget units' appropriated funds. However, general fund advances, or any portion thereof, which transcend a fiscal year revert to the general fund and become an obligation of the following fiscal year's appropriations.
Source: SL 1974, ch 45, § 3; SL 1975, ch 37, § 2; SL 1984, ch 30, § 81.
3-9-16. Immediate accounting on termination of state employment.
If a person's position with the state is terminated the repayment or statement required by § 3-9-15 shall become due immediately.
Source: SL 1974, ch 45, § 4.
3-9-17. Withholding from payments to employee not accounting for travel advance.
The state auditor or the business manager of a state institution not on central payroll is authorized to withhold an amount not to exceed the total amount of travel expense advanced from any moneys due a person who fails to comply with § 3-9-15 or § 3-9-16.
Source: SL 1974, ch 45, § 5; SL 1975, ch 37, § 3.
3-9-18. Rules governing travel advances.
The commissioner of the Bureau of Finance and Management is authorized to pass rules in compliance with chapter 1-26 to effectuate §§ 3-9-13 to 3-9-17, inclusive.
Source: SL 1974, ch 45, § 6.
3-9-19. Bank cards for employees--Annual fees--Rules.
Any budget unit of the state may recommend that an employee be issued a bank card. If the employee is issued a bank card by an issuing authority, the budget unit recommending the issuance shall be responsible for any annual fee for the bank card. No bank card may be issued unless the issuing authority has contracted with the state to minimize any state liability for nonpayment of charges on such bank cards. The Bureau of Finance and Management shall promulgate rules, pursuant to chapter 1-26, for recommendation for issuance, use and termination of bank cards.
Source: SL 1990, ch 33.
3-10-1
Savings bond purchase programs authorized by public employers.
3-10-2
Salary deduction authorized by signature of married person or minor.
3-10-3
Accounting for funds deducted from salaries--Trust funds--Wage assignment
restrictions not applicable.
3-10-4
Participation in tax-sheltered annuities authorized--Salary deductions.
3-10-5
Withholding from salary and purchase of annuity--Periodic payments.
3-10-6
Purchase of life insurance to guarantee retirement annuities.
3-10-7
Transfer of previously owned annuity to payment by public employer.
3-10-8
Payroll deductions authorized by officer or employee--Adoption of rules.
3-10-1. Savings bond purchase programs authorized by public employers.
The governing bodies of counties, municipalities, political subdivisions, public districts, and other public agencies or subdivisions of the State of South Dakota are hereby authorized to provide for the purchase of United States savings bonds or similar United States obligations by salary or wage deductions for those officers and employees who make written requests for such deductions and such purchases.
Source: SL 1943, ch 172, § 1; SDC Supp 1960, § 48.0609; SL 1992, ch 60, § 2.
3-10-2. Salary deduction authorized by signature of married person or minor.
If a request for a salary or wage deduction is made by an officer or employee who is a married person his signature is a sufficient authorization and if the request is made by a minor the signature of the minor is a sufficient authorization for the making of a deduction pursuant to provisions of § 3-10-1.
Source: SL 1943, ch 172, § 2; SDC Supp 1960, § 48.0609.
3-10-3. Accounting for funds deducted from salaries--Trust funds--Wage assignment restrictions not applicable.
All auditors, treasurers, and other disbursing officers are authorized to recognize and act upon such requests for salary or wage deductions and to establish special accounts for each such officer or employee so that sufficient funds may be accumulated to the credit of such officer or employee for the purchase of United States savings bonds or similar United States obligations. All funds so accumulated are trust funds. No provision of law prohibiting, restricting, or limiting the assignment or order for wages or salaries shall be deemed in any way to prohibit, restrict or limit the powers conferred in §§ 3-10-1 to 3-10-3, inclusive.
Source: SL 1943, ch 172, §§ 1, 2; SDC Supp 1960, § 48.0609.
3-10-4. Participation in tax-sheltered annuities authorized--Salary deductions.
The state and its political subdivisions and their employees may participate in tax-sheltered annuities or accounts, or both. The employees may authorize their employer to withhold a designated amount from their salary for a retirement annuity or accounts, or both, purchased for their benefit.
Source: SL 1963, ch 329; SL 1989, ch 35.
3-10-5. Withholding from salary and purchase of annuity--Periodic payments.
When so authorized by an employee, it shall be the duty of the employer to withhold the amount designated from the salary of the employee and to purchase a retirement annuity from a company or organization licensed to do business in the State of South Dakota, for such employee and to make the periodic payments on such retirement annuity according to the terms of the annuity contract.
Source: SL 1963, ch 329.
3-10-6. Purchase of life insurance to guarantee retirement annuities.
The state and its political subdivisions, and the employees thereof, are authorized to purchase individual life insurance contracts to guarantee such retirement annuity and the employer is hereby authorized to withhold payment from the salary of employees to cover the cost of such purchases as provided in Internal Revenue Service regulations which permit the purchase of tax-sheltered annuities and retirement income contracts.
Source: SL 1966, ch 168.
3-10-7. Transfer of previously owned annuity to payment by public employer.
When a public employee has a tax-sheltered annuity prior to employment by the state or a political subdivision of the state, such employee shall have the privilege of transferring the periodic payments on such an annuity to the current employer.
Source: SL 1963, ch 329.
3-10-8. Payroll deductions authorized by officer or employee--Adoption of rules.
The state, subject to the approval of the Bureau of Finance and Management, and Board of Regents, and, municipal corporations and other political subdivisions, subject to the approval of their governing boards, may authorize payroll deductions and withholding from wages of their officers and employees if authorized in writing or by means of electronic signature by the officer or employee. The Bureau of Finance and Management shall specify by rules, promulgated pursuant to chapter 1-26, the types of voluntary payroll deductions approved for state employees and the procedures for obtaining and revoking approval and may adopt other reasonable rules necessary to implement this section.
Source: SL 1970, ch 28; SDCL Supp, § 3-8-6.1; SL 1971, ch 28, § 1; SL 1985, ch 33, § 9; SL 1989, ch 36; SL 2002, ch 21, § 1.
3-11-1
Legislative policy.
3-11-2
Definition of terms.
3-11-3
Division in state auditor's office.
3-11-4
Administrator and employees of the division.
3-11-4.1
Payroll deductions authorized--Failure to deduct not release--Adjustment or refund
without interest.
3-11-5
State and subdivision employees covered by federal act--Subdivisions later brought
in.
3-11-6
Federal agreement authorized--Scope of agreement--Modification.
3-11-7
Payment of employer's share for state employees--Payroll deductions of state
employee's share--Disbursement.
3-11-8
Funds acceptable for reimbursement to state of employer contributions.
3-11-9
Fee-generating state agencies to pay employer contributions--Report.
3-11-10, 3-11-11. Repealed.
3-11-12
State institutions with income-producing auxiliary activities to pay employer
contributions--Report.
3-11-13
Political subdivisions to pay employer contributions.
3-11-14
Counties to budget for employer contributions.
3-11-15
County auditors to certify school districts annually.
3-11-16
Payment of subdivision contributions authorized--Payroll deductions.
3-11-17
Reports required of political subdivisions.
3-11-18
Municipalities to include funds in annual appropriation ordinances--Special
appropriation when omitted.
3-11-19
Omitted.
3-11-20
Special appropriations by political subdivisions.
3-11-21
Recovery of delinquent payments from subdivisions with interest and penalty.
3-11-22
County auditor may collect delinquent contributions from subdivisions--Travel costs.
3-11-23
Special revenue fund for premiums and interest on delinquent contributions.
3-11-24
Rules and regulations--Required coverage.
3-11-25
Interstate instrumentalities authorized to enter and implement own agreements.
3-11-26
Severability of provisions.
3-11-1. Legislative policy.
In order to extend to the officers and employees of the State of South Dakota and its political subdivisions and to the dependents and survivors of such officers and employees the basic protection accorded to others by the federal old age and survivors insurance system embodied in Title II of the federal Social Security Act, as amended, it is hereby declared to be the policy of the Legislature, subject to the limitations of this chapter, that steps be taken to provide such protection to the officers and employees of the State of South Dakota and its political subdivisions on as broad a basis as is permitted under Title II of the federal Social Security Act, as amended.
Source: SL 1951, ch 100, § 2; SDC Supp 1960, § 17.1201.
3-11-2. Definition of terms.
Terms used in this chapter mean:
(1) "Coverage group" has the meaning given that term by the provisions of section 218 of Title II of the Social Security Act, as amended, and applicable federal regulations adopted pursuant thereto;
(2) "Administrator," the administrator of the State Social Security and the Internal Revenue Service Division;
(3) "Division," the State Social Security and the Internal Revenue Service Division in the State Auditor's Office;
(4) "Employee" includes officers of the state, and any political subdivision thereof, including officers and employees of any association organized under and pursuant to the provisions of chapter 9-17;
(5) "Employment," any service performed by an employee of the state, or any political subdivision thereof, for such employer, except:
(a) Service which in the absence of an agreement entered into under this chapter would constitute "employment" as defined in the federal Social Security Act; or
(b) Service which under the federal Social Security Act may not be included in an agreement between the state and the secretary of health, education, and welfare entered into under this chapter;
(6) "Federal Insurance Contributions Act," chapter 21 of subtitle C of the federal Internal Revenue Code as such act has been amended;
(7) "Political subdivision," a subdivision of the state to which has been delegated certain powers of local government, but only if the employees of such subdivision are not by virtue of their relation to such subdivision, employees of the state or another subdivision. The term includes special districts or authorities created by the Legislature, and qualifying governmental instrumentalities;
(8) "Qualifying," any and all coverage groups permitted by the federal Social Security Act when an agreement or any modification thereof is entered into between the State of South Dakota and the secretary of health and human services;
(9) "Secretary of health and human services" includes the former federal security administrator, and it includes any individual to whom either the secretary or the administrator has delegated any of his functions under the federal Social Security Act with respect to coverage under such act of employees of states and their political subdivisions;
(10) "Social Security Act," the act of Congress approved August 14, 1935, Chapter 531, 49 Stat. 620, officially cited as the "Social Security Act," (including regulations and requirements issued pursuant thereto), as such act has been amended;
(11) "Wages" and "salaries," all remuneration for employment as defined herein, including the cash value of all remuneration paid in any medium other than cash, except that such term shall not include that part of such remuneration which, even if it were for "employment" within the meaning of the Federal Insurance Contributions Act, would not constitute "wages" within the meaning of that act.
Source: SL 1951, ch 100, § 3; SL 1953, ch 82, § 1; SL 1955, ch 63, § 1; SL 1955, ch 64; SL 1957, ch 89; SDC Supp 1960, § 17.1202; SL 1980, ch 30, § 1; SL 2006, ch 16, § 1.
3-11-3. Division in state auditor's office.
There is hereby created a State Social Security and the Internal Revenue Service Division in the office and under the direction of the state auditor.
Source: SL 1951, ch 100, § 12; SL 1953, ch 86; SDC Supp 1960, § 17.1211 (1); SL 1980, ch 30, § 2.
3-11-4. Administrator and employees of the division.
The state auditor shall appoint an administrator and other such employees as may be necessary and fix their bonds, salaries, and compensation. The administrator shall:
(1) Serve as a liaison between the Social Security Administration and the Internal Revenue Service and all state and local government employers in the state;
(2) Administer and maintain the Section 218 Agreement that governs voluntary social security and medicare coverage by state and local government employers in the state;
(3) Prepare Section 218 modifications to include additional coverage groups, correct errors in other modifications, identify additional political subdivisions that join a covered retirement system, and obtain medicare coverage for public employees whose employment relationship with a public employer has been continuous since March 31, 1986;
(4) Provide the Social Security Administration with notice and evidence of the legal dissolution of covered state or political subdivision entities;
(5) Conduct referenda for social security and medicare coverage for services performed by employees in positions under a public retirement system;
(6) Resolve coverage and taxation questions associated with Section 218 Agreements and modifications with the Social Security Administration and the Internal Revenue Service;
(7) Advise public employers on social security, medicare, and other tax withholding matters;
(8) Provide information to state and local public employers as appropriate and in accordance with the state's enabling legislation, policies, procedures and standards;
(9) Provide advice on Section 218 optional exclusions applicable to either the state or individual modifications, or both, and advice on state and local laws, rules, regulations and compliance concerns;
(10) Maintain physical custody of the state's Section 218 Agreement, modifications, dissolutions and intrastate agreements; and
(11) Deposit and report social security tax and federal income tax to the Internal Revenue Service.
Source: SL 1951, ch 100, § 12; SDC Supp 1960, § 17.1211 (2); SL 1980, ch 30, § 3; SL 2006, ch 16, § 3.
3-11-4.1. Payroll deductions authorized--Failure to deduct not release--Adjustment or refund without interest.
The employee's tax imposed by this chapter may be collected by deducting the amount of the contribution from wages as and when paid, but failure to make such deduction shall not relieve the employee or employer from liability for such contribution. If more or less than the correct amount of the contribution is paid or deducted with respect to any wages, proper adjustment, or refund if adjustment is impracticable, shall be made, without interest, in such manner and at such times as the administrator shall prescribe.
Source: SL 1980, ch 30, § 11; SL 2006, ch 16, § 2.
3-11-5. State and subdivision employees covered by federal act--Subdivisions later brought in.
The State of South Dakota and all its political subdivisions may come under and within the provisions of Title II of the federal Social Security Act, as amended, and all qualifying employees and officers of the State of South Dakota and its political subdivisions, shall thereupon be insured under the provisions of said act in the same manner as are all other employees under the federal old age and survivors insurance system. Any subdivision, for any reason not covered, may be brought under this act as soon as practical and as permitted by the laws of this state and the United States. The decision of the administrator as to whether or not a political subdivision may be brought under the act shall be final, except as the Legislature may direct otherwise.
Source: SL 1951, ch 100, § 4; SL 1953, ch 83, § 1; SDC Supp 1960, § 17.1203; SL 2006, ch 16, § 2.
3-11-6. Federal agreement authorized--Scope of agreement--Modification.
The administrator, with the approval of the Governor, is hereby authorized to enter into, on behalf of the state, an agreement with the secretary of Health and Human Services, consistent with the terms and provisions of this chapter, for the purpose of extending the benefits of the federal old age and survivors insurance system to employees and officials of the state and political subdivisions thereof. The agreement may contain such provisions relating to coverage, benefits, contributions, modification and termination, administration, and other appropriate provisions as the administrator and the secretary of Health and Human Services shall agree upon.
Source: SL 1951, ch 100, § 5; SDC Supp 1960, § 17.1204; SL 2006, ch 16, § 2.
3-11-7. Payment of employer's share for state employees--Payroll deductions of state employee's share--Disbursement.
The state auditor shall issue warrants upon the funds in the state treasury, hereinafter appropriated, for such amount as may be required to pay the employer's tax upon wages and salaries of all state employees and shall deduct from the wages and salaries of all state employees covered by this chapter, the amount required to pay the employee's tax under the federal old age and survivors insurance system. Such moneys shall be disbursed upon warrants issued by the state auditor pursuant to sworn vouchers executed by the administrator of the State Social Security and the Internal Revenue Service Division.
Source: SL 1951, ch 100, § 6; SDC Supp 1960, § 17.1205; SL 1980, ch 30, § 4; SL 2006, ch 16, § 2.
3-11-8. Funds acceptable for reimbursement to state of employer contributions.
The State of South Dakota may receive into its general fund any moneys tendered or available from any source whatever for the purpose of reimbursing the State of South Dakota for the employer contributions made by the state pursuant to the provisions of this chapter.
Source: SL 1953, ch 81; SDC Supp 1960, § 17.1215.
3-11-9. Fee-generating state agencies to pay employer contributions--Report.
Any and all state agencies, regulatory boards, and commissions whose administrative costs are paid by fees derived by activities of such boards, commissions, or agencies, as authorized by state law to carry on such activities, shall at a time and manner as the administrator may require report to the administrator the wages paid their employees and shall remit to the administrator a sum of money which equals the contributions due with such report.
Source: SL 1959, ch 305; SDC Supp 1960, § 17.1216; SL 1980, ch 30, § 5; SL 2006, ch 16, § 2.
3-11-10, 3-11-11. Repealed by SL 1980, ch 30, §§ 6, 7.
3-11-12. State institutions with income-producing auxiliary activities to pay employer contributions--Report.
Each state institution which has bookstores, cafeterias, and other auxiliary activities, shall at a time and manner as the administrator may require, report to the administrator, the amount of contributions due upon the wages paid to employees of such bookstores, cafeterias, and auxiliary activities for old age and survivors insurance, and shall remit to the administrator, a sum of money which equals such amount with the report.
Source: SL 1959, ch 306; SDC Supp 1960, § 17.1217; SL 1980, ch 30, § 8; SL 2006, ch 16, § 2.
3-11-13. Political subdivisions to pay employer contributions.
Every political subdivision included in the agreement pursuant to the provisions of this chapter shall be liable for the contributions required of an employer under the provisions of section 3111 of the Internal Revenue Code.
Source: SL 1951, ch 100, § 11; SDC Supp 1960, § 17.1210 (1).
3-11-14. Counties to budget for employer contributions.
All counties in this state and the officers thereof shall provide sufficient funds to comply with this chapter either in their annual budget or by supplemental budget as provided by law.
Source: SL 1951, ch 100, § 8; SDC Supp 1960, § 17.1207; SL 1963, ch 127, § 2; SL 1985, ch 15, § 16.
3-11-15. County auditors to certify school districts annually.
County auditors shall certify to the administrator all school districts subject to the federal old age and survivors insurance system tax as of the first day of September of each year and shall submit such certification to the administrator on or before the fifteenth day of September of the same year.
Source: SDC Supp 1960, § 17.1207 as added by SL 1963, ch 127, § 2; SL 1971, ch 19, § 1; SL 1980, ch 30, § 9; SL 2006, ch 16, § 2.
3-11-16. Payment of subdivision contributions authorized--Payroll deductions.
The auditor, clerk, or other proper officer of all qualifying political subdivisions shall issue warrants upon the funds in their respective treasuries, not otherwise appropriated, for such amount as may be required to pay the employer's tax upon the wages and salaries of its employees, and may deduct from the wages and salaries of its employees the amount required to pay the employee's tax under the federal old age and survivors insurance system and to pay the same to the division.
Source: SL 1951, ch 100, § 7; SDC Supp 1960, § 17.1206 (1); SL 1980, ch 30, § 10.
3-11-17. Reports required of political subdivisions.
The political subdivision shall make such reports, in such form and containing such information as the administrator may from time to time require and comply with such provisions as the administrator or the secretary of Health and Human Services may from time to time find necessary.
Source: SL 1951, ch 100, § 7; SDC Supp 1960, § 17.1206 (3); SL 2006, ch 16, § 2.
3-11-18. Municipalities to include funds in annual appropriation ordinances--Special appropriation when omitted.
All municipalities of this state and the governing bodies thereof are hereby authorized and directed to provide sufficient funds to comply with the provisions hereof in the annual appropriation ordinance of such municipality, provided that if any municipality shall fail to provide for such funds in any annual appropriation ordinance, then each said municipality and the officers thereof are hereby authorized and directed to provide sufficient funds to comply with the provisions of this chapter by a special appropriation ordinance and may transfer for that purpose any surplus or other funds which will not be needed for other purposes before the next succeeding annual appropriations ordinance.
Source: SL 1951, ch 100, § 9; SL 1953, ch 85; SDC Supp 1960, § 17.1208.
3-11-19. Omitted.
3-11-20. Special appropriations by political subdivisions.
To carry out the provisions of this chapter any political subdivision affected by this chapter shall, after the application is made and approved and becomes effective, provide for additional funds to carry out the purposes of § 3-11-18 by special appropriation, and said political subdivision may transfer, for that purpose, any surplus or other funds which will not be needed for other purposes before the next succeeding annual appropriation.
Source: SL 1953, ch 85; SDC Supp 1960, § 17.1208; SL 1980, ch 30, § 12.
3-11-21. Recovery of delinquent payments from subdivisions with interest and penalty.
Delinquent payments with interest and penalty may be recovered by action in a court of competent jurisdiction against the political subdivision liable therefor or may, at the request of the administrator, be deducted from any other moneys payable to such political subdivision by any department or agency of the state. The interest rate shall be at a rate established by the administrator but shall not exceed the interest rate charged by the federal Social Security Administration for delinquent payment of contributions. For failure to make timely reporting of employee wages and payment of contributions, a delinquent political subdivision shall be assessed a late filing penalty in an amount as the administrator by rule may establish.
Source: SL 1951, ch 100, § 11; SDC Supp 1960, § 17.1210 (2); SL 1972, ch 21, § 1; SL 1980, ch 30, § 13; SL 2006, ch 16, § 2.
3-11-22. County auditor may collect delinquent contributions from subdivisions--Travel costs.
The county auditor may be deputized by the administrator to collect delinquent social security employment taxes and reports and his cost of travel accruing while on official business as a deputy of the administrator shall be reimbursed by his county which shall reclaim such travel costs from the delinquent political subdivision. Reimbursement for the county may be obtained by formal direction of the board of county commissioners to the county treasurer to transfer any funds which the county has in its possession, belonging to such political subdivisions, to the county general fund.
Source: SDC Supp 1960, § 17.1207 as added by SL 1963, ch 127, § 2; SL 1971, ch 19, § 2; SL 1980, ch 30, § 14; SL 2006, ch 16, § 2.
3-11-23. Special revenue fund for premiums and interest on delinquent contributions.
The old age and survivors insurance indemnity and interest fund shall not revert but shall continue as a special revenue fund for the purpose of paying premiums and interest due the federal government on delinquent old age and survivors insurance employment taxes and reports of the state and its political subdivisions.
All interest collections on delinquent accounts shall be credited to this fund, and all payments are to be made on vouchers signed by the administrator of the State Social Security and the Internal Revenue Service Division of the State Auditor's Office and approved by the state auditor.
Source: SL 1953, ch 383, § 1; SDC Supp 1960, § 17.1211-1; SL 1963, ch 127, § 3; SL 2006, ch 16, § 2.
3-11-24. Rules and regulations--Required coverage.
The administrator shall promulgate rules, pursuant to chapter 1-26, for the administration of this chapter and in conformity with section 218 of Title II of the federal Social Security Act and federal regulations adopted pursuant thereto. Such rules shall include procedures to determine the extent of coverage within separate coverage groups and prescribing the manner and method of filing reports and paying contributions required under the agreement.
Source: SL 1951, ch 100, §§ 7, 12; SL 1953, ch 84; SDC Supp 1960, §§ 17.1206 (2), 17.1211 (3); SL 1963, ch 127, § 1; SL 2006, ch 16, § 4.
3-11-25. Interstate instrumentalities authorized to enter and implement own agreements.
Any instrumentality jointly created by this state and any other state or states is hereby authorized upon the granting of like authority by such other state or states:
(1) To enter into an agreement with the secretary of Health and Human Services whereby the benefits of the federal old age and survivors insurance system shall be extended to employees of such instrumentality,
(2) To require its employees to pay (and for that purpose to deduct from their wages or salaries) the necessary contributions,
(3) To make payments to the secretary of the treasury in accordance with such agreement, including payments from its own funds, and otherwise to comply with such agreements.
Such agreement shall, to the extent practicable, be consistent with the proper terms and provisions of this chapter.
Source: SL 1951, ch 100, § 10; SDC Supp 1960, § 17.1209.
3-11-26. Severability of provisions.
If any provision of this chapter, or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstance shall not be affected thereby.
Source: SL 1951, ch 100, § 13; SDC Supp 1960, § 17.1212.
3-12-1
Repealed.
3-12-2 to 3-12-45. Repealed.
3-12-46
Transferred.
3-12-47
Transferred.
3-12-47.1
Transferred.
3-12-47.2
Transferred.
3-12-47.3
Transferred.
3-12-47.4
Transferred.
3-12-47.5
Transferred.
3-12-47.6
Transferred.
3-12-47.7
Transferred.
3-12-47.8
Transferred
.
3-12-47.9
Transferred.
3-12-47.10
Transferred.
3-12-47.11
Transferred.
3-12-47.12
Transferred.
3-12-47.13
Transferred.
3-12-48
Transferred.
3-12-49
Transferred.
3-12-50
Transferred.
3-12-51
Transferred.
3-12-52
Transferred.
3-12-53
Transferred.
3-12-54
Transferred.
3-12-55
Transferred.
3-12-56
Transferred.
3-12-57
Transferred.
3-12-57.1
Transferred.
3-12-58
Transferred.
3-12-58.1
Transferred.
3-12-59
Transferred.
3-12-60
Transferred.
3-12-61
Transferred.
3-12-62
Transferred.
3-12-62.1
Transferred.
3-12-62.2
Transferred.
3-12-62.3
Transferred.
3-12-62.4
Transferred.
3-12-62.5
Transferred.
3-12-62.6
Transferred.
3-12-62.7
Transferred.
3-12-62.8
Transferred.
3-12-62.9
Transferred.
3-12-62.10
Transferred.
3-12-62.11
Transferred.
3-12-62.12
Transferred.
3-12-62.13
Transferred.
3-12-1. Repealed by SL 1974, ch 35, § 80.
3-12-2 to 3-12-45. Repealed by SL 1974, ch 35, § 80.
3-12-46. Transferred to § 3-12C-1601 by SL 2019, ch 22, § 1.
3-12-47.10. Transferred to § 3-12C-104 by SL 2019, ch 22, § 45.
3-12-47.11. Transferred to § 3-12C-713 by SL 2019, ch 22, § 1.
3-12-47.12. Transferred to § 3-12C-712 by SL 2019, ch 22, § 1.
3-12-47.13. Transferred to § 3-12C-406 by SL 2019, ch 22, § 1.
3-12-62.1. Transferred to § 3-12C-1614 by SL 2019, ch 22, § 1.
3-12-62.2. Transferred to § 3-12C-1615 by SL 2019, ch 22, § 1.
3-12-62.3. Transferred to § 3-12C-1616 by SL 2019, ch 22, § 1.
3-12-62.4. Transferred to § 3-12C-1617 by SL 2019, ch 22, § 1.
3-12-62.5. Transferred to § 3-12C-1618 by SL 2019, ch 22, § 1.
3-12-62.6. Transferred to § 3-12C-1619 by SL 2019, ch 22, § 1.
3-12-62.7. Repealed by SL 1989, ch 38, § 6.
3-12-62.8. Transferred to § 3-12C-1705 by SL 2019, ch 22, § 1.
3-12-62.9. Transferred to § 3-12C-1706 by SL 2019, ch 22, § 1.
3-12-62.10. Transferred to § 3-12C-1625 by SL 2019, ch 22, § 1.
3-12-62.11. Transferred to § 3-12C-1626 by SL 2019, ch 22, § 1.
3-12-62.12. Transferred to § 3-12C-1627 by SL 2019, ch 22, § 1.
3-12-62.13. Transferred to § 3-12C-1628 by SL 2019, ch 22, § 1.
3-12-67.1. Transferred to § 3-12C-1641 by SL 2019, ch 22, § 1.
3-12-69.1. Transferred to § 3-12C-1608 by SL 2019, ch 22, § 1.
3-12-69.2. Transferred to § 3-12C-1609 by SL 2019, ch 22, § 1.
3-12-69.3. Transferred to § 3-12C-1610 by SL 2019, ch 22, § 1.
3-12-69.4. Transferred to § 3-12C-1611 by SL 2019, ch 22, § 1.
3-12-69.5. Transferred to § 3-12C-1612 by SL 2019, ch 22, § 1.
3-12-79. Repealed by SL 1998, ch 18, § 4.
3-12-81. Repealed by SL 2004, ch 37, § 4.
3-12-81.1. Transferred to § 3-12C-1401 by SL 2019, ch 22, § 1.
3-12-82. Transferred to § 3-12C-1403 by SL 2019, ch 22, § 1.
3-12-89.4. Transferred to § 3-12C-1101 by SL 2019, ch 22, § 1.
3-12-89.6. Transferred to § 3-12C-1105 by SL 2019, ch 22, § 1.
3-12-89.7. Transferred to § 3-12C-1110 by SL 2019, ch 22, § 1.
3-12-89.8. Transferred to § 3-12C-1103 by SL 2019, ch 22, § 1.
3-12-89.9. Transferred to § 3-12C-1102 by SL 2019, ch 22, § 1.
3-12-89.10. Transferred to § 3-12C-1104 by SL 2019, ch 22, § 1.
3-12-90. Transferred to § 3-12C-1113 by SL 2019, ch 22, § 1.
3-12-90.1 to 3-12-90.5. Repealed by SL 1989, ch 38, §§ 10 to 14.
3-12-90.6 to 3-12-90.8. Repealed by SL 1998, ch 15, §§ 11 to 13.
3-12-90.9. Repealed by SL 1989, ch 38, § 15.
3-12-90.10. Repealed by SL 1998, ch 15, § 14.
3-12-91. Transferred to § 3-12C-1106 by SL 2019, ch 22, § 1.
3-12-92. Transferred to § 3-12C-1107 by SL 2019, ch 22, § 1.
3-12-92.1. Transferred to § 3-12C-1701 by SL 2019, ch 22, § 1.
3-12-92.2. Transferred to § 3-12C-1702 by SL 2019, ch 22, § 1.
3-12-92.3. Transferred to § 3-12C-1703 by SL 2019, ch 22, § 1.
3-12-92.4. Transferred to § 3-12C-1108 by SL 2019, ch 22, § 1.
3-12-92.5. Repealed by SL 1999, ch 15, § 5.
3-12-92.6. Transferred to § 3-12C-1109 by SL 2019, ch 22, § 1.
3-12-93. Transferred to § 3-12C-1607 by SL 2019, ch 22, § 45.
3-12-94. Transferred to § 3-12C-1114 by SL 2019, ch 22, § 1.
3-12-94.1. Transferred to § 3-12C-1613 by SL 2019, ch 22, § 1.
3-12-95.5. Transferred to § 3-12C-1115 by SL 2019, ch 22, § 45.
3-12-95.6. Transferred to § 3-12C-1116 by SL 2019, ch 22, § 1.
3-12-102. Repealed by SL 1990, ch 38.
3-12-103.1. Transferred to § 3-12C-809 by SL 2019, ch 22, § 1.
3-12-104. Transferred to § 3-12C-1001 by SL 2019, ch 22, § 1.
3-12-104.1. Transferred to § 3-12C-1002 by SL 2019, ch 22, § 1.
3-12-104.2. Transferred to § 3-12C-1003 by SL 2019, ch 22, § 1.
3-12-105. Transferred to § 3-12C-1004 by SL 2019, ch 22, § 1.
3-12-106. Transferred to § 3-12C-1111 by SL 2019, ch 22, § 1.
3-12-107. Transferred to § 3-12C-1112 by SL 2019, ch 22, § 1.
3-12-111. Transferred to § 3-12C-1402 by SL 2019, ch 22, § 1.
3-12-111.1. Transferred to § 3-12C-1404 by SL 2019, ch 22, § 1.
3-12-115.1. Transferred to § 3-12C-217 by SL 2019, ch 22, § 1.
3-12-120.4. Transferred to § 3-12C-109 by SL 2019, ch 22, § 1.
3-12-122.1. Transferred to § 3-12C-229 by SL 2019, ch 22, § 1.
3-12-123. Transferred to § 3-12C-1602 by SL 2019, ch 22, § 1.
3-12-124. Transferred to § 3-12C-1603 by SL 2019, ch 22, § 1.
3-12-125. Transferred to § 3-12C-1604 by SL 2019, ch 22, § 1.
3-12-126. Transferred to § 3-12C-1605 by SL 2019, ch 22, § 1.
3-12-127. Transferred to § 3-12C-1606 by SL 2019, ch 22, § 1.
3-12-129. Transferred to § 3-12C-1704 by SL 2019, ch 22, § 1.
3-12-130.1. Transferred to § 3-12C-519 by SL 2019, ch 22, § 1.
3-12-132. Transferred to § 3-12C-1620 by SL 2019, ch 22, § 1.
3-12-133. Transferred to § 3-12C-1621 by SL 2019, ch 22, § 1.
3-12-134. Transferred to § 3-12C-1622 by SL 2019, ch 22, § 1.
3-12-135. Transferred to § 3-12C-1623 by SL 2019, ch 22, § 1.
3-12-136. Transferred to § 3-12C-1624 by SL 2019, ch 22, § 1.
3-12-138. Repealed by SL 1997, ch 26, § 6.
3-12-144 to 3-12-152. Repealed by SL 1998, ch 15, §§ 22 to 30.
3-12-153. Transferred to § 3-12C-1629 by SL 2019, ch 22, § 1.
3-12-154. Transferred to § 3-12C-1630 by SL 2019, ch 22, § 1.
3-12-155. Transferred to § 3-12C-1631 by SL 2019, ch 22, § 1.
3-12-156. Transferred to § 3-12C-1632 by SL 2019, ch 22, § 1.
3-12-157. Transferred to § 3-12C-1633 by SL 2019, ch 22, § 1.
3-12-158. Transferred to § 3-12C-1634 by SL 2019, ch 22, § 1.
3-12-159. Transferred to § 3-12C-1635 by SL 2019, ch 22, § 1.
3-12-160. Transferred to § 3-12C-1636 by SL 2019, ch 22, § 1.
3-12-161. Transferred to § 3-12C-1637 by SL 2019, ch 22, § 1.
3-12-162. Transferred to § 3-12C-1638 by SL 2019, ch 22, § 1.
3-12-163. Transferred to § 3-12C-1639 by SL 2019, ch 22, § 1.
3-12-164. Transferred to § 3-12C-1640 by SL 2019, ch 22, § 1.
3-12-189. Transferred to § 3-12C-1501 by SL 2019, ch 22, § 1.
3-12-190. Transferred to § 3-12C-1502 by SL 2019, ch 22, § 1.
3-12-191. Transferred to § 3-12C-1503 by SL 2019, ch 22, § 1.
3-12-192. Transferred to § 3-12C-1504 by SL 2019, ch 22, § 1.
3-12-193. Transferred to § 3-12C-1505 by SL 2019, ch 22, § 1.
3-12-194. Transferred to § 3-12C-1506 by SL 2019, ch 22, § 1.
3-12-195. Transferred to § 3-12C-1507 by SL 2019, ch 22, § 1.
3-12-196. Transferred to § 3-12C-1508 by SL 2019, ch 22, § 1.
3-12-197. Transferred to § 3-12C-1509 by SL 2019, ch 22, § 1.
3-12-198. Transferred to § 3-12C-1510 by SL 2019, ch 22, § 1.
3-12-199. Transferred to § 3-12C-1406 by SL 2019, ch 22, § 1.
3-12-200. Transferred to § 3-12C-1405 by SL 2019, ch 22, § 45.
3-12-207.1. Transferred to § 3-12C-819 by SL 2019, ch 22, § 1.
3-12-217. Transferred to § 3-12C-1642 by SL 2019, ch 22, § 1.
3-12-218. Transferred to § 3-12C-1643 by SL 2019, ch 22, § 1.
3-12-219. Transferred to § 3-12C-1644 by SL 2019, ch 22, § 1.
3-12-220. Transferred to § 3-12C-1645 by SL 2019, ch 22, § 1.
3-12-221. Transferred to § 3-12C-1646 by SL 2019, ch 22, § 1.
3-12-222. Transferred to § 3-12C-1647 by SL 2019, ch 22, § 1.
3-12-223. Transferred to § 3-12C-1648 by SL 2019, ch 22, § 1.
3-12-224. Transferred to § 3-12C-1649 by SL 2019, ch 22, § 1.
3-12-225 to 3-12-499. Reserved.
3-12-502. Transferred to § 3-12C-1201 by SL 2019, ch 22, § 1.
3-12-502.1. Transferred to § 3-12C-1202 by SL 2019, ch 22, § 1.
3-12-504. Transferred to § 3-12C-1203 by SL 2019, ch 22, § 1.
3-12-505. Transferred to § 3-12C-1204 by SL 2019, ch 22, § 1.
3-12-506. Transferred to § 3-12C-1205 by SL 2019, ch 22, § 1.
3-12-507. Transferred to § 3-12C-1206 by SL 2019, ch 22, § 1.
3-12-508. Transferred to § 3-12C-1209 by SL 2019, ch 22, § 1.
3-12-509. Transferred to § 3-12C-1210 by SL 2019, ch 22, § 1.
3-12-510. Transferred to § 3-12C-1208 by SL 2019, ch 22, § 1.
3-12-511. Transferred to § 3-12C-1211 by SL 2019, ch 22, § 1.
3-12-512. Transferred to § 3-12C-1212 by SL 2019, ch 22, § 1.
3-12-513. Transferred to § 3-12C-1207 by SL 2019, ch 22, § 1.
3-12-514. Transferred to § 3-12C-1213 by SL 2019, ch 22, § 1.
3-12-515. Transferred to § 3-12C-1214 by SL 2019, ch 22, § 1.
3-12-516. Transferred to § 3-12C-1215 by SL 2019, ch 22, § 45.
3-12-517. Transferred to § 3-12C-1216 by SL 2019, ch 22, § 1.
3-12-519. Transferred to § 3-12C-1301 by SL 2019, ch 22, § 1.
3-12-520. Transferred to § 3-12C-1302 by SL 2019, ch 22, § 1.
3-12-521. Transferred to § 3-12C-1303 by SL 2019, ch 22, § 1.
3-12A-1, 3-12A-2. Repealed.
3-12A-2.1, 3-12A-2.2. Repealed.
3-12A-3 to 3-12A-10. Repealed.
3-12A-11 to 3-12A-12.1. Repealed.
3-12A-13 to 3-12A-25. Repealed.
3-12A-26
Repealed.
3-12A-27 to 3-12A-31. Repealed.
3-12A-32
Repealed.
3-12A-33 to 3-12A-38. Repealed.
3-12A-1, 3-12A-2. Repealed by SL 2012, ch 23, § 10.
3-12A-2.1, 3-12A-2.2. Repealed by SL 1997, ch 31, §§ 1, 2.
3-12A-3 to 3-12A-10. Repealed by SL 2012, ch 23, § 10.
3-12A-11 to 3-12A-12.1. Repealed by SL 1989, ch 40, §§ 4 to 6.
3-12A-13 to 3-12A-25. Repealed by SL 2012, ch 23, § 10.
3-12A-27 to 3-12A-31. Repealed by SL 2012, ch 23, § 10.
3-12A-32. Repealed by SL 1991, ch 33.
3-12A-33 to 3-12A-38. Repealed by SL 2012, ch 23, § 10.
3-12B-1, 3-12B-2. Repealed.
3-12B-2.1
Obsolete.
3-12B-3
Repealed.
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 information--Employment history and accommodations.
3-12C-815 Health care provider information--Disability--Other medical documentation.
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--Spouse signature not 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.
PART 19. REQUIRED MINIMUM DISTRIBUTIONS
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.
3-12C-101. Definitions.
Terms as used in this chapter mean:
(1) "Actuarial accrued liability," the present value of all benefits less the present value of future normal cost contributions;
(2) "Actuarial experience analysis," a periodic report that reviews basic experience data and furnishes actuarial analysis that substantiates the assumptions adopted for the purpose of making an actuarial valuation of the system;
(3) "Actuarial valuation," a projection of the present value of all benefits and the current funded status of the system, based upon stated assumptions as to rates of interest, mortality, disability, salary progressions, withdrawal, and retirement as established by a periodic actuarial experience analysis that takes into account census data of all active members, vested terminated members, and retired members and their beneficiaries under the system;
(4) "Actuarial value funded ratio," the actuarial value of assets divided by the actuarial accrued liability;
(5) "Actuarial value of assets," equal to the fair value of assets;
(6) "Actuarially determined contribution rate," the fixed, statutory contribution rate, no less than the normal cost rate with expenses assuming the minimum COLA, and no greater than the normal cost rate with expenses assuming the maximum COLA;
(7) "Air rescue firefighters," employees of the Department of the Military who are stationed at Joe Foss Field, Sioux Falls, and who are directly involved in firefighting activities on a daily basis;
(8) "Approved actuary," any actuary who is a member of the American Academy of Actuaries or an Associate or a Fellow of the Society of Actuaries who meets the qualification standards of the American Academy of Actuaries to issue actuarial opinions regarding the system or any firm retaining such an actuary on its staff and who is appointed by the board to perform actuarial services;
(9) "Assumed rate of return," the actuarial assumption adopted by the board pursuant to § 3-12C-227 as the annual assumed percentage return on trust fund assets, compounded;
(10) "Beneficiary," the person designated by a member of the system to receive any payments after the death of such member;
(11) "Benefits," the amounts paid to a member, spouse, child, or beneficiary as a result of the provisions of this chapter;
(12) "Board," the Board of Trustees of the South Dakota Retirement System;
(13) "Calendar quarter," a period of three calendar months ending March thirty-first, June thirtieth, September thirtieth, or December thirty-first of any year;
(14) "Campus security officers," employees of the Board of Regents whose positions are subject to the minimal educational training standards established by the law enforcement standards commission pursuant to chapter 23-3, who satisfactorily complete the training required by chapter 23-3 within one year of employment, and whose primary duty as sworn law enforcement officers is to preserve the safety of the students, faculty, staff, visitors, and the property of the university. The employer shall file with the system evidence of the appointment as a sworn law enforcement officer at the time of employment and shall file evidence of satisfactory completion of the training program pursuant to chapter 23-3 within one year of employment;
(15) "Certified school employee," any employee of a participating unit who is required to have a certificate as defined in subdivision 13-42-1(3);
(16) "Class A credited service," service credited as a Class A member of the system;
(17) "Class A member," any member other than a Class B member or a Class C member and is either a foundation member or a generational member;
(18) "Class B credited service," service credited as a Class B member of the system;
(19) "Class B member," a member who is a justice, judge, state law enforcement officer, magistrate judge, police officer, firefighter, county sheriff, deputy county sheriff, correctional security staff, parole agent, air rescue firefighter, emergency medical services personnel, campus security officer, court services officer, juvenile corrections agent, gaming enforcement agent, conservation officer, or park ranger and is either a foundation member or a generational member;
(20) "Class C credited service," service credited as a Class C member of the system;
(21) "Class C member," any member of the cement plant retirement plan including any retiree or any vested member;
(22) "Class D credited service," service credited as a Class D member of the system;
(23) "Class D member," any member that was a member of the Department of Labor and Regulation employees' retirement plan as of June 30, 2020;
(24) "Classified employee," an employee of a public school district who is not required by law to be a certified school employee, an employee of any college or university under the control of the Board of Regents who is not a faculty member or an administrator and comes within the provisions of chapter 3-6D, an employee of a public corporation, an employee of a chartered governmental unit, and any other participating employee not elsewhere provided for in this chapter;
(25) "Comparable level position," a member's position of employment that is generally equivalent to the member's prior position of employment in terms of required education, required experience, required training, required work history, geographic location, and compensation and benefits;
(26) "Conservation officers," employees of the Department of Game, Fish and Parks and the Division of Wildlife or Division of Custer State Park who are employed pursuant to § 41-2-11 and whose positions are subject to the requirements as to education and training provided in chapter 23-3;
(27) "Consumer price index," the consumer price index for urban wage earners and clerical workers calculated by the United States Bureau of Labor Statistics;
(28) "Contributory service," service to a participating unit during which contributions were made to a South Dakota retirement system, which may not include years of credited service as granted in § 3-12C-509 or 3-12C-511;
(29) "Correctional security staff," the warden, deputy warden, and any other correctional staff holding a security position as verified by the Department of Corrections and approved by the Bureau of Human Resources and Administration and the Bureau of Finance and Management, and determined by the board as Class B members;
(30) "Court services officers," persons appointed pursuant to § 26-7A-8;
(31) "Covered employment," a member's employment as a full-time employee of a participating unit;
(32) "Deputy county sheriff," an employee of a county that is a participating unit, appointed by the board of county commissioners pursuant to §§ 7-12-9 and 7-12-10, whose position is subject to the minimum educational and training standards established by the law enforcement standards commission pursuant to chapter 23-3. The term does not include jailers or clerks appointed pursuant to §§ 7-12-9 and 7-12-10 unless the participating unit has requested that the jailer be considered as a deputy county sheriff and the board has approved the request;
(33) "Effective date of retirement," the first day of the month in which retirement benefits are payable;
(34) "Eligible retirement plan," the term eligible retirement plan includes those plans described in section 402(c)(8)(B) of the Internal Revenue Code;
(35) "Eligible rollover distribution," any distribution to a member of accumulated contributions pursuant to § 3-12C-602. The term does not include any portion of a distribution that represents contributions made to the system on an after tax basis nor distributions paid as a result of the member reaching the required beginning date;
(36) “Emergency medical services personnel,” a person licensed by the Board of Medical and Osteopathic Examiners in accordance with chapter 36-4B or licensed or certified by the Department of Health in accordance with chapter 34-11 who actively practices emergency medical services;
(37) "Employer," the State of South Dakota and any department, bureau, board, or commission of the State of South Dakota, or any of its governmental or political subdivisions or any public corporation of the State of South Dakota that elects to become a participating unit;
(38) "Employer contributions," amounts contributed by the employer of a contributing member, excluding member contributions made by an employer after June 30, 1984, pursuant to § 3-12C-401;
(39) "Equivalent public service," any public service other than as a justice, a judge, or a magistrate judge and comparable to Class B service as defined by this section, if the service is in the employ of a public entity that is not a participating unit;
(40) "Fair value of assets," the total assets of the system at fair market value for securities traded on exchanges; for securities not traded on exchanges, a value based on similar securities; and for alternative investments, reported net asset value;
(41) "Fair value funded ratio," the fair value of assets divided by the actuarial accrued liability;
(42) "Fiduciary," any person who exercises any discretionary authority or control over the management of the system or the management or disposition of its assets, renders investment advice for a fee or other compensation, direct or indirect, or has any authority or responsibility to do so, or has any discretionary authority or responsibility in the administration of the system;
(43) "Foundation member," any member of the system whose contributory service began before July 1, 2017;
(44) "Foundation retiree," any foundation member who has retired with a benefit payable from the system;
(45) "Firefighter," any full-time firefighter who works at least twenty hours a week and at least six months a year. The term does not include any volunteer firefighter;
(46) "Full-time employee," any employee who is considered full-time by the participating unit and is customarily employed by the participating unit for twenty hours or more a week and at least six months a year, regardless of classification of employment as seasonal, temporary, leased, contract, or any other designation;
(47) "Fund," public employees' retirement fund or funds established for the purposes of administration of this chapter;
(48) "Gaming enforcement agent," any employee of the South Dakota Commission on Gaming who is appointed pursuant to § 42-7B-56 and who must, as a condition of employment, be law enforcement certified;
(49) "General employee," any full-time municipal employee who is not a firefighter or a police officer;
(50) "Generational member," any member of the system whose contributory service began after June 30, 2017;
(51) "Generational retiree," any generational member who has retired with a benefit payable from the system;
(52) "Health care provider," a physician or other health care practitioner licensed, registered, certified, or otherwise authorized by law to provide specified health services;
(53) "Juvenile corrections agent," a designee of the secretary of corrections charged with the care, custody, and control of juveniles committed to the Department of Corrections until the age of twenty-one or a person who is charged with the care, custody, and control of juveniles at a juvenile corrections facility under the control of a participating unit;
(54) "Law enforcement officer," any agent of the state division of criminal investigation, officer of the South Dakota Highway Patrol, police officer, county sheriff, deputy county sheriff, or firefighter;
(55) "Member," any person who is contributing or has made contributions to the system and is either a foundation member or generational member. A person's membership ceases when the person withdraws his or her accumulated contributions after termination of employment;
(56) "Member contributions," amounts contributed by members, including member contributions made by an employer after June 30, 1984, pursuant to § 3-12C-401;
(57) "Military service," a period of active duty with the United States Army, the United States Navy, the United States Air Force, the United States Marine Corps, or the United States Coast Guard, from which duty the member received an honorable discharge or an honorable release;
(58) "Municipality," any incorporated municipal government under chapter 9-3 or any chartered governmental unit under the provisions of Article IX of the Constitution of the State of South Dakota;
(59) "Noncontributory service," for foundation members, service delineated in subdivisions 3-12C-502(2), (5), (7), and (8), and for generational members, service pursuant to § 3-12C-514;
(60) "Normal cost," the expected long-term cost of the system benefits and expenses expressed as a percentage of payroll;
(61) "Normal retirement," the termination of employment and application for benefits by a member with three or more years of contributory service or noncontributory service on or after the member's normal retirement age;
(62) "Other public benefits," eighty percent of the primary insurance amount or primary social security benefits that would be provided under federal social security;
(63) "Other public service," service for the government of the United States, including military service; service for the government of any state or political subdivision thereof; service for any agency or instrumentality of any of the foregoing; or service as an employee of an association of government entities described in this subdivision;
(64) "Park rangers," employees of the Department of Game, Fish and Parks within the Division of Parks and Recreation and whose positions are subject to the requirements as to education and training provided in chapter 23-3 and whose primary duty is law enforcement in the state park system;
(65) "Parole agent," an employee of the Department of Corrections employed pursuant to § 24-15-14 who is actually involved in direct supervision of parolees on a daily basis;
(66) "Participating unit," the State of South Dakota and any department, bureau, board, or commission of the State of South Dakota, and any of its political subdivisions or any public corporation of the State of South Dakota that has employees who are members of the retirement system created in this chapter;
(67) "Plan year," a period extending from July first of one calendar year through June thirtieth of the following calendar year;
(68) "Police officer," any employee in the police department of any participating municipality holding the rank of patrol officer, including probationary patrol officer, or higher rank and whose position is subject to the minimum educational and training standards established by the law enforcement officers standards commission pursuant to chapter 23-3. The term does not include civilian employees of a police department nor any person employed by a municipality whose services as a police officer require less than twenty hours a week and six months a year. If a municipality which is a participating unit operates a city jail, the participating unit may request that any jailer appointed pursuant to § 9-29-25 be considered a police officer, subject to the approval of the board;
(69) "Political subdivision" includes any municipality, school district, county, chartered governmental unit, public corporation or entity, and special district created for any governmental function;
(70) "Present value of all benefits," the present value of all benefits expected to be paid to all retired, terminated, and active members and beneficiaries, based on past and future credited service and future compensation increases;
(71) "Present value of benefits earned to date," the present value of the benefits currently being paid to retired members and their beneficiaries, the present value of the benefits payable to terminated members, and the actuarial accrued liability of active members, based on the actuarial assumptions and methods used in the actuarial valuation;
(72) "Projected compensation," a deceased or disabled member's final average compensation multiplied by the COLA commencing each July first for each complete twelve-month period elapsed between the date of the member's death or disability, whichever occurred earlier, and the date the member would attain normal retirement age or the benefit commences, whichever occurred earlier;
(73) "Projected service," the credited service plus the service that the member would have been credited with at normal retirement age had the member continued in the system and received credit at the same rate the member was credited during the year covered by the compensation that was used in the calculation of the disability or family benefit;
(74) "Qualified military service," service in the uniformed services as defined in § 414(u)(5) of the Internal Revenue Code;
(75) "Required beginning date," the later of April first of the calendar year following the calendar year in which the member attains age seventy and one-half or April first of the calendar year following the calendar year in which the member retires;
(76) "Retiree," any foundation or generational member who retires with a lifetime benefit payable from the system;
(77) "Retirement," the severance of a member from the employ of a participating unit with a retirement benefit payable from the system;
(78) "Retirement benefit," the monthly amount payable upon the retirement of a member;
(79) "Single premium," the lump-sum amount paid by a supplemental pension participant pursuant to a supplemental pension contract in consideration for a supplemental pension benefit;
(80) "Social investment," investment, divestment, or prohibition of investment of the assets of the system for purposes other than maximum risk-adjusted investment return, which other purposes include ideological purposes, environmental purposes, political purposes, religious purposes, or purposes of local or regional economic development;
(81) "State employees," employees of the departments, bureaus, commissions, and boards of the State of South Dakota;
(82) "Supplemental pension benefit," any single-premium immediate pension benefit payable pursuant to §§ 3-12C-1504 and 3-12C-1505;
(83) "Supplemental pension contract," any agreement between a participant and the system upon which a supplemental pension is based, including the amount of the single premium, the type of pension benefit, and the monthly supplemental pension payment amount;
(84) "Supplemental pension contract record," the record for each supplemental pension participant reflecting relevant participant data; a designation of any beneficiary, if any; the amount of the participant's funds rolled into the fund; the provisions of the participant's supplemental pension contract; and supplemental pension payments made pursuant to the contract;
(85) "Supplemental pension participant," any member who is a retiree receiving a benefit from the system, or, if the member is deceased, the member's surviving spouse who is receiving a benefit from the system, and who chooses to purchase a supplemental pension benefit pursuant to the provisions of this chapter;
(86) "Supplemental pension spouse," any person who was married to a supplemental pension participant at the time the participant entered into the supplemental pension contract;
(87) "System," the South Dakota Retirement System created in this chapter;
(88) "Trustee," a member of the board of trustees;
(89) "Unfunded actuarial accrued liability," the actuarial accrued liability less the actuarial value of assets.
Source: SL 1967, ch 303, § 2; SDCL § 3-12-2; SL 1968, ch 216, § 1; SL 1970, ch 25, § 1; SL 1973, ch 24, §§ 1, 2; SL 1974, ch 35, § 2; SL 1975, ch 38, § 6; SL 1975, ch 39, §§ 2, 3; SL 1976, ch 40, § 1; SL 1977, ch 28, §§ 1 to 3; SL 1977, ch 29; SL 1977, ch 31, §§ 1 to 3; SL 1978, ch 31; SL 1978, ch 32, § 5; SL 1979, ch 26, § 1; SL 1980, ch 31, § 1; SL 1982, ch 32, § 1; SL 1982, ch 33; SL 1982, ch 34, § 1; SL 1982, ch 35; SL 1983, ch 17; SL 1983, ch 18; SL 1983, ch 19, §§ 1, 2; SL 1983, ch 22, § 2; SL 1984, ch 23, § 1; SL 1985, ch 24, §§ 1, 2; SL 1986, ch 37, §§ 1-3, 11; SL 1987, ch 35; SL 1987, ch 36, §§ 1, 2; SL 1988, ch 30, §§ 1 to 3; SL 1988, ch 31; SL 1989, ch 21, § 40; SL 1989, ch 38, §§ 5, 9; SL 1989, ch 238, § 3; SL 1990, ch 36; SL 1991, ch 29, §§ 1, 2; SL 1991, ch 30; SL 1992, ch 30, § 1; SL 1992, ch 34, §§ 1, 2; SL 1993, ch 38, §§ 1, 2; SL 1993, ch 39, § 1; SL 1993, ch 40; SL 1993, ch 41; SL 1993, ch 42, §§ 1-3; SL 1993, ch 44, §§ 2, 3; SL 1994, ch 32, §§ 1, 2; SL 1994, ch 34, §§ 1, 2; SL 1995, ch 18, §§ 1, 2, 4; SL 1995, ch 23, § 1; SL 1995, ch 24, §§ 1, 11, 15; SL 1996, ch 29, § 1; SL 1996, ch 30, §§ 1, 5; SL 1997, ch 25, § 1; SL 1997, ch 26, § 1; SL 1997, ch 27, § 1; SL 1998, ch 15, §§ 1, 2, 3, 4, 5; SL 1998, ch 16, § 1; SL 1998, ch 17, § 1; SL 1998, ch 17, § 2; SL 1998, ch 18, § 1; SL 1998, ch 19, § 1; SL 1998, ch 110, § 2; SL 1999, ch 14, §§ 1, 2; SL 1999, ch 15, § 1; SL 2000, ch 24, §§ 1, 2; SL 2002, ch 22, §§ 1, 2; SL 2004, ch 35, § 1; SL 2004, ch 36, §§ 1, 2; SL 2004, ch 37, §§ 1, 2; SL 2004, ch 38, § 7; SL 2004, ch 40, §§ 5 to 7; SL 2004, ch 42, §§ 3 to 11; SL 2005, ch 24, §§ 1, 2; SL 2006, ch 17, § 1; SL 2008, ch 20, §§ 1 to 6; SL 2008, ch 21, § 1; SL 2008, ch 24, § 2; SL 2009, ch 138, § 3; SL 2010, ch 20, §§ 1 to 6; SL 2010, ch 21, § 2; SL 2010, ch 23, §§ 3, 4, eff. Apr. 1, 2010; SL 2010, ch 77, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 18, eff. Apr. 12, 2011; SL 2011, ch 20, § 1; SL 2012, ch 26, §§ 1 to 6; SL 2013, ch 20, §§ 2 to 5; SL 2014, ch 18, § 1; SL 2014, ch 20, §§ 19 to 22; SL 2014, ch 21, §§ 8, 9 eff. Apr. 1, 2014; SL 2015, ch 25, §§ 1 to 3; SL 2016, ch 32, § 56; SL 2017, ch 27, § 4; SL 2017, ch 28, § 6; SL 2018, ch 32, §§ 1 to 4; SL 2018, ch 33, §§ 1 to 6; SDCL § 3-12-47; SL 2019, ch 22, §§ 2, 45; SL 2019, ch 23, § 1; SL 2019, ch 24, § 1; SL 2020, ch 12, § 1; SL 2020, ch 13, § 3; SL 2021, ch 29, § 8, eff. Apr. 1, 2021; SL 2022, ch 14, § 1; SL 2022, ch 15, § 1; SL 2023, ch 14, § 1; SL 2023, ch 15, § 1; SL 2023, ch 16, § 1; SL 2024, ch 1 (Ex. Ord. 24-1), § 35, eff. Apr. 8, 2024.
3-12C-102. Actuarial equivalent defined.
For the purposes of this chapter, the term, actuarial equivalent, is a benefit of equal value, computed on the basis of the interest rate, mortality, and baseline COLA assumptions adopted by the board for purposes of the actuarial valuation. If the board adopts a select and ultimate rate of interest, the interest rate is the ultimate rate. Mortality is based on a unisex rate that is fifty percent male and fifty percent female for employees and beneficiaries, based on the mortality rates for retired employees and beneficiaries, including, if the board adopts a generational mortality table, a generational projection of mortality improvement with the member's and beneficiary's ages as of the date of the calculation assumed to be in the calendar year in which the plan year containing the date of the calculation begins. If the board adopts distinct mortality tables for the different categories of retired members or beneficiaries, the mortality rates must be based on a weighted blend of the tables with the weighting based on the percentage of accrued benefits for each category of members as the actuarial valuation immediately preceding the date of adoption of the mortality tables. The system shall make the interest rate, mortality, and baseline COLA assumptions public.
Source: SL 2016, ch 32, § 51; SL 2017, ch 27, § 6; SDCL § 3-12-47.5; SL 2019, ch 22, § 1; SL 2023, ch 16, § 2.
3-12C-103. Child defined.
For purposes of administering benefits pursuant to this chapter, the term, child, means an unmarried dependent child of the member, who has not passed the child's nineteenth birthday and each unmarried dependent child, who is totally and permanently disabled, either physically or mentally, regardless of the child's age, if the disability occurred before age nineteen. It includes a stepchild or a foster child who depends on the member for support and lives in the household of the member in a regular parent-child relationship. It also includes any child of the member conceived during the member's lifetime and born after the member's death.
For purposes of making beneficiary-type payments pursuant to this chapter, the term, child, means a person entitled to take as a child via intestate succession pursuant to the provisions of title 29A.
Source: SL 2019, ch 22, § 3.
3-12C-104. COLA or cost of living adjustment defined.
The term, COLA or cost of living adjustment, means the annual increase, if any, as determined by § 3-12C-704, in the amount of the benefit provided on July first, compounded annually. However, no COLA may be provided unless the member has received benefit payments for at least the consecutive, twelve-month period before July first.
Source: SL 2017, ch 27, § 1; SDCL § 3-12-47.10; SL 2019, ch 22, §§ 4, 45; SL 2021, ch 26, § 1.
3-12C-105. Compensation defined.
For the purposes of this chapter, the term, compensation, means gross wages paid to a member by the employer for credited service rendered during the period for which the payment was earned. Compensation includes any amount reported as wages, tips, and other compensation on the member's federal form W-2 wage and tax statement, except as otherwise excluded in this section; any amount of member contributions made by an employer after June 30, 1984, pursuant to § 3-12C-401; and any amount contributed by a member to a plan that meets the requirements of section 125, 401, 403, 408, or 457 of the Internal Revenue Code.
Compensation does not include any allowance, payment, or reimbursement for travel, meals, lodging, moving, uniforms, or any other expense that is incidental to employment and paid or reimbursed by the employer; any lump sum payment for sick leave; any lump sum payment for annual leave; any payment for, or in lieu of, insurance coverage of any kind or any other employee benefit paid by an employer directly to a member or directly to a third party on behalf of a member or a member and any dependent; any allowance or payment for housing or vehicles; any temporary payment paid as a lump sum or over a period of time that is not due to additional duties; any amount paid in a one-time lump sum payment or over a period of time and based on or attributable to retirement or an agreement to retire in the future or results in an incentive to retire; any payment made upon dismissal or severance; any worker's compensation payment; and any payment contingent on a member terminating employment at a specified time in the future paid or payable in a lump sum or over a period of time.
Source: SL 2016, ch 32, § 52; SL 2017, ch 28, § 1; SL 2017, ch 28, § 2, eff. Jan. 1, 2018; SDCL § 3-12-47.6; SL 2019, ch 22, § 1; SL 2020, ch 12, § 11.
3-12C-106. Contributing member defined.
For the purposes of this chapter, a contributing member is any member for whom the system receives an employer contribution report that includes the member's employee and employer contributions indicating that the member is an active member. A member's active membership is terminated and the member is no longer a contributing member when the system receives notice of termination from an employer, accompanied by the member's final employee and employer contributions.
Source: SL 2016, ch 32, § 53; SDCL § 3-12-47.7; SL 2019, ch 22, § 1.
3-12C-107. Disability defined.
The term, disability or disabled, means any medically determinable physical or mental impairment that prevents a member from performing the member's usual duties for the member's employer, even with accommodations, or performing the duties of a comparable level position for the member's employer. The term excludes any condition resulting from a willful, self-inflicted injury.
Source: SL 2019, ch 22, § 5.
3-12C-108. Effective rate of interest defined.
For the purposes of this chapter, the phrase, effective rate of interest, means the interest at an annually compounded rate to be established by the board for each fiscal year. The rate shall be no greater than ninety percent of the average ninety-one day United States treasury bill rate for the immediately preceding calendar year and in no event may the rate be more than the rate established by the board pursuant to § 3-12C-227 for investment return for purposes of the actuarial valuation. If a member withdraws contributions pursuant to § 3-12C-602 or 3-12C-604, or if benefits are payable under § 3-12C-409, the interest shall be as annually compounded on the preceding June thirtieth.
Source: SL 2016, ch 32, § 54; SDCL § 3-12-47.8; SL 2019, ch 22, § 1.
3-12C-109. Minimum actuarial requirement to support benefits defined.
For the purposes of this chapter, the phrase, minimum actuarial requirement to support benefits, means the normal cost and the interest on and amortization of the unfunded actuarial accrued liability over a period not to exceed twenty years, all expressed in terms of a percentage of covered payroll and based on the baseline COLA or the restricted COLA, as applicable. If the actuarial value of assets exceeds the actuarial accrued liability, the minimum actuarial requirement to support benefits includes recognition of the amount by which the actuarial value of assets exceeds the actuarial accrued liability. However, in no event may the recognition reduce the minimum actuarial requirement to support benefits to a percentage less than the contribution rate.
Source: SL 2018, ch 33, § 13; SDCL § 3-12-120.4; SL 2019, ch 22, § 1; SL 2023, ch 16, § 3.
3-12C-110. Spouse defined.
The term, spouse, means a person who was married to the member at the time of the death of the member and whose marriage was both before the member's retirement and more than twelve months before the death of the member.
Source: SL 2019, ch 22, § 6.
3-12C-111. Terminated defined.
The term, terminated, means complete severance of employment from public service of any member by resignation or discharge, not including leave of absence, layoff, vacation leave, sick leave, or jury duty, and involving all termination proceedings routinely followed by the member's participating unit, including payment to the member for unused vacation leave, payment to the member for unused sick leave, payment to the member for severance of an employment contract, severance of employer-provided health insurance coverage, severance of employer-provided life insurance coverage, or severance of any other such employer-provided perquisite of employment granted by the member's participating unit to an active employee.
Source: SL 2019, ch 22, § 7.
3-12C-112. Vested defined.
The term, vested, means the right to a retirement benefit from the system based on the provisions of this chapter after three years of contributory service or noncontributory service, even if the member leaves the employment of a participating unit, if the member does not withdraw accumulated contributions.
Source: SL 2019, ch 22, § 8.
3-12C-113. Internal Revenue Code references.
For the purposes of this chapter, the term, Internal Revenue Code, or code, means the Internal Revenue Code as in effect as of January 1, 2024.
Source: SL 2023, ch 14, § 2; SL 2024, ch 21, § 1.
3-12C-201. Citation of chapter.
This chapter shall be cited as the South Dakota Retirement Act.
Source: SL 1974, ch 35, § 84; SDCL § 3-12-128; SL 2019, ch 22, § 1.
3-12C-202. System managed by board--Standard of conduct--Legal advice.
The system shall be under the Board of Trustees. The Board of Trustees shall be held to the standard of conduct of a fiduciary and shall carry out its functions solely in the interest of the members and benefit recipients and for the exclusive purpose of providing benefits and defraying reasonable expenses incurred in performing such duties as required by law. The system may not engage in any activity that is not solely designed to provide for the exclusive benefit of the members and benefit recipients of the system. The attorney general is the legal adviser to the board.
Source: SL 1967, ch 303, § 3; SDCL § 3-12-4; SL 1968, ch 216, § 1; SL 1973, ch 2, § 22 (a) to (d); SL 1973, ch 25; SDCL Supp, §§ 3-12-4.1, 3-13-4.1, 13-45-8.1, 16-8-7.1; SL 1974, ch 35, § 12; SL 1979, ch 27, § 3; SL 1992, ch 30, § 2; SL 2010, ch 21, § 1; SDCL § 3-12-54; SL 2019, ch 22, § 1.
3-12C-203. Board of Trustees created--Composition.
There is created a governing authority of the system known as the Board of Trustees. Voting representation on the board shall be the following:
(1) Two state employee members;
(2) Two certified school employee members;
(3) A participating municipality member;
(4) A participating county member;
(5) A participating classified employee member;
(6) A current contributing Class B member other than a justice, judge, or magistrate judge;
(7) A justice, judge, or magistrate judge;
(8) One head of a principal department established pursuant to § 1-32-2, or one head of a bureau under the Department of Executive Management established pursuant to § 1-33-3 appointed by the Governor;
(9) An individual appointed by the Governor;
(10) A county commissioner of a participating county;
(11) A school district board member;
(12) An elected municipal official of a participating municipality;
(13) A retiree; and
(14) A faculty or administrative member employed by the Board of Regents and not subject to the provisions of chapter 3-6D.
A representative of the State Investment Council shall serve as an ex officio nonvoting member.
Source: SL 1967, ch 303, § 3; SDCL § 3-12-4; SL 1968, ch 216, § 1; SL 1973, ch 25; SL 1974, ch 35, § 3; SL 1975, ch 38, § 7; SL 1976, ch 39, § 8; SL 1977, ch 28, § 4; SL 1979, ch 27, § 1; SL 1994, ch 33; SL 2018, ch 33, § 7; SDCL § 3-12-48; SL 2019, ch 22, § 1; SL 2020, ch 12, § 2.
3-12C-204. Election of trustees--Terms of office.
Each group of retirement system members who are vested or are currently contributing or employers as set out in § 3-12C-203 shall elect its own trustee or trustees in a separate election. The board shall promulgate rules, pursuant to chapter 1-26, to carry out the elections. The regular term of office of a trustee is four years and expires on June thirtieth. The appointees of the Governor shall serve at the pleasure of the Governor. The appointee of the Investment Council shall serve at the pleasure of the Investment Council. Except for appointees of the Governor and Investment Council, upon the death or resignation of a trustee, the board shall appoint a successor. The successor trustee shall fill the position immediately and serve until the June thirtieth that is no less than three but no more than four years after taking office.
Source: SL 1959, ch 84, § 6; SDC Supp 1960, § 15.3910; SL 1961, ch 255, §§ 5, 6; SL 1965, ch 220, §§ 5, 6; SL 1967, ch 303, § 3; SDCL §§ 3-12-4, 9-15-4 (5), 9-15-5, 13-45-9; SL 1968, ch 216, § 1; SL 1970, ch 106, § 1; SL 1973, ch 25; SL 1974, ch 35, §§ 5 to 7; SL 1976, ch 41; SL 1977, ch 28, § 14; SL 1979, ch 27, § 2; SL 2011, ch 21, § 1; SDCL § 3-12-49; SL 2019, ch 22, § 1; SL 2019, ch 23, § 7.
3-12C-205. Resignation of trustee due to loss of qualifying status--Filling of vacancy.
If any trustee no longer serves in the capacity that qualified the trustee for membership on the board, the trustee is considered to have resigned from the board on June thirtieth of the following calendar year. The vacancy created by the resignation shall be filled through the annual election process. However, if the vacancy is not filled through the annual election process, the board shall fill the vacancy by appointment. The person elected or appointed shall serve a four-year term regardless of the time remaining in the term of the trustee who ceased serving in the qualifying capacity. The provisions of this section do not apply to any trustee who, on January 1, 2019, is no longer serving in the capacity that qualified the trustee.
Source: SL 1959, ch 84, § 8; SDC Supp 1960, § 15.3912; SL 1961, ch 255, § 7; SDCL §§ 9-15-6, 13-45-12; SL 1970, ch 106, § 2; SL 1974, ch 35, § 11; SL 1982, ch 32, § 2; SL 2011, ch 21, § 2; SDCL § 3-12-53; SL 2019, ch 22, § 1; SL 2019, ch 23, § 6.
3-12C-206. Trustees--Oath of office.
Each trustee, after being appointed or elected, shall take and file in the Office of the Secretary of State the oath required by § 3-1-5.
Source: SL 1959, ch 84, § 7; SDC Supp 1960, § 15.3911; SL 1961, ch 255, § 8; SL 1967, ch 303, § 3; SDCL §§ 3-12-5, 9-15-8, 13-45-10; SL 1968, ch 216, § 1; SL 1974, ch 35, § 8; SDCL § 3-12-50; SL 2019, ch 22, §§ 9, 45; SL 2022, ch 15, § 2.
3-12C-207. Compensation and expenses of trustees.
The trustees shall receive per diem compensation and allowable expenses for their services as trustees as are fixed pursuant to § 4-7-10.4.
Source: SL 1967, ch 303, § 3; SDCL § 3-12-6; SL 1968, ch 216, § 1; SL 1974, ch 35, § 9; SDCL § 3-12-51; SL 2019, ch 22, § 1.
3-12C-208. Meetings of board--Chair and vice chair--Votes required for decision.
The board shall meet at least twice each year, and shall adopt its own rules of procedure. A majority of trustees constitutes a quorum. At the first meeting of each fiscal year the board shall elect from the board's membership a chair and a vice chair. At least eight concurrent votes and a majority of the members present are required for a decision by the board for any of its meetings.
Source: SL 1959, ch 84, §§ 9, 10; SDC Supp 1960, §§ 15.3913, 15.3914; SL 1961, ch 255, §§ 9 (a), 10; SL 1963, ch 285; SL 1965, ch 220, §§ 7, 8; SL 1967, ch 303, § 3 (1), (2); SDCL §§ 3-12-7, 3-12-8, 9-15-10, 9-15-17, 13-45-13, 13-45-14; SL 1968, ch 216, § 1; SL 1974, ch 35, § 10; SL 2012, ch 26, § 7; SL 2016, ch 31, § 1; SDCL § 3-12-52; SL 2019, ch 22, § 1.
3-12C-209. Appointment of executive director--Compensation--Employment of personnel--Bond.
The board shall appoint an executive director, qualified by training and experience, to serve at the pleasure of the board. The board shall fix the compensation for the executive director. The compensation shall be based on a compensation policy, adopted by the board, that considers an analysis of the compensation and responsibilities of executive directors of regional statewide retirement systems. The board may adjust the salary of the executive director annually in accordance with the state employee salary policy as enacted by the Legislature in each corresponding year.
The board shall report any change in the executive director's compensation above the state employee salary policy to the Retirement Laws Committee before July first for the upcoming fiscal year. The change in compensation above the state employee salary policy is effective if approved by the majority vote of the Retirement Laws Committee.
The executive director may hire additional employees as may be required to transact the business of the retirement system and shall fix the remuneration for such services.
The board shall require the bonding of the executive director in an amount set by the board that shall be included under the state employees' blanket bond. The premium may be charged to the fund.
Source: SL 1967, ch 303, § 3 (4), (5); SDCL §§ 3-12-9, 3-12-10; SL 1968, ch 216, § 1; SL 1974, ch 35, § 13; SL 1979, ch 27, § 4; SL 1980, ch 32; SL 1995, ch 17; SL 1998, ch 20, § 1; SL 2016, ch 31, § 2; SL 2017, ch 30, § 1; SL 2018, ch 35, § 1; SDCL § 3-12-55; SL 2019, ch 22, § 1.
3-12C-210. Expense fund continued--Transfer from retirement system fund--Report of budget--Appropriation and disbursement for expenses.
The South Dakota Retirement System expense fund is continued and the board is authorized to transfer from the South Dakota Retirement System fund an annual amount not to exceed three percent of the annual contributions received by the system, and the money transferred is appropriated for the payment of the administrative costs of the system. The board shall report its proposed annual budget to the Legislature for approval. Expenditures from all funds shall be disbursed on warrants drawn by the state auditor and shall be supported by vouchers approved by the executive director of the system.
Source: SL 1967, ch 303, § 12; SDCL § 3-12-42; SL 1968, ch 216, § 1; SL 1970, ch 25, § 12; SL 1974, ch 35, § 18; SL 1976, ch 42; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011; SL 2016, ch 31, § 5; SDCL § 3-12-61; SL 2019, ch 22, § 1.
3-12C-211. Rules for administration.
The Board of Trustees may promulgate rules necessary to establish uniform procedures for the administration of the system and to insure uniformity of application of the provisions of this chapter. Rules may be adopted in the following areas:
(1) Membership and class of membership;
(2) Contributions and the collection of contributions;
(3) Criteria and procedures for the determination of applications for, and payment of disability benefits;
(4) Procedure for applications for benefits and the payment of benefits;
(5) Election of trustees; and
(6) Procedure for the conduct of meetings of the board.
The rules shall be promulgated pursuant to chapter 1-26 and shall be in accordance with the provisions of this chapter.
Source: SL 1967, ch 303, § 3 (9); SDCL § 3-12-11; SL 1968, ch 216, § 1; SL 1974, ch 35, § 15; SL 1983, ch 22, § 1; SL 2017, ch 27, § 7; SDCL § 3-12-58; SL 2019, ch 22, § 1.
3-12C-212. Applications for membership or benefits--Picture identification required.
Applications for membership or any benefit shall be made to the executive director on forms approved by the system. Each application shall be accompanied by a copy of the person's current driver license or other picture identification card issued by a government agency or tribe.
Source: SL 1974, ch 35, § 14; SL 2016, ch 31, § 3; SDCL § 3-12-56; SL 2019, ch 22, §§ 12, 45; SL 2021, ch 27, § 1.
3-12C-213. Grievance procedure--Administrative and judicial review.
Any person aggrieved by a final determination made by the system's staff may request review of the final determination and a decision by the executive director if the request is made in writing within thirty days after receiving the final determination. The person, if then aggrieved by the executive director's decision, may appeal the decision, if the person files a written notice of appeal with the executive director within thirty days of the date of the decision. The notice shall identify the person appealing and the decision appealed. The appeal shall be conducted by a hearing examiner in accordance with chapter 1-26. The hearing examiner, after hearing the evidence in the matter, shall make proposed findings of fact and conclusions of law, and a proposed decision. The executive director shall accept, reject, or modify the findings, conclusions, and decision of the hearing examiner and such action constitutes the final agency decision. Alternatively, the executive director may appoint the hearing examiner to make the final agency decision. The final agency decision may be appealed to circuit court pursuant to chapter 1-26. The executive director may arrange for the assistance of private counsel throughout the appeal process.
Source: SL 2008, ch 22, § 1; SL 2016, ch 31, § 4; SL 2018, ch 33, § 8; SDCL § 3-12-57.1; SL 2019, ch 22, § 1.
3-12C-214. Correction of records--Adjustment for underpayment or overpayment--Limitation.
If any change or error in the records of the system or any participating unit results in any person receiving from the system less than the person would have been entitled to receive had the records been correct, the executive director shall correct the error and, as far as practicable, shall adjust the payment to provide the person the amount to which the person is correctly entitled.
If any change or error in the records of the system or any participating unit results in any person receiving from the system more than the person would have been entitled to receive had the records been correct, the executive director shall correct the error and, as far as practicable, shall recover the overpayment to reflect the amount to which the person is correctly entitled. The board shall promulgate rules, pursuant to chapter 1-26, concerning the methods by which an overpayment shall be repaid, including an actuarial equivalent. However, the recovery of an overpayment is limited to the amount attributable to any error that occurred during the six-year period immediately before the discovery of the error. This limitation does not apply in the case of fraud, intentional misrepresentation, material omission, or other fault on the part of a member or beneficiary.
Source: SL 1959, ch 84, § 38; SDC Supp 1960, § 15.3942; SL 1961, ch 255, § 40; SDCL §§ 9-15-68, 13-45-70; SL 1970, ch 25, § 13; SDCL Supp, § 3-12-44; SL 1974, ch 35, § 68; SL 2015, ch 28, § 1; SL 2016, ch 31, § 23; SDCL § 3-12-114; SL 2019, ch 22, § 1.
3-12C-215. Confidentiality of records--Exceptions.
Any information contained in any record pertaining to a member of the system is confidential and shall be used for the sole purpose of carrying into effect the provisions of this chapter, chapter 3-13, and chapter 3-13A. Any record containing the information is not open to inspection by any person or entity except the member, the board, the employees of the system, or the member's employer. The information and records may be released to the member or with the member's consent. The information and records may also be released pursuant to a court order or subpoena.
Source: SL 2002, ch 22, § 5; SDCL § 3-12-58.1; SL 2019, ch 22, § 1; SL 2020, ch 12, § 3.
3-12C-216. Exemption of contributions and benefits from taxation and process.
The rights of a person to a benefit, return of accumulated contributions, the benefit itself, any optional benefits and any other right accrued or accruing under the provisions of this chapter and all moneys belonging to the system are hereby exempt from any state, county, municipal, or other local tax and may not be subject to execution, garnishment, attachment, operation of bankruptcy or insolvency laws or any other process of law whatsoever and shall be unassignable, except as required under applicable law, including any qualified domestic relations order as defined in § 414(p) of the Internal Revenue Code, or as is otherwise specifically provided in this chapter.
Source: SL 1959, ch 84, § 40; SDC Supp 1960, § 15.3943; SL 1961, ch 255, § 42; SDCL §§ 9-15-70, 13-45-69; SL 1970, ch 25, § 13; SDCL Supp, § 3-12-45; SL 1974, ch 35, § 69; SL 1985, ch 24, § 3; SL 2013, ch 20, § 11; SDCL § 3-12-115; SL 2019, ch 22, § 1.
3-12C-217. Domestic relations orders--Determination as to whether qualified--Restrictions on provisions.
For purposes of § 3-12C-216, the system shall determine if a domestic relations order is a qualified domestic relations order. Upon receipt of a domestic relations order, the system shall promptly issue a written notice of receipt to the member and any alternate payee. Within a reasonable period of time, the system shall issue a determination indicating if the domestic relations order qualifies as a plan-approved domestic relations order in accordance with § 414(p) of the Internal Revenue Code.
No order may require the payment of benefits to an alternate payee before the retirement of a member or the withdrawal of a member's accumulated contributions for a distribution to an alternate payee. In addition, no order may require the payment of monthly benefits to an alternate payee after the death of the member.
No order approved after July 1, 2018, may require the payment of benefits to the alternate payee's estate after the death of the alternate payee. The amount paid in monthly benefits to the alternate payee shall be paid to the member after the death of the alternate payee.
Source: SL 2018, ch 33, § 11; SDCL § 3-12-115.1; SL 2019, ch 22, § 1.
3-12C-218. Business name of system--Treasurer.
The Board of Trustees shall transact all business and hold all cash in the name of the South Dakota Retirement System. The state treasurer shall be the treasurer of the system.
Source: SL 1967, ch 303, § 3 (3); SDCL § 3-12-13; SL 1968, ch 216, § 1; SL 1974, ch 35, §§ 1, 17; SDCL § 3-12-60; SL 2019, ch 22, § 1.
3-12C-219. Use of fund restricted.
No part of the fund created by this chapter may be used for any purpose other than for the exclusive benefit of members and their beneficiaries, payment of reasonable administrative expenses of the system, and reimbursement of overpayments made by employers. No participating unit may receive any amounts from the fund except such amounts which may remain after the satisfaction of all liabilities of the system to its members.
Source: SL 1984, ch 23, § 3; SL 2012, ch 26, § 10; SDCL § 3-12-72.1; SL 2019, ch 22, § 1.
3-12C-220. Diversion of funds prohibited--Legislative policy.
In order to ensure employee confidence in the preservation and management of the South Dakota Retirement System, it is legislative policy that there should be no legislative enactment nor administrative action which would have the effect, directly or indirectly, of diverting any funds of the system to any purpose other than the administration and support of the benefits of members of the system.
Source: SL 1990, ch 34; SDCL § 3-12-72.3; SL 2019, ch 22, § 1.
3-12C-221. Rights of members on termination of system or discontinuance of contributions.
If the system is terminated, or if contributions to the system are discontinued, the rights of all members to benefits that have accrued as of the date of termination or discontinuation of contributions shall vest. A member's recourse against the fund shall be limited by the extent to which the member's benefits are funded.
Source: SL 1984, ch 23, § 4; SDCL § 3-12-72.2; SL 2019, ch 22, §§ 13, 45.
3-12C-222. Application of forfeitures.
Forfeitures arising because of termination of employment before the member becomes eligible for benefits or for any other reason shall be applied to reduce the costs of the system and not to increase the benefits otherwise payable to members.
Source: SL 1984, ch 23, § 5; SDCL § 3-12-76.2; SL 2019, ch 22, § 1.
3-12C-223 . Investment of assets by investment council--Pooling of funds--Standards for investment--Compliance with federal divestiture enactments.
The State Investment Council as provided in § 4-5-12 is responsible for the investment of the assets of the system. The Investment Council may pool the several retirement funds for investment purposes and the investment of the funds is not restricted by the provisions of § 4-5-26 , but is governed by the provisions of § 4-5-27 . The assets of the system may not be managed in any manner for the purposes of social investment. The State Investment Council shall invest member trust funds in a manner that is solely designed to provide for the exclusive benefit of the members and benefit recipients of the system. The foregoing provisions notwithstanding, the State Investment Council shall establish a shareholder activism policy to engage and promote compliance with federal divestiture enactments by the United States Congress and to recognize the risks associated with companies doing business in the countries identified. Once the United States Congress has acted, the State Investment Council may initiate the shareholder activism policy on its own accord, or shall do so at the direction of the Legislature by resolution. The State Investment Council shall report semi-annually on council actions related to the shareholder activism policy. The report shall include an analysis of the success of the policy in accomplishing the goal of promoting compliance with the federal enactments and its impact on all sales of affected companies.
Source: SL 1974, ch 35, § 71; SL 1989, ch 39; SL 2010, ch 21, § 3; SDCL § 3-12-117 ; SL 2019, ch 22, § 1; SL 2020, ch 12, § 4.
3-12C-224. Quadrennial independent report on investment performance.
The board shall retain the services of an independent contractor, not involved in the investment process, to make a report to the board not less than every four years on the investment performance results of the assets of the retirement funds.
Source: SL 1974, ch 35, § 72; SL 2016, ch 31, § 25; SDCL § 3-12-118; SL 2019, ch 22, § 1.
3-12C-225. Review of investment policy when return lower than average--Report to Governor and Legislature.
In the event the investment return on the common stock portfolio or bond portfolio is lower than the average return achieved by other institutional investors of pension funds, then the Investment Council shall review the way in which the assets are being invested and the sources of investment advice being utilized to determine what changes, if any, are desirable to produce an investment return equal to or greater than the average, and shall make a report to the Governor and the Legislature on the investment performance results and any changes necessary to improve the investment return.
Source: SL 1974, ch 35, § 73; SDCL § 3-12-119; SL 2019, ch 22, § 1.
3-12C-226. Annual actuarial valuation of system--Scope of valuation.
To determine and verify the adequacy of the member and employer contributions to the system, an actuarial valuation of the system shall be made annually by an approved actuary.
The actuarial valuation shall include:
(1) A demonstration of the relationship of the current member and employer contributions, expressed as a percentage of payroll, to the minimum actuarial requirement to support benefits; and
(2) The current year's actuarial value funded ratio and fair value funded ratio as well as the ratios from the prior actuarial valuations.
Source: SL 1974, ch 35, § 74; SL 1996, ch 27; SL 2004, ch 42, § 13; SL 2018, ch 33, § 12; SDCL § 3-12-120; SL 2019, ch 22, §§ 14, 45.
3-12C-227. Actuarial assumptions on which valuation based--Report of change.
The actuarial valuation required by § 3-12C-226 shall be based on actuarial assumptions adopted by the Board of Trustees as a result of an actuarial experience analysis. The board may not make any change in the actuarial assumptions unless the approved actuary retained to make the actuarial valuation certifies that the change is reasonable. If the board makes any such change, it shall report the change to the Governor and to the Retirement Laws Committee. The report shall include the actuary's and board's analysis of the conditions that led to the change.
Source: SL 1974, ch 35, § 76; SL 1980, ch 31, § 2; SL 2004, ch 42, § 2; SDCL § 3-12-121; SL 2019, ch 22, § 1.
3-12C-228. Funding of system--Review--Report--Corrective action.
The board shall review the funding of the system and shall make a report to the Governor and the Retirement Laws Committee if the funding of the system does not meet both of the following conditions:
(1) The fair value funded ratio is greater than or equal to one hundred percent; and
(2) The contribution rate meets or exceeds the minimum actuarial requirement to support benefits.
The report shall include recommendations for the circumstances and timing for any corrective action, including benefit changes, to improve the conditions in subdivisions (1) and (2). For Class D members, corrective action is limited to reducing or eliminating the cost of living adjustment. Based on this report and the recommendations of the board, the Legislature may adopt corrective action to improve the conditions in subdivisions (1) and (2).
Eligibility for benefits, the amount of any benefit, and the rate of member contributions established in this chapter are not the contractual rights of any member and are subject to change by the Legislature for purposes of corrective action to improve the conditions in subdivisions (1) and (2).
Source: SL 1974, ch 35, § 75; SL 1986, ch 37, § 12; SL 2004, ch 42, § 1; SL 2008, ch 20, § 15; SL 2013, ch 21, § 1; SL 2016, ch 31, § 26; SL 2017, ch 27, § 2; SL 2018, ch 33, § 14; SDCL § 3-12-122; SL 2019, ch 22, § 1; SL 2020, ch 13, § 4.
3-12C-229. Annual report of funded status of system.
At the beginning of each legislative session, the board shall provide the Governor and the Legislature with an annual report of the funded status of the system for the fiscal year that ended the previous June thirtieth.
Source: SL 2017, ch 27, § 3; SDCL § 3-12-122.1; SL 2019, ch 22, § 1.
3-12C-230. Record of board proceedings--Annual report .
The board shall keep complete records of its proceedings which shall be open to public inspection. The board shall prepare an annual report setting forth its financial information for the previous fiscal period including the amount of the accumulated cash and securities of the system, and the results of the most recent actuarial valuation. A copy of the report shall be available on the system's website.
Source: SL 1967, ch 303, § 3 (11); SDCL § 3-12-12; SL 1968, ch 216, § 1; SL 1974, ch 35, § 16; SL 1977, ch 28, § 5; SDCL § 3-12-59; SL 2019, ch 22, §§ 10, 45.
3-12C-301. Members of system.
All of the following full-time employees are included as members in the system:
(1) All state employees;
(2) All certified school employees;
(3) All justices, judges, and magistrate judges;
(4) All police officers and firefighters of participating municipalities;
(5) All general employees of participating municipalities;
(6) All employees of participating counties;
(7) All classified employees of school districts that are participating with the school districts' classified employees and all other classified employees;
(8) All employees of the Board of Regents; and
(9) All state law enforcement officers.
Source: SL 1957, ch 142, § 8; SL 1959, ch 84, § 15; SDC Supp 1960, §§ 15.3919 (1), 44.06A08; SL 1961, ch 255, § 17; SL 1963, ch 86, § 1; SL 1965, ch 220, § 13; SL 1967, ch 303, § 4; SDCL §§ 3-12-19, 3-13-12, 9-15-25, 9-15-26, 13-45-21; SL 1968, ch 56, § 1; SL 1968, ch 216, § 1; SDCL Supp, § 3-12-19.2; SL 1974, ch 35, § 19; SL 1975, ch 38, § 8; SL 1976, ch 39, § 7; SL 1981, ch 13, § 1; SL 2012, ch 26, § 8; SDCL § 3-12-62; SL 2019, ch 22, § 1; SL 2020, ch 12, § 5; SL 2021, ch 29, § 9, eff. Apr. 1, 2021.
3-12C-302. Membership in system--Exclusions.
Membership in the system shall exclude the following:
(1) All elective officials except justices and judges, unless the official is currently contributing or has previously contributed to the system or the official has elected and is otherwise qualified to become a member of the system;
(2) The governing body of any participating county, municipality, or other political subdivision; and
(3) All personnel employed by the municipality of Sioux Falls before July 1, 2013. However, any person employed before July 1, 2013, who separates from service with the municipality of Sioux Falls and is subsequently rehired by the municipality of Sioux Falls and begins working after June 30, 2013, as a full-time employee shall be a member of the system.
Source: SL 1967, ch 303, § 4; SDCL § 3-12-20; SL 1968, ch 216, § 1; SDCL Supp, § 3-12-20.1; SL 1973, ch 24, § 3; SL 1974, ch 35, § 20; SL 1975, ch 38, § 9; SL 1975, ch 39, § 4; SL 1976, ch 39, § 6; SL 1977, ch 30, § 1; SL 1980, ch 33, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011; SL 2013, ch 19, § 2; SL 2015, ch 25, § 4; SL 2016, ch 31, § 7; SDCL § 3-12-63; SL 2019, ch 22, § 1; SL 2019, ch 23, § 3; SL 2020, ch 13, § 5; SL 2021, ch 29, § 10, eff. Apr. 1, 2021.
3-12C-303. Newly elected officials permitted to join system--Requirements--Credited service.
A newly-elected official, who is a full-time employee of a participating unit and not a member of the system, may elect to become a member. However, the official shall make the election when the official is first eligible to participate in the system, and the official's election is irrevocable for as long as the official is an elected official. If the official is a current contributing member or has previously contributed to the system, the elected official shall participate in the system. If an elected official has elected not to participate in the system, the official is not eligible to make a new election. The official's credited service is limited to service for which contributions are made.
Source: SL 1967, ch 303, § 4; SDCL § 3-12-21; SL 1968, ch 216, § 1; SL 1970, ch 25, § 3; SL 1974, ch 35, § 21; SDCL § 3-12-64; SL 2019, ch 22, § 1; SL 2019, ch 23, § 2; SL 2021, ch 29, § 11, eff. Apr. 1, 2021.
3-12C-304 . Continuation of previously established retirement plan--Vote of employees required to participate in consolidated system.
Any political subdivision or public corporation may operate a retirement plan created prior to July 1, 1974, unless the retirement plan of the political subdivision or public corporation is accepted in the system created by this chapter. Notwithstanding the provisions of this section and § 3-12C-306 , no political subdivision or public corporation with a retirement plan may be accepted as a participating unit unless two-thirds of the members of the retirement plan vote to become members of the system created by this chapter.
Source: SL 1974, ch 35, § 23; SDCL § 3-12-65 ; SL 2019, ch 22, § 1; SL 2020, ch 12, § 6.
3-12C-305. Newly established retirement plans of political subdivisions and public corporations to participate in consolidated system.
No political subdivision or public corporation, including municipalities, counties, and chartered governmental units, may establish any retirement plan unless such political subdivision or public corporation becomes a participating unit of the system created in this chapter.
Source: SL 1974, ch 35, § 24; SDCL § 3-12-66; SL 2019, ch 22, § 1.
3-12C-306. Election by political subdivision or public corporation to participate in consolidated system.
Any political subdivision and any public corporation, including municipalities, counties and chartered governmental units in the State of South Dakota, may become a participating unit by a duly passed resolution of its governing body. Any political subdivision not participating in the system on June 30, 1985, may become a participating unit for only its class A members or only its class B members, or for both classes together. If a political subdivision elects to participate for either one class of members or for both classes, all full-time employees in that class or classes shall become members.
Source: SL 1961, ch 255, § 16; SL 1965, ch 220, § 12; SL 1967, ch 303, § 10; SDCL §§ 3-12-36, 9-15-24; SL 1968, ch 216, § 1; SL 1974, ch 35, § 25; SL 1985, ch 25; SDCL § 3-12-67; SL 2019, ch 22, § 1; SL 2021, ch 29, § 12, eff. Apr. 1, 2021.
3-12C-307. Coverage of joint employees of participating and nonparticipating political subdivisions.
If a participating unit and a nonparticipating South Dakota political subdivision or public corporation agree to provide certain public services on a joint basis, they may agree to consider persons employed pursuant to the agreement as if they were solely employees of the participating unit for the exclusive purposes of the system created in this chapter. The total compensation paid a person because of the employment shall be considered compensation paid by the participating unit and services rendered by the person because of the employment shall be considered service rendered by the employee to the participating unit.
Source: SL 1973, ch 51, § 1; SDCL Supp, § 9-15-25.1; SL 1974, ch 35, § 26; SDCL § 3-12-68; SL 2019, ch 22, §§ 15, 45.
3-12C-308. Accrued benefit deposit required when political subdivision or public corporation joins consolidated system--Participation by employees--Deferred payment of deposit.
Employees of an eligible political subdivision or public corporation not participating in the systems consolidated into the system created by this chapter, may become a participating unit in the system if the unit commits to deposit an amount equal to the present value of benefits earned to date, based on the employee's prior service to the unit to be covered by the system. The expense of the actuarial determination of this amount shall be borne by the applicant. All eligible employees of an applicant shall participate in the system upon admission. If the unit is unable to deposit this amount in a single sum, the unit shall have the option to pay the amount by periodic level installments over a period up to twenty years, the value of which, when discounted for compound interest at the assumed rate of return, is equal to the amount due at the date of participation.
Source: SL 1967, ch 303, § 10; SDCL § 3-12-36; SL 1968, ch 216, § 1; SL 1974, ch 35, § 27; SL 2004, ch 42, § 12; SL 2016, ch 31, § 9; SDCL § 3-12-69; SL 2019, ch 22, §§ 43, 45.
3-12C-309. Effective date of participation of employees of participating unit.
The date when the participation of the employees of a participating unit may commence shall be at the beginning of the first month of a calendar quarter.
Source: SL 1967, ch 303, § 10; SDCL § 3-12-37; SL 1968, ch 216, § 1; SL 1974, ch 35, § 28; SL 2009, ch 20, § 1; SDCL § 3-12-70; SL 2019, ch 22, § 1.
3-12C-310. Privatization of governmental function.
If a participating unit determines that a governmental function is to be privatized, the participating unit shall pass a resolution to that effect determining the date that its employees will cease to be public employees eligible for membership in the system. The participating unit shall notify the system and the employees affected of the resolution and, after the effective date, cease to make contributions to the South Dakota Retirement System as required in §§ 3-12C-401 and 3-12C-403. Any member affected by privatization is entitled to the benefits accrued as of the effective date under the provisions of chapter 3-12C. For the purposes of determining eligibility for vesting and early retirement pursuant to § 3-12C-1111, years of service with the successor employer shall be considered.
Source: SL 1997, ch 30, § 1; SL 2016, ch 31, § 11; SDCL § 3-12-72.4; SL 2019, ch 22, § 1.
3-12C-401. Rate of contributions--Deduction from pay--Employer to make members' contributions.
Any employee included in § 3-12C-301 shall make a contribution to the system, except as specified in § 3-12C-1405, and the employer shall make an equal contribution to the system, except as otherwise specified, at the following rates:
(1) Class A members: five percent of compensation through June 30, 2002, and six percent of compensation after June 30, 2002;
(2) Justices, judges, and magistrate judges: nine percent of compensation;
(3) All other Class B members: eight percent of compensation.
The employer shall cause to be deducted on each payroll of the employee for each payroll period the contribution payable by the employee as provided in this section.
Except for those contributions specified in § 3-12C-1405, contributions required of employees by this section shall be made by the participating unit pursuant to the provisions of § 414(h)(2) of the Internal Revenue Code. The contributions shall be classified as employee contributions for all purposes under this chapter. An employee may not receive the amount of the contributions directly rather than as contributions under this section.
Source: SL 1967, ch 303, § 5; SDCL §§ 3-12-22, 3-12-23; SL 1968, ch 216, § 1; SL 1974, ch 35, § 29; SL 1977, ch 31, § 5; SL 1982, ch 38; SL 1984, ch 23, § 2; SL 1989, ch 38, § 8; SL 2000, ch 23, § 1; SL 2010, ch 23, § 5, eff. Apr. 1, 2010; SL 2013, ch 20, § 6; SDCL § 3-12-71; SL 2019, ch 22, § 1; SL 2020, ch 12, § 7.
3-12C-402. Additional contribution for foundation members by participating unit.
Each participating unit shall make an additional contribution in the amount of six and two-tenths percent of any foundation member's compensation in each calendar year that exceeds the maximum taxable amount for social security for the calendar year. The additional contributions shall be made only for Class A foundation members and may not be treated as employer contributions.
Source: SL 2002, ch 23, § 5; SL 2016, ch 32, § 37; SDCL § 3-12-91.1; SL 2019, ch 22, § 1.
3-12C-403. Monthly transmission of contributions--Deposit in fund.
All employee and employer contributions to the system and the necessary supporting data shall be transmitted by the employer at least monthly to the system. Each monthly transmission for each respective calendar month shall be completed by the fifteenth day of the following month. All supporting data shall be transmitted electronically in a format determined by system personnel. All contributions shall be deposited with the state treasurer in the fund established to administer this chapter. If any participating unit fails to deliver contributions with respect to compensation paid in any month and the necessary supporting data by the fifteenth day of the following month, the participating unit shall pay to the system a penalty equal to five percent of the delinquent contributions. The delinquent contributions and the penalty shall bear interest at the assumed rate of return from the date due until the date paid. In calculating accumulated contributions, all contributions with respect to compensation paid in any fiscal year shall be included in the calculation of interest credited for that fiscal year.
Source: SL 1959, ch 84, § 28; SDC Supp 1960, § 15.3932 (3); SL 1961, ch 255, § 29; SL 1965, ch 220, § 21; SL 1967, ch 50, § 4; SL 1967, ch 303, § 5; SDCL §§ 3-12-22 to 3-12-24, 3-12-28, 9-15-49, 13-45-32; SL 1968, ch 216, § 1; SL 1970, ch 25, § 4; SL 1974, ch 35, § 30; SL 1978, ch 32, § 1; SL 1986, ch 38; SL 2008, ch 20, § 7, eff. Jan. 1, 2009; SL 2016, ch 31, § 10; SDCL § 3-12-72; SL 2019, ch 22, § 1.
3-12C-404. Deduction of delinquent contributions from payments due from state--Penalty and interest.
If any participating unit becomes delinquent thirty or more days by failure or refusal to pay any amounts due to the system, the state treasurer shall, upon certification by the executive director of the delinquency, withhold and deduct the amount of the delinquency, penalty, and interest as specified in § 3-12C-403 from the next succeeding payment or payments of any money in the hands of the state treasurer due and payable to the participating unit.
Source: SL 1959, ch 84, § 30; SDC Supp 1960, § 15.3934 (2); SL 1967, ch 50, § 5; SDCL § 13-45-38; SL 1970, ch 25, § 13; SDCL Supp, § 3-12-23.1; SL 1974, ch 35, § 32; SL 2008, ch 20, § 8, eff. Jan. 1, 2009; SL 2016, ch 31, § 12; SDCL § 3-12-74; SL 2019, ch 22, § 1.
3-12C-405. Service records and employee information furnished by employers.
The officers responsible for the personnel records of employees of each participating unit shall file with the Board of Trustees, in such form as the board shall from time to time prescribe, a detailed statement of all service rendered by each eligible employee of the system; and shall furnish such other information as the board shall from time to time require in the operation of the system.
Source: SL 1967, ch 303, § 10; SDCL § 3-12-39; SL 1968, ch 216, § 1; SL 1974, ch 35, § 31; SDCL § 3-12-73; SL 2019, ch 22, § 1.
3-12C-406. Knowing transmission of report with excluded compensation as misdemeanor.
Any person or employer who transmits a report of compensation to the system knowing that some or all of the compensation is excluded by § 3-12C-105, is guilty of a Class 1 misdemeanor.
Source: SL 2017, ch 28, § 5; SDCL § 3-12-47.13; SL 2019, ch 22, § 1.
3-12C-407. Accumulated contributions defined for foundation members.
For any foundation member, the term, accumulated contributions, means the sum of:
(1) All contributions made by the member, including member contributions made by an employer after June 30, 1984, pursuant to § 3-12C-401;
(2) For a member whose contributory service concluded after June 30, 2010, eighty-five percent of the employer contributions or noncontributory service if the member had three years or more of contributory service and fifty percent of the employer contributions if the member had less than three years of service; or for a member whose contributory service concluded before July 1, 2010, one hundred percent of the employer contributions or noncontributory service if the member had three years or more of contributory service and seventy-five percent of the employer contributions if the member had less than three years of service;
(3) Member redeposits and member credited service purchases pursuant to §§ 3-12C-504, 3-12C-509, and 3-12C-511; and
(4) The effective rate of interest earned on the sum of subdivisions (1), (2), and (3).
Source: SL 2016, ch 32, § 24; SDCL § 3-12-89.2; SL 2019, ch 22, §§ 19, 45.
3-12C-408. Accumulated contributions defined for generational members.
For any generational member, the term, accumulated contributions, means the sum of:
(1) All contributions made by the member;
(2) Eighty-five percent of the contributions made by the member's employer if the member has three years or more of contributory service or noncontributory service, or fifty percent of the contributions made by the employer if the member has less than three years of contributory service or noncontributory service;
(3) Member credited service purchases pursuant to §§ 3-12C-504, 3-12C-509, and 3-12C-511; and
(4) The effective rate of interest on the sum of subdivisions (1), (2), and (3).
Source: SL 2016, ch 32, § 1; SDCL § 3-12-500; SL 2019, ch 22, § 1.
3-12C-409. Refund of unpaid accumulated contributions upon termination--Reversion of unclaimed payments to system.
After all benefits currently or potentially payable under any provision of this chapter have terminated, if the aggregate benefits paid to a member and the member's surviving spouse and minor children, including any distribution of the member's variable retirement account, are less than the member's accumulated contributions, the amount by which the accumulated contributions exceed total payments made to date shall be paid in a lump sum as provided in this section.
Amounts payable under this section shall be paid as follows:
(1) To the beneficiary or entity designated by the member, if any is designated;
(2) If no beneficiary or entity is designated, then to the member's surviving spouse;
(3) If no beneficiary or entity is designated and there is no surviving spouse, then to all surviving children, irrespective of age, on a share-alike basis; or
(4) If no beneficiary or entity is designated, there is no surviving spouse, and there are no surviving children, then to the member's estate.
If no claim for payment due upon the death of a deceased member is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the executive director, payment of the claim is warranted by exceptional circumstances.
Source: SL 1974, ch 35, § 64; SL 1986, ch 37, § 9; SL 1995, ch 24, § 16; SL 1997, ch 29, § 1; SL 1998, ch 15, § 21; SL 1999, ch 15, § 7; SL 2006, ch 21, § 1; SL 2010, ch 20, § 12; SL 2014, ch 20, § 30; SL 2015, ch 27, § 1; SL 2016, ch 32, § 46; SL 2017, ch 27, § 19; SDCL § 3-12-110; SL 2019, ch 22, § 1.
3-12C-410. Lump-sum payments where designated beneficiary does not survive member--Reversion to system of unclaimed payments.
If a designated beneficiary does not survive the member, any lump-sum payment that may be due shall be payable to the member's surviving spouse. If there is no surviving spouse, the payment shall be payable to all of the member's surviving children, irrespective of age, on a share-alike basis. If there is no surviving spouse and no surviving children, the payment shall be payable to the estate of the deceased member. If no claim for payment due upon the death of a deceased member is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the executive director, payment of the claim is warranted by exceptional circumstances.
Source: SL 1967, ch 303, § 8 as added by SL 1968, ch 216, § 1; SDCL Supp, § 3-12-29.1; SL 1974, ch 35, § 70; SL 2006, ch 21, § 2; SL 2016, ch 31, § 24; SDCL § 3-12-116; SL 2019, ch 22, § 1.
3-12C-501. Uniform application of service credit rules.
Any period of credited service granted under the rules and regulations adopted by the Board of Trustees must be applied uniformly and consistently to all members.
Source: SL 1974, ch 35, § 45; SDCL § 3-12-89; SL 2019, ch 22, § 1.
3-12C-502. Credited service defined for foundation members.
For any foundation member, the term, credited service, means:
(1) Years of service, or fractions thereof, for which member contributions were made to the system;
(2) Years of noncontributory service, or fractions thereof, credited before July 1, 1974, previously credited under the provisions of the retirement systems consolidated pursuant to § 3-12C-1601;
(3) Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;
(4) Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions;
(5) Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12C-514;
(6) Years of service, or fractions thereof, by faculty and administrators employed by the board of regents before April 1, 1964, credited pursuant to §§ 3-12C-1611 and 3-12C-1612;
(7) Years of noncontributory service, or fractions thereof, earned before July 1, 1967, but not credited under the South Dakota public employee retirement system as it was consolidated pursuant to § 3-12C-1601 because the person earned the service prior to attaining the age of thirty. The service shall be credited only to those persons who are contributing members on July 1, 1987. No service may be credited pursuant to this subdivision to any member who has withdrawn the member's accumulated contributions after July 1, 1967; and
(8) Years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under that system.
Source: SL 2016, ch 32, § 25; SDCL § 3-12-89.3; SL 2019, ch 22, § 1.
3-12C-503. Credited service defined for generational members.
For any generational member, the term, credited service, means the sum of the following:
(1) Years of service, or fractions thereof, for which member contributions were made to the system;
(2) Any period of authorized leave of absence or sick leave with pay for which deductions for member contributions are made, deposited, and credited to the fund;
(3) Any period of authorized leave of absence or sick leave without pay or temporary layoff, during or for which a member obtained credit by payments to the fund made in lieu of salary deductions; and
(4) Any period during which a member is on an authorized leave of absence to enter military service, if the member fulfills the provisions of § 3-12C-514.
Source: SL 2016, ch 32, § 2; SDCL § 3-12-501; SL 2019, ch 22, § 1.
3-12C-504. Purchase of prior service credit--Calculation of amount due.
A current contributing member of the system may receive credited service by election to make, or have made on the member's behalf, contributions, based on the higher of the member's current compensation, or the member's final compensation calculated as if the member retired on the date of election, at an actuarially- determined percentage times the member rate, for each year of service for which the member wishes to receive credit, if:
(1) The current contributing member of the system could have established credit for any South Dakota public service by making contributions under this chapter or any prior law; or
(2) The current contributing member was not permitted to establish credit for any South Dakota public service.
The amount of the credited service and the rate of contribution shall be at class A rates unless the service for which credit is sought was rendered as a class B member in which case class B rates shall apply. If a participating unit has failed to pay employer or member contributions to the system on behalf of a member as required under this chapter or under any predecessor system consolidated pursuant to § 3-12C-1601, the amount due the system shall be calculated in accordance with this section.
The member rate in effect as of July 1, 2001, shall be used in calculation of the purchase cost of any service performed prior to July 1, 2002, if a contract to purchase such service is in place prior to July 1, 2004. The member rate in effect on and after July 1, 2002, shall be the basis for calculation of the purchase cost of any service if the contract to purchase such service is not in place until on or after July 1, 2004.
Source: SL 1974, ch 35, § 40; SL 1977, ch 28, § 8; SL 1980, ch 31, § 4; SL 1984, ch 24, § 5; SL 1989, ch 38, § 16; SL 2002, ch 23, § 2; SL 2004, ch 39, § 1; SDCL § 3-12-83; SL 2019, ch 22, § 1.
3-12C-505. Prospective increase for credited service related to years of noncontributory service.
Any increase in a retired member's benefit as a result of credited service related to years of noncontributory service, or fractions thereof, earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under the system shall be prospective only from July 1, 1997.
Source: SL 1997, ch 25, § 2; SL 2016, ch 32, § 30; SDCL § 3-12-47.1; SL 2019, ch 22, § 1.
3-12C-506. Refund for purchase cost of noncontributing service.
Any member who, pursuant to the provisions of § 3-12C-504, has purchased a portion or all of the member's noncontributory service earned by a member from July 1, 1967, to June 30, 1974, inclusive, but not credited under the South Dakota public employee retirement system because of the age and service restrictions established under the system is entitled to a refund of such purchase cost.
Source: SL 1997, ch 25, § 3; SL 2016, ch 32, § 31; SDCL § 3-12-47.2; SL 2019, ch 22, § 1.
3-12C-507. Repealed.
Source: SL 1996, ch 30, § 2; SDCL § 3-12-83.1; SL 2019, ch 22, § 1; SL 2020, ch 12, § 9.
3-12C-508. Repealed.
Source: SL 1996, ch 30, § 3; SL 2008, ch 20, § 11; SL 2013, ch 20, § 7; SDCL § 3-12-83.2; SL 2019, ch 22, § 1; SL 2020, ch 12, § 10.
3-12C-509. Purchase of prior service credit for public service not covered by retirement plan.
If a current contributing member with at least five years of contributory service in the system has other public service for which the member is not entitled to retirement benefits from another public retirement system, the member may elect to deposit or have deposited on the member's behalf an amount equal to an actuarially-determined percentage times the Class A rate of contribution multiplied by the higher of the member's annual compensation at the time of making the election, or the member's final compensation calculated as if the member retired on the date of the member's election, for each year of other public service for which the member wishes to receive credit as a Class A member.
The member rate in effect as of July 1, 2001, shall be used in calculation of the purchase cost of any service performed prior to July 1, 2002, if a contract to purchase such service was in place prior to July 1, 2004. The member rate in effect on and after July 1, 2002, shall be the basis for calculation of the purchase cost of any service if the contract to purchase such service is not in place until on or after July 1, 2004.
Source: SL 1974, ch 35, § 41; SL 1980, ch 31, § 5; SL 1984, ch 24, § 6; SL 1989, ch 38, § 17; SL 2002, ch 23, § 3; SL 2004, ch 39, § 2; SDCL § 3-12-84; SL 2019, ch 22, § 1; SL 2023, ch 14, § 3.
3-12C-510. Acquisition of credited service through transfer of funds--Requirements.
A contributing member may acquire credited service by utilizing a trustee to trustee transfer of funds, excluding any after tax employee contributions, from a member's individual retirement plan that meets the requirements of sections 403(b) or 457 of the Internal Revenue Code to pay the cost of purchase pursuant to § 3-12C-504, 3-12C-509, or 3-12C-511.
Source: SL 2002, ch 22, § 4; SL 2008, ch 20, § 12; SL 2013, ch 20, § 8; SDCL § 3-12-84.1; SL 2019, ch 22, §§ 18, 45.
3-12C-511. Purchase of nonqualified permissive service credit allowed.
Notwithstanding the restrictions contained in §§ 3-12C-504 and 3-12C-509, a current contributing member with over five years of contributory service in the system may purchase nonqualified permissive service credit as defined in and pursuant to the provisions of § 415(n) of the Internal Revenue Code.
Source: SL 2003, ch 94, § 2; SL 2009, ch 21, § 1; SL 2013, ch 20, § 9; SDCL § 3-12-84.2 SL 2019, ch 22, § 1.
3-12C-512. Acquisition of credited service for members mobilized into certain federal military service.
If a contributing member was mobilized into federal military service pursuant to the provisions of United States Code Title 10 after February 1, 2002, but prior to September 30, 2004, the member, after returning to active membership in the system, may acquire credited service at the rates in effect prior to July 1, 2004, for a period of two years after the member's release from such federal military service, the cost provisions of §§ 3-12C-504, 3-12C-509, and 3-12C-518 notwithstanding. All other provisions in regard to credited service acquisition apply.
Source: SL 2005, ch 25, § 1; SDCL § 3-12-84.3; SL 2019, ch 22, § 1.
3-12C-513. Service credit for leave of absence--Contributions to cover period of absence.
A member taking a leave of absence authorized by the member's employer may receive credited service during the leave if employee and employer contributions are made to the system during the leave by or on behalf of the employee. The contributions shall be at the rates in effect during the leave and shall be based on the member's rate of compensation immediately prior to the leave. If a member's rate of compensation causes the member's compensation for the calendar year to exceed the maximum taxable amount for social security, the contributions shall include the additional contribution pursuant to § 3-12C-402. The contributions shall be transmitted to the system at least monthly. For purposes of calculation of benefits, the member shall be considered to have received compensation during the period of the leave at the rate used to calculate the contributions made during the leave. If contributions are not made during the leave, the member may receive credited service for the leave by making contributions, or having contributions made on the member's behalf as provided in § 3-12C-504.
Source: SL 1967, ch 303, § 9; SDCL § 3-12-31; SL 1968, ch 216, § 1; SL 1970, ch 25, § 9; SL 1973, ch 27; SL 1974, ch 35, § 42; SL 1980, ch 31, § 7; SDCL § 3-12-85; SL 2019, ch 22, § 1; SL 2019, ch 23, § 5.
3-12C-514. Credited service for leave of absence due to qualified military service--Return to employment after discharge.
A member shall receive credited service for leave of absence due to qualified military service, authorized in advance by the employer, without contribution by the employee or employer if the member returns to the employ of a participating unit within one year from the member's date of discharge from the member's initial period of qualified military service and if the member remains in the employ of a participating unit for at least one year. The member may not receive credited service for any voluntary extension of qualified military service at the instance of the member beyond the initial period of enlistment, induction, or call to active duty. Credited service granted under this section shall be only for the initial period of time that the member is performing qualified military service. No credited service granted under this section may be considered to represent either member contributions or employer contributions for purposes of contribution withdrawals pursuant to this chapter.
If the member returns to the employ of the member's employer unit within one year of discharge from the initial period of qualified military service, but does not remain in the employ of the unit for at least one year, the member shall be granted credited service for the initial period of qualified military service pursuant to § 414(u)(8) of the Internal Revenue Code if the member deposits with the system employee contributions for the initial period of the qualified military service as provided for in § 414(u)(8)(C). The contributions shall be made in a lump sum, shall be based on the member's compensation immediately prior to the leave of absence, and shall be without interest. The participating unit that was the member's employer prior to the leave of absence shall deposit employer contributions in an equal amount with the system. Other provisions of this chapter notwithstanding, the member need not be a contributing member at the time the member deposits the contributions. The member is subject to the time limitations for payment provided for in § 414(u)(8)(C).
Source: SL 1970, ch 25, § 9; SDCL Supp, § 3-12-31; SL 1973, ch 27; SL 1974, ch 35, § 42; SL 1995, ch 24, § 12; SL 2008, ch 20, § 13; SL 2011, ch 20, § 2; SL 2013, ch 20, § 10; SDCL § 3-12-86; SL 2019, ch 22, § 1.
3-12C-515. Death or disability of member on leave of absence due to qualified military service--Return to service date and benefits.
If a member on leave of absence performing initial qualified military service dies, the member shall be considered to have returned from the leave of absence on the day before the member's death and become a contributing member for purposes of survivor benefits, if the member has at least one year of credited service before the member's death, including the initial period of qualified military service. If the member was contributing for additional survivor protection benefits pursuant to § 3-12C-1001 immediately before the leave of absence, the member shall be considered to have resumed the contributions on the day before the member's death.
If a member on leave of absence performing initial qualified military service becomes disabled pursuant to the disability criteria set out in this chapter, the member shall be considered to have returned from the leave of absence on the day before the member's discharge date and become a contributing member for purposes of eligibility for disability benefits pursuant to § 3-12C-812, if the member has at least three years of credited service including the period of initial qualified military service. The provisions of § 3-12C-812 notwithstanding, the member need not have been deemed to be a contributing member on the date of the member's disabling event.
Source: SL 2011, ch 20, § 3; SL 2016, ch 31, § 16; SDCL § 3-12-86.1; SL 2019, ch 22, §§ 16, 45.
3-12C-516. Members receiving differential wage payments.
To the extent required by § 414(u)(12) of the Internal Revenue Code, a member receiving differential wage payments, as defined under § 3401(h)(2) of the Internal Revenue Code, from a member's employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of calculating final average compensation and applying the limits on annual additions under § 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated members in a reasonably equivalent manner.
Source: SL 2016, ch 31, § 17; SDCL § 3-12-86.2; SL 2019, ch 22, § 1; SL 2023, ch 14, § 4.
3-12C-517. Valuation of purchased prior service credit--Installment payments--Death of member--Adjustment when installments not paid.
Payment of a deposit with the system for credited service pursuant to §§ 3-12C-504 to 3-12C-514, inclusive, shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic, level installments over a period of up to ten years, the value of which, when discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment payments, the surviving spouse may complete the payments due the system, but, unless the payments are being made by a participating unit, the amount shall be paid in full within ninety days of the member's death or retirement. If the periodic payments are not completed or paid when due, the executive director may make an appropriate adjustment to the credited service, benefits payable under this chapter, or schedule of payments to allow for the default. Any member participating in installment payments pursuant to this section before July 1, 1989, shall have the balance due on July 1, 1989, recalculated pursuant to §§ 3-12C-504 and 3-12C-509 and shall have the installment payments due after June 30, 1989, recalculated accordingly.
Source: SL 1974, ch 35, § 43; SL 1977, ch 28, § 9; SL 1980, ch 31, § 6; SL 1989, ch 38, § 18; SL 1996, ch 30, § 4; SL 2008, ch 20, § 14; SL 2016, ch 31, § 18; SDCL § 3-12-87; SL 2019, ch 22, § 1; SL 2020, ch 12, § 12.
3-12C-518. Conversion of credited service.
A current contributing Class B member other than a justice, judge, or magistrate judge, may convert credited service as a county sheriff or deputy county sheriff before January 1, 1980, or credited service as a county sheriff or deputy county sheriff while not certified from January 1, 1980, to June 30, 1988, inclusive; credited service as a police officer while not certified from July 1, 1983, to June 30, 1988, inclusive; credited service as a correctional security staff member before July 1, 1978; credited service as a conservation officer before July 1, 1983; credited service as a parole agent before July 1, 1991; and credited service as an air rescue firefighter before July 1, 1992, from credited service as a Class A member with benefits provided in accordance with § 3-12C-1106 to credited service as a Class B member other than a justice, judge, or magistrate judge, with benefits provided in accordance with § 3-12C-1107, by election to make, or have made on the member's behalf, contributions based on the higher of the member's current compensation, or the member's final average compensation calculated as if the member retired on the date of election, at an actuarially-determined percentage times each year of service for which the member wishes to receive Class B credit. The provisions of this section also apply to a current contributing Class B member, other than a justice, judge, or magistrate judge, who previously has purchased equivalent public service pursuant to the provisions of § 3-12C-509.
Payment of a deposit with the system for the conversion of credited service in accordance with this section shall be determined and due at the time the notice of intention to make the payment is received by the system. The amount due may be paid by periodic level installments over a period of up to ten years, the value of which, if discounted for interest at the assumed rate of return, is equal to the amount due at the date of the notice. If a member dies before completion of the installment payments, the surviving spouse may complete the payments due to the system, but unless the payments are being made by a participating unit, the amount shall be paid in full within ninety days of the member's death or retirement. If the periodic payments are not completed or paid when due, the executive director may make a pro rata adjustment to the credited service, benefits payable under this chapter or schedule of payments to allow for the default.
If the credited service of any member or group of members becomes Class B credited service on a prospective basis after June 30, 1993, the prior credited service as a Class A member may be converted to Class B credited service in accordance with this section. If a jailer becomes a Class B member other than a justice, judge, or magistrate judge, the jailer is eligible to convert prior credited service as a jailer under this section.
Source: SL 1993, ch 44, § 1; SL 1997, ch 27, § 3; SL 1999, ch 14, § 3; SL 2003, ch 24, § 1; SL 2004, ch 39, § 3; SL 2004, ch 40, § 9; SL 2008, ch 20, § 16; SL 2012, ch 26, § 12; SL 2016, ch 31, § 28; SL 2018, ch 32, § 6; SDCL § 3-12-130; SL 2019, ch 22, § 1.
3-12C-519. Purchase of certain public service as Class B service.
If a current contributing Class B member of this system, other than a justice, a judge, or a magistrate judge, has equivalent public service for which the member is not entitled to retirement benefits from another public retirement system, the member may elect to deposit or have deposited on the member's behalf an amount equal to an actuarially-determined percentage times the appropriate Class B rate of contribution multiplied by the higher of the member's annual compensation at the time of making the election, or the member's final average compensation calculated as if the member retired on the date of the election, for each year of equivalent public service for which the member wishes to receive credit as a Class B member.
Source: SL 1997, ch 27, § 2; SL 2004, ch 39, § 4; SL 2004, ch 40, § 10; SDCL § 3-12-130.1; SL 2019, ch 22, § 1.
3-12C-520. Prior service credit on return of nonvested member to employment.
If a nonvested member who has terminated employment and has left the member's accumulated contributions in the system returns to employment with a participating unit, the system shall credit the member's prior service time toward the total length of service necessary for the member to obtain the credited service necessary for benefits provided by this chapter.
Source: SL 1972, ch 22; SDCL Supp, § 3-12-32; SL 1974, ch 35, § 36; SL 1998, ch 18, § 3; SL 2008, ch 20, § 9; SDCL § 3-12-78; SL 2019, ch 22, § 1.
3-12C-601. Retirement benefit to terminated member with vested right--Calculation.
A terminated member who has a vested right in the system may leave the member's accumulated contributions on deposit with the system and receive a retirement benefit commencing at the member's retirement. In calculating such benefit, the member's final average compensation shall be increased by the COLA commencing each July first for each complete twelve-month period between the member's last termination and the date on which the member's retirement benefit commences.
Source: SL 1974, ch 35, § 33; SL 1982, ch 32, § 4; SL 1986, ch 37, § 4; SL 1998, ch 17, § 3; SL 2004, ch 40, § 8; SL 2010, ch 20, § 9; SL 2017, ch 27, § 10; SDCL § 3-12-75; SL 2019, ch 22, § 1.
3-12C-602. Withdrawal of accumulated contributions on leaving covered employment--Picture identification required--Limitation.
A member who has left covered employment may withdraw the sum of the member's accumulated contributions upon application to the system and submission of a copy of the member's current driver license or other picture identification card issued by a government agency or tribe. If the member is married, the spouse shall sign the application and provide a copy of the spouse's current driver license or other picture identification card issued by a government agency or tribe.
A member who withdraws the member's accumulated contributions pursuant to this section forfeits all credited service and benefits provided in this chapter.
The right to withdraw accumulated contributions ceases if the member returns to covered employment with a participating unit.
Source: SL 1967, ch 303, § 8; SDCL § 3-12-30; SL 1968, ch 216, § 1; SL 1974, ch 35, § 34; SL 1977, ch 28, § 6; SL 1995, ch 24, § 13; SL 1998, ch 15, § 6; SL 2018, ch 33, § 9; SDCL § 3-12-76; SL 2019, ch 22, § 1; SL 2019, ch 23, § 4; SL 2021, ch 27, § 2.
3-12C-603. Distribution by direct rollover.
A member who elects to withdraw accumulated contributions as provided in § 3-12C-602, or a member's surviving spouse or nonspouse beneficiary who receives a lump-sum payment pursuant to § 3-12C-409, may receive the distribution directly. Eligible rollover distributions may be transferred by the system in a direct rollover to no more than one eligible retirement plan identified by a member, a member's surviving spouse, or a member's nonspouse beneficiary if the individual so elects. The board shall promulgate rules pursuant to chapter 1-26 to comply with federal mandates regarding rollover distributions. The system is not required to make an independent determination as to whether the plan identified by a member, surviving spouse, or nonspouse beneficiary qualifies as an eligible retirement plan. By electing a direct rollover and identifying the eligible retirement plan to which an eligible rollover distribution is to be made, a member, surviving spouse, or nonspouse beneficiary represents to the system that the identified plan qualifies as an eligible retirement plan. If a member, surviving spouse, or nonspouse beneficiary does not elect a direct rollover, the distribution shall be issued in the name of, and directly to, that person.
Source: SL 1993, ch 42, § 5; SL 1995, ch 24, § 17; SL 1998, ch 15, § 7; SL 2009, ch 20, § 2; SDCL § 3-12-76.3; SL 2019, ch 22, § 1.
3-12C-604. Contributions left in system on termination of employment without vested right--Maximum period--Forfeiture.
A member of the system who is not vested may leave the member's accumulated contributions in the system upon termination of employment for a period not to exceed ten years from the date of termination. However, no additional contributions may be made to the system by the member or a participating unit following the date of termination and no benefits in the retirement system may accrue to a member of the system following the date of termination, except as provided in § 3-12C-310. If the member withdraws the member's accumulated contributions, membership in the system terminates. At the end of the ten-year period, no further interest may be credited with respect to contributions and no further investment return may be credited with respect to any variable retirement account. If the member fails to withdraw the member's accumulated contributions within eleven years following the member's termination, the member shall forfeit all rights to the member's accumulated contributions, variable retirement account, and to any credited service in connection therewith, if the system has made reasonable efforts to notify the member of the member's withdrawal rights and the effect of this section.
Source: SL 1972, ch 22; SDCL Supp, § 3-12-32; SL 1974, ch 35, § 35; SL 1984, ch 24, § 1; SL 1998, ch 15, § 8; SL 1998, ch 18, § 2; SL 2016, ch 32, § 33; SDCL § 3-12-77; SL 2019, ch 22, § 1.
3-12C-605. Uncollected payments from system--Reversion.
If any payment from the system remains uncollected, the payment shall revert to the system and all rights to the payment shall terminate, if the system has made reasonable efforts to notify the person entitled to the payment of the person's right to the payment and the effect of this section.
Source: SL 1984, ch 24, § 2; SDCL § 3-12-77.1; SL 2019, ch 22, §§ 20, 45.
3-12C-606. Reinstatement of terminated rights.
Any rights which have terminated pursuant to the provisions of § 3-12C-604 or 3-12C-605 may be reinstated upon presentation to the executive director of a request for reinstatement of those rights and competent evidence of the rights.
Source: SL 1984, ch 24, § 4; SL 2016, ch 31, § 13; SDCL § 3-12-77.3; SL 2019, ch 22, § 1.
3-12C-607. Early withdrawal precludes additional refund.
No member or former member of the system who has withdrawn contributions from the system before July 1, 1998, may receive any additional refund pursuant to this chapter.
Source: SL 1998, ch 15, § 31; SDCL § 3-12-77.4; SL 2019, ch 22, §§ 21, 45.
3-12C-608. Eligibility for benefits upon becoming full-time employee within twelve months after withdrawal.
Notwithstanding any provision of this chapter to the contrary, whenever a member withdraws accumulated contributions under § 3-12C-602 and becomes a full-time employee within twelve months after withdrawal, contributions must have been made to the system for a period of twelve consecutive months before the member is eligible for benefits pursuant to § 3-12C-901. The member shall furthermore be ineligible to apply for additional survivor protection pursuant to § 3-12C-1001 as a new member of the system. To be eligible for a disability benefit pursuant to § 3-12C-803 or 3-12C-812, the member must have at least three years of contributory service since the date of the last withdrawal unless the member was disabled by accidental means while performing the usual duties for the employer.
Source: SL 1993, ch 39, § 2; SL 2014, ch 20, § 31; SDCL § 3-12-131; SL 2019, ch 22, § 1; SL 2021, ch 29, § 13, eff. Apr. 1, 2021.
3-12C-701. Benefits only payable monthly--Lump-sum payments prohibited unless specified.
A member in the system may claim the benefits provided for in this chapter only in the form of a monthly benefit payment and only after such time as these benefits are payable. Unless otherwise specifically provided, no member or a former member of the system may receive a lump-sum cash payment in lieu of the normal retirement benefit.
Source: SL 1967, ch 303, § 8; SDCL § 3-12-29; SL 1968, ch 216, § 1; SL 1970, ch 25, § 7; SL 1974, ch 35, § 66; SL 2017, ch 27, § 22; SDCL § 3-12-112; SL 2019, ch 22, § 1.
3-12C-702. Person's birthday for purposes of eligibility.
For the purposes of determining eligibility for, and the amount of, any benefit payable pursuant to this chapter, the first day of the month in which a person's birthday falls is considered a person's birthday.
Source: SL 2016, ch 32, § 55; SDCL § 3-12-47.9; SL 2019, ch 22, § 1.
3-12C-703. COLA applied to benefits--COLA elimination.
The COLA payable shall be applied annually to all benefits except those based on the member's accumulated contributions, variable retirement account, or contribution credit. However, the COLA shall be eliminated for any period of time that a retired member reenters covered employment in the system, unless the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently has reentered covered employment as a Class A member, or unless the member retired without a benefit suspension pursuant to § 3-12C-1402 and then reentered active status before July 1, 2004. Such elimination shall cease when the member again retires and draws either a refund or an additional retirement benefit.
Source: SL 1974, ch 35, § 44; SL 2004, ch 38, § 2; SL 2005, ch 26, § 1; SL 2017, ch 27, § 12; SDCL § 3-12-88; SL 2019, ch 22, § 1; SL 2021, ch 26, § 2.
3-12C-704. Determination of COLA payable.
The COLA payable is the baseline COLA or the restricted COLA, as applicable. The baseline COLA is equal to the increase in the consumer price index, but no less than zero percent and no greater than three and one-half percent. The restricted COLA is equal to the increase in the consumer price index, but no less than zero percent and no greater than the restricted COLA maximum as determined in subdivision (2) of this section. The board shall establish the COLA payable for each fiscal year, based on the fair value funded ratio and the minimum actuarial requirement to support benefits as of the prior July first and the increase in the consumer price index for the preceding third calendar quarter compared to the consumer price index for the third calendar quarter for the base year (the previous year in which the consumer price index was the highest), by utilizing one of the following subdivisions, as applicable:
(1) If the system meets the criteria in subdivisions 3-12C-228(1) and (2) based on the baseline COLA assumption adopted by the board, the COLA payable is the baseline COLA; or
(2) If the system does not meet the criteria in subdivisions 3-12C-228(1) and (2) based on the baseline COLA assumption adopted by the board, the system shall calculate a restricted COLA maximum in accordance with the board's funding policy that is equal to the actuarially determined annual COLA rate that results in the criteria in subdivisions 3-12C-228(1) and (2) being satisfied, if achievable. The COLA payable is the restricted COLA. If the criteria in subdivisions 3-12C-228(1) and (2) cannot be satisfied, the COLA payable is zero percent.
Source: SL 2019, ch 22, § 23; SL 2021, ch 26, § 3; SL 2023, ch 16, § 4.
3-12C-705. Date of application of prorated payment of COLA.
Application of prorated payment of the COLA applies only to benefits which were first payable after July 1, 1998, but before July 1, 2010.
Source: SL 2010, ch 20, § 8; SL 2017, ch 27, § 5; SDCL § 3-12-47.4; SL 2019, ch 22, § 1.
3-12C-706. Modified monthly benefit permitted.
The board may provide under its rules for a modified monthly benefit to a member or beneficiary in lieu of the monthly benefit payable under any provision of this chapter if the benefit is not greater than the actuarial equivalent of the benefit due the member or beneficiary under this chapter.
Source: SL 1968, ch 216, § 1; SDCL Supp, § 3-12-41; SL 1970, ch 25, § 11; SL 1974, ch 35, § 62; SL 2017, ch 27, § 18; SDCL § 3-12-108; SL 2019, ch 22, §§ 24, 45.
3-12C-707. Highest annual compensation .
To calculate benefits pursuant to §§ 3-12C-805, 3-12C-901, and 3-12C-1004 before July 1, 2004, the system shall use the member's highest annual compensation earned by the member during any one of the last three years of contributory service, so long as it is not more than one hundred fifteen percent of the member's final compensation calculated as of the date of the member's death or disability.
Source: SL 2019, ch 22, § 25.
3-12C-708. Time of termination of benefits.
Monthly benefits paid to a member cease on the last day of the month in which the member died. Monthly benefits paid to a surviving spouse cease on the last day of the month in which the surviving spouse died. Monthly benefits paid to a child cease on the last day of the month in which the child died or the last day of the month in which the child became ineligible, whichever occurs first.
Source: SL 1974, ch 35, § 67; SDCL § 3-12-113; SL 2019, ch 22, §§ 40, 45.
3-12C-709. Duplicate benefits prohibited unless from another member's contributions.
No person shall be entitled to receive a benefit provided under more than one provision of this chapter at one time, unless such benefit is derived from the contributions of another member.
Source: SL 1974, ch 35, § 63; SL 1977, ch 28, § 13; SDCL § 3-12-109; SL 2019, ch 22, § 1.
3-12C-710. Member who leaves employment--Spouse and minor children.
A member who leaves the employment of a participating unit is not entitled to disability benefits and the member's surviving spouse and minor children are not entitled to any benefits pursuant to this chapter.
Source: SL 2019, ch 22, § 22.
3-12C-711. Rules regulating maximum annual benefit--Tax qualification--Limitation year defined.
Pursuant to chapter 1-26, the board shall adopt rules regulating the maximum annual benefit that may be paid to a member. The rules shall be consistent with maintaining the tax qualification of the system. No benefit may exceed the limitations imposed by § 415 of the Internal Revenue Code. For the purposes of administering the limitations imposed by § 415, the term, limitation year, means a period extending from July first of one calendar year through June thirtieth of the following calendar year.
Source: SL 1984, ch 23, § 6; SL 1996, ch 29, § 2; SL 1997, ch 32, § 2; SL 2002, ch 22, § 3; SL 2013, ch 20, § 1; SDCL § 3-12-89.1; SL 2019, ch 22, § 1.
3-12C-712. Compensation limits in Internal Revenue Code § 401(a)(17) .
Any compensation in excess of the limits established in § 401(a)(17) of the Internal Revenue Code shall be disregarded for purposes of contributions and benefit calculations under the system. Any benefit calculations for members subject to the limits established in § 401(a)(17) of the Internal Revenue Code but for whom the limitation on compensation did not apply before January 1, 2018, shall be based on unlimited compensation for credited service before January 1, 2018, and limited compensation for credited service as of January 1, 2018.
Source: SL 2017, ch 28, § 3, eff. Jan. 1, 2018; SDCL § 3-12-47.12; SL 2019, ch 22, § 1.
3-12C-713. Contribution credit defined--Payment of contribution credit and credited investment return.
For purposes of this section, the term, contribution credit, means the employer and member contributions, reduced by any variable retirement contributions, on compensation not included in the computation of final average compensation as a result of the final average compensation limits provided pursuant to §§ 3-12C-1104 and 3-12C-1202.
The contribution credit plus the credited investment return on the contribution credit is payable at the retirement, disability, or death of the member. The credited investment return, which shall be credited annually as of June thirtieth, is the South Dakota Investment Council's reported money-weighted investment return of the system, net of fees, for the completed fiscal year. Any contribution credit made during the fiscal year shall receive one-half year's credited investment return for that year. For any account distributed during the fiscal year, the estimated investment return shall be credited to the end of the month before the date on which the contribution credit is paid.
The contribution credit plus credited investment return is payable to the member commencing a retirement benefit or a disability benefit three consecutive calendar months after the effective date of the benefit. The contribution credit plus credited investment return is payable to a member's child who is eligible for a family benefit or a member's spouse who is eligible for a surviving spouse benefit, upon the death of the member. No contribution credit is payable to any member who withdraws accumulated contributions from the system or to any beneficiary who receives a lump sum payment of accumulated contributions. For the purpose of paying a distribution, the amount payable is the total of contribution credit plus credited investment return or the total contribution credit, whichever is greater. The amount may be paid in a lump sum, rolled over to the South Dakota deferred compensation plan, rolled over to another eligible plan, or used to purchase a supplemental pension benefit. However, the purchase of a supplemental pension benefit is only available upon the member's retirement.
Source: SL 2017, ch 29, § 7; SDCL § 3-12-47.11; SL 2019, ch 22, § 1; SL 2021, ch 27, § 3.
3-12C-801. Criteria for determining disability--Uniform application.
The Board of Trustees shall set the criteria for determining the disability of members. Methods of disability determination shall be applied uniformly and consistently to all members applying for the disability benefits.
Source: SL 1974, ch 35, § 54; SDCL § 3-12-100; SL 2019, ch 22, § 1.
3-12C-802. Disability documentation inadmissible for proceedings relative to workers' compensation.
An application for disability benefits pursuant to this chapter, any associated evidence and documents, and the disability determination and decision related thereto shall be inadmissible and nondeterminative for any associated proceeding relative to Title 62.
Source: SL 1995, ch 23, § 3; SDCL § 3-12-142; SL 2019, ch 22, § 1.
3-12C-803. Disability benefits eligibility--Applications before July 1, 2015--Required information--Filing deadline.
A contributing member who becomes disabled and who has acquired at least three years of contributory service or noncontributory service since the member's most recent entry into active status and prior to becoming disabled or was disabled by accidental means while performing usual duties for an employer, is eligible for a disability benefit if the disability is expected to be of long, continued, and indefinite duration of at least one year. In order to be eligible for a disability benefit, a member must be disabled on the date the member's contributory service ends. Any member who fails to file an application for disability benefits with the executive director within three years after the date the member's contributory service ends, forfeits all rights to disability benefits. Any information required for a complete application must be received within one year after the application for disability benefits was received. If the required information is not received by the system within one year after the application is received, the member may reapply. For purposes of this section, a transfer within a participating unit, or a change in employment from one participating unit to another participating unit if there is no break in contributory service, does not constitute a new entry into active status. The provisions of this section apply to any member whose application for disability benefits is received by the system before July 1, 2015.
Source: SL 1974, ch 35, § 52; SL 1977, ch 28, § 11; SL 1979, ch 30, § 2; SL 1980, ch 31, § 3; SL 1992, ch 3; SL 2004, ch 37, § 3; SL 2005, ch 24, § 5; SL 2014, ch 20, § 24; SL 2016, ch 31, § 21; SDCL § 3-12-98; SL 2019, ch 22, § 1.
3-12C-804. Employer certification of inability to provide effective accommodations or comparable employment--Applications before July 1, 2015.
No application for disability benefits pursuant to § 3-12C-803 may be determined until the employer has certified to the system that, within the employer's understanding of the member's medical condition and the employer's knowledge of the member's employment requirements and duties, the employer is unable to provide to the member either effective accommodations in the member's current position or comparable level employment in another position.
Source: SL 1995, ch 23, § 2; SL 2006, ch 19, § 2; SL 2014, ch 20, § 32; SDCL § 3-12-141; SL 2019, ch 22, § 1.
3-12C-805. Amount of monthly disability benefit--Applications before July 1, 2015.
The disability benefit for the first thirty-six months shall be equal to fifty percent of the member's final average compensation immediately preceding the date of disability, increased by ten percent of such compensation for each child to a maximum of four such children.
Starting with the thirty-seventh month, if the member is eligible for and receiving disability benefits from social security, the disability benefit from the system is equal to the greater of the amount paid during the first thirty-six months less the amount of primary social security or the amount of the member's unreduced accrued retirement benefit as of the date of disability. If the member's unreduced accrued retirement benefit is the greater, it is immediately payable by the system notwithstanding any other provisions to the contrary. In no event may the annual amount of a disability benefit be less than twenty percent of the compensation on which the initial disability benefit was based.
Starting with the thirty-seventh month, if the member is not eligible for and receiving disability benefits from social security, the disability benefit from the system is equal to the greater of twenty percent of the compensation on which the initial disability benefit was based or the amount of the member's unreduced accrued retirement benefit as of the date of disability. If the member's unreduced accrued retirement benefit is the greater, it is immediately payable by the system notwithstanding any other provisions to the contrary. The disability benefit shall be paid only in the form of monthly installments. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to July 1, 2015.
Source: SL 1974, ch 35, § 53; SL 1994, ch 32, § 3; SL 2004, ch 40, § 2; SL 2014, ch 20, § 25; SDCL § 3-12-99; SL 2019, ch 22, § 1.
3-12C-806. Elimination or addition of disability benefit pertaining to children--Applications before July 1, 2015.
That portion of a disability benefit that is payable on account of children shall be eliminated as each child becomes ineligible. However, the portion of a disability benefit that is payable on account of children shall increase if a disabled member gains an additional child who is eligible. All other provisions in § 3-12C-807 do not apply to members receiving a disability benefit pursuant to this chapter. The provisions of this section apply to any member whose application for disability benefits is received by the system before July 1, 2015.
Source: SL 1994, ch 32, § 4; SL 2011, ch 22, § 1; SL 2014, ch 20, § 26; SL 2016, ch 31, § 22; SDCL § 3-12-99.1; SL 2019, ch 22, § 1.
3-12C-807. Deduction of other public benefits from disability benefit--Reduction when children become ineligible--Applications before July 1, 2015.
Disability benefits shall be reduced by an amount equal to the unmodified benefits paid or payable under other public systems. Disability benefits payable on account of children shall be reduced when children become ineligible. In no event may the annual amount of a disability benefit be less than the greater of six percent of the compensation on which the disability benefit is based or six hundred dollars a year.
However, any disability benefit effective prior to July 1, 1994, and payable on or after that date may not be reduced by any benefit payable on account of a veteran's disability or from any insured or self-insured short-term disability plan sponsored by an employer and paid for by the employee or paid for under a salary reduction plan. Further, any disability benefit effective prior to July 1, 1994, and payable on or after July 1, 1995, may not be reduced by any benefit payable on account of a federal military retirement or a federal national guard retirement. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to July 1, 2015.
Source: SL 1974, ch 35, § 55; SL 1986, ch 37, § 7; SL 1993, ch 43, §§ 1, 2; SL 1994, ch 36; SL 1995, ch 20; SL 2014, ch 20, § 27; SDCL § 3-12-101; SL 2019, ch 22, § 1.
3-12C-808. Conversion of disability benefit to retirement benefit at retirement age--Applications before July 1, 2015.
When a person who is receiving a disability benefit reaches age sixty-five, or at such later date if there are no eligible children, or if over age sixty at the time of commencement of disability, after a period of five years, the member's disability benefit shall be terminated and thereafter the member shall receive the benefit payable for service retirement at that age, calculated on the projected compensation and projected service. If a person who received a disability benefit returns to employment prior to normal retirement age, the member's credited service shall include the time of disability. The provisions of this section apply to any member whose application for disability benefits is received by the system prior to July 1, 2015.
Source: SL 1974, ch 35, § 57; SL 1992, ch 33; SL 2014, ch 20, § 28; SDCL § 3-12-103; SL 2019, ch 22, § 1.
3-12C-809. Termination of disability benefit based on application before July 1, 2015.
A member's disability benefit that was based on an application received by the system prior to July 1, 2015, shall terminate thirty days after the earliest of the following:
(1) The member no longer is disabled;
(2) The member no longer is subject to the medical condition that caused the disability;
(3) The member refuses to undergo a medical examination requested by the system for the purpose of reviewing the medical condition that caused the disability;
(4) The member returns to continuous employment in the position the member held prior to becoming disabled; or
(5) The member returns to continuous employment in a position of comparable level to the position the member held prior to becoming disabled.
However, a member's disability benefit shall terminate immediately if the member's disability benefit is converted to a service retirement benefit pursuant to § 3-12C-808.
Source: SL 2006, ch 19, § 1; SL 2014, ch 20, § 29; SDCL § 3-12-103.1; SL 2019, ch 22, § 1.
3-12C-810. Maximum amount of disability benefit--Reporting earned income--Applications before July 1, 2015.
For the first thirty-six months of a disability benefit provided by § 3-12C-805, the maximum amount a member may receive in any calendar year from the disability benefit and earned income, as defined in § 32(c)(2) of the Internal Revenue Code, is one hundred percent of the member's final average compensation. Starting with the thirty-seventh month of the disability benefit, the maximum amount that a member may receive in any calendar year from disability benefits provided by the federal Social Security Act equal to the primary insurance amount, the disability benefit provided by this chapter and earned income, as defined in § 32(c)(2) of the Internal Revenue Code, is one hundred percent of the member's final average compensation. The maximum amount shall be indexed for each full fiscal year during which the member is eligible for such disability benefit by the COLA. Any amount exceeding this maximum amount shall reduce each monthly disability benefit payable pursuant to § 3-12C-805 in the following fiscal year on a pro rata basis.
Any member eligible to receive a disability benefit shall report to the system in writing any earned income of the member. The report shall be filed with the system before June first following the end of each calendar year in which a disability benefit is paid. A disabled member may file a signed copy of the member's individual income tax return in lieu of the report. No report or return need be filed for the calendar year the member dies or converts to a normal or early retirement benefit under this chapter. The disability benefit of any member failing to file a report or return as required in this section shall be suspended until the report or return is filed. The reduction may occur, however, only if a disability benefit is being paid by the system, but may not reduce the disability benefit below the minimum provided for in § 3-12C-805.
This section applies to any member receiving or entitled to receive a disability benefit pursuant to § 3-12C-803.
Source: SL 1995, ch 23, §§ 4, 5; SL 2004, ch 40, § 4; SL 2012, ch 26, § 13; SL 2013, ch 20, § 12; SL 2014, ch 20, § 33; SL 2016, ch 31, § 29; SL 2017, ch 27, § 27; SDCL § 3-12-143; SL 2019, ch 22, § 1.
3-12C-811. Disability benefits for applications received after June 30, 2015 .
The provisions of §§ 3-12C-812 to 3-12C-828, inclusive, apply to any member whose application for disability benefits is received by the system after June 30, 2015.
Source: SL 2019, ch 22, § 27.
3-12C-812. Disability benefits eligibility .
A contributing member who becomes disabled and who has acquired at least three years of contributory service or noncontributory service since the member's most recent entry into active status and before becoming disabled, or was disabled by accidental means while performing usual duties for an employer, is eligible for disability benefits if the disability is expected to be of long, continued, and indefinite duration of at least one year and the member is disabled on the date the member's contributory service ends. For purposes of this section, a transfer within a participating unit, or a change in employment from one participating unit to another participating unit if there is no break in contributory service, does not constitute a new entry into active status.
Source: SL 2014, ch 20, § 1; SL 2016, ch 31, § 36; SDCL § 3-12-201; SL 2019, ch 22, §§ 28, 45.
3-12C-813. Application for disability benefits--Required information--Filing deadline.
Any member seeking disability benefits pursuant to § 3-12C-812 shall submit an application to the executive director. Any information required for a complete application must be received within one year after the application for disability benefits was received. If the required information is not received by the system within one year after the application is received, the member may reapply.
Any member, who fails to file an application for disability benefits with the executive director within three years after the date the member's contributory service ends, forfeits all rights to disability benefits.
Source: SL 2014, ch 20, § 2; SL 2016, ch 31, § 37; SDCL § 3-12-202; SL 2019, ch 22, § 1.
3-12C-814. Employer information--Employment history and accommodations.
No application for disability benefits pursuant to § 3-12C-812 may be determined until the member's employer has submitted a completed form and supporting documentation that provides the member's position, usual duties of the position, any modifications or accommodations provided, and the member's employment history with the employer.
Source: SL 2014, ch 20, § 3; SDCL § 3-12-203; SL 2019, ch 22, § 1; SL 2024, ch 22, § 1.
3-12C-815. Health care provider information--Disability--Other medical documentation.
No application for disability benefits pursuant to § 3-12C-812 may be determined until a health care provider has completed a form providing an evaluation of the member’s diagnosis, complicating conditions, including limitations or restrictions, and the member’s ability to perform the duties required by the member’s employment. If no form is provided by a health care provider, the member must submit other medical documentation of the diagnosis, complicating conditions, including limitations or restrictions, and the member’s ability to perform usual duties required by the member’s employment.
Source: SL 2014, ch 20, § 4; SDCL § 3-12-204; SL 2019, ch 22, § 1; SL 2024, ch 22, § 2.
3-12C-816. Advice of disability advisory committee--Independent examination or assessment--Notice of disapproval of application.
Upon receipt of an application for disability benefits after June 30, 2015, along with statements from a health care provider and the member's employer, the executive director shall determine whether the member is eligible for disability benefits. The executive director may request the advice of the disability advisory committee with respect to any application. The recommendation of the disability advisory committee is not binding on the executive director. The disability advisory committee or the executive director may require an independent medical examination of the member to be conducted by a disinterested health care provider selected by the disability advisory committee or the executive director to evaluate the member's condition. The disability advisory committee or the executive director may require a functional capacity assessment of the member to be conducted by a licensed professional qualified to administer such an assessment. The assessment may be used to evaluate the member's qualification for benefits. Refusal to undergo an examination or assessment pursuant to this section is cause for denying the application.
If the executive director determines that the member is not disabled, a notice of the executive director's determination and the reasons for the determination shall be sent by certified mail to the member's last known address.
Source: SL 2014, ch 20, § 5; SL 2016, ch 31, § 38; SDCL § 3-12-205; SL 2019, ch 22, § 1.
3-12C-817. Notice of approval of disability benefits--Commencement of benefits.
If the executive director determines that the member whose application was received pursuant to § 3-12C-816, meets the qualifications to receive disability benefits, a notice of the executive director's determination shall be sent by certified mail to the member's last known address. A member whose application for disability benefits is approved shall receive the benefits beginning with the month following the date on which the member's contributory service terminates. If any member fails to terminate contributory service within one year after receiving notice that the member's application has been approved, the member's application approval expires.
Source: SL 2014, ch 20, § 6; SL 2016, ch 31, § 39; SDCL § 3-12-206; SL 2019, ch 22, § 1.
3-12C-818. Calculation of disability benefits--Foundation members.
The disability benefit approved pursuant to § 3-12C-817 is the greater of the following calculations:
(1) Twenty-five percent of the foundation member's final average compensation at the date of disability; or
(2) The foundation member's unreduced accrued retirement benefit at the date of disability.
The disability benefit must be paid in monthly installments for the life of the foundation member unless the benefit terminates pursuant to § 3-12C-822.
For purposes of determining the eligibility of a surviving spouse benefit and administering a qualified domestic relations order, the disability benefit of a foundation member is considered a retirement benefit when the member attains normal retirement age.
Source: SL 2014, ch 20, § 7; SL 2015, ch 26, § 2; SL 2016, ch 32, § 49; SDCL § 3-12-207; SL 2019, ch 22, § 1; SL 2022, ch 15, § 3.
3-12C-819. Disability benefits for generational members.
The disability benefit approved pursuant to § 3-12C-817 is the greater of the following calculations:
(1) Twenty-five percent of the generational member's final average compensation at the date of disability; or
(2) The generational member's unreduced accrued retirement benefit at the date of disability.
The disability benefit shall be paid in monthly installments. The disability benefit of a generational member shall terminate upon attaining normal retirement age, or if the member commences a disability benefit within five years of normal retirement age, after receiving the disability benefit for five years, and thereafter the member shall receive a retirement benefit. In order to start the retirement benefit, the member shall submit a completed retirement application that includes the benefit option elected by the member. The single life benefit is equal to the amount the member received as a disability benefit.
Source: SL 2016, ch 32, § 14; SDCL § 3-12-207.1; SL 2019, ch 22, § 1.
3-12C-820. No credited service for disability benefit period.
No member may receive credited service for the period during which the member receives disability benefits.
Source: SL 2014, ch 20, § 8; SDCL § 3-12-208; SL 2019, ch 22, §§ 29, 45.
3-12C-821. Contributions for period of employment while receiving disability benefits.
If a member receiving disability benefits becomes employed by a participating unit, the member and employer shall make active contributions pursuant to § 3-12C-401 during the period of the employment. The contributions required of the member pursuant to § 3-12C-401 shall be deposited by the member's employer 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. Notwithstanding the provisions of § 3-12C-401, the contributions required of the member's employer pursuant to § 3-12C-401 shall be deposited into the member trust fund created by this chapter, but without any association with or credit to the member.
Source: SL 2014, ch 20, § 9; SDCL § 3-12-209; SL 2019, ch 22, §§ 30, 45.
3-12C-822. Termination of disability benefits.
A member's disability benefits terminate if the member is no longer disabled, as certified by a health care provider. Upon receipt of certification the executive director shall determine whether the member meets the qualifications for disability benefits. In making this determination the executive director shall follow the same procedure used in making the initial determination of disability provided in § 3-12C-816. A member's disability benefits shall be suspended and subject to termination if the member refuses to undergo an examination or assessment requested by the disability advisory committee or the executive director. If the executive director finds that the member no longer meets the qualifications for disability benefits, the executive director shall notify the member of this finding by certified mail and the payment of disability benefits shall terminate thirty days after receipt of the notice. The finding by the executive director is subject to appeal and review as a contested case.
Source: SL 2014, ch 20, § 10; SL 2016, ch 31, § 40; SDCL § 3-12-210; SL 2019, ch 22, §§ 31, 45.
3-12C-823. Contributions upon return to covered employment.
If a member's disability benefits have terminated and the member returns to covered employment, the member and employer shall make contributions pursuant to § 3-12C-401.
Source: SL 2014, ch 20, § 11; SDCL § 3-12-211; SL 2019, ch 22, §§ 32, 45.
3-12C-824. Retirement benefit of member who received disability benefits and returned to covered employment.
Upon retirement, a member who received disability benefits and whose benefits were terminated and who returned to covered employment shall receive a retirement benefit based on the member's credited service before receiving disability benefits and after receiving disability benefits. The final average compensation used in the calculation of the retirement benefit is the greater of:
(1) The member's final average compensation at the date of retirement; or
(2) The member's final average compensation at the date of disability, increased by the COLA from the date of the termination of disability benefits to the date of retirement.
Source: SL 2014, ch 20, § 12; SL 2017, ch 27, § 33; SDCL § 3-12-212; SL 2019, ch 22, §§ 33, 45.
3-12C-825. Retirement benefit of member whose disability benefits were terminated but who did not return to covered employment.
Upon retirement, a member who received disability benefits and whose benefits were terminated and who did not return to covered employment shall receive a retirement benefit based on the member's credited service before receiving disability benefits. The final average compensation used in the calculation of the retirement benefit shall be the final average compensation at the date of disability, increased by the COLA from the date of the termination of disability benefits to the date of retirement.
Source: SL 2014, ch 20, § 13; SL 2017, ch 27, § 34; SDCL § 3-12-213; SL 2019, ch 22, §§ 34, 45.
3-12C-826. Family benefit--Member dies before normal retirement age while receiving disability benefits.
Upon the death of a member receiving disability benefits, who dies prior to normal retirement age, a family benefit must be paid on behalf of any eligible child of the member. The monthly amount of the family benefit is the amount of the monthly disability benefits the member received before death. The monthly family benefit must be equally apportioned among any eligible children of the member and must be paid on behalf of any child in accordance with § 3-12C-902. However, if the child is eighteen years of age or older, the benefit is payable directly to the child. As a child becomes ineligible, the family benefit shall be reallocated among any remaining eligible children of the deceased member. The family benefit terminates if there are no eligible children of the deceased member.
Source: SL 2014, ch 20, § 14; SL 2016, ch 31, § 41; SDCL § 3-12-214; SL 2019, ch 22, §§ 35, 45; SL 2022, ch 15, § 4.
3-12C-827. Surviving spouse benefit where member received disability benefits .
If no family benefit is being paid, a surviving spouse of a foundation or generational member who received disability benefits shall, upon attaining the age of sixty-five or sixty-seven, respectively, receive a monthly benefit, payable for the life of the surviving spouse, equal to one of the following calculations, whichever is applicable:
(1) If there was a family benefit paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the COLA from the date the last family benefit was paid; or
(2) If there was no family benefit paid, sixty percent of the deceased member's disability benefit paid at the time of the member's death, increased by the COLA from the date of the member's death.
Source: SL 2014, ch 20, § 15; SL 2016, ch 32, § 50; SL 2017, ch 27, § 35; SDCL § 3-12-215; SL 2019, ch 22, §§ 36, 45.
3-12C-828. Surviving spouse benefit where member dies after normal retirement age while receiving disability benefits.
If a member dies after normal retirement age while receiving disability benefits, and no other benefits are being paid on behalf of the member, the member's surviving spouse shall receive a surviving spouse benefit, payable in monthly installments, equal to sixty percent of the monthly disability benefit that the member received before death.
Source: SL 2014, ch 20, § 16; SDCL § 3-12-216; SL 2019, ch 22, §§ 37, 45.
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.
On the death of a contributing member before July 1, 2015, and before the earlier of the member attaining normal retirement age or the member's retirement, who has one or more years of contributory service; or if there has been a break in the member's employment of more than one year, one-half year of contributory service having been performed after the end of the last break; or if the member was receiving a disability benefit which commenced after July 1, 1974, and was based on an application received by the system before July 1, 2015, the following benefits shall be paid:
(1) A surviving spouse having the care of children shall receive an annual amount, payable in monthly installments, equal to forty percent of the member's projected compensation, plus ten percent of the projected compensation for each child to a maximum of six children;
(2) The conservator or custodian of each child, on whose account there is no benefit payable under subdivision (1), shall receive on behalf of each child, to a maximum of five children, an annual amount, payable in monthly installments, equal to twenty percent of the member's projected compensation;
(3) If the sum of benefits payable under subdivisions (1) and (2) exceeds one hundred percent of the member's projected compensation, the benefits payable under both subdivisions (1) and (2) shall be proportionally reduced so that the total of the benefits is equal to one hundred percent of the member's projected compensation; and
(4) If there are no benefits being paid under subdivision (1) and the member's accumulated contributions have not been withdrawn pursuant to § 3-12C-906, the spouse who has reached age sixty-five shall, upon the system's receipt of a completed application, receive a monthly payment equal to sixty percent of the amount which would have been payable to the deceased member at normal retirement age based on the member's credited and projected service, projected compensation, and projected primary social security. If the surviving spouse is eligible at the time of the member's death, the benefit is effective the first day of the month following the date on which the member's contributory service terminates. The benefit payable under this subdivision shall be increased by application of the COLA commencing each July first for each complete twelve-month period between the date the member would have reached normal retirement age and the date benefits commence to the spouse.
For benefits payable pursuant to subdivisions (1) or (2), the benefit is effective the first day of the month following the date on which the member's contributory service terminates and is payable upon the receipt of a completed application.
Source: SL 1967, ch 303, § 9 as added by SL 1968, ch 216, § 1; SDCL Supp, § 3-12-29.2; SL 1970, ch 25, § 8; SL 1974, ch 35, § 51; SL 1976, ch 40, § 3; SL 1979, ch 30, § 1; SL 1980, ch 31, § 8; SL 1982, ch 34, § 2; SL 1984, ch 25; SL 1993, ch 213, § 78; SL 1999, ch 16, § 2; SL 2004, ch 40, § 1; SL 2005, ch 24, § 4; SL 2006, ch 18, § 2; SL 2010, ch 20, § 11; SL 2014, ch 20, § 23; SL 2017, ch 27, § 14; SDCL § 3-12-95; SL 2019, ch 22, § 1; SL 2020, ch 12, § 8; SL 2020, ch 15, § 1.
3-12C-902. Payment or delivery to minors.
Any payment of any benefit to a minor pursuant to the provisions of this chapter shall be made on the minor's behalf to a custodian or conservator appointed by law. However, if no custodian or conservator is appointed and the amount payable does not exceed ten thousand dollars each calendar year, payment shall be made to any parent having the care and custody of the minor and with whom the minor resides.
If the child is eighteen years of age or older, the benefit is payable directly to the child. If any payment exceeds ten thousand dollars in a calendar year, payment must be made on the minor’s behalf to a custodian or conservator appointed by law.
Source: SL 2006, ch 18, § 1; SDCL § 3-12-95.1; SL 2019, ch 22, § 1; SL 2022, ch 15, § 5.
3-12C-903. Benefits payable directly to child at age eighteen--Elimination upon ineligibility.
The conservator and custodian provisions of subdivision 3-12C-901(2) and § 3-12C-902 notwithstanding, the benefit becomes payable directly to a child when the child reaches eighteen years of age. The benefit shall be eliminated when the child becomes ineligible.
Source: SL 2011, ch 22, § 3; SL 2016, ch 31, § 19; SDCL § 3-12-95.2; SL 2019, ch 22, § 1.
3-12C-904. Elimination of family benefit as children become ineligible.
The portion of a family benefit that is payable on account of children pursuant to subdivision 3-12C-901(1) shall be eliminated as each child becomes ineligible. The benefit shall be eliminated altogether when the youngest child becomes ineligible.
Source: SL 2011, ch 22, § 2; SL 2016, ch 31, § 20; SDCL § 3-12-95.3; SL 2019, ch 22, § 1.
3-12C-905. Deductions of member's primary social security from benefits.
Seventy-five percent of a member's primary social security, without regard to any improvements, shall be deducted from the benefits provided in subdivisions 3-12C-901(1) and (2).
Source: SL 1974, ch 35, § 51; SL 1977, ch 28, § 10; SL 1986, ch 37, § 6; SL 1994, ch 35, § 1; SDCL § 3-12-96; SL 2019, ch 22, § 1.
3-12C-906. Family benefits in lieu of other death benefits--Election by designated beneficiary to withdraw accumulated contributions.
Family benefits payable under § 3-12C-901 are in lieu of the death benefits payable under any other provision of this chapter except that a designated beneficiary may elect, subject to a deduction for any benefits previously paid, prior to the receipt of the first payment under subdivision 3-12C-901(4), to withdraw the member's accumulated contributions providing there are no children on account of whom benefits are payable under subdivisions 3-12C-901(1) and (2).
Source: SL 1974, ch 35, § 51; SL 1975, ch 39, § 6; SDCL § 3-12-97; SL 2019, ch 22, § 1.
3-12C-907. Family benefit--Deceased member who was working--Total benefit--Effective date.
On the death of a contributing member after June 30, 2015, who has acquired at least three years of contributory service or noncontributory service, or who died while performing usual duties for an employer, and prior to the earlier of the member attaining normal retirement age or the member's retirement, a family benefit must be paid on behalf of any child of the member. The total family benefit is the greater of:
(1) Twenty-five percent of the member's final average compensation at the time of death; or
(2) The member's unreduced accrued retirement benefit at the time of death.
The family benefit is effective the first day of the month following the date on which the member's contributory service terminates and is payable upon the receipt of a completed application. The family benefit, which must be paid in monthly installments, shall be equally apportioned among any children of the member and shall be paid on behalf of any child in accordance with § 3-12C-902. As a child becomes ineligible, the family benefit must be reallocated among any remaining eligible children of the deceased member. The family benefit terminates if there are no eligible children of the deceased member.
Source: SL 2014, ch 20, § 17; SL 2016, ch 32, § 41; SDCL § 3-12-95.4; SL 2019, ch 22, § 1; SL 2020, ch 15, § 2; SL 2022, ch 15, § 6.
3-12C-1001. Election of additional survivor protection--Commencement and termination of additional contribution.
Within three hundred sixty-five days of becoming a member, within ninety days of attaining age thirty-five, or within ninety days of the first anniversary of a marriage, a member may elect to provide the member's spouse with additional survivor protection by increasing the member's contribution by an additional one and five-tenths percent of compensation, which additional contribution may not be matched by the member's employer. The additional contribution shall commence with the first payroll period following the date of the election. It shall continue until the earlier of the member's spouse attaining age sixty-five, the death or disability of the member, the death of the spouse, termination of employment or the termination of the marriage as defined in the rules of the board of trustees. The additional contribution may not be treated as a member contribution for purposes of determining the amount of refund of accumulated contributions. However, the contributions paid prior to January 1, 1979, shall be considered part of accumulated contributions for determining the amount of refund if the member terminates employment. Notwithstanding any other provision of this section, a member who is currently contributing to the system may terminate the additional survivor protection under this section, but all funds contributed for the additional survivor protection shall remain with the system and may not be considered as part of the member's accumulated contributions. For the purposes of implementing this section, the one and two-tenths percent contribution for additional survivor protection was applied to all compensation received on or after July 1, 2004, regardless of when that compensation was earned, and the one and five-tenths percent of compensation shall be applied to all compensation received on or after July 1, 2010, regardless of when that compensation was earned.
Source: SL 1974, ch 35, § 58; SL 1976, ch 40, § 4; SL 1977, ch 28, § 12; SL 1978, ch 33, §§ 1, 3; SL 1982, ch 32, § 6; SL 1995, ch 21; SL 1998, ch 15, § 20; SL 1998, ch 21, § 1; SL 2004, ch 41, § 1; SL 2010, ch 22, § 1; SDCL § 3-12-104; SL 2019, ch 22, § 1.
3-12C-1002. Extension of survivor protection option to current contributing members--Limitation on future extensions.
The additional survivor protection option granted under § 3-12C-1001 is hereby extended to all current contributing members of the system for a period of three months commencing October 1, 1990, and ending December 31, 1990. In no event may the additional survivor protection be made available to a terminated vested member or to a member receiving a retirement benefit from the system. However, the additional survivor protection option may not be so extended again at any time after June 30, 2004.
Source: SL 1982, ch 32, § 7; SL 1986, ch 39; SL 1990, ch 39; SL 2004, ch 41, § 2; SL 2017, ch 27, § 16; SDCL § 3-12-104.1; SL 2019, ch 22, § 1.
3-12C-1003. New enrollments in additional survivor protection prohibited.
The provisions of § 3-12C-1001 notwithstanding, on or after July 1, 2010, no member of the system may enroll in the program created under that section.
Source: SL 2010, ch 22, § 2; SDCL § 3-12-104.2; SL 2019, ch 22, § 1.
3-12C-1004. Amount of additional survivor protection benefits--Termination.
The additional survivor protection payable under § 3-12C-1001, on the death of the member or expiration of benefits that may have been paid pursuant to subdivision 3-12C-901(1) because there is no eligible child, entitles the surviving spouse of the member to an annual amount, payable in monthly installments, equal to forty percent of the member's final average compensation, multiplied by the COLA for each full twelve-month period between the earlier of the date of death or disability of the member and the date the payment of the benefit is due to commence. The additional survivor protection benefit shall continue until the surviving spouse dies or attains age sixty-five, whichever is earlier.
Source: SL 1974, ch 35, § 59; SL 1979, ch 30, § 3; SL 1982, ch 34, § 3; SL 2004, ch 40, § 3; SL 2004, ch 41, § 3; SL 2017, ch 27, § 17; SDCL § 3-12-105; SL 2019, ch 22, § 1.
3-12C-1101. Final average compensation for foundation members whose contributory service concluded before July 1, 2021.
For any foundation member whose contributory service concluded before July 1, 2021, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twelve consecutive calendar quarters during the member's last forty calendar quarters of membership in the system including time during which the member was not a member but for which the member has received credit under the system.
For purposes of determining final average compensation if periods of contributory service are separated by breaks, any service earned from covered employment may be aggregated to constitute a period of twelve consecutive calendar quarters. For any member who has less than twelve but more than four calendar quarters of membership in the system, the member's final average compensation shall be based on the compensation received in all quarters of membership. For any member who has four calendar quarters of membership or less, the member's final average compensation shall be based on the member's annual compensation.
Source: SL 2016, ch 32, § 26; SL 2017, ch 29, § 1; SDCL § 3-12-89.4; SL 2019, ch 22, § 1.
3-12C-1102. Limitations on final average compensation for foundation members whose contributory service concluded before July 1, 2020.
For any foundation member whose contributory service concluded before July 1, 2020, if the compensation received in the last calendar quarter considered exceeds a set percentage of the amount in the highest previous calendar quarter, or if the average compensation received in the last four calendar quarters considered exceeds a set percentage of the amount earned in the highest calendar quarter prior to the last four calendar quarters considered, only the lesser amount shall be considered and the excess may not be included in the computation of final average compensation. Those respective set percentages are as follows:
(1) Before July 1, 2004, one hundred twenty-five percent and one hundred fifteen percent;
(2) Between July 1, 2004, and June 30, 2005, one hundred fifteen percent and one hundred ten percent; and
(3) After June 30, 2005, one hundred five percent and one hundred five percent.
Source: SL 2017, ch 29, § 3; SDCL § 3-12-89.9; SL 2019, ch 22, § 1.
3-12C-1103. Final average compensation for foundation members whose contributory service concludes after June 30, 2021.
For any foundation member whose contributory service concluded after June 30, 2021, and before July 1, 2022, the term, final average compensation, means the highest average annual compensation earned by a member during any period of sixteen consecutive calendar quarters during the member's last forty calendar quarters of membership in the system, including time during which the member was not a member but for which the member has received credit under the system.
For any foundation member whose contributory service concluded after June 30, 2022, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twenty consecutive calendar quarters during the member's last forty calendar quarters of membership in the system, including time during which the member was not a member but for which the member has received credit under the system.
For purposes of determining final average compensation if periods of contributory service are separated by breaks, any service earned from covered employment may be aggregated to constitute a period of consecutive calendar quarters.
For any member who has less than the number of calendar quarters of membership considered in the computation of the member's final average compensation, but more than four, the member's final average compensation shall be based on the compensation received in all quarters of membership. For any member who has four calendar quarters of membership or less, the member's final average compensation shall be based on the member's annual compensation.
Source: SL 2017, ch 29, § 2; SDCL § 3-12-89.8; SL 2019, ch 22, § 1.
3-12C-1104. Limitations on final average compensation for foundation members whose contributory service concludes after June 30, 2020.
For purposes of this section, the term, compensation year, means each separate, mutually exclusive period of four consecutive calendar quarters considered in the computation of final average compensation. The earliest compensation year is the earliest four consecutive calendar quarters considered in the computation of final average compensation, and each subsequent compensation year is the subsequent period of four consecutive calendar quarters beginning after the earliest compensation year and continuing with each compensation year thereafter.
For any foundation member whose contributory service concluded after June 30, 2020, compensation is limited as follows:
(1) Compensation in the earliest compensation year is limited to one hundred five percent of the highest compensation received for any prior four-consecutive-calendar-quarter period during the member's last forty calendar quarters of membership in the system, including time during which the member was not a member but for which the member has received credit under the system; and
(2) Compensation for each subsequent compensation year is limited to one hundred five percent of the highest compensation considered for any prior compensation year, but the amount may not be less than the limit applied in subdivision (1).
Compensation in excess of the limited amount may not be included in the computation of final average compensation but is payable pursuant to § 3-12C-713.
If the earliest compensation year includes one or more quarters from the earliest four consecutive calendar quarters in the member's last forty quarters of membership in the system, that compensation year may not be limited.
Compensation in the last calendar quarter considered in the computation of final average compensation is limited to one hundred five percent of the highest compensation considered for any prior calendar quarter during the member's last forty calendar quarters of membership in the system.
The final average compensation of any foundation member whose contributory service concluded before July 1, 2022, may not be less than the member's final average compensation computed as of June 30, 2017.
Source: SL 2017, ch 29, § 4; SDCL § 3-12-89.10; SL 2019, ch 22, § 1.
3-12C-1105. Normal retirement age for foundation members.
For any foundation member, normal retirement age is age sixty-five for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-five for other Class B credited service.
Source: SL 2016, ch 32, § 28; SDCL § 3-12-89.6; SL 2019, ch 22, § 1.
3-12C-1106. Normal retirement benefit for foundation members for Class A credited service.
Upon retirement, a foundation member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter as provided in § 3-12C-1113, for Class A credited service, equal to the larger of one and seven-tenths percent of final average compensation for each year of Class A credited service before July 1, 2008, plus one and fifty-five hundredths percent of final average compensation for each year of Class A credited service after July 1, 2008, or two and four-tenths percent of final average compensation for each year of Class A credited service before July 1, 2008, plus two and twenty-five hundredths percent of final average compensation for each year of Class A credited service after July 1, 2008, less other public benefits. For purposes of this section, federal military retirement or federal national guard retirement benefits are not other public benefits. For the purposes of this section, any Class A member with a period of employment with any public employer not covered by federal social security shall be presumed to be entitled to the maximum primary social security benefit permitted at the time of retirement. Class A credited service includes all credited service under this or any of the retirement systems consolidated pursuant to § 3-12C-1601.
Source: SL 1967, ch 303, § 7; SDCL § 3-12-27; SL 1968, ch 216, § 1; SDCL Supp, § 3-12-25; SL 1970, ch 25, § 5; SL 1974, ch 35, § 47; SL 1975, ch 39, § 5; SL 1982, ch 39; SL 1986, ch 37, § 5; SL 1987, ch 37, §§ 7, 8; SL 1989, ch 38, § 4; SL 1990, ch 37; SL 1991, ch 32; SL 1993, ch 44, § 4; SL 1994, ch 34, § 3; SL 1997, ch 26, § 2; SL 1998, ch 15, § 15; SL 1999, ch 15, § 2; SL 2000, ch 25, § 1; SL 2002, ch 23, § 1; SL 2008, ch 23, § 1; SL 2016, ch 32, § 36; SDCL § 3-12-91; SL 2019, ch 22, § 1; SL 2023, ch 14, § 5.
3-12C-1107. Normal retirement benefit for foundation members for Class B credited service other than justice, judge, or magistrate judge.
Upon retirement, a foundation member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter as provided in § 3-12C-1113, for Class B credited service other than as a justice, judge, or magistrate judge, equal to two and four-tenths percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge before July 1, 2008, plus two percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge after July 1, 2008.
Source: SL 1974, ch 35, § 48; SL 1993, ch 44, § 5; SL 1994, ch 34, § 4; SL 1997, ch 26, § 3; SL 1998, ch 15, § 16; SL 1999, ch 15, § 3; SL 2000, ch 25, § 2; SL 2008, ch 23, § 2; SL 2016, ch 32, § 38; SDCL § 3-12-92; SL 2019, ch 22, § 1.
3-12C-1108. Normal retirement benefit for foundation members for Class B credited service as justice, judge, or magistrate judge.
Upon retirement, a foundation member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter as provided in § 3-12C-1113, for the first fifteen years of Class B credited service as a justice, judge, or magistrate judge equal to three and seven hundred thirty-three thousandths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge before July 1, 2008, plus three and three hundred thirty-three thousandths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge after July 1, 2008. A foundation member shall also receive for Class B credited service as a justice, judge, or magistrate judge in excess of fifteen years, two and four-tenths percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge before July 1, 2008, plus two percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge after July 1, 2008.
Source: SL 1994, ch 34, § 5; SL 1997, ch 26, § 4; SL 1998, ch 15, § 17; SL 1999, ch 15, § 4; SL 2000, ch 25, § 3; SL 2008, ch 23, § 3; SL 2016, ch 32, § 39; SDCL § 3-12-92.4; SL 2019, ch 22, § 1.
3-12C-1109. Adjustments in benefit for certain retirees based on time and circumstances of retirement.
Each member who retired before July 1, 2008, and each beneficiary of a deceased member who retired prior to July 1, 2008, shall receive a retirement benefit based on the provisions of § 3-12C-1106, 3-12C-1107, or 3-12C-1108 as applicable based on the member's final average compensation, credited service, and other public benefits at retirement and the benefit formulas in §§ 3-12C-1106, 3-12C-1107, and 3-12C-1108 when increased by the COLA from the date of retirement to July 1, 2008.
Increased benefits as provided by any amendment to this section are prospective in nature and are effective July 1, 2008.
Each member or beneficiary of a member who retired before July 1, 1974, who is receiving benefits pursuant to § 3-12C-1605 or each member or beneficiary of a member who elected to retire pursuant to § 3-12C-1606, shall have a benefit increased by an additional two percent as of July 1, 2008, in lieu of the increase provided in this section.
If a member retired before normal retirement age, the benefit shall be adjusted in accordance with the law in effect at the time of retirement. If a member elected an alternate method of payment under the law in effect at the time of retirement, the benefit shall be adjusted in accordance with the law in effect at the time of retirement. If the additional benefit is to be paid to a beneficiary of a deceased member, the additional benefit shall be adjusted in accordance with the law in effect at the time of the member's retirement.
No member or beneficiary whose retirement benefit terminated before July 1, 2008, may receive any benefits pursuant to this section.
Source: SL 1997, ch 26, § 7; SL 1998, ch 15, § 19; SL 1999, ch 15, § 6; SL 2000, ch 25, § 4; SL 2008, ch 23, § 4; SL 2017, ch 27, § 13; SDCL § 3-12-92.6; SL 2019, ch 22, § 1.
3-12C-1110. Reduction age defined for foundation members.
For any foundation member, the term, reduction age, means the age at which the sum of the foundation member's age and credited service equals a number as follows:
(1) For Class A credited service, an age not less than fifty-five and at which the sum of the foundation member's age and credited service equals eighty-five;
(2) For Class B credited service as a justice, judge, or magistrate judge, an age not less than fifty-five and at which the sum of the foundation member's age and credited service equals eighty; and
(3) For Class B credited service other than as a justice, judge, or magistrate judge, an age not less than forty-five and at which the sum of the foundation member's age and credited service equals seventy-five.
Source: SL 2016, ch 32, § 29; SDCL § 3-12-89.7; SL 2019, ch 22, § 1.
3-12C-1111. Early retirement benefits for foundation members.
Any vested foundation member can retire in the ten years preceding the member's normal retirement age and the retirement benefit shall be reduced by the lesser of the following:
(1) One-fourth of one percent for each full month which remains between the date of commencement of payments and the date the member will reach the member's normal retirement age; or
(2) One-fourth of one percent for each full month which remains between the date of commencement of payments and the date the member will reach the member's reduction age.
Source: SL 1967, ch 303, § 7 as added by SL 1968, ch 216, § 1; SDCL Supp, § 3-12-27.1; SL 1970, ch 25, § 6; SL 1974, ch 35, § 60; SL 1978, ch 34, § 1; SL 1986, ch 37, § 8; SL 2016, ch 32, § 44; SDCL § 3-12-106; SL 2019, ch 22, § 1.
3-12C-1112. Adjustment of early retirement benefits for foundation members who retire before eligible for social security.
Any foundation member who retires before being eligible for social security retirement benefits may elect to receive initial retirement benefit payments from the system in an amount greater than the standard benefit payments computed on the basis of the member's age and earnings at retirement. The greater amount, in conjunction with a later reduced amount, shall be the actuarial equivalent of the normal retirement benefit computed on the basis of age at retirement. The greater amount shall be paid until the foundation member reaches the age of sixty-two, at which time the payment from the system shall be the reduced amount so that, as far as possible, the foundation member's combined monthly retirement income from the system and social security shall approximately equal the greater amount paid prior to age sixty-two.
Source: SL 1974, ch 35, § 61; SL 2006, ch 20, § 1; SL 2016, ch 32, § 45; SDCL § 3-12-107; SL 2019, ch 22, § 1.
3-12C-1113. Effective date of retirement benefit of foundation member--Last payment--Retroactive retirement benefits.
Unless a foundation member's required beginning date for retirement occurs first, the early or normal retirement benefit of a foundation member is effective in accordance with whichever of the following is last:
(1) The first day of the month following the date on which the member's contributory service terminated;
(2) The first day of the month following an intervening complete calendar month after the date on which the member's written application for retirement benefits is received by the system; or
(3) The first day of the month specified in the member's application for retirement.
The last payment of the member's benefit is for the month in which the member's death occurs.
Any foundation member who fails to make a timely application for retirement benefits may receive three months of benefits retroactive from the effective date of the member's retirement benefit. However, no foundation member may receive any retroactive benefits for any period of time before the first day of the month following the date on which the member's contributory service terminated.
Source: SL 1967, ch 303, § 7; SDCL § 3-12-27; SL 1968, ch 216, § 1; SDCL Supp, § 3-12-25; SL 1970, ch 25, § 5; SL 1974, ch 35, § 46; SL 1978, ch 32, § 4; SL 1993, ch 42, § 4; SL 2016, ch 32, § 35; SDCL § 3-12-90; SL 2019, ch 22, § 1.
3-12C-1114. Surviving spouse benefit--Retired foundation member--Effective dates.
Upon the death of a foundation retiree or any foundation member who has reached normal retirement age, the surviving spouse is eligible to receive a benefit, payable in monthly installments, equal to sixty percent of the retirement benefit that the foundation member was receiving or was eligible to receive at the time of death. The surviving spouse benefit of a spouse of a retiree is effective the first day of the month following the death of the member and is payable upon the receipt of a completed application. The surviving spouse benefit of a spouse of a member who had reached normal retirement age, but had not begun a retirement benefit, is effective the first day of the month following the date on which the member's contributory service terminates and is payable upon the receipt of a completed application.
Source: SL 1967, ch 303, § 9 as added by SL 1968, ch 216, § 1; SDCL Supp, § 3-12-29.2; SL 1970, ch 25, § 8; SL 1974, ch 35, § 50; SL 1999, ch 16, § 1; SL 2016, ch 32, § 40; SDCL § 3-12-94; SL 2019, ch 22, § 1; SL 2020, ch 15, § 3.
3-12C-1115. Surviving spouse benefit--Foundation member--Calculation of benefit.
If no family benefit is being paid pursuant to § 3-12C-907, a surviving spouse of a contributing foundation member who had acquired at least three years of contributory service or noncontributory service or who died while performing usual duties for the employer and who died after June 30, 2015, is, upon attaining the age of sixty-five, eligible to receive a surviving spouse benefit calculated as follows, whichever is applicable:
(1) If a family benefit had been paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the COLA from the date the last family benefit was paid; or
(2) If a family benefit had not been paid, sixty percent of the amount calculated pursuant to subsection (a) or (b), whichever is greater, increased by the COLA from the date of the member's death:
(a) Twenty-five percent of the member's final average compensation at the time of the member's death; or
(b) The member's unreduced accrued retirement benefit at the time of the member's death.
The surviving spouse benefit shall be paid, upon receipt of a completed application, in monthly installments for the life of the surviving spouse. If the surviving spouse is eligible at the time of the member's death, the benefit is effective the first day of the month following the date on which the member's contributory service terminates.
Source: SL 2014, ch 20, § 18; SL 2015, ch 26, § 1; SL 2016, ch 32, § 42; SL 2017, ch 27, § 15; SDCL § 3-12-95.5; SL 2019, ch 22, §§ 26, 45; SL 2020, ch 15, § 4.
3-12C-1116. Early surviving spouse benefit for foundation member's spouse.
A foundation member's spouse who would be eligible to receive a surviving spouse benefit at age sixty-five may elect to start the benefit prior to age sixty-five but no earlier than the date on which the surviving spouse attains the age of fifty-five. The early surviving spouse benefit, payable for the life of the surviving spouse, is the surviving spouse benefit reduced by five percent for each full year and prorated for each additional full month between the date the early surviving spouse benefit commences and the date the surviving spouse attains the age of sixty-five.
Source: SL 2014, ch 19, § 1, eff. July 1, 2015; SL 2016, ch 32, § 43; SDCL § 3-12-95.6; SL 2019, ch 22, § 1.
3-12C-1201. Final average compensation defined for generational members.
For any generational member, the term, final average compensation, means the highest average annual compensation earned by a member during any period of twenty consecutive calendar quarters during the member's last forty calendar quarters of membership in the system.
For purposes of determining final average compensation if periods of contributory service are separated by breaks, any service earned from covered employment may be aggregated to constitute a period of twenty consecutive calendar quarters.
For any member who has less than twenty but more than four calendar quarters of membership in the system, the member's final average compensation shall be based on the compensation received in all quarters of membership. For any member who has four calendar quarters of membership or less, the member's final average compensation shall be based on the member's annual compensation.
Source: SL 2016, ch 32, § 3; SL 2017, ch 29, § 5; SDCL § 3-12-502; SL 2019, ch 22, § 1.
3-12C-1202. Limitations on final average compensation for generational members.
For purposes of this section, the term, compensation year, means each separate, mutually exclusive period of four consecutive calendar quarters considered in the computation of final average compensation. The earliest compensation year is the earliest four consecutive calendar quarters considered in the computation of final average compensation and each subsequent compensation year is the subsequent period of four consecutive calendar quarters beginning after the earliest compensation year and continuing with each compensation year thereafter.
For any generational member, compensation is limited as follows:
(1) Compensation in the earliest compensation year is limited to one hundred five percent of the highest compensation received for any prior four-consecutive-calendar-quarter period during the member's last forty calendar quarters of membership in the system, including time during which the member was not a member but for which the member has received credit under the system;
(2) Compensation for each subsequent compensation year is limited to one hundred five percent of the highest compensation considered for any prior compensation year, but the amount may not be less than the limit applied in subdivision (1).
Compensation in excess of the limited amount may not be included in the computation of final average compensation but is payable pursuant to section § 3-12C-713.
If the earliest compensation year includes one or more quarters from the earliest four consecutive calendar quarters in the member's last forty quarters of membership in the system, that compensation year may not be limited.
Compensation in the last calendar quarter considered in the computation of final average compensation is limited to one hundred five percent of the highest compensation considered for any prior calendar quarter during the member's last forty calendar quarters of membership in the system.
Source: SL 2017, ch 29, § 6; SDCL § 3-12-502.1; SL 2019, ch 22, § 1.
3-12C-1203. Normal retirement age for generational members.
For any generational member, normal retirement age is sixty-seven for Class A credited service and for Class B credited service as a justice, judge, and magistrate judge and age fifty-seven for other Class B credited service. The Legislature may increase the normal retirement age for some or all then-contributing members if life expectancy at retirement continues to increase, as substantiated by a periodic actuarial experience analysis that takes into account census data of all active members, vested terminated members, and retired members as well as beneficiaries of the system.
Source: SL 2016, ch 32, § 5; SDCL § 3-12-504; SL 2019, ch 22, § 1.
3-12C-1204. Normal retirement benefit for generational members for Class A credited service.
Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class A credited service, equal to one and eight-tenths percent of final average compensation for each year of Class A credited service.
Source: SL 2016, ch 32, § 6; SDCL § 3-12-505; SL 2019, ch 22, § 1.
3-12C-1205. Normal retirement benefit for generational members for Class B credited service other than justice, judge, or magistrate judge.
Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, for Class B credited service other than as a justice, judge, or magistrate judge, equal to two percent of final average compensation for each year of Class B credited service other than as a justice, judge, or magistrate judge.
Source: SL 2016, ch 32, § 7; SDCL § 3-12-506; SL 2019, ch 22, § 1.
3-12C-1206. Normal retirement benefit for generational members for Class B credited service as justice, judge, or magistrate judge.
Upon retirement, a generational member shall receive a normal retirement benefit, commencing at normal retirement age or thereafter, equal to three and three hundred thirty-three thousands percent of final average compensation for the first fifteen years of Class B credited service as a justice, judge, or magistrate judge and two percent of final average compensation for each year of Class B credited service as a justice, judge, or magistrate judge in excess of fifteen years.
Source: SL 2016, ch 32, § 8; SDCL § 3-12-507; SL 2019, ch 22, § 1.
3-12C-1207. Early retirement benefits for generational members.
Any vested generational member may elect to start the retirement benefit in the ten years preceding the member's normal retirement age. However, no retirement benefit may be paid unless the member submits a completed retirement application to the system that includes the benefit option elected by the member. The normal retirement benefit shall be reduced by five percent for each full year and prorated for each additional full month between the date the early retirement benefit commences and the date the member attains normal retirement age.
Source: SL 2016, ch 32, § 15; SDCL § 3-12-513; SL 2019, ch 22, § 1.
3-12C-1208. Application for retirement benefit required--Picture identification required--Spouse signature not required.
No retirement benefit may be paid unless the system has received a completed application for a retirement benefit, including the benefit option elected. The application must be signed by the generational member, and the member shall provide a copy of the member's current driver license or other picture identification card issued by a government agency or tribe. If the member is married, the spouse must sign the application and provide a copy of the spouse's current driver license or other picture identification card issued by a government agency or tribe.
A member who is married is not required to obtain the signature of the member's spouse if the member submits a completed form, in which the member certifies, under the penalty of perjury, that the member is unable to obtain the signature of the member's spouse because either:
(1) The member does not know where the member's spouse is and has made a good faith effort to locate the spouse; or
(2) Exceptional circumstances make it inappropriate for the member to obtain the signature of the member's spouse.
If the member is unable to obtain the signature of the member's spouse for either reason, the member must elect the sixty percent joint and survivor benefit pursuant to § 3-12C-1209 and provide documentation to support the assertion of subdivision (1) or (2) of this section.
Source: SL 2016, ch 32, § 11; SDCL § 3-12-510; SL 2019, ch 22, § 1; SL 2021, ch 27, § 4; SL 2024, ch 22, § 3.
3-12C-1209. Monthly benefit options for generational members.
Any generational member applying for a retirement benefit shall elect one of the following monthly benefit options:
(1) A single life benefit that provides a monthly benefit to the member for as long as the member lives and ceases upon the death of the member;
(2) A sixty percent joint and survivor benefit that provides a reduced lifetime monthly benefit to the member, and upon the member's death sixty percent of the reduced benefit continues to the surviving spouse until the death of the surviving spouse; or
(3) A one hundred percent joint and survivor benefit that provides a reduced lifetime monthly benefit to the member, and upon the member's death one hundred percent of the reduced benefit continues to the surviving spouse until the death of the surviving spouse.
The benefits payable to the member and the surviving spouse pursuant to a joint and survivor benefit are based on the ages of the member and the spouse and are the actuarial equivalent of a single life benefit. The monthly benefit of a member electing the joint and survivor benefit is reduced in order to provide for a continuing benefit for the surviving spouse after the member's death. The last payment of the member's benefit is for the month in which the member's death occurs, and any surviving spouse benefit is effective from the first day of the month following the member's death. The benefits payable pursuant to this section shall be paid in accordance with § 401(a)(9) of the Internal Revenue Code.
Source: SL 2016, ch 32, § 9; SDCL § 3-12-508; SL 2019, ch 22, § 1.
3-12C-1210. Irrevocable benefit election by generational members.
If more than one monthly retirement benefit payment has been made to the generational member, the benefit election made by a member is irrevocable and surviving spouse benefits, if elected, may only be paid to the person who is the spouse both at the time of the election and at the time of the member's death and only if the spouse survives the member. The benefit election may not be rescinded in the event of a subsequent divorce or the subsequent death of the spouse.
Source: SL 2016, ch 32, § 10; SDCL § 3-12-509; SL 2019, ch 22, § 1.
3-12C-1211. Effective date of retirement benefit of generational member--Last payment.
Unless a generational member's required beginning date for retirement occurs first, the retirement benefit of a generational member is effective in accordance with whichever of the following is last:
(1) The first day of the month following the date on which the member's contributory service terminated;
(2) The first day of the month following an intervening complete calendar month after the date on which the member's written application for retirement benefits is received by the system; or
(3) The first day of the month specified in the member's application for retirement.
The last payment of the member's benefit is for the month in which the member's death occurs.
Source: SL 2016, ch 32, § 12; SDCL § 3-12-511; SL 2019, ch 22, § 1.
3-12C-1212. Retroactive retirement benefits for generational members.
Any generational member who fails to make a timely application for retirement benefits may receive three months of benefits retroactive from the effective date of the member's retirement benefit. However, no member may receive any retroactive benefits for any period of time before the first day of the month following the date the member's contributory service terminated.
Source: SL 2016, ch 32, § 13; SDCL § 3-12-512; SL 2019, ch 22, § 1.
3-12C-1213. Surviving spouse benefit--Retired generational member--Amount of benefit.
Upon the death of a generational member retiree who elected either a sixty percent or one hundred percent joint and survivor benefit, the surviving spouse is eligible to receive a surviving spouse benefit. The amount of the surviving spouse benefit is based on the election made upon the retirement of the member and is payable on a monthly basis to the surviving spouse for the life of the spouse. The surviving spouse benefit is effective the first day of the month following the death of the member and is payable upon the receipt of a completed application.
Source: SL 2016, ch 32, § 16; SDCL § 3-12-514; SL 2019, ch 22, § 1; SL 2020, ch 15, § 5.
3-12C-1214. Surviving spouse benefit--Generational member dying after normal retirement age but before start of benefit--Amount of benefit.
Upon the death of a generational member who was vested or died while performing usual duties for the employer and who has reached normal retirement age but has not yet begun a retirement benefit, a surviving spouse is eligible to receive a surviving spouse benefit. The surviving spouse benefit is equal to sixty percent of the actuarially reduced amount the member would have received if the member retired on the date of death and elected the sixty percent joint and survivor benefit. The annual benefit shall be divided into monthly payments and is payable for the life of the surviving spouse. The surviving spouse benefit is effective the first day of the month following the date on which the member's contributory services terminates and is payable upon receipt of a completed application.
Source: SL 2016, ch 32, § 17; SDCL § 3-12-515; SL 2019, ch 22, § 1; SL 2020, ch 15, § 6.
3-12C-1215. Amount of surviving spouse benefit for generational member.
If no family benefit is being paid pursuant to § 3-12C-907, a surviving spouse of a contributing generational member who had acquired at least three years of contributory service or noncontributory service or died while performing usual duties for the employer is, upon attaining the age sixty-seven, eligible to receive a surviving spouse benefit as follows:
(1) If a family benefit had been paid, sixty percent of the family benefit paid at the time the family benefit ended, increased by the COLA from the date the last family benefit was paid; or
(2) If a family benefit had not been paid, sixty percent of the amount calculated pursuant to subsection (a) or (b), whichever is greater, increased by the COLA from the date of the member's death:
(a) Twenty-five percent of the member's final average compensation at the time of the member's death; or
(b) The member's unreduced accrued retirement benefit at the time of the member's death.
The surviving spouse benefit shall be paid in monthly installments for the life of the surviving spouse.
Source: SL 2016, ch 32, § 18; SL 2017, ch 27, § 36; SDCL § 3-12-516; SL 2019, ch 22, §§ 38, 45.
3-12C-1216. Early surviving spouse benefit for generational member's spouse.
A generational member's spouse who is eligible to receive a surviving spouse benefit at age sixty-seven may elect to start the benefit in the ten years preceding the spouse attaining the age of sixty-seven. The early surviving spouse benefit, payable for the life of the surviving spouse, is the surviving spouse benefit reduced by five percent for each full year and prorated for each additional full month between the date the early surviving spouse benefit commences and the date the surviving spouse attains the age of sixty-seven.
Source: SL 2016, ch 32, § 19; SDCL § 3-12-517; SL 2019, ch 22, § 1.
3-12C-1301. Variable retirement accounts of generational members--Contributions and credited investment return.
Each generational member shall have a variable retirement account, which consists of variable retirement contributions and the credited investment return. The investment return shall be credited annually as of June thirtieth for all generational members with a variable retirement account on that date. The credited investment return is the South Dakota Investment Council's reported money-weighted investment return of the system, net of fees, for the completed fiscal year. In the case of a distribution during the fiscal year, the credited investment return is the estimated investment return to the end of the month before payment. Any variable retirement contributions made during the fiscal year shall receive one-half year's credited investment return.
Source: SL 2016, ch 32, § 21; SDCL § 3-12-519; SL 2019, ch 22, § 1; SL 2022, ch 15, § 7.
3-12C-1302. Variable retirement contributions of generational members.
Each year the board shall establish the variable retirement contribution for the following fiscal year based on the results of the most current annual actuarial valuation. The variable retirement contribution for any year may be adjusted from zero to one and one-half percent of each contributing generational member's compensation and shall be allocated to each generational member's variable retirement account. The variable retirement contribution for the fiscal year beginning July 1, 2017, shall be one and one-half percent of each contributing member's compensation.
Source: SL 2016, ch 32, § 22; SDCL § 3-12-520; SL 2019, ch 22, § 1.
3-12C-1303. Distributions from generational member's variable retirement account.
The variable retirement account is payable to the generational member when the member commences a retirement benefit or a disability benefit. If a generational member dies before commencing a benefit, the variable retirement account is payable at the death of the member to the member's spouse who meets the requirements for an immediate or deferred surviving spouse benefit under § 3-12C-1214 or 3-12C-1215. For the purpose of paying a distribution, the variable retirement account is the amount in the member's variable retirement account or the total of the variable retirement contributions made on behalf of the member, whichever is greater.
The variable retirement account may be paid in a lump sum, rolled over to the South Dakota deferred compensation plan, rolled over to another eligible plan, or used to purchase a supplemental pension benefit.
The variable retirement account is not payable to any member who withdraws his or her accumulated contributions from the system.
Source: SL 2016, ch 32, § 23; SDCL § 3-12-521; SL 2019, ch 22, § 1; SL 2022, ch 15, § 8; SL 2023, ch 14, § 6.
3-12C-1400. Three consecutive calendar months of separation described.
For purposes of §§ 3-12C-1401 to 3-12C-1406, inclusive, in order to have three consecutive calendar months of separation that start with the member's effective date of retirement, the member may have no employment or any relationship with a participating unit regardless of classification as part-time, seasonal, temporary, leased, contract, or any other designation, during that time.
Source: SL 2021, ch 29, § 1, eff. Apr. 1, 2021.
3-12C-1401. Reemployment of retired member--Separation of service required--Hiring procedures.
Except as provided in § 3-12C-1401.1, a retired member's retirement is invalid if the member is reemployed by a participating unit unless the member's employment relationship with the initial participating unit has been terminated, as defined in this chapter and as required pursuant to Revenue Ruling 57-115 by the Internal Revenue Service, and the member has been separated from service for three consecutive calendar months after the member's effective date of retirement. The initial participating unit's system representative shall certify to the system that the termination of the employment relationship took place. In addition, any second participating unit shall subject the member to all proceedings and requirements associated with the hiring and employment of any new employee by the second participating unit, and that unit's system representative shall so certify to the system. If a single participating unit is both the member's initial participating unit and the member's second participating unit, the unit shall follow all termination procedures and all hiring procedures relative to the member as outlined by this section, and its chief executive officer, the officer's agent, or the chair of the unit's governing commission or board shall so certify.
Source: SL 2004, ch 38, § 6; SL 2010, ch 23, § 8, eff. Apr. 1, 2010; SL 2016, ch 31, § 14; SDCL § 3-12-81.1; SL 2019, ch 22, § 1; SL 2021, ch 29, § 2, eff. Apr. 1, 2021.
3-12C-1401.1. Reemployment of retired member--Limited exception to separation of service requirement.
The provisions of § 3-12C-1401 do not apply if the retired member is at least fifty-nine and a half years of age when the member begins receiving retirement benefits and is employed 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 member's benefits shall be suspended. The suspension ceases if the member terminates employment. If the member is subsequently reemployed, the provisions of §§ 3-12C-1401, 3-12C-1405, and 3-12C-1406 apply, where applicable.
Source: SL 2021, ch 29, § 3, eff. Apr. 1, 2021.
3-12C-1402. Reduction of retirement benefit during reemployment before July 1, 2004--Recalculation of additional benefit.
If a retired member whose benefits have been reduced pursuant to § 3-12C-1111 becomes employed as a permanent full-time employee by a participating unit before July 1, 2004, 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. If the member remains in such reemployment for at least three years pursuant to the provisions of § 3-12C-1403 and then again retires, the member's additional benefit shall be recalculated to consider only the member's credited service and final compensation earned during reentry.
Source: SL 1970, ch 25, § 13; SDCL Supp, § 3-12-29.3; SL 1974, ch 35, § 65; SL 1982, ch 32, § 8; SL 1986, ch 37, § 10; SL 1997, ch 28, § 2; SL 2004, ch 38, § 3; SL 2017, ch 27, § 20; SDCL § 3-12-111; SL 2019, ch 22, § 1; SL 2021, ch 26, § 4; SL 2022, ch 15, § 9.
3-12C-1403. Retirement benefits for members who reentered covered employment after June 30, 2004 and before April 1, 2010.
If less than three years of contributory service or noncontributory service is acquired after a retired member's reentry into covered employment, the member upon subsequent retirement shall receive a refund of the member's accumulated contributions.
If three years or more of contributory service or noncontributory service is acquired after a retired member's reentry into covered employment, the member upon subsequent retirement may receive either a refund of the member's accumulated contributions or an additional benefit based upon the member's credited service and final compensation earned during such reentry. Only the member's credited service from the subsequent employment shall be taken into account in calculating a reduction pursuant to § 3-12C-1111, if any, in the member's additional benefit. In addition, the COLA applied to the original benefit pursuant to § 3-12C-703 shall be eliminated for the period of reemployment, unless the member retired as a Class B member other than a justice, judge, or magistrate judge and subsequently reentered covered employment as a Class A member.
The provisions of this section apply to any member who retired without any reduction in benefits pursuant to § 3-12C-1111 and who reenters covered employment after June 30, 2004, but before April 1, 2010.
Source: SL 1974, ch 35, § 39; SL 1978, ch 32, § 3; SL 1982, ch 32, § 5; SL 1997, ch 28, § 1; SL 1998, ch 15, § 10; SL 2004, ch 38, § 1; SL 2005, ch 24, § 3; SL 2010, ch 20, § 10; SL 2010, ch 23, § 6, eff. Apr. 1, 2010; SL 2012, ch 26, § 11; SL 2016, ch 31, § 15; SL 2017, ch 27, § 11; SDCL § 3-12-82; SL 2019, ch 22, § 1; SL 2021, ch 26, § 5.
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.
If a retired member whose benefits have been reduced pursuant to § 3-12C-1111 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 § 3-12C-1403, 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 § 3-12C-1111, 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 § 3-12C-703 must be eliminated for the period of reemployment.
Source: 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.
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.
3-12C-1405.1. Reemployment of retired member--Limited exception to benefit and membership provisions for part-time employment.
.
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.
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.
3-12C-1406. Invalid retirement--Repayment of retirement benefit payments.
Except as provided in § 3-12C-1401.1, if a retired member reenters employment within the three consecutive calendar months that start with the member's effective date of retirement, the member's retirement is deemed invalid. If the member received one or more retirement benefit payments during the invalid retirement, the member shall repay the payments as a lump sum immediately, repay the payments by contractual payments over a period of up to three years, which payments shall include interest at the assumed rate of return, or repay the payments by an actuarial equivalent reduction in eventual monthly benefits.
Source: SL 2010, ch 23, § 1, eff. Apr. 1, 2010; SL 2016, ch 31, § 34; SDCL § 3-12-199; SL 2019, ch 22, § 1; SL 2021, ch 29, § 7, eff. Apr. 1, 2021.
3-12C-1501. Supplemental pension benefit created.
There is hereby established the South Dakota Retirement System supplemental pension benefit. The supplemental pension benefit shall be within and integral to the South Dakota Retirement System. It is the intent of the Legislature that the provisions related to the supplemental pension benefit shall be qualified under § 401(a) of the Internal Revenue Code and that the provisions constitute one aspect of a governmental plan as identified under § 414(d) of that code.
Source: SL 2008, ch 24, § 1; SL 2013, ch 20, § 13; SDCL § 3-12-189; SL 2019, ch 22, § 1.
3-12C-1502. Interest rate assumption--Suspension of new supplemental pension contracts--No right to particular price.
On an annual basis, at minimum, the board shall establish an interest rate assumption upon which the provisions of subsequent supplemental pension contracts shall be based. The board shall establish the assumption on the basis of the recommendations of the system's actuary and the state investment officer. The interest rate assumption may not be greater than the actuarial assumed rate of return for the fund, nor may the interest rate assumption be less than the effective rate of interest. Any other provision of law notwithstanding, the board may suspend issuance of new supplemental pension contracts at any time. Any suspension of new supplemental pension contracts shall be prospective in operation and may not affect supplemental pension contracts already in effect.
The administration of the supplemental pension benefit requires that supplemental pension benefit purchase costs vary from one time period to the next. Consequently, participants who accept the option of a supplemental pension benefit have no expectation or fundamental right to any particular supplemental pension benefit purchase price.
Source: SL 2008, ch 24, § 3; SL 2016, ch 31, § 30; SDCL § 3-12-190; SL 2019, ch 22, § 1.
3-12C-1503. Rollover of funds--Single premium--Contract effective upon signing--Payment of benefits.
A member who is a retiree receiving a benefit from the system, or, if the member is deceased, the member's surviving spouse who is receiving a benefit from the system and is a beneficiary of the funds subject to this section, may become a supplemental pension participant by direct rollover of pretax funds held by the member in a variable retirement account, in contribution credit, or in either or both of the plans created in chapters 3-13 and 3-13A into the fund. Any rollover must be in compliance with the provisions of § 401(a)(31) of the Internal Revenue Code and must be recorded in the participant's supplemental pension contract record. All of a participant's funds rolled into the fund must be expended in full as the single premium for a supplemental pension contract. No single premium may be less than ten thousand dollars. A supplemental pension contract goes into effect when a participant signs the supplemental pension contract. The initial monthly supplemental pension benefit is payable the first day of the first month after the contract goes into effect. Payment of any prior and current supplemental pension benefits must be made within two months after the contract is in effect.
Source: SL 2008, ch 24, § 4; SL 2013, ch 20, § 14; SL 2016, ch 32, § 47; SL 2018, ch 33, § 15; SDCL § 3-12-191; SL 2019, ch 22, § 1; SL 2019, ch 23, § 8; SL 2022, ch 15, § 11.
3-12C-1504. Types of supplemental pension benefits.
A supplemental pension participant who is a retiree receiving a benefit from the system shall receive one of three types of supplemental pension benefits:
(1) A supplemental pension benefit payable monthly for the lifetime of the participant;
(2) A supplemental pension benefit payable monthly for the lifetime of the participant and, upon the death of the participant, a supplemental pension benefit payable monthly to the participant's supplemental pension spouse equal to sixty percent of the monthly benefit amount that the participant was receiving at the time of death; or
(3) A supplemental pension benefit payable monthly for the lifetime of the participant and, upon the death of the participant, a supplemental pension benefit payable monthly to the participant's supplemental pension spouse equal to one hundred percent of the monthly benefit amount that the participant was receiving at the time of death.
A participant who is a retiree receiving a benefit from the system may contract for any of the three types of supplemental pension benefits provided in this section. The contract shall be signed by the supplemental pension participant, and the participant shall provide a copy of the participant's current driver license or other picture identification card issued by a government agency or tribe. If the participant is married, the spouse shall sign the contract and provide a copy of the spouse's current driver license or other picture identification card issued by a government agency or tribe. A participant who is the member's surviving spouse may contract only for a supplemental pension benefit payable monthly for the lifetime of the surviving spouse.
Source: SL 2008, ch 24, § 5; SL 2016, ch 32, § 48; SL 2018, ch 33, § 16; SDCL § 3-12-192; SL 2019, ch 22, § 1; SL 2021, ch 27, § 5.
3-12C-1505. COLA applicable to supplemental pension benefits.
A supplemental pension participant shall receive a COLA applicable to the participant's supplemental pension benefit for each year commencing on the July first following the date on which the benefit was first payable, and equal to the COLA determined under § 3-12C-704. However, no COLA is payable if the participant has received payments for less than twelve months.
Source: SL 2008, ch 24, § 6; SL 2010, ch 20, § 15; SL 2016, ch 31, § 31; SL 2017, ch 27, § 32; SDCL § 3-12-193; SL 2019, ch 22, § 1; SL 2021, ch 26, § 8.
3-12C-1506. Death of participant or spouse--Lump sum distribution to beneficiaries--Time for making claim.
If payment of monthly supplemental pension benefits ceases due to the death of the participant or the death of a supplemental pension spouse, and the total of monthly supplemental pension benefits paid is less than the amount of the participant's single premium, the difference between the total benefits paid and the single premium shall be disbursed in a lump sum as provided in this section. Amounts payable under this section shall be disbursed as follows:
(1) To the beneficiary or entity designated by the participant in the participant's supplemental pension contract record, if any is designated;
(2) If no beneficiary or entity is designated, then to all surviving children of the participant, irrespective of age, on a share-alike basis; or
(3) If no beneficiary or entity is designated and there are no surviving children, then to the participant's estate.
If no claim for payment due upon the death of a deceased participant is made within three years from date of death, the payment shall revert to the system. However, a claim may be honored after the expiration of the three-year reversion period if, in the opinion of the executive director, payment of the claim is warranted by exceptional circumstances.
The provisions of this section are not affected by the provisions of § 3-12C-409 or 3-12C-410.
Source: SL 2008, ch 24, § 7; SL 2016, ch 31, § 32; SDCL § 3-12-194; SL 2019, ch 22, § 1.
3-12C-1507. Contract purchases and benefit payments deemed qualified plan distributed annuity contracts.
Supplemental pension contract purchases and supplemental pension benefit payments administered pursuant to the provisions of §§ 3-12C-1501 to 3-12C-1510, inclusive, are considered to be qualified plan distributed annuity contracts under Internal Revenue Service Treasury Regulation 1.402(c)-2.
Source: SL 2008, ch 24, § 8; SL 2016, ch 31, § 33; SDCL § 3-12-195; SL 2019, ch 22, § 1.
3-12C-1508. Minimum distribution rules--Annual benefit limitations.
Supplemental pension benefit payments shall follow the minimum distribution rules of § 401(a)(9) of the Internal Revenue Code and as set forth in §§ 3-12C-1901 to 3-12C-1905, inclusive, and the annual benefit limitations of § 415(b)(1)(A) of the Internal Revenue Code and as set forth in §§ 3-12C-1801 to 3-12C-1817, inclusive.
Source: SL 2008, ch 24, § 9; SL 2013, ch 20, § 15; SDCL § 3-12-196; SL 2019, ch 22, § 1; SL 2021, ch 28, § 1.
3-12C-1509. Applicability of certain retirement system provisions.
Supplemental pension benefits are not subject to the duplicate benefit provisions of § 3-12C-709, to the participant reemployment restrictions of § 3-12C-703, 3-12C-1402, 3-12C-1403, 3-12C-1404, 3-12C-1405 or 3-12C-1406, nor to the benefit adjustment provisions of § 3-12C-1111 or 3-12C-1112. Supplemental pension benefits are optional benefits granted the protections of the provisions of § 3-12C-216.
Source: SL 2008, ch 24, § 10; SL 2010, ch 23, § 9, eff. Apr. 1, 2010; SDCL § 3-12-197; SL 2019, ch 22, § 1.
3-12C-1510. Exemption from Title 58 and from securities and agent registration.
While performing their official duties under the provisions of §§ 3-12C-1501 to 3-12C-1510, inclusive, the board, the employees of the system, the system's actuary, the State Investment Council, and the employees of the State Investment Council are exempt from the provisions of Title 58 and any associated provisions of state law. Supplemental pension benefits and supplemental pension contracts are exempt from the provisions of Title 58.
To the extent that supplemental pension contracts may be deemed to be securities, they are exempt from securities registration pursuant to subdivision 47-31B-201(1). While performing their official duties under the provisions of §§ 3-12C-1501 to 3-12C-1510, inclusive, the board, the employees of the system, the system's actuary, the State Investment Council, and the employees of the State Investment Council are exempt from agent registration provisions pursuant to subdivision 47-31B-402(b)(3).
Source: SL 2008, ch 24, § 11; SDCL § 3-12-198; SL 2019, ch 22, § 1.
3-12C-1601. Previous retirement systems consolidated--Purpose.
The Supreme and Circuit Court Judicial Retirement System, district county court and municipal court judges retirement program, South Dakota Teachers Retirement System, South Dakota Municipal Retirement System, South Dakota Law Enforcement Retirement System, and South Dakota Public Employees Retirement System are hereby continued as a consolidated system known as the South Dakota Retirement System to provide an orderly means of continuing benefits of those already retired and those eligible to retire from the respective systems.
Source: SL 1967, ch 303, § 1; SDCL § 3-12-3; SL 1968, ch 216, § 1; SL 1974, ch 35, § 1; SL 1976, ch 39, § 4; SDCL § 3-12-46; SL 2019, ch 22, § 1.
3-12C-1602. Intent to provide increased benefits to previously retired members of systems.
It is the intent of the Legislature of the State of South Dakota to provide increased benefits for the already retired members of the retirement systems consolidated into the South Dakota Retirement System created by this chapter and to provide the financial resources necessary to adequately pay for the increased benefits.
Source: SL 1974, ch 35, § 77; SL 2017, ch 27, § 23; SDCL § 3-12-123; SL 2019, ch 22, § 1.
3-12C-1603. Increase in benefits for previously retired members of systems.
Any retired members of the Supreme and Circuit Court Judicial Retirement System, District County Court and Municipal Court Judges Retirement Program, South Dakota Teachers Retirement System, South Dakota Municipal Retirement System, South Dakota Law Enforcement Retirement System, South Dakota Public Employees Retirement System and State Cement Plant Retirement Program as of June 30, 1974, who were receiving or eligible to receive a retirement benefit shall be entitled to an increased monthly benefit commencing with the payment due on or after July 1, 1974, equal to the greater of:
(1) One hundred ten percent of the benefit the member was entitled to on June 30, 1974, under the retirement system from which the member retired; or
(2) Ten dollars times the years of credited contributory service or fraction thereof, under the retirement system from which the member retired, to a maximum of one hundred dollars.
The time, manner, and form of payment of the retirement benefit are not modified by the change in benefits provided by this section.
Source: SL 1974, ch 35, §§ 78, 79; SL 2017, ch 27, § 24; SDCL § 3-12-124; SL 2019, ch 22, § 1.
3-12C-1604. Adjustment of increase for retired members electing optional payment or early retirement.
The amount calculated under subdivision 3-12C-1603(2) will be adjusted to its actuarial equivalent if the retired member had elected an optional form of payment other than the normal form provided by the retirement system from which the member retired, or if the age of a retired member is less than the normal retirement age necessary for receiving a normal retirement benefit as provided by the retirement system from which the member retired.
Source: SL 1974, ch 35, § 79; SL 2017, ch 27, § 25; SDCL § 3-12-125; SL 2019, ch 22, § 1.
3-12C-1605. Previously retired members paid from consolidated fund.
Notwithstanding the repeal on July 1, 1974, of chapters 3-12; 3-13; 9-15; 13-45; certain provisions of chapter 16-8; chapter 16-11A, and certain provisions of chapter 33-13, persons retired under those programs, and teachers retired under the provisions of chapter 51 of the Session Laws of 1939, as amended, who retired pursuant to that act prior to July 1, 1951, and beneficiaries of deceased retirees of those programs, to the extent they are being paid benefits on July 1, 1974, shall be secured in the benefits provided by those provisions from the fund established pursuant to this chapter.
Source: SL 1974, ch 35, § 82; SDCL § 3-12-126; SL 2019, ch 22, § 1.
3-12C-1606. Members of consolidated systems entitled to benefits of prior law--Retention of Codified Laws.
Notwithstanding the repeal on July 1, 1974, of chapters 3-12; 3-13; 9-15; 13-45; certain provisions of chapter 16-8; chapter 16-11A; and certain provisions of chapter 33-13, all members of systems established thereunder shall be entitled to retire at the age, with the length of service and the benefits available to them under those provisions or the provisions of this chapter. For the purposes of this section, the executive director shall retain as part of the permanent files all volumes of the South Dakota Codified Laws.
Source: SL 1974, ch 35, § 83; SL 1975, ch 39, § 7; SL 2016, ch 31, § 27; SDCL § 3-12-127; SL 2019, ch 22, § 1.
3-12C-1607. Amount of benefits for justice or judge mandatorily retired.
Any justice of the Supreme Court or judge of the circuit court of this state who is automatically retired pursuant to the provisions of § 16-1-4.1 or 16-6-31, or who, having reached age seventy, retired before January 7, 1975, and who has not fully qualified for retirement benefits as provided by this chapter shall nevertheless receive retirement benefits in the proportion that his or her total time served bears to fifteen years, or if the justice or judge has served in excess of fifteen years then receive full benefits.
Source: SL 1973, ch 133, § 3; SDCL Supp, § 16-8-9.3; SL 1974, ch 35, § 49; SDCL § 3-12-93; SL 2019, ch 22, §§ 39, 45.
3-12C-1608. Board of Regents employees--Definition of balances.
Terms as used in §§ 3-12C-1608 to 3-12C-1612, inclusive, unless the context otherwise requires, shall mean:
(1) "Board of Regents' balance," the contributions from April 1, 1964, to June 30, 1975, plus accumulated interest, made by the Board of Regents and deposited on behalf of an employee in any pension fund that is established by contract with an insurance company;
(2) "Excess balance," the contributions in addition to those accumulated in the individual balance and made from April 1, 1964, to June 30, 1975, with accumulated interest, by a Board of Regents employee included in the provisions of §§ 3-12C-1608 to 3-12C-1612, inclusive, and deposited in any pension fund that is established by contract with an insurance company;
(3) "Individual balance," the contributions from April 1, 1964, to June 30, 1975, with accumulated interest made on a matching basis by the Board of Regents' employees included in the provisions of §§ 3-12C-1608 to 3-12C-1612, inclusive, and the Board of Regents and deposited on behalf of the employee in any pension fund that is established by contract with an insurance company.
Source: SL 1975, ch 38, § 1; SL 1979, ch 29, § 1; SDCL § 3-12-69.1; SL 2019, ch 22, § 1; SL 2021, ch 27, § 6.
3-12C-1609. Existing regents' contracts preserved--Expansion of retirement plan--Transition.
Nothing in §§ 3-12C-1608 to 3-12C-1612, inclusive, shall be construed to be a termination of any contract made on behalf of the State of South Dakota and its employees by the Board of Regents. The purpose of said sections is to expand the retirement plan of the Board of Regents for faculty and administrators and to allow for the transition of the plan in effect from April 1, 1964, to June 30, 1975, into the South Dakota Retirement System as provided for in this chapter.
Source: SL 1975, ch 38, § 2; SDCL § 3-12-69.2; SL 2019, ch 22, § 1.
3-12C-1610. Contract for purchase of service for Board of Regents.
The Board of Regents shall enter into a contractual agreement with the Board of Trustees on the same basis as a new participating unit for purchase of a maximum of twenty years of service prior to April 1, 1964, pursuant to the provisions of § 3-12C-308 and subject to the provisions of § 3-12C-1611.
Source: SL 1975, ch 38, § 3; SDCL § 3-12-69.3; SL 2019, ch 22, § 1.
3-12C-1611. Contributory service credited to Board of Regents employees--Eligibility of nonparticipating employees--Qualification for prior credited service.
Employees of the Board of Regents shall be credited with contributory service for each year such employee participated in the retirement plan in effect between April 1, 1964, and June 30, 1975. Employees of the Board of Regents who did not participate during all the years that they were eligible to participate in the Board of Regents retirement plan in effect from April 1, 1964, to June 30, 1975, are eligible for credited service only if purchase is made pursuant to § 3-12C-504. Credited service must be obtained for all South Dakota service between April 1, 1964, and June 30, 1975, in order to qualify an employee for credited service prior to April 1, 1964, as granted by § 3-12C-1610.
Source: SL 1975, ch 38, § 4; SDCL § 3-12-69.4; SL 2019, ch 22, § 1.
3-12C-1612. Normal retirement allowance reduced by actuarial equivalent--Deposit of individual balance--Member contributions.
All benefits payable pursuant to § 3-12C-1106 shall be reduced by the actuarial equivalent that could be purchased by a sum of money equal to twice the value of the Board of Regents' balance payable at the member's retirement. The Board of Regents is hereby authorized, if the Board of Regents receives member approval, to deposit with the system the individual balance accumulated in the regents retirement system during the period April 1, 1964, to June 30, 1975. Such deposit shall not include the excess balance as defined in § 3-12C-1608. In the administration of this chapter, the individual balance shall be considered as member contributions.
Source: SL 1975, ch 38, § 5; SL 1976, ch 40, § 2; SL 1979, ch 29, § 2; SDCL § 3-12-69.5; SL 2019, ch 22, § 1.
3-12C-1613. Allowance to surviving spouse of law enforcement officer retired for disability.
The surviving spouse of a disability retiree under the Law Enforcement Officers' Retirement System as consolidated into the South Dakota Retirement System pursuant to § 3-12C-1601 shall upon the death of the member be entitled to an annuity equal to one-half the member's annuity at the time of death. The retirement for disability upon which annuity was based shall have been approved prior to July 1, 1974.
Source: SL 1979, ch 26, § 3A; SDCL § 3-12-94.1; SL 2019, ch 22, § 1; SL 2021, ch 27, § 7.
3-12C-1614. Repealed.
Source: SL 1980, ch 33, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011; SL 2012, ch 26, § 9; SL 2016, ch 31, § 6.; SDCL § 3-12-62.1; SL 2019, ch 22, § 1; SL 2020, ch 13, § 7.
3-12C-1615. Rapid City firefighter membership in system--Benefits and credited service.
On July 1, 1982, all employees of the municipality of Rapid City who are participants in the municipality of Rapid City firemen pension fund on June 30, 1982, and all retirees receiving benefits from that fund shall become members of the system. Each employee shall receive credited service under the system for all service earned under the municipality of Rapid City firemen pension fund.
Source: SL 1982, ch 37, § 1; SL 1992, ch 60 § 2; SDCL § 3-12-62.2; SL 2019, ch 22, § 1.
3-12C-1616. Rapid City firefighter retirement benefits--Normal retirement age.
Upon retirement, each employee described in § 3-12C-1615 shall receive the greater of:
(1) The member's retirement benefit calculated under this chapter; or
(2) The retirement benefit calculated under the municipality of Rapid City firemen pension fund based on credited service up to June 30, 1982, and compensation up to June 30, 1982.
The normal retirement age of each such employee is fifty-five.
Source: SL 1982, ch 37, § 2; SL 1992, ch 60, § 2; SL 2017, ch 27, § 8; SDCL § 3-12-62.3; SL 2019, ch 22, § 1.
3-12C-1617. Payments from public employees retirement fund to Rapid City firefighters.
The benefits of the retirees described in § 3-12C-1615 who are entitled to receive benefits from the municipality of Rapid City firemen pension fund on July 1, 1982, shall be paid from the fund established by this chapter.
Source: SL 1982, ch 37, § 3; SL 1992, ch 60, § 2; SDCL § 3-12-62.4; SL 2019, ch 22, § 1.
3-12C-1618. Payments by Rapid City.
The municipality of Rapid City shall pay to the system an amount equal to the present value of all benefits earned by employees described in § 3-12C-1615 up to July 1, 1982, multiplied by the funding ratio set forth in the valuation of the actuarial requirements and financial condition of the system as of June 30, 1980. That amount shall be determined as of the close of business on July 1, 1982, by the system's actuary. Any amount to be paid to the system by the municipality of Rapid City which exceeds the value of the assets of the municipality of Rapid City firemen pension fund, determined as of the date of transfer of the assets, may be paid in periodic installments as provided in § 3-12C-308.
Source: SL 1982, ch 37, § 4; SL 1992, ch 60, § 2; SDCL § 3-12-62.5; SL 2019, ch 22, § 1.
3-12C-1619. Crediting of transfers from Rapid City pension fund.
All amounts transferred to the system from the municipality of Rapid City firemen pension fund which, under the fund, were credited to the accounts of individual employees shall be considered employee contributions under this chapter.
Source: SL 1982, ch 37, § 5; SL 1992, ch 60, § 2; SDCL § 3-12-62.6; SL 2019, ch 22, § 1.
3-12C-1620. Retirement benefits for certain city of Aberdeen employees.
To determine the retirement benefits of Aberdeen ambulance attendants, campus security officers, and court services officers, for credited service earned prior to July 1, 1993, the benefits shall be calculated pursuant to § 3-12C-1106 and for credited service after June 30, 1993, the benefits shall be calculated pursuant to § 3-12C-1107.
Source: SL 1993, ch 38, § 3; SDCL § 3-12-132; SL 2019, ch 22, § 1.
3-12C-1621. Aberdeen firefighters to participate in system.
On July 1, 1994, all members of the municipality of Aberdeen firemen's relief and pension fund on June 30, 1994, including all retirees and benefit recipients, shall become members of the system. Each individual shall receive credited service under the system for all service earned under the municipality of Aberdeen firemen's relief and pension fund.
Source: SL 1994, ch 37, § 1; SDCL § 3-12-133; SL 2019, ch 22, § 1.
3-12C-1622. Eligible benefits for Aberdeen firefighters.
Each individual described in § 3-12C-1621 shall receive the same benefit provided by the municipality of Aberdeen firemen's relief and pension fund on June 30, 1994, and the benefit shall be increased on July 1, 1994, and thereafter in accordance with § 3-12C-703. The benefits of the individuals described in § 3-12C-1621 who are entitled to receive benefits from the municipality of Aberdeen firemen's relief and pension fund as of July 1, 1994, shall be paid from the fund established by this chapter.
Source: SL 1994, ch 37, § 2; SL 2017, ch 27, § 26; SDCL § 3-12-134; SL 2019, ch 22, § 1.
3-12C-1623. Amount to be paid by municipality of Aberdeen.
The municipality of Aberdeen shall pay to the system an amount equal to the present value of all benefits earned by individuals described in § 3-12C-1621 up to July 1, 1994, multiplied by the funding ratio set forth in the valuation of the actuarial requirements and financial condition of the system as of June 30, 1992. That amount shall be determined on July 1, 1994, by the system's actuary. Any amount to be paid to the system by the municipality of Aberdeen which exceeds the value of the assets of the municipality of Aberdeen firemen's relief and pension fund, determined as of the date of transfer, shall be paid pursuant to the provisions of § 3-12C-308.
Source: SL 1994, ch 37, § 3; SDCL § 3-12-135; SL 2019, ch 22, § 1.
3-12C-1624. Funds from Aberdeen municipality considered member contributions.
All amounts transferred to the system from the municipality of Aberdeen firemen's relief and pension fund which, under the Aberdeen firemen's relief and pension fund, were credited to the accounts of individual employees are considered member contributions under this chapter.
Source: SL 1994, ch 37, § 4; SDCL § 3-12-136; SL 2019, ch 22, § 1.
3-12C-1625. Watertown firefighters pension fund members--Credited service.
On July 1, 1995, all members of the city of Watertown firemen pension fund as of June 30, 1995, including all retirees and benefit recipients, shall become members of the system. Each individual shall receive credited service under the system for all service earned under the city of Watertown firemen pension fund.
Source: SL 1995, ch 19, § 1; SDCL § 3-12-62.10; SL 2019, ch 22, § 1.
3-12C-1626. Watertown firefighters benefits paid from the system--Minimum benefit.
Each individual described in § 3-12C-1625 shall receive the same benefit under the form of annuity provided by the city of Watertown firemen pension fund in effect on June 30, 1995, which benefit shall be increased on July 1, 1995, and thereafter in accordance with § 3-12C-703. The benefits of individuals described in § 3-12C-1625 who are entitled to receive benefits from the city of Watertown firemen pension fund as of July 1, 1995, shall be paid from the fund established by this chapter and funded pursuant to §§ 3-12C-1627 and 3-12C-1628.
Firefighters who are not retired on July 1, 1994, are guaranteed a minimum benefit equal to the accrued benefit under the city of Watertown firemen pension fund as of July 1, 1994. If the minimum benefit is paid in lieu of a benefit under this chapter, the minimum benefit may not be increased annually as provided in § 3-12C-703 and the member is not entitled to benefits pursuant to § 3-12C-1114 or subdivision 3-12C-901(4).
Source: SL 1995, ch 19, § 2; SL 2017, ch 27, § 9; SDCL § 3-12-62.11; SL 2019, ch 22, § 1.
3-12C-1627. Payments by Watertown.
The city of Watertown shall pay to the system an amount equal to the present value of all benefits earned by individuals described in § 3-12C-1625 prior to July 1, 1995, and multiplied by the funding ratio set forth in the valuation of the actuarial requirements and financial condition of the system as of June 30, 1994. The amount shall be determined on July 1, 1995, by the system's actuary. Any amount to be paid to the system by the city of Watertown which exceeds the value of the assets of the city of Watertown firemen pension fund, as determined as of the date of transfer, shall be paid pursuant to the provisions of § 3-12C-308.
Source: SL 1995, ch 19, § 3; SDCL § 3-12-62.12; SL 2019, ch 22, § 1.
3-12C-1628. Crediting transfers from city of Watertown firemen pension fund.
All amounts transferred to the system from the city of Watertown firemen pension fund which under the city of Watertown firemen pension fund were credited to the accounts of individual employees are considered member contributions under this chapter.
Source: SL 1995, ch 19, § 4; SDCL § 3-12-62.13; SL 2019, ch 22, § 1.
3-12C-1629. Mitchell firefighters as members of system.
On July 1, 1996, all members of the City of Mitchell firemen's pension plan as of June 30, 1996, including all retirees, vested inactive members, and benefit recipients, shall become members of the system. Each member shall receive credited service under the system for all service earned under the City of Mitchell firemen's pension plan.
Source: SL 1996, ch 28, § 1; SDCL § 3-12-153; SL 2019, ch 22, § 1.
3-12C-1630. Benefits for Mitchell firefighters.
Each retired member or benefit recipient described in § 3-12C-1629 shall receive the same benefit under the form of annuity provided by the city of Mitchell firemen's pension plan as in effect on June 30, 1996, except for the COLA. Each benefit shall be increased on July 1, 2008, and thereafter by the system's COLA. The benefits of members described in § 3-12C-1629 who are entitled to receive benefits from the city of Mitchell firemen's pension plan as of July 1, 1996, shall be paid from the fund established by this chapter.
Source: SL 1996, ch 28, § 2; SL 2008, ch 26, § 1; SL 2010, ch 20, § 14; SL 2017, ch 27, § 28; SDCL § 3-12-154; SL 2019, ch 22, § 1.
3-12C-1631. Calculation of Mitchell firefighter benefits.
Upon retirement, each member described in § 3-12C-1629 who is a vested inactive member on July 1, 1996, or an active firefighter in the employ of the city of Mitchell on July 1, 1996, shall receive the greater of:
(1) The member's retirement benefit calculated under this chapter; or
(2) The member's retirement benefit calculated under the city of Mitchell firemen's pension plan based on credited service up to June 30, 1996, and compensation up to June 30, 1996, and utilizing the plan's benefit terms and benefit formula, but applying the system's COLA, as specified in § 3-12C-1630.
In either case, the retirement benefit shall be paid from the fund established by this chapter.
Source: SL 1996, ch 28, § 3; SL 2008, ch 26, § 2; SL 2017, ch 27, § 29; SDCL § 3-12-155; SL 2019, ch 22, § 1.
3-12C-1632. Amount of payment to system by city of Mitchell.
The city of Mitchell shall pay to the system an amount equal to the present value of all benefits earned by the members described in § 3-12C-1629 up to July 1, 1996, multiplied by the funding ratio set forth in the valuation of the actuarial requirements and financial condition of the system as of June 30, 1996. That amount shall be calculated as of the close of business on June 30, 1996, by the system's actuary. Any amount to be paid to the system by the city of Mitchell which exceeds the value of the assets of the city of Mitchell firemen's pension plan, calculated as of the date of transfer of such assets, may be paid in periodic installments as provided in § 3-12C-308.
Source: SL 1996, ch 28, § 4; SDCL § 3-12-156; SL 2019, ch 22, § 1.
3-12C-1633. Transfer of city of Mitchell firemen's pension plan funds as member contributions.
All amounts transferred to the system from the city of Mitchell firemen's pension plan which under the plan were credited to the accounts of individual employees are considered member contributions under this chapter.
Source: SL 1996, ch 28, § 5; SDCL § 3-12-157; SL 2019, ch 22, § 1.
3-12C-1634. Information required of city of Mitchell.
For purposes of payment of retiree benefits pursuant to § 3-12C-1630 and to calculate the minimum benefit pursuant to § 3-12C-1631, the city of Mitchell shall provide the following information:
(1) Each retired firefighter's benefit as of June 30, 1996, plus that benefits' COLA;
(2) Each active or inactive vested firefighter's accrued benefit as of June 30, 1996;
(3) Each active firefighter's final average compensation as of June 30, 1996;
(4) Each active firefighter's credited service as of June 30, 1996;
(5) Each active firefighter's employee contributions, with interest credited thereon, as of June 30, 1996; and
(6) The annual rate of salary for a first-class firefighter as of June 30, 1996.
Source: SL 1996, ch 28, § 6; SDCL § 3-12-158; SL 2019, ch 22, § 1; SL 2021, ch 26, § 9.
3-12C-1635. Huron firefighters as members of system.
On July 1, 1998, all members of the city of Huron firemen pension fund as of June 30, 1998, including all retirees, any deferred vested members and any benefit recipients, shall become members of the system. Each active member shall receive credited service under the system for all service earned under the city of Huron firemen pension fund.
Source: SL 1998, ch 22, § 1; SDCL § 3-12-159; SL 2019, ch 22, § 1.
3-12C-1636. Benefits for Huron firefighters.
Each retired member, any benefit recipient, or any deferred vested member described in § 3-12C-1635 and in such status before July 1, 1998, shall receive the member's previously selected annuity option as provided under the city of Huron firemen pension fund as in effect on June 30, 1998, but is not eligible for a benefit pursuant to § 3-12C-1114. Each such benefit in effect before July 1, 1998, shall be increased on that date and thereafter in accordance with § 3-12C-703. The retirement benefit of a deferred vested member that goes into effect after July 1, 1998, shall be increased in accordance with § 3-12C-703, but the member's final average compensation may not be increased before retirement by the COLA pursuant to § 3-12C-601. The benefits of members described in § 3-12C-1635 who are entitled to receive benefits from the city of Huron firemen pension fund before July 1, 1998, shall be paid from the fund established by this chapter and funded pursuant to § 3-12C-1638.
Source: SL 1998, ch 22, § 2; SL 2004, ch 40, § 11; SL 2017, ch 27, § 30; SDCL § 3-12-160; SL 2019, ch 22, § 1.
3-12C-1637. Calculation of Huron firefighter benefits.
Upon retirement, each member described in § 3-12C-1635 who is an active firefighter in the employ of the city of Huron on July 1, 1998, shall receive the greater of:
(1) The member's retirement benefit calculated under this chapter; or
(2) The member's retirement benefit calculated under the city of Huron firemen pension fund based on credited service up to June 30, 1998, and compensation up to June 30, 1998, and utilizing the fund's benefit terms and benefit formula.
In either case, such retirement benefit shall be increased in accordance with the provisions of § 3-12C-703, shall be paid from the fund established by this chapter and shall be funded pursuant to §§ 3-12C-1638 and 3-12C-401. Any benefit granted pursuant to subdivision (2) may not include a benefit pursuant to § 3-12C-1114.
Source: SL 1998, ch 22, § 3; SL 2017, ch 27, § 31; SDCL § 3-12-161; SL 2019, ch 22, § 1.
3-12C-1638. Amount of payment to system by City of Huron.
The city of Huron shall pay to the system an amount equal to the present value of all benefits earned by the members described in § 3-12C-1635 up to July 1, 1998, multiplied by the funding ratio set forth in the valuation of the actuarial requirements and financial condition of the system as of June 30, 1998. That amount shall be calculated as of the close of business on June 30, 1998, by the system's actuary. Any amount to be paid to the system by the city of Huron which exceeds the value of the assets of the city of Huron firemen pension fund, calculated as of the date of transfer of such assets, may be paid in periodic installments as provided in § 3-12C-308.
Source: SL 1998, ch 22, § 4; SDCL § 3-12-162; SL 2019, ch 22, § 1.
3-12C-1639. Transfer of city of Huron firemen's pension plan funds as member contributions.
All amounts transferred to the system from the city of Huron firemen pension fund which under the fund were credited to the accounts of individual members are considered member contributions under this chapter.
Source: SL 1998, ch 22, § 5; SDCL § 3-12-163; SL 2019, ch 22, § 1.
3-12C-1640. Information required of city of Huron.
For purposes of payment of retirement or other benefits pursuant to § 3-12C-1636 and to calculate the minimum benefit pursuant to § 3-12C-1637, the city of Huron shall provide the following information:
(1) Each retired firefighter's benefit and form of payment as of June 30, 1998;
(2) Each active or deferred vested firefighter's accrued benefit as of June 30, 1998;
(3) Each active firefighter's final average compensation as of June 30, 1998.
(4) Each active firefighter's credited service as of June 30, 1998;
(5) Each active firefighter's employee contributions, with interest credited thereon as of June 30, 1998; and
(6) The annual rate of salary for a first-class firefighter as of June 30, 1998.
Source: SL 1998, ch 22, § 6; SDCL § 3-12-164; SL 2019, ch 22, § 1.
3-12C-1641. Election by municipality of Sioux Falls to be participating unit.
Notwithstanding the provisions of § 3-12C-306, any employee of the municipality of Sioux Falls who begins working after June 30, 2013, as a full-time employee shall be a member of the system if the municipality of Sioux Falls elects to be a participating unit by a duly passed resolution of its governing body.
Source: SL 2013, ch 19, § 1; SL 2016, ch 31, § 8; SDCL § 3-12-67.1; SL 2019, ch 22, § 1; SL 2021, ch 29, § 14, eff. Apr. 1, 2021.
3-12C-1642. Transfer of funds in cement plan retirement fund.
Upon receipt of the appropriation pursuant to SL 2014, ch 21, § 1, the state treasurer shall transfer the balance of the funds of the cement plant retirement fund to the South Dakota Retirement System trust fund.
Source: SL 2014, ch 21, § 2, eff. Apr. 1, 2014; SDCL § 3-12-217 SL 2019, ch 22, § 1.
3-12C-1643. Members of cement plant retirement plan to be Class C members of system.
On April 1, 2014, all members of the cement plant retirement plan, including any retiree and any vested member, become Class C members of the system. The administration of retirement benefits for Class C members shall continue with the system.
Source: SL 2014, ch 21, § 3, eff. Apr. 1, 2014; SDCL § 3-12-218; SL 2019, ch 22, § 1.
3-12C-1644. Class C members to receive benefits as provided under cement plant retirement plan.
Each Class C member shall receive the same benefit as provided pursuant to the member's respective cement plant retirement plan as in effect on June 30, 2013. The benefits of any Class C member and the member's beneficiaries shall be paid from the fund established by this chapter and funded pursuant to SL 2014, ch 21, § 1 and § 3-12C-1642.
Source: SL 2014, ch 21, § 4, eff. Apr. 1, 2014; SDCL § 3-12-219; SL 2019, ch 22, § 1.
3-12C-1645. Funds transferred from cement plant retirement fund considered member contributions.
Any amount transferred to the system from the cement plant retirement fund pursuant to § 3-12C-1642, which under the cement plant retirement plan were credited to the accounts of individual members, are considered member contributions.
Source: SL 2014, ch 21, § 5, eff. Apr. 1, 2014; SDCL § 3-12-220; SL 2019, ch 22, § 1.
3-12C-1646. Payment of benefits and operational expenses related to Class C members.
Notwithstanding the provisions of § 3-12C-210, any benefit payments and any operational expenses related to Class C members shall be paid from the fund established by this chapter.
Source: SL 2014, ch 21, § 6, eff. Apr. 1, 2014; SDCL § 3-12-221; SL 2019, ch 22, § 1.
3-12C-1647. Promulgation of rules to administer retirement benefits for Class C members.
The board may, pursuant to chapter 1-26, adopt rules to establish uniform procedures for the administration of the retirement benefits of Class C members.
Source: SL 2014, ch 21, § 7, eff. Apr. 1, 2014; SDCL § 3-12-222; SL 2019, ch 22, § 1.
3-12C-1648. Member election to receive lump sum trustee-to-trustee payment in lieu of monthly payments.
Any vested member of the state cement plant retirement plan may elect to receive a lump sum trustee-to-trustee payment in lieu of monthly retirement benefit payments. The amount of the lump sum trustee-to-trustee payment shall be determined by the system's actuary based on the actuarial equivalent of the member's benefit as defined by the cement plant retirement plan. However, no lump sum trustee-to-trustee payment may be made unless both of the following requirements are satisfied:
(1) The member has not received any monthly benefits; and
(2) The member directs a trustee-to-trustee transfer of the lump sum payment to a receiving retirement custodian, trustee, or other approved recipient.
Any eligible member who desires to make the election authorized by this section shall submit an application to the system.
Source: SL 2014, ch 22, § 1; SDCL § 3-12-223; SL 2019, ch 22, § 1.
3-12C-1649. Surviving spouse election to receive lump sum trustee-to-trustee payment in lieu of monthly payments.
Upon the death of a vested member of the state cement plant retirement plan who died prior to starting a monthly retirement benefit, the member's surviving spouse may elect a lump sum trustee-to-trustee payment in lieu of monthly surviving spouse benefit payments. The amount of the lump sum trustee-to-trustee payment shall be determined by the system's actuary based on the actuarial equivalent, as defined by the cement plant retirement plan, of the spouse's age sixty-five survivor benefit. However, no lump sum trustee-to-trustee payment may be made unless the following requirements are satisfied:
(1) Neither the member nor the member's family nor the member's spouse received any monthly benefits from the plan; and
(2) The surviving spouse directs a trustee-to-trustee transfer of the lump sum payment to a receiving retirement custodian, trustee, or other approved recipient.
Any eligible surviving spouse who desires to make the election authorized by this section shall submit an application to the system.
Source: SL 2014, ch 22, § 2; SDCL § 3-12-224; SL 2019, ch 22, § 1.
3-12C-1650 . Department of Labor and Regulation employees' retirement plan--Membership with system--Class D.
As of July 1, 2020, each member of the Department of Labor and Regulation employees’ retirement plan, including any retiree and any vested member, is a Class D member of the system. No additional member may be added to Class D. The administration of retirement benefits for Class D members shall continue with the system in accordance with this chapter and chapter 3-13C.
Source: SL 2020, ch 13, § 1.
3-12C-1651 . Class D membership--Benefits received.
Each Class D member shall receive the same benefit as provided pursuant to the Department of Labor and Regulation employees’ retirement plan as in effect on June 30, 2020, and in accordance with chapter 3-13C. Each Class D member's benefit shall be annually increased by the COLA as determined by § 3-12C-704 . The benefits of any Class D member and the member's beneficiaries and any operational expenses related to Class D members shall be paid from the plan fund established by this chapter.
Source: SL 2020, ch 13, § 2.
3-12C-1701. Correctional security staff benefits.
For purposes of determining the benefits of correctional security staff, for credited service earned prior to July 1, 1978, the benefits shall be calculated pursuant to § 3-12C-1106 and for credited service after July 1, 1978, the benefits shall be calculated pursuant to § 3-12C-1107.
Source: SL 1977, ch 31, § 4; SL 2018, ch 32, § 5; SDCL § 3-12-92.1; SL 2019, ch 22, § 1.
3-12C-1702. Calculation of benefits for sheriffs and deputies--Prior elective rights preserved.
For the purposes of determining the benefits of county sheriffs and deputy county sheriffs, for credited service earned prior to January 1, 1980, the benefits shall be calculated pursuant to § 3-12C-1106 and for credited service after January 1, 1980, the benefits shall be calculated pursuant to § 3-12C-1107. Nothing in this chapter shall be construed as an abridgement of the right of a sheriff to exercise his right to elect to participate pursuant to § 3-12C-303.
Source: SL 1979, ch 26, §§ 2, 3; SDCL § 3-12-92.2; SL 2019, ch 22, § 1.
3-12C-1703. Calculation of benefits of parole agent.
For purposes of determining the benefits of a parole agent, for credited service earned prior to July 1, 1991, the benefits shall be calculated pursuant to § 3-12C-1106 and for credited service after June 30, 1991, the benefits shall be calculated pursuant to § 3-12C-1107.
Source: SL 1991, ch 29, § 3; SDCL § 3-12-92.3; SL 2019, ch 22, § 1.
3-12C-1704. Calculating benefits of air rescue firefighter.
For purposes of determining the benefits of an air rescue firefighter, for credited service earned prior to July 1, 1992, the benefits shall be calculated pursuant to § 3-12C-1106 and for credited service after June 30, 1992, the benefits shall be calculated pursuant to § 3-12C-1107.
Source: SL 1992, ch 34, § 3; SDCL § 3-12-129; SL 2019, ch 22, § 1.
3-12C-1705. Foundation member conservation officers.
For purposes of determining the retirement benefits of foundation member conservation officers, for credited service earned before July 1, 1983, benefits shall be calculated pursuant to § 3-12C-1106 and for credited service earned after June 30, 1983, benefits shall be calculated pursuant to § 3-12C-1107. For purposes of credited service earned before July 1, 1983, a conservation officer has a normal retirement age of sixty-five. For purposes of credited service earned after June 30, 1983, a foundation member conservation officer has a normal retirement age of fifty-five.
Source: SL 1983, ch 19, § 3; SL 1989, ch 38, § 7; SL 2016, ch 32, § 32; SDCL § 3-12-62.8; SL 2019, ch 22, § 1.
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.
To determine the retirement benefits of conservation officers employed by the Department of Game, Fish and Parks, Division of Custer State Park, and park rangers, for credited service earned prior to July 1, 1995, the benefits shall be calculated pursuant to § 3-12C-1106 and for credited service after June 30, 1995, the benefits shall be calculated pursuant to § 3-12C-1107.
Source: SL 1995, ch 18, § 3; SDCL § 3-12-62.9; SL 2019, ch 22, § 1.
3-12C-1801 . Participant--Definition.
For the purposes of this part, a participant is a member, retiree, or the surviving spouse of a member or retiree, who is eligible to participate in the qualified benefit preservation arrangement as determined by § 3-12C-1804.
Source: SL 2020, ch 14, § 1.
3-12C-1802 . Qualified benefit preservation arrangement--Definition.
For the purposes of this part, the qualified benefit preservation arrangement is an arrangement under section 415(m) of the Internal Revenue Code and established in § 3-12C-1803.
Source: SL 2020, ch 14, § 2.
3-12C-1803 . Qualified benefit preservations arrangement--Establishment--Purpose.
The qualified benefit preservation arrangement is established and placed under the management of the board. The purpose of the qualified benefit preservation arrangement is solely to provide a portion of the benefit that would otherwise have been payable by the system except for the limitations under section 415(b) of the Internal Revenue Code, as determined in § 3-12C-1805. The qualified benefit preservation arrangement is intended to constitute a qualified governmental excess benefit arrangement under section 415(m) of the Internal Revenue Code and shall be interpreted and construed consistently with that intent. The qualified benefit preservation arrangement is a portion of the system solely to the extent required under, and within the meaning of, code section 415(m)(3) and § 3-12C-1805.
The qualified benefit preservation arrangement is an exempt governmental deferred compensation plan described in code section 3121(v)(3). Code sections 83, 402(b), 457(a) and 457(f)(1) do not apply to the qualified benefit preservation arrangement. With respect to code section 457(a), the maximum amount that may be deferred under the qualified benefit preservation arrangement on behalf of any participant for the taxable year may exceed both the amount in code section 457(b)(2), as adjusted for cost of living increases, and the percent of the participant's includible compensation referred to in that code section. The system may not hold any assets or income under the qualified benefit preservation arrangement in trust for the exclusive benefit of participants.
Source: SL 2020, ch 14, § 3.
3-12C-1804 . Eligibility to participate.
Effective as of July 1, 2020, a participant is eligible to participate in the qualified benefit preservation arrangement for any calendar year, or portion of the calendar year, during which the participant is entitled to receive a benefit payment from the system, but the benefit is required to be reduced due to the application of the maximum benefit provisions of section 415(b) of the Internal Revenue Code. In that case, the participant may be eligible for a benefit as determined in § 3-12C-1805.
The system shall determine which participants are eligible to participate in the qualified benefit preservation arrangement. Eligibility for participation begins in any month in which a participant is entitled to receive a benefit from the system that is required to be reduced due to the application of the maximum benefit provisions of section 415(b) of the Internal Revenue Code and ends in any month in which the benefit is not limited by code section 415(b) or when all benefits under the system have ended.
Eligibility to participate in the qualified benefit preservation arrangement is limited to those retirees or beneficiaries whose benefits under the system are required to be reduced based upon either of the following:
(1) The rules for retirement before age sixty-two under section 415(b)(2)(C) of the Internal Revenue Code; or
(2) The rules regarding benefits for which there is not an actuarial increase due to retirement after age sixty-five as set forth in section 415(b)(2)(D) of the Internal Revenue Code.
Source: SL 2020, ch 14, § 4.
3-12C-1805 . Benefit payable.
A participant shall receive a portion of the participant's benefit that is equal to the difference between the amount of that participant's monthly retirement benefit paid under the system and the amount that would have been payable to the participant from the system in that month if not for the reduction due to the application of section 415(b) of the Internal Revenue Code, limited by the following conditions:
(1) For any retirement benefit that begins before the member attains age sixty-two, the maximum total benefit payable is equal to the Internal Revenue Code's applicable benefit limit for the calendar year for a retirement at age sixty-two to sixty-five, as if the reduction for retirement before age sixty-two was not applied. Specifically, the qualified benefit preservation arrangement shall pay the amount that exceeds the Internal Revenue Code's benefit limit as actuarially reduced for commencement before age sixty-two but may only pay a benefit up to the applicable benefit limit under section 415(b) of the Internal Revenue Code for the calendar year unreduced for early commencement. When the participant's benefit from the qualified benefit preservation arrangement is combined with the participant's benefit from the system, the participant's total benefit may not exceed the applicable benefit limit under section 415(b) of the Internal Revenue Code for the calendar year, unreduced for early commencement;
(2) For any retirement benefit that begins after age sixty-five, the maximum total benefit payable is equal to the Internal Revenue Code's applicable benefit limit for a retirement at age sixty-two to sixty-five, inclusive, as if the limit was actuarially increased for a retirement at the participant’s retirement age, up to age seventy, and the qualified benefit preservation arrangement shall pay the amount that exceeds the code's benefit limit for retirement at age sixty-two to sixty-five, inclusive. When the participant's benefit from the qualified benefit preservation arrangement is combined with the participant's benefit from the system, the participant's total benefit may not exceed the applicable benefit limit under section 415(b) of the Internal Revenue Code for the calendar year, actuarially increased to the participant’s age at retirement, up to age seventy.
For purposes of the benefits payable from the qualified benefit preservation arrangement, if a participant receives an annual incentive payment based on performance, the incentive payment will be treated as paid in the same calendar quarter of each year considered in the computation of final average compensation. If an annual incentive payment is paid in different calendar quarters in the years considered in the computation of final average compensation, the annual incentive payment will be treated as if it was consistently paid in the fourth calendar quarter.
The benefit payable from the qualified benefit preservation arrangement is limited to the amount that, if combined with the participant’s benefit from the system, does not exceed the amount that would have been payable to the participant from the system in that month if not for the reduction due to the application of section 415(b) of the Internal Revenue Code as adjusted in accordance with section 415(d)(1)(A) of the Internal Revenue Code.
The qualified benefit preservation arrangement shall be computed and is payable under the same terms, at the same time, and to the same person as the related benefit payable under the system. A participant may not elect to defer the receipt of any part of the payment due under the qualified benefit preservation arrangement.
Source: SL 2020, ch 14, § 5.
3-12C-1806 . Cost of living adjustment after benefit begins--Change in benefit payable.
After retirement, the monthly retirement benefit that would have been payable to the participant if not for the application of section 415(b) of the Internal Revenue Code will increase with any cost of living adjustment as determined by the system, and the applicable benefit limits under 415(b) of the Internal Revenue Code will be adjusted in accordance with section 415(d)(1)(A) of the Internal Revenue Code. As a result, the benefit payable from the qualified benefit preservation arrangement may increase or decrease due solely to the interaction of the cost of living adjustment as determined by the system and the applicable benefit limit adjustment in accordance with section 415(d)(1)(A).
Source: SL 2020, ch 14, § 6.
3-12C-1807 . Qualified benefit preservation arrangement--Funding.
The qualified benefit preservation arrangement is, and shall remain, unfunded within the meaning of federal tax laws, and the rights, if any, of any participant to any benefit under the qualified benefit preservation arrangement are limited to those specified in this part.
Source: SL 2020, ch 14, § 7.
3-12C-1808 . Contributions.
The system shall determine the amount necessary to pay the benefits under § 3-12C-1805 for each calendar year. The required contribution will be the aggregate of the benefits payable under § 3-12C-1805 to all participants for the calendar year and an amount determined to be a necessary and reasonable expense of administering the qualified benefit preservation arrangement. Contributions may not be calculated in a manner designed to pay future benefits under § 3-12C-1805 . Each payment of contributions by an employer that would otherwise be made to the system fund will be reduced by the amount necessary to pay the benefits under § 3-12C-1805 , and these contributions will be deposited in the qualified benefit preservation arrangement trust fund. The employer contributions otherwise required under the terms of this chapter shall be divided into those contributions required to pay the benefits under § 3-12C-1805 , and those contributions paid into and accumulated in the system fund to pay the maximum benefits permitted. Under no circumstances may employer contributions to fund the benefits under § 3-12C-1805 be credited to or commingled with contributions paid into and accumulated in the system fund, as otherwise prohibited by §§ 3-12C-219 and 3-12C-1803 . The amount deducted from employer contributions and deposited into the qualified benefit preservation arrangement fund does not increase the amount of employer contributions required under the system fund. Any contributions not used to pay the benefits under § 3-12C-1805 for a current calendar year, together with any income accruing to the qualified benefit preservation arrangement fund, shall be used to pay the administrative expenses of the qualified benefit preservation arrangement for the calendar year. Any contributions not used to pay the benefits under § 3-12C-1805 for the current calendar year that remain after paying administrative expenses shall be used to fund administrative expenses or benefits of participants in future years.
The system shall account separately for the amounts determined to be necessary to provide the benefits under § 3-12C-1805 for each participant. However, this separate accounting does not constitute setting aside these amounts for the benefit of a participant. Benefits under § 3-12C-1805 shall be paid from the qualified benefit preservation arrangement fund.
Any consultant or outside auditor, attorney, or actuary performing services for the system may also perform services for the qualified benefit preservation arrangement. Any fees attributable to services performed with respect to the qualified benefit preservation arrangement are payable solely from the qualified benefit preservation arrangement fund.
Source: SL 2020, ch 14, § 8.
3-12C-1809 . Qualified benefit preservation arrangement trust fund--Establishment--Purpose.
The qualified benefit preservation arrangement trust fund is established as a valid trust under the laws of the state, separate from the system fund, to hold contributions of the employers. Contributions to the qualified benefit preservation arrangement fund shall be held separate and apart from the funds comprising the system fund and may not be commingled with assets of the system fund and must be accounted for separately.
The qualified benefit preservation arrangement fund is maintained solely to provide certain benefits under a qualified governmental excess benefit arrangement within the meaning of section 415(m) of the Internal Revenue Code and to pay reasonable and necessary administrative expenses of the arrangement.
The qualified benefit preservation arrangement fund is intended to be a grantor trust, of which the employer is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the code, and shall be construed accordingly. This provision may not be construed to create an irrevocable trust of any kind.
The South Dakota Investment Council may, if it is determined advisable, hold assets of the qualified benefit preservation arrangement fund uninvested for making distributions under the qualified benefit preservation arrangement or may invest assets of the qualified benefit preservation arrangement as otherwise permitted by law.
Source: SL 2020, ch 14, § 9.
3-12C-1810 . Qualified benefit preservation arrangement assets--Income.
Any assets held by the qualified benefit preservation arrangement to assist in meeting the employer's obligations under the qualified benefit preservation arrangement, including all amounts of employer contributions made under the qualified benefit preservation arrangement, all property and rights acquired or purchased with these amounts, and all income attributable to these amounts shall be held separate and apart from other funds of the employer and will be used exclusively for the uses and purposes of participants and general creditors as set forth in this part. Participants have no preferred claim on, or any beneficial interest in, any assets of the qualified benefit preservation arrangement fund. Any rights created under this part are unsecured contractual rights of a participant against the employer. Any assets held by the qualified benefit preservation arrangement fund are subject to the claims of the employer's general creditors under federal and state law in the event of the employer's insolvency.
Income accruing to the qualified benefit preservation arrangement fund constitutes income derived from the exercise of an essential governmental function upon which the qualified benefit preservation arrangement fund is exempt from tax under sections 115 and 415(m)(1) of the Internal Revenue Code.
Source: SL 2020, ch 14, § 10.
3-12C-1811 . Qualified benefit preservation arrangement--Administration.
The system shall administer the qualified benefit preservation arrangement. The system shall compile and maintain all records necessary for administration. The board has the same rights, duties, and responsibilities respecting the qualified benefit preservation arrangement as it has with respect to the system. The board shall, as necessary and appropriate, take the following actions:
(1) Establish procedures to administer the qualified benefit preservation arrangement not inconsistent with this part and the Internal Revenue Code, and to amend or rescind any of these procedures;
(2) Determine, consistent with this part, applicable law, rules, or regulations, all questions of law or fact that may arise as to eligibility for participation and eligibility for distribution of benefits, and the status of any person claiming benefits under the qualified benefit preservation arrangement;
(3) Make payments from the qualified benefit preservation arrangement fund to participants pursuant to this part;
(4) Contract with a third party to perform designated administrative services under this part;
(5) Construe and interpret this part as to administrative issues and to correct any defect, supply any omission, or reconcile any inconsistency in the qualified benefit preservation arrangement, subject to and consistent with the code; and
(6) Seek appropriate rulings from the Internal Revenue Service with regard to the status of the qualified benefit preservation arrangement under the Internal Revenue Code.
Source: SL 2020, ch 14, § 11.
3-12C-1812 . Qualified benefit preservation arrangement--No assignment.
The rights of a person to a benefit, and the benefit itself, payable under this part are hereby exempt from any state, county, municipal, or other local tax and may not be subject to execution, garnishment, attachment, operation of bankruptcy or insolvency laws, or any other process of law whatsoever and is unassignable and nontransferable, except as otherwise provided by § 3-12C-1809 or otherwise in the same manner as a retirement benefit under the system.
Source: SL 2020, ch 14, § 12.
3-12C-1813 . Conflicts.
In resolving any conflict between provisions of this part, and in resolving any other uncertainty as to the meaning or intention of any provision of the qualified benefit preservation arrangement, the prevailing interpretation shall be the one that causes:
(1) The qualified benefit preservation arrangement to constitute a qualified governmental excess benefit arrangement under the provisions of section 415(m) of the Internal Revenue Code and the qualified benefit preservation arrangement fund to be exempt from tax under sections 115 and 415(m) of the Internal Revenue Code;
(2) The qualified benefit preservation arrangement and the system to comply with all applicable requirements of the code; and
(3) The qualified benefit preservation arrangement and the system to comply with all applicable state laws.
Source: SL 2020, ch 14, § 13.
3-12C-1814 . Limitation of rights.
Neither the establishment or maintenance of the qualified benefit preservation arrangement, nor any amendment to the qualified benefit preservation arrangement, nor any act or omission under the qualified benefit preservation arrangement or resulting from the operation of the qualified benefit preservation arrangement, may be construed:
(1) As conferring upon any participant or any other person a right or claim against the system, board, executive director, trustees, or any employer, except to the extent that the right or claim is specifically expressed and provided in the qualified benefit preservation arrangement;
(2) As creating any responsibility or liability of any employer for the validity or effect of the qualified benefit preservation arrangement;
(3) As a contract between any employer and any participant or other person;
(4) As being consideration for, or an inducement or condition of, employment of any participant or other person, or as affecting or restricting in any manner or to any extent whatsoever the rights or obligations of any employer or any participant or other person to continue or terminate the employment relationship at any time; or
(5) As giving any participant the right to be retained in the employer's service or to interfere with the employer's right to discharge any participant or other person at any time.
Source: SL 2020, ch 14, § 14.
3-12C-1815 . Erroneous payments--Corrections.
Any benefit payment that should not have been made, according to the terms of the qualified benefit preservation arrangement and the benefits provided under the qualified benefit preservation arrangement, may be recovered as provided in § 3-12C-214 .
If in doubt concerning the correctness of any action in making a payment of a benefit, the payment may be suspended until verification as to the correctness of the payment or the person to receive the payment.
Source: SL 2020, ch 14, § 15.
3-12C-1816 . Administration of benefit--Release and receipt.
Any payment to any participant shall, to the extent paid, be in full satisfaction of the participant's claim being paid and may be conditioned on the delivery by the participant of the duly executed receipt and release in a form determined by the system.
Source: SL 2020, ch 14, § 16.
3-12C-1817 . Reservation of power to change.
The Legislature reserves the right at any time and, from time to time, to modify or amend, in whole or in part, any or all of the provisions of the qualified benefit preservation arrangement. No member of the system and no beneficiary of a member acquires any vested right to a payment under the qualified benefit preservation arrangement.
Source: SL 2020, ch 14, § 17.
3-12C-1901. General rule.
The system shall pay all benefits in accordance with a good faith interpretation of the requirements in § 401(a)(9) of the Internal Revenue Code and the regulations in effect under that section, as applicable to a governmental plan within the meaning of section 414(d) of the Internal Revenue Code.
The member's entire interest must be distributed, or begin to be distributed, by the required beginning date, which is April first of the calendar year following the later of:
(1) The calendar year in which the member reaches the applicable age, which is determined as follows:
(a) If the member was born before July 1, 1949, the applicable age is seventy and one-half;
(b) If the member attained age seventy-two before January 1, 2023, the applicable age is seventy-two;
(c) If the member attains age seventy-two after December 31, 2022, the applicable age is seventy-three; or
(d) Effective January 1, 2033, applicable age shall have the meaning set forth in § 401(a)(9)(C)(v) of the Internal Revenue Code; or
(2) The calendar year in which the member retires and separates from service with the member's employer.
A member or beneficiary eligible for benefits must apply for benefits in order to commence distribution of benefits. The system, pursuant to a qualified domestic relations order, may establish separate benefits for a member and alternate payee.
Source: SL 2021, ch 28, § 2; SL 2024, ch 21, § 2.
3-12C-1902. Member's death after distributions begun.
If a member dies after the required distribution of benefits has begun, the remaining portion of the member's interest shall be distributed at least as rapidly as under the same method of distribution before the member's death.
Source: SL 2021, ch 28, § 3.
3-12C-1903. Member's death before required distributions begun.
If a member dies before required distribution of the member's benefits has begun, the member's interest shall be distributed as follows:
(1) If the member has a surviving spouse, the surviving spouse shall receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the member's death; or
(2) If the member has no surviving spouse, the member's remaining interest shall be distributed in a lump sum payment to the designated beneficiary within five years from the date of the member's death.
Source: SL 2021, ch 28, § 4.
3-12C-1904. Incidental benefit rule.
The death and disability benefits provided by the system are limited by the incidental benefit rule set forth in § 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation § 1.401-1(b)(1)(i). As a result, the total death or disability benefits payable may not exceed twenty-five percent of the cost for all of the member's benefits received from the system.
Source: SL 2021, ch 28, § 5.
3-12C-1905. Reasonable and made in good faith.
Notwithstanding the other provisions of §§ 3-12C-1901 to 3-12C-1904, inclusive, or the provisions of United States Treasury regulations, benefit options may continue so long as the option satisfies § 401(a)(9) of the Internal Revenue Code based on a reasonable and good faith interpretation of that section.
Source: SL 2021, ch 28, § 6.
CHAPTER 3-13
DEFERRED COMPENSATION PLAN FOR PUBLIC EMPLOYEES
3-13-1 3-13-1 to 3-13-38. Repealed by SL 1974, ch 35, § 80.
3-13-39 Repealed by SL 1987, ch 38, §§ 8 to 17.
3-13-49 State deferred compensation plan--Agreements in writing--Administrative charge--Amounts deferred remitted to state deferred compensation fund.
3-13-49.1 Political subdivisions.
3-13-50 Administration of plan--Hiring and remuneration of additional employees.
3-13-51 Repealed by SL 2000, ch 27, § 1.
3-13-51.1 Investment of funds--Investment officer as fiduciary.
3-13-51.2 Executive director and investment officer to execute necessary agreements.
3-13-51.3 Default designation of new investment selection upon termination of participant's contract.
3-13-52 Limitation of liability to participants.
3-13-53 Deferred compensation fund.
3-13-54 Promulgation of rules--Limitation on availability of accumulated deferred compensation to participant--Exception.
3-13-55 Definition of terms.
3-13-56 Automatic enrollment feature.
3-13-57 Designated Roth contribution program.
3-13-58 Required minimum distributions--General rule.
3-13-59 Required minimum distributions--Participant's death after distributions begun.
3-13-60 Required minimum distributions--Participant's death before distributions begun.
3-13-61 Required minimum distributions--Reasonable and made in good faith.
3-13-62 Required minimum distributions--Participant's death after December 31, 2021.
3-13-63 Required minimum distributions--Waiver of 2020.
3-13-1 to 3-13-38. Repealed by SL 1974, ch 35, § 80.
3-13-39 to 3-13-48. Repealed by SL 1987, ch 38, §§ 8 to 17.
3-13-49. State deferred compensation plan--Agreements in writing--Administrative charge--Amounts deferred remitted to state deferred compensation fund.
The board may establish the South Dakota deferred compensation plan for state government and political subdivision governments as determined by the board. Any eligible person wishing to participate shall execute such agreements as the board may require and shall specify in writing the amount of compensation to be deferred. Such agreement shall authorize reduction of compensation by the amount specified plus an administrative charge set by the board. The employer of each participating employee shall remit all amounts so deferred to the South Dakota deferred compensation fund, along with such documentation as may be required, no later than ten days after each payday. No deferral of compensation under this chapter may reduce compensation for the purpose of calculation of contributions and benefits under chapters 3-6E and 3-12C.
Source: SL 1987, ch 38, § 1.
3-13-49.1. Political subdivisions.
Notwithstanding the provisions of § 3-13-49, any political subdivision may establish a deferred compensation program for its employees. Participation in such program shall be by written agreement between the employees and the governing body of the political subdivision. The agreement shall provide for the deferral of compensation and the investment and administration of such funds.
Source: SL 1989, ch 43.
3-13-50. Administration of plan--Hiring and remuneration of additional employees.
The executive director shall administer the plan. The executive director may hire additional employees as may be required and shall set the remuneration of the employees.
Source: SL 1987, ch 38, § 2; SL 2016, ch 31, § 49.
3-13-51. Repealed by SL 2000, ch 27, § 1.
3-13-51.1. Investment of funds--Investment officer as fiduciary.
A participant may invest in any investment selected by the state investment officer, including annuity contracts. The state investment officer may enter into contracts for investment alternatives. The executive director or third-party administrator may transfer funds to, from, and among the respective investment alternatives as directed by the participant or as required if the investment alternative is no longer available. The state investment officer shall be held to the standard of conduct of a fiduciary and shall carry out all functions solely in the interests of the participants and benefit recipients and for the exclusive purpose of providing benefits and defraying reasonable expenses incurred in performing the duties required by law.
Source: SL 2000, ch 27, § 2; SL 2016, ch 31, § 50.
3-13-51.2. Executive director and investment officer to execute necessary agreements.
The executive director shall execute any agreements necessary to carry out the provisions of this chapter, except agreements as are executed by the state investment officer pursuant to § 3-13-51.1.
Source: SL 2000, ch 27, § 4; SL 2016, ch 31, § 51.
3-13-51.3. Default designation of new investment selection upon termination of participant's contract.
If a contract with a vendor terminates and a participant fails to notify the third-party administrator of the participant's new investment selection before the contract terminates, the third-party administrator shall transfer that participant's account to the investment alternative designated by the state investment officer.
Source: SL 2000, ch 27, § 5.
3-13-52. Limitation of liability to participants.
Neither the plan nor any participating employer may have any liability to any participant for losses arising out of any decrease in the value of any investments held by the plan. The liability of the plan to any participant is limited to the value of the participant's account on the date the account is made available to the participant pursuant to the provisions of the plan. In no event may any member of the board, the executive director or any member of the executive director's staff have any liability for any action taken with respect to the plan unless such action be taken in bad faith.
Source: SL 1987, ch 38, § 4; SL 2016, ch 31, § 52.
3-13-53. Deferred compensation fund.
The South Dakota deferred compensation fund is hereby established. All compensation deferred pursuant to this chapter shall be deposited in the fund. Expenditures from the fund shall be paid on warrants drawn by the state auditor on vouchers approved by the executive director. All administrative expenses shall be budgeted and expended pursuant to chapters 4-7, 4-8, 4-8A, and 4-8B. In accord with § 457(g) of the Internal Revenue Code, all money in the fund and all property and rights held by the fund, at all times until made available to a participant or the participant's beneficiary, shall be held in trust for the exclusive benefit of the participant. All compensation deferred pursuant to this chapter shall be transferred not later than fifteen business days after the end of the month in which the compensation otherwise would have been paid to the participant.
Source: SL 1987, ch 38, § 5; SL 1997, ch 32, § 1; SL 2008, ch 20, § 17; SL 2013, ch 20, § 17; SL 2016, ch 31, § 53.
3-13-54. Promulgation of rules--Limitation on availability of accumulated deferred compensation to participant--Exception.
The board may promulgate rules pursuant to chapter 1-26 concerning the time and amount of compensation which may be deferred, the persons who may participate in the plan, the conditions of participation, the time and manner in which accumulated deferrals may be made available to a participant or beneficiary, the establishment of administrative changes, and participation by political subdivisions. Except pursuant to the provisions of an automatic enrollment feature established under subdivision 3-13-56(4), in no event may the accumulated deferred compensation become available to the participant prior to thirty days following the participant's separation from employment with a participating employer unless the participant is faced with an unforeseeable emergency as determined by the board, unless an in-service distribution of a small amount of funds is made, or unless a distribution is made to a participant who has been called to perform qualified military service for a period in excess of thirty days. If a participant returns to service with a participating employer within thirty days following separation from service, the accumulated deferred compensation is not available to the participant.
Source: SL 1987, ch 38, § 6; SL 2009, ch 20, § 4; SL 2011, ch 20, § 4.
3-13-55. Definition of terms.
The definitions contained in § 3-12C-101 apply to this chapter unless the context clearly otherwise requires. In addition the following terms mean:
(1) "Accumulated deferred compensation," compensation deferred by a participant in the plan, plus any investment return thereon;
(2) "Plan," the South Dakota deferred compensation plan created pursuant to this chapter; and
(3) "Plan year," a calendar year ending on December thirty-first.
Source: SL 1987, ch 38, § 7; SL 2012, ch 26, § 14.
3-13-56. Automatic enrollment feature.
The board may establish an automatic enrollment feature within the plan by rules promulgated pursuant to chapter 1-26 and § 3-13-54. Any automatic enrollment feature established by the board shall include:
(1) A provision that automatic enrollment shall apply to newly-employed members hired after a specified future date, any state employees not contributing to the deferred compensation plan as of June 30, 2019, and employees of any other automatic enrollment unit that elects automatic enrollment for its employees not contributing to the deferred compensation plan;
(2) A provision that automatic enrollment shall apply only to the employees of those participating units that choose the automatic enrollment feature for the unit's employees;
(3) A provision that automatic enrollment may not require more than an established maximum contribution per month per automatically-enrolled participant;
(4) A provision that a participant who is automatically enrolled shall have as long as ninety days after the start of employment to discontinue participation in the plan;
(5) A provision that an automatically-enrolled participant who discontinues participation in the plan within ninety days of enrollment shall receive a refund of the participant's account within thirty days after discontinuing participation;
(6) A provision that the state investment officer shall select a default investment fund to receive contributions by any automatically-enrolled participant who does not choose an investment alternative to receive the participant's contributions;
(7) A provision authorizing participating units and the system to make contributions to the plan for the benefit of participants;
(8) A provision that the plan shall adhere to notice requirements to automatically-enrolled participants in accord with Internal Revenue Service Rulings 98-30 and 2000-8;
(9) A provision that automatic enrollment does not require advance authorization by a participant, which is hereby deemed to be an exception to the provisions of any state law requiring employee authorization for a payroll deduction or any similar ordinance of a local participating unit; and
(10) A provision that the amount of compensation deferred by an automatically-enrolled participant shall automatically increase by a specified amount each year unless the participant elects not to participate in automatic escalation or elects to defer a different amount than specified.
If a participant discontinues participation pursuant to subdivision (4), that act is a permissive withdrawal pursuant to § 414(w) of the Internal Revenue Code.
Source: SL 2008, ch 25, § 1; SL 2013, ch 20, § 18; SL 2015, ch 29, § 1; SL 2018, ch 34, § 1; SL 2019, ch 23, § 9.
3-13-57. Designated Roth contribution program.
The board may establish a designated Roth contribution program within the deferred compensation plan. For the purposes of this section, a designated Roth contribution is an elective salary deferral that is:
(1) Designated irrevocably by the participant at the time of the deferred election as a designated Roth contribution that is being made in lieu of all or a portion of the pre-tax elective deferrals the participant is otherwise eligible to make under the plan; and
(2) Treated by the employer as includable in the participant's income at the time the participant would have received that amount in compensation if the participant had not made a deferred election.
The board shall, pursuant to chapter 1-26, promulgate rules relating to distributions, conversions, transfers, rollovers, and limitations with regard to the designated Roth contribution program in accordance with federal law.
Source: SL 2012, ch 28, § 1.
3-13-58. Required minimum distributions--General rule.
The system shall pay all benefits in accordance with a good faith interpretation of the requirements in § 401(a)(9) of the Internal Revenue Code and the regulations in effect under that section, as applicable to a governmental plan within the meaning of § 414(d) of the Internal Revenue Code.
The participant's entire interest must be distributed, or begin to be distributed, by the required beginning date, which is April first of the calendar year following the later of:
(1) The calendar year in which the participant reaches the applicable age, which is determined as follows:
(a) If the member was born before July 1, 1949, the applicable age is seventy and one-half;
(b) If the member attained age seventy-two before January 1, 2023, the applicable age is seventy-two;
(c) If the member attains age seventy-two after December 31, 2022, the applicable age is seventy-three; or
(d) Effective January 1, 2033, applicable age shall have the meaning set forth in § 401(a)(9)(C)(v) of the Internal Revenue Code; or
(2) The calendar year in which the participant retires and separates from service with the member's employer.
A participant or beneficiary eligible for benefits must apply for benefits in order to commence distribution of benefits. The system, pursuant to a qualified domestic relations order, may establish separate benefits for a participant and alternate payee.
Source: SL 2021, ch 28, § 7; SL 2024, ch 21, § 3.
3-13-59. Required minimum distributions--Participant's death after distributions begun.
If a participant dies after the required distribution of benefits has begun, the remaining portion of the participant's interest shall be distributed at least as rapidly as under the same method of distribution before the participant's death.
Source: SL 2021, ch 28, § 8.
3-13-60. Required minimum distributions--Participant's death before distributions begun.
If a participant dies before required distribution of the participant's benefits has begun, the participant's interest shall be distributed as follows:
(1) If the participant has a surviving spouse, the surviving spouse shall receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the participant's death; or
(2) If the participant has no surviving spouse, the participant's remaining interest shall be distributed in a lump sum payment to the designated beneficiary within five years from the date of the participant's death.
Source: SL 2021, ch 28, § 9.
3-13-61. Required minimum distributions--Reasonable and made in good faith.
Notwithstanding the provisions of §§ 3-13-58 to 3-13-60, inclusive, or the provisions of United States Treasury regulations, benefit options may continue so long as the option satisfies § 401(a)(9) of the Internal Revenue Code based on a reasonable and good faith interpretation of that section.
Source: SL 2021, ch 28, § 10.
3-13-62. Required minimum distributions--Participant's death after December 31, 2021.
Notwithstanding any contrary provisions, effective for any participant death after December 31, 2021, the following distribution provisions shall take effect subject to any regulations or other guidance issued under the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019:
(1) If the participant dies before the distribution of his or her entire account (regardless of whether any distributions had begun before the participant's death) and the participant has a designated beneficiary:
(a) The entire account shall be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
(b) Notwithstanding subsection (a), if the designated beneficiary is an eligible designated beneficiary, the eligible designated beneficiary may elect for the participant's account to be distributed by:
(i) December thirty-first of the calendar year containing the tenth anniversary of the participant's death, or
(ii) Beginning no later than December thirty-first of the calendar year immediately following the calendar year in which the participant died, over the life of the eligible designated beneficiary or over a period not exceeding the life expectancy of the eligible designated beneficiary. If the eligible designated beneficiary is the surviving spouse, payment under this subsection (b)(ii) is not required until the later of December thirty-first of the calendar year immediately following the calendar year in which the participant died or December thirty-first of the calendar year in which the participant would have attained age seventy and one-half (age seventy-two with respect to a participant who would have attained age seventy and one-half after December 31, 2019). If the eligible designated beneficiary does not elect a method of distribution, the participant's account shall be distributed in accordance with this subsection (b)(ii);
(c) Upon either the death of an eligible designated beneficiary before distribution of the participant's entire account or the attainment of the age of majority for an eligible designated beneficiary who is a minor child under subsection (4)(b), subsection (1)(b) no longer applies and the remainder of the entire account shall be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
(2) If the participant dies before distributions of his or her account begins and the participant has no designated beneficiary, the participant's account under the plan shall be distributed by December thirty-first of the calendar year containing the fifth anniversary of the participant's death. If the participant dies after distribution of the account begins and the participant has no designated beneficiary, any remaining portion of the account shall continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the participant's death;
(3) Any distribution required under the incidental death benefit requirements of Internal Revenue Code section 401(a) shall be treated as distributions required under this section;
(4) For purposes of this section, the term, eligible designated beneficiary, means a designated beneficiary who, as of the date of the death of the participant, is:
(a) The surviving spouse of the participant;
(b) A child of the participant who has not reached the age of majority. However, the child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority;
(c) Disabled within the meaning of Internal Revenue Code section 72(m)(7);
(d) Chronically ill within the meaning of Internal Code section 7702B(c)(2) (except that the requirements of subparagraph (A)(i) thereof may only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature); or
(e) Any other person who is not more than ten years younger than the participant.
Source: SL 2021, ch 28, § 11.
3-13-63. Required minimum distributions--Waiver of 2020.
Notwithstanding any other provisions of chapter 3-13, the participant or beneficiary who would have been required to receive required minimum distributions (RMD) for 2020 (or paid in 2021 for the 2020 calendar year for a participant with a required beginning date of April 2, 2021) but for the enactment of Internal Revenue Code section 401(a)(9)(I) (2020 RMDs), and who would have satisfied that requirement by receiving distributions that are either (1) equal to the 2020 RMDs or (2) one or more payments in a series of substantially equal distributions (that include the 2020 RMDs) made at least annually and expected to last for the life (or life expectancy) of the participant, the joint lives (or joint life expectancy) of the participant and the participant's designated beneficiary, or for a period of at least ten years (extended 2020 RMDs) shall receive those distributions for 2020 unless the participant or beneficiary chooses not to receive the distributions. For purposes of the direct rollover provisions of the plan, 2020 RMDs and extended 2020 RMDs also shall be treated as eligible rollover distributions in 2020.
Source: SL 2021, ch 28, § 12.
CHAPTER 3-13A
SOUTH DAKOTA SPECIAL PAY RETIREMENT PROGRAM
3-13A-1 Special pay retirement program established.
3-13A-2 Definitions.
3-13A-3 Special pay fund.
3-13A-4 Board controls program as fiduciary--Promulgation of rules.
3-13A-5 Transfer of special pay to fund upon termination of employment--Contribution limit.
3-13A-6 Time for transfer of compensation to trust.
3-13A-7 Participant account.
3-13A-8 Vesting of participant account--Forfeiture.
3-13A-9 Investment of funds.
3-13A-10 Lump-sum distribution to participant.
3-13A-11 Investment alternatives--Transfer of account balances by participant
3-13A-12 Transfer of funds from terminated investment selection.
3-13A-13 Allocation of investment return among participant accounts--Accounting dates.
3-13A-14 Valuation of investment alternatives.
3-13A-15 Beneficiaries of participant's account.
3-13A-16 Payments and benefits under program not assignable or subject to creditors' actions.
3-13A-17 Powers and duties of executive director.
3-13A-18 Election by participating units of retirement system to participate in program--Rescission of participation.
3-13A-19 Trustee-to-trustee transfer of participant's account to government defined-benefit retirement plan.
3-13A-20 Rollover transfer of participant's account.
3-13A-21 Rollover transfer of participant's account in another plan.
3-13A-22 Distribution from participant's account--Forms of distribution--Time for election.
3-13A-23 Annuity distributions date.
3-13A-23.1 Required minimum distributions--General rule.
3-13A-23.2 Required minimum distributions--Participant's death after distributions begun.
3-13A-23.3 Required minimum distributions--Participant's death before distributions begun.
3-13A-23.4 Required minimum distributions--Reasonable and made in good faith.
3-13A-23.5 Required minimum distributions--Participant's death after December 31, 2021.
3-13A-23.6 Required minimum distributions--Waiver of 2020.
3-13A-24 State investment officer to act as fiduciary--Certain persons prohibited from acting as third-party administrator or vendor.
3-13A-25 Limitation of liability to participants.
3-13A-1. Special pay retirement program established.
There is hereby established the South Dakota special pay retirement program. It is the intent of the Legislature that the special pay retirement program shall become a qualified plan under § 401(a) of the code and that the program shall be treated as a governmental plan under § 414(d) of the code. It is the further intent of the Legislature that special pay transmitted to the fund is picked up by the participating unit and thus shall be designated as an employer contribution under § 414(h)(2) of the code.
Source: SL 2004, ch 43, § 1; SDCL, § 3-12-165; SL 2005, ch 28, § 1.
3-13A-2. Definitions.
The definitions contained in chapter 3-12 apply to this chapter unless otherwise specified. In addition, the following terms used in this chapter mean:
(1) "Account," the record for each participant reflecting the amount of the participant's special pay transmitted to the fund, allocated investment gains and losses thereon, and administrative charges against those amounts;
(2) "Accounting date," the date on which an investment is valued and the total investment return is allocated to a participant's account;
(3) "Board," the South Dakota Retirement System Board of Trustees as established under § 3-12C-203;
(4) "Executive director," the executive director of the South Dakota Retirement System as provided in § 3-12C-209;
(5) "Fund," the South Dakota special pay fund established pursuant to § 3-13A-3;
(6) "Normal retirement date," the date a participant may retire pursuant to the provisions of chapter 3-12C without reduced benefits;
(7) "Participant," a terminated employee of a participating unit who has reached the calendar month before the month of the employee's fifty-fifth birthday and who received six hundred dollars or more in special pay;
(8) "Participating unit," the State of South Dakota, the South Dakota Board of Regents, or any other political subdivision of the state that participates in the program;
(9) "Plan year," a calendar year ending on December thirty-first;
(10) "Program," the South Dakota Special Pay Retirement Program created pursuant to §§ 3-13A-1 to 3-13A-25, inclusive;
(11) "Special pay," compensation other than regular salary or wages granted to a participant and transferred in a lump-sum to the fund at the termination of the participant's employment;
(12) "Third-party administrator," a person who, pursuant to contract, handles administration of the program on behalf of the board and the executive director;
(13) "Vendor," a person or organization selected by the state investment officer to provide investment or insurance products to the program.
Source: SL 2004, ch 43, § 2; SDCL § 3-12-166; SL 2005, ch 28, § 1; SL 2006, ch 22, § 1; SL 2008, ch 20, § 18; SL 2013, ch 20, § 19; SL 2013, ch 22, §§ 1, 2; SL 2016, ch 31, § 54.
3-13A-3. Special pay fund.
The South Dakota special pay fund is hereby established. All compensation transmitted to the fund pursuant to §§ 3-13A-1 to 3-13A-25, inclusive, shall be deposited in the fund. Expenditures from the fund shall be paid on warrants drawn by the state auditor and supported by vouchers approved by the executive director. All administrative expenses shall be budgeted and expended pursuant to chapters 4-7, 4-8, 4-8A, and 4-8B. All money in the fund and all property and rights held by the fund shall be held in trust for the exclusive benefit of the participants at all times until made available to a participant or the participant's beneficiary. All benefits payable under this program shall be paid and provided for solely from the fund and a participating unit assumes no liability or responsibility therefor. Any trust under the program shall be established pursuant to a written agreement that constitutes a valid trust under the law of South Dakota.
Source: SL 2004, ch 43, § 3; SDCL § 3-12-167; SL 2005, ch 28, § 1; SL 2016, ch 31, § 55.
3-13A-4. Board controls program as fiduciary--Promulgation of rules.
The program shall be under the authority of the board. The board shall be held to the standard of conduct of a fiduciary and shall carry out its functions solely in the interest of the participants and benefit recipients and for the exclusive purpose of providing benefits and defraying reasonable expenses incurred in performing such duties as required by law. The board may promulgate rules necessary to establish uniform procedures for the administration of the program and to insure uniformity of application of the provisions of §§ 3-13A-1 to 3-13A-25, inclusive. Rules may be promulgated in regard to membership, contributions and the collection thereof, fees for administration of the program, and procedures for application for benefits and payment of benefits. The rules shall be promulgated pursuant to chapter 1-26 and shall be in accordance with the provisions of §§ 3-13A-1 to 3-13A-25, inclusive.
Source: SL 2004, ch 43, § 4; SDCL, § 3-12-168; SL 2005, ch 28, § 1.
3-13A-5. Transfer of special pay to fund upon termination of employment--Contribution limit.
Upon a participant's termination of employment, the participating unit shall transmit the gross amount of the participant's special pay to the fund. However, except to the extent permitted under § 414(v) of the code, if applicable, a contribution allocated to a participant's account under the program may not exceed the limitation for defined contribution plans pursuant to § 415(c)(1)(A) of the code, or one hundred percent of the participant's compensation, as identified in § 415(c)(3) of the code for the calendar year. For the purposes of the limitations under this section, all of the defined contribution plans of a participant's employer, whether terminated or current, shall be treated as a single defined contribution plan.
Source: SL 2004, ch 43, § 5; SL 2005, ch 27, § 2; SDCL § 3-12-169; SL 2005, ch 28, § 1; SL 2013, ch 22, § 3; SL 2019, ch 23, § 10.
3-13A-6. Time for transfer of compensation to trust.
For the proper administration of the accounts of participants, all amounts of compensation subject to this chapter shall be transferred to the trust not later than fifteen business days after the end of the month in which the compensation otherwise would have been paid to the participant.
Source: SL 2004, ch 43, § 6; SDCL § 3-12-170; SL 2005, ch 28, § 1; SL 2008, ch 20, § 19.
3-13A-7. Participant account.
An account shall be established for each participant. The account shall be the basis for any distribution to the participant or to the participant's beneficiary, surviving spouse, surviving children, or estate pursuant to § 3-13A-15.
Source: SL 2004, ch 43, § 7; SDCL, § 3-12-171; SL 2005, ch 28, § 1.
3-13A-8. Vesting of participant account--Forfeiture.
A participant's account is fully vested in the program at any time on or after the date the participant begins participation in the program. A participant's account is not subject to any forfeiture pursuant to the provisions of the program. A loss as described in § 3-13A-25 is not considered to be a forfeiture.
Source: SL 2005, ch 27, § 1.
3-13A-9. Investment of funds.
A plan participant may invest in any investment selected by the state investment officer, including annuity contracts. The state investment officer may enter into contracts for investment alternatives. The executive director or third-party administrator may transfer funds to, from, and among the respective investment alternatives as directed by the participant or as required if the investment alternative is no longer available.
Source: SL 2004, ch 43, § 8; SDCL § 3-12-172; SL 2005, ch 28, § 1; SL 2016, ch 31, § 56.
3-13A-10. Lump-sum distribution to participant.
A participant who elects an immediate total lump-sum distribution from the program shall be guaranteed payment of the entire amount of the participant's special pay, plus any earnings, and less any mandatory income tax withholding and fees established by the board, within a period that is not longer than is reasonable from the date the participant's funds were received by the program on behalf of the participant.
Source: SL 2004, ch 43, § 9; SDCL, § 3-12-173; SL 2005, ch 28, § 1.
3-13A-11. Investment alternatives--Transfer of account balances by participants.
Each participant may elect to have the participant's funds invested in one or more of the investment alternatives selected by the state investment officer pursuant to § 3-13A-9. Subject to any limitations imposed by the executive director, a vendor, or a third-party administrator, a participant may elect to transfer any portion of the account balance from one offered investment alternative to another at any time, if notice is given to the executive director or the third-party administrator. Any costs associated with such a transfer shall be borne by the participant and shall be deducted from the participant's account. If, due to a payroll error, a participant's deferral is deposited in an investment alternative other than the one selected by the participant, the executive director or third-party administrator may correct the error by transferring the participant's deferral to the proper investment alternative, subject to any limitations which may be imposed by the vendor. No retroactive adjustment may be made.
Source: SL 2004, ch 43, § 10; SDCL § 3-12-174; SL 2005, ch 28, § 1; SL 2016, ch 31, § 57.
3-13A-12. Transfer of funds from terminated investment selection.
If a contract between the state investment officer and a vendor is terminated and a participant fails to notify the executive director or third-party administrator of the participant's new investment selection before the contract terminates, the executive director or third-party administrator shall transfer that participant's account to the investment alternative designated by the state investment officer.
Source: SL 2004, ch 43, § 11; SDCL § 3-12-175; SL 2005, ch 28, § 1; SL 2016, ch 31, § 58.
3-13A-13. Allocation of investment return among participant accounts--Accounting dates.
The total investment return on any offered investment shall be allocated to the account of each participant based on the proportion the participant's account bears to all other accounts which have been invested in the same investment alternative. Allocations shall be made on each accounting date. The last day of each calendar quarter is an accounting date. The board may provide additional accounting dates.
Source: SL 2004, ch 43, § 12; SDCL, § 3-12-176; SL 2005, ch 28, § 1.
3-13A-14. Valuation of investment alternatives.
Each offered investment alternative shall be valued on each accounting date. The valuation shall be at market value. Any charges against the value shall be explicitly disclosed. Each participant shall be provided with a statement of the participant's account by no later than forty-five days after the close of each calendar quarter.
Source: SL 2004, ch 43, § 13; SDCL, § 3-12-177; SL 2005, ch 28, § 1.
3-13A-15. Beneficiaries of participant's account.
A participant may designate a beneficiary to receive the participant's benefits under the program in case of the death of the participant. If no beneficiary is designated or the beneficiary has predeceased the participant, the participant's benefits shall be paid as follows:
(1) To the participant's surviving spouse;
(2) If there is no surviving spouse, then to all surviving children of the participant, irrespective of age, on a share-alike basis; or
(3) If there is no surviving spouse and there are no surviving children, then to the participant's estate.
Source: SL 2004, ch 43, § 14; SDCL § 3-12-178; SL 2005, ch 28, § 1; SL 2012, ch 26, § 15.
3-13A-16. Payments and benefits under program not assignable or subject to creditors' actions.
Notwithstanding the provisions of § 3-13A-15, no participant may assign or otherwise alienate any right to any payment or benefit under the program. The right of a participant to any payment or benefit is not subject to the rights of the participant's or any beneficiary's creditors, and is exempt from executions, attachment, prior assignment, or any other judicial relief or order for the benefit of creditors or other third persons, except as required under applicable law, including any qualified domestic relations order as defined in § 414(p) of the Internal Revenue Code, or as is otherwise specifically provided in this chapter.
Source: SL 2004, ch 43, § 15; SDCL § 3-12-179; SL 2005, ch 28, § 1; SL 2008, ch 20, § 20; SL 2013, ch 20, § 20.
3-13A-17. Powers and duties of executive director.
The executive director shall administer the program and shall determine all questions arising under or in connection with the program. The executive director may hire additional employees as may be required and shall set the remuneration of the employees. In addition, the executive director, with the approval of the board, may contract with vendors for third-party administration of various duties under the program as the executive director sees fit. The executive director shall execute any agreements necessary to carry out the provisions of §§ 3-13A-1 to 3-13A-25, inclusive, except any agreements executed by the state investment officer pursuant to § 3-13A-9.
Source: SL 2004, ch 43, § 16; SDCL § 3-12-180; SL 2005, ch 28, § 1; SL 2016, ch 31, § 59.
3-13A-18. Election by participating units of retirement system to participate in program--Rescission of participation.
Any public employer that is a participating unit of the system established under chapter 3-12C may become a participating unit under this chapter at any time on or after July 1, 2004. The decision to become a participating unit shall be made by the elected official, the appointed official, or the governing body in charge of the unit. The unit shall become a participating unit as soon as notice of the decision has been delivered in writing to the system. A participating unit at a later date may choose to rescind such status and may do so by delivering written notice of the decision to the system. However, if such a rescission occurs, the rescission does not affect the status of any participant who was employed by that unit.
Source: SL 2004, ch 43, § 17; SDCL § 3-12-181; SL 2005, ch 28, § 1.
3-13A-19. Trustee-to-trustee transfer of participant's account to government defined-benefit retirement plan.
For the purpose of acquiring credited service in a qualified governmental defined-benefit retirement plan as identified under § 401(a) and defined in § 414(d) of the code, a participant may transfer a portion or all of the participant's account in the program by trustee-to-trustee transfer to the government defined-benefit retirement plan.
Source: SL 2004, ch 43, § 18; SDCL, § 3-12-182; SL 2005, ch 28, § 1.
3-13A-20. Rollover transfer of participant's account.
The board shall establish by rule promulgated pursuant to chapter 1-26 the parameters under which a participant, a participant's surviving spouse, or a participant's beneficiary may transfer a portion or all of the participant's account by rollover to a plan which is an eligible plan under the code.
Source: SL 2004, ch 43, § 19; SDCL § 3-12-183; SL 2005, ch 28, § 1; SL 2009, ch 20, § 5.
3-13A-21. Rollover transfer of participant's account in another plan.
To the extent permitted by law, a participant may transfer a portion or all of the participant's account in another plan which is eligible under § 401(a), 403(b), 408, or 457 of the code into this program by rollover. The program shall account for such amounts separately.
Source: SL 2004, ch 43, § 20; SDCL, § 3-12-184; SL 2005, ch 28, § 1.
3-13A-22. Distribution from participant's account--Forms of distribution--Time for election.
A participant is entitled to receive a distribution from the participant's account upon written application to the executive director or third-party administrator. The participant may elect, on forms prescribed by the executive director or third-party administrator, the time distributions under the program are to commence by designating the month and year during which the first distribution is to be made. The participant may elect to receive the participant's distribution in any of the following forms:
(1) A lump sum;
(2) Equal monthly installments over a fixed period; or
(3) Any other form offered by the executive director or a third-party administrator.
The application and election shall be made prior to the time any amounts become payable. A participant or a beneficiary who has chosen a payment form may change that payment option, if no payment has yet been made, and subject to any administrative restrictions and charges established by the board.
Source: SL 2004, ch 43, § 21; SDCL § 3-12-185; SL 2005, ch 28, §1; SL 2016, ch 31, § 60.
3-13A-23. Annuity distributions date.
A participant who does not take a total lump-sum distribution, transfer funds by rollover pursuant to § 3-13A-20, or transfer funds by trustee-to-trustee transfer pursuant to § 3-13A-19 may begin annuity distributions by selecting a retirement date, as set out in § 3-13A-22. If a participant does not make a selection, the participant's normal retirement date is as defined in subdivision 3-13A-2(6).
Source: SL 2004, ch 43, § 22; SDCL, § 3-12-186; SL 2005, ch 28, § 1; SL 2021, ch 28, § 13.
3-13A-23.1. Required minimum distributions--General rule.
The system shall pay all benefits in accordance with a good faith interpretation of the requirements in § 401(a)(9) of the Internal Revenue Code and the regulations in effect under that section, as applicable to a governmental plan within the meaning of § 414(d) of the Internal Revenue Code.
The participant's entire interest must be distributed, or begin to be distributed, by the required beginning date, which is April first of the calendar year following the later of:
(1) The calendar year in which the participant reaches the applicable age, which is determined as follows:
(a) If the member was born before July 1, 1949, the applicable age is seventy and one-half;
(b) If the member attained age seventy-two before January 1, 2023, the applicable age is seventy-two;
(c) If the member attains age seventy-two after December 31, 2022, the applicable age is seventy-three; or
(d) Effective January 1, 2033, applicable age shall have the meaning set forth in § 401(a)(9)(C)(v) of the Internal Revenue Code; or
(2) The calendar year in which the participant retires and separates from service with the member's employer.
A participant or beneficiary eligible for benefits must apply for benefits in order to commence distribution of benefits. The system, pursuant to a qualified domestic relations order, may establish separate benefits for a participant and alternate payee.
Source: SL 2021, ch 28, § 14; SL 2024, ch 21, § 4.
3-13A-23.2. Required minimum distributions--Participant's death after distributions begun.
If a participant dies after the required distribution of benefits has begun, the remaining portion of the participant's interest shall be distributed at least as rapidly as under the same method of distribution before the participant's death.
Source: SL 2021, ch 28, § 15.
3-13A-23.3. Required minimum distributions--Participant's death before distributions begun.
If a participant dies before required distribution of the participant's benefits has begun, the participant’s interest shall be distributed as follows:
(1) If the participant has a surviving spouse, the surviving spouse shall receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the participant's death; or
(2) If the participant has no surviving spouse, the participant's remaining interest shall be distributed in a lump sum payment to the designated beneficiary within five years from the date of the participant's death.
Source: SL 2021, ch 28, § 16.
3-13A-23.4. Required minimum distributions--Reasonable and made in good faith.
Notwithstanding the provisions of §§ 3-13A-23 to 3-13A-23.1, inclusive, or the provisions of the treasury regulations, benefit options may continue so long as the option satisfies § 401(a)(9) of the Internal Revenue Code based on a reasonable and good faith interpretation of that section.
Source: SL 2021, ch 28, § 17.
3-13A-23.5. Required minimum distributions--Participant's death after December 31, 2021.
Notwithstanding any contrary provisions, effective for any participant death after December 31, 2021, the following distribution provisions shall take effect subject to any regulations or other guidance issued under the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019:
(1) If the participant dies before the distribution of his or her entire account (regardless of whether any distributions had begun before the participant's death) and the participant has a designated beneficiary:
(a) The entire account shall be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
(b) Notwithstanding subsection (a), if the designated beneficiary is an eligible designated beneficiary, the eligible designated beneficiary may elect for the participant's account to be distributed by:
(i) December thirty-first of the calendar year containing the tenth anniversary of the participant's death, or
(ii) Beginning no later than December thirty-first of the calendar year immediately following the calendar year in which the participant died, over the life of the eligible designated beneficiary or over a period not exceeding the life expectancy of the eligible designated beneficiary. If the eligible designated beneficiary is the surviving spouse, payment under this subsection (b)(ii) is not required until the later of December thirty-first of the calendar year immediately following the calendar year in which the participant died or December thirty-first of the calendar year in which the participant would have attained age seventy and one-half (age seventy-two with respect to a participant who would have attained age seventy and one-half after December 31, 2019). If the eligible designated beneficiary does not elect a method of distribution, the participant's account shall be distributed in accordance with this subsection (b)(ii);
(c) Upon either the death of an eligible designated beneficiary before distribution of the participant's entire account or the attainment of the age of majority for an eligible designated beneficiary who is a minor child under subsection (4)(b), subsection (1)(b) no longer applies and the remainder of the entire account shall be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
(2) If the participant dies before distributions of his or her account begins and the participant has no designated beneficiary, the participant's account under the plan shall be distributed by December thirty-first of the calendar year containing the fifth anniversary of the participant's death. If the participant dies after distribution of the account begins and the participant has no designated beneficiary, any remaining portion of the account shall continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the participant's death;
(3) Any distribution required under the incidental death benefit requirements of Internal Revenue Code section 401(a) shall be treated as distributions required under this section;
(4) For purposes of this section, the term, eligible designated beneficiary, means a designated beneficiary who, as of the date of the death of the participant, is:
(a) The surviving spouse of the participant;
(b) A child of the participant who has not reached the age of majority. However, the child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority;
(c) Disabled within the meaning of Internal Revenue Code section 72(m)(7);
(d) Chronically ill within the meaning of Internal Revenue Code section 7702B(c)(2) (except that the requirements of subparagraph (A)(i) thereof may only be treated as met if there is a certification that, as of such date, the period of inability described in such subparagraph with respect to the individual is an indefinite one which is reasonably expected to be lengthy in nature); or
(e) Any other person who is not more than ten years younger than the participant.
Source: SL 2021, ch 28, § 18.
3-13A-23.6. Required minimum distributions--Waiver of 2020.
Notwithstanding any other provisions of chapter 3-13A, the participant or beneficiary who would have been required to receive required minimum distributions (RMD) for 2020 (or paid in 2021 for the 2020 calendar year for a participant with a required beginning date of April 2, 2021) but for the enactment of Internal Revenue Code § 401(a)(9)(I) (2020 RMDs), and who would have satisfied that requirement by receiving distributions that are either (1) equal to the 2020 RMDs or (2) one or more payments in a series of substantially equal distributions (that include the 2020 RMDs) made at least annually and expected to last for the life (or life expectancy) of the participant, the joint lives (or joint life expectancy) of the participant and the participant's designated beneficiary, or for a period of at least ten years (extended 2020 RMDs) shall receive those distributions for 2020 unless the participant or beneficiary chooses not to receive the distributions. For purposes of the direct rollover provisions of the plan, 2020 RMDs and extended 2020 RMDs also shall be treated as eligible rollover distributions in 2020.
Source: SL 2021, ch 28, § 19.
3-13A-24. State investment officer to act as fiduciary--Certain persons prohibited from acting as third-party administrator or vendor.
The state investment officer shall be held to the standard of conduct of a fiduciary and shall carry out all functions solely in the interests of the participants and benefit recipients and for the exclusive purpose of providing benefits and defraying reasonable expenses incurred in performing such duties as required by law. No employee of a participating unit and no spouse or dependent of the employee may act as or represent a third-party administrator or a vendor in a matter concerning the program, except that the state investment officer and the state investment officer's employees may invest all or part of the fund pursuant to § 3-13A-9.
Source: SL 2004, ch 43, § 23; SDCL, § 3-12-187; SL 2005, ch 28, § 1.
3-13A-25. Limitation of liability to participants.
Neither the program nor any participating unit is liable to any participant for losses arising out of any decrease in the value of any investments held under the program. The liability of the program to any participant is limited to the value of the participant's account on the date the participant chooses to begin payment pursuant to the provisions of the program. In no event may any member of the board, the executive director, or any member of the executive director's staff have any liability for any action taken with respect to the program unless the action has been taken in bad faith.
Source: SL 2004, ch 43, § 24; SDCL § 3-12-188; SL 2005, ch 28, § 1; SL 2016, ch 31, § 61.
CHAPTER 3-13C
DEPARTMENT OF LABOR AND REGULATION EMPLOYEE RETIREMENT
3-13C-1 Definitions.
3-13C-2 Actuarial equivalent--Distribution expected--Determination of amount.
3-13C-3 Compensation determined.
3-13C-4 Credited past service--Determination.
3-13C-5 Credited service--Determination.
3-13C-6 Eligible retirement plan--Determination.
3-13C-7 Eligible rollover distribution.
3-13C-8 Normal retirement date--Determination.
3-13C-9 Confidentiality of records--Exceptions.
3-13C-10 Class D members vested--Contributions not required--Participation ceases.
3-13C-11 Beneficiaries--Records.
3-13C-12 Direct rollovers--Election by distributee.
3-13C-13 Required minimum distributions--General rule.
3-13C-13.1 Required minimum distributions--Member's death after distributions begun.
3-13C-13.2 Required minimum distributions--Member's death before distributions begun.
3-13C-13.3 Required minimum distributions--Incidental benefit rule.
3-13C-13.4 Required minimum distributions--Reasonable and made in good faith.
3-13C-14 Vested accrued benefit--Distribution--Small amounts payment.
3-13C-15 Accrued benefit determined.
3-13C-16 Amount of benefit at retirement.
3-13C-17 Benefit limitation.
3-13C-18 Preretirement death benefits--Payment recipient--Conditions--Determination of amount.
3-13C-19 Death benefit after retirement determination--Payment amount determined.
3-13C-20 Vested benefits--Distribution amount determined.
3-13C-21 Retirement benefits--Optional forms.
3-13C-22 Death benefits--Optional forms.
3-13C-23 Election of benefits--Requirements.
3-13C-1 . Definitions.
Terms used in this chapter mean:
(1) "Accrued benefit," on any date, the amount of monthly retirement benefit under the normal form accrued by an active participant as of any date and payable at normal retirement date, or any later date;
(2) "Active participant," an eligible employee who is actively participating as a Class D member of the South Dakota Retirement System;
(3) "Adjustment factor," the annual cost of living adjustment determined in § 3-12C-704 ;
(4) "Alternate payee," any spouse, former spouse, child, or other dependent of a participant who is recognized by a qualified domestic relations order as having a right to receive all, or a portion of, the benefits payable as a Class D member of the South Dakota Retirement System;
(5) "Annuity contract," an annuity contract for guaranteed benefits, for the investment of contributions in separate accounts, and for the payment of benefits under the plan provided in this chapter;
(6) "Average compensation," on any given date, the average of an employee's monthly compensation for those five consecutive compensation dates, or all compensation dates if less than five, that give the highest average out of all compensation dates. The term includes compensation dates within the period beginning on the participant's entry date and ending on the date of determination. In computing average compensation, the plan must exclude compensation dates in which the employee terminates employment with the employer and compensation dates in which an employee performs no hours of service;
(7) "Beneficiary," any person named by a participant to receive any benefits when the participant dies;
(8) "Compensation date," the July first immediately before an employee's entry date and the same date of each following year in which the employee is an active participant;
(9) "Contingent participant," a person named by the participant to receive a lifetime benefit after the participant's death in accordance with a survivorship life annuity;
(10) "Dependent child," any natural born child, legally adopted child, stepchild, or foster child of the participant, if the child is unmarried, is not in the Armed Forces of any country, has not attained age nineteen or older, or age twenty-four for a child who is attending school on a full-time basis, and, before the participant’s death, was dependent upon the participant for principal support and maintenance, and, if a stepchild or foster child, resided in the participant’s household. School vacation periods during any calendar year, that interrupt but do not terminate what otherwise would have been a continuous course of study in that calendar year, must be considered a part of school attendance on a full-time basis. A dependent child may also include any child born after the participant’s death;
(11) "Designated beneficiary," the person who is designated by the participant, or the participant’s surviving spouse, as the beneficiary of the participant’s interest as a Class D member and who is the designated beneficiary under 26 U.S.C. §§ 401(a)(9) and 26 C.F.R. § 1.401(a)(9)-4;
(12) "Direct rollover," a payment by the system to the eligible retirement plan specified by the distributee;
(13) "Distributee," an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in 26 U.S.C. § 414(p), are distributees with regard to the interest of the spouse or former spouse. A distributee includes the employee's or former employee's nonspouse designated beneficiary, in which case, the distribution can only be transferred to a traditional individual retirement account or Roth individual retirement account established on behalf of the nonspouse designated beneficiary and that must be treated as an inherited individual retirement account pursuant to the provisions of 26 U.S.C. § 402(c)(11);
(14) "Eligible employee," any employee of the employer whose employment commenced prior to July 1, 1980, including an employee who was on probationary status by this date, and excluding the following:
(a) An employee who is not employed on a full-time permanent status. Full-time permanent status means an employee works an average of twenty hours per week, or in the opinion of the employer, can be expected to work an average of twenty hours per week over the next year;
(b) An employee who has elected to become a Class A member of the South Dakota Retirement System on or after July 1, 1980, and before July 1, 1981; and
(c) An employee who retired before January 1, 1987;
(15) "Employee," a person who is employed by the employer or any other employer required to be aggregated with the employer under 26 U.S.C. § 414(b), (c), (m), or (o). The term includes any person receiving differential wage payments;
(16) "Employer," the South Dakota Department of Labor and Regulation, Job Service, Reemployment Assistance formerly known as the Unemployment Insurance Division, and Office of Administrative Services;
(17) "Entry date," the date an employee first enters the plan as an active participant;
(18) "Inactive participant," a former active participant who has an accrued benefit;
(19) "Internal Revenue Code," or "Code," as defined in § 3-12C-101 ;
(20) "Involuntary termination of employment," the date a participant ceases to be an employee due to involuntary termination of employment which is against the employee's will or without the employee's consent. This term excludes for cause on the charges of misconduct and delinquency, and includes reduction in force, abolishment of a position, or liquidation of an office or agency;
(21) "Late retirement date," the first day of any month after a participant's normal retirement date and on which retirement benefits begin. If a participant continues to work for the employer after the normal retirement date, the participant's late retirement date shall be the earliest first day of the month on or after the date of severance from employment;
(22) "Leased employee," any person other than an employee of the employer who, pursuant to an agreement between the employer and any other person, has performed services for the employer on a substantially full-time basis for a period of at least one year, and the services are performed under primary direction or control by the employer. Contributions or benefits provided by the leasing organization to a leased employee, which are attributable to service performed for the employer, shall be treated as provided by the employer. A leased employee is considered an employee of the employer if:
(a) The employee previously worked for the employer, but the position was moved to the leasing organization and not terminated; and
(b) Leased employees do not constitute more than twenty percent of the employer's nonhighly compensated work force;
(23) "Mandatory distribution," a distribution to a participant that is made without the participant’s consent and is made to the participant before the participant attains the older of age sixty-two or normal retirement age;
(24) "Monthly compensation," for any compensation date, an employee's monthly compensation on that date. If an employee is not an employee on the compensation date, the employee's compensation on the employee's latest entry or reentry date, whichever applies, is treated as the employee's compensation on the compensation date;
(25) "Monthly date," each yearly date and the same day of each following month during the plan year beginning on the yearly date;
(26) "Normal form," a single life annuity with certain period, where the certain period is ten years;
(27) "Participant," either an active participant or an inactive participant;
(28) "Plan," the plan as provided in this chapter;
(29) "Plan year," a consecutive twelve-month period beginning on a yearly date and ending on the day before the next yearly date. If the yearly date changes, the result is a short plan year;
(30) "Present value," the actuarial equivalent of another benefit, expressed as a single sum amount;
(31) "Prior plan," the retirement plan of the employer before December 1, 1984;
(32) "Reentry date," the date a former active participant reenters the plan;
(33) "Required contribution account," the total of a participant's required contributions and, on and after January 1, 1990, the participant's pick-up contributions, with interest. Contributions previously paid to the participant and any interest that would have been credited on those contributions, are excluded. Interest must be credited in accordance with § 3-12C-108 . Interest must be credited on each required contribution from the end of the plan year for which it was made until the monthly date on or before the date of determination. Interest must be credited from December 1, 1984, on contributions made and interest credited;
(34) "Required contribution accrued benefit," the amount of monthly retirement benefit under the normal form accrued by an active participant as of any date and payable at the normal retirement date derived from the participant's required contributions;
(35) "Retirement date," the date a retirement benefit will begin and is a participant's early, normal, or late retirement date;
(36) "Severance from employment," notwithstanding the provisions of § 3-13C-17, an employee has ceased to be an employee. An employee does not have a severance from employment if, in connection with a change of employment, the employee's new employer maintains this plan with respect to the employee. Severance from employment must have occurred in accordance with the applicable regulations;
(37) "Spouse," a person the participant is continuously married to at least throughout the one-year period ending on the date of death;
(38) "South Dakota Retirement System," or "system," the system created in chapter 3-12C and the administrator of the plan;
(39) "Vested accrued benefit," on any date, the participant’s accrued benefit resulting from employer contributions multiplied by the participant's vesting percentage on that date, plus the participant's required contribution accrued benefit;
(40) "Yearly date," August 1, 1961, and each following August first through August 1, 1969, and each following July first;
(41) "Years of service," the total of an employee's credited service, expressed as whole years and fractional parts of a year. A period of military duty is included as service with the employer to the extent it has not already been credited.
Source: SL 2020, ch 13, § 8.
3-13C-2 . Actuarial equivalent--Distribution expected--Determination of amount.
For purposes of this chapter, actuarial equivalent means equality in the value of the aggregate amount expected to be received for benefits payable at different times or under different forms of distributions. For purposes of determining the amount of a distribution other than an annual benefit nondecreasing for the life of the participant or, in the case of a preretirement survivor annuity, the life of the participant’s spouse; or that decreases during the life of the participant merely because of the death of the surviving contingent participant, but only if the reduction is to a level not below fifty percent of the annual benefit payable before the death of the surviving contingent participant, or because of the cessation or reduction of Social Security supplements or qualified disability payments, actuarial equivalent shall be determined on the basis of the interest on thirty-year United States Treasury securities for the look-back month for the stability period and the 1994 Group Annuity Reserve Mortality Table. The look-back month applicable to the stability period is the second calendar month preceding the first day of the stability period. The stability period is the successive period of one calendar month containing the annuity starting date for the distribution, and for which the interest rate remains constant.
For purposes of determining benefits not described in the preceding paragraph, actuarial equivalent for benefits shall be determined on the basis of seven and one-half percent interest and the 1983 Group Annuity Mortality Table as set forth in Revenue Ruling 95-6, 1995-1 C.B. 80.
Source: SL 2020, ch 13, § 9.
3-13C-3 . Compensation determined.
For the purposes of this chapter, compensation means an employee's fixed rate of pay from the employer. Compensation includes differential wage payments. Except as provided in this section, compensation for a specified period is the compensation actually paid or made available during that period. Compensation for a plan year also includes compensation paid by the later of two and one-half months after an employee's severance from employment with the employer maintaining the plan or the end of the plan year including the date of the employee's severance from employment with the employer, if the payment is regular compensation for services during the employee's regular working hours, or compensation for services outside the employee's regular working hours, commissions, bonuses, or other similar payments, and, absent a severance from employment, the payments would have been paid to the employee while the employee continued in employment with the employer.
Any payments not described in the preceding paragraph are not considered compensation if paid after severance from employment, even if paid by the later of two and one-half months after the date of severance from employment or the end of the plan year including the date of severance from employment.
Back pay, within the meaning of 26 C.F.R. § 1.415(c)-2(g)(8), shall be treated as compensation for the plan year to which the back pay relates to the extent the back pay represents wages and compensation that otherwise would be included in this definition.
Compensation paid or made available during a specified period includes amounts that would otherwise be included in compensation, but for an election under 26 U.S.C. § 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). Compensation includes employee contributions picked-up by a governmental entity and, pursuant to 26 U.S.C. § 414(h)(2), treated as employer contributions.
The annual compensation of each participant taken into account in determining contributions and benefits for any determination period, which is the period over which compensation is determined, may not exceed the limits established in 26 U.S.C. § 401(a)(17), as adjusted for cost-of-living increases in accordance with 26 U.S.C. § 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to any determination period beginning with or within that calendar year.
Source: SL 2020, ch 13, § 10.
3-13C-4 . Credited past service--Determination.
For the purposes of this chapter, credited past service is the total of an employee's service before August 1, 1961. This total is expressed in whole years and fractional parts of a year including a complete month as a fractional part of a year. This service is credited only to an employee who became an active participant before or on August 1, 1961 or who, as of that date, had permanent status but was absent from active work and became an active participant before August 1, 1962.
However, credited past service is modified as follows:
(1) Service during a period in which an employee is receiving or is entitled to receive a Federal Civil Service Retirement Pension is excluded;
(2) Service during a period in which an employee has made contributions to the Federal Civil Service Retirement System and the contributions had not been withdrawn before August 1, 1961, or application for withdrawal of the contributions is not made by the employee within thirty days after the employer receives certification from the United States Civil Service Commission that the employee currently has contributions in the Federal Civil Service Retirement System, is excluded; unless contributions to fund the Past Service benefit otherwise available to the employee are made available from funds other than funds granted by Title III of the Federal Social Security Act;
(3) Service accrued for a plan year in which an employee was not an eligible employee is excluded;
(4) A period of military duty shall be included as service with the employer to the extent it has not already been credited. The service is considered to be service as an eligible employee only if an employee was an eligible employee on the day immediately preceding the period of military duty; and
(5) Other service included:
(a) Indefinite leave of absence granted under Presidential Executive Order 8990, dated December 23, 1941, including any services performed for the United States Employment Service or the War Manpower Commission from January 1, 1942, to November 15, 1946, inclusive, and including any leave for Military Service granted by either the United States Employment Service or the War Manpower Commission, with or without pay; and
(b) All other approved leaves.
Source: SL 2020, ch 13, § 11.
3-13C-5 . Credited service--Determination.
For purposes of this chapter, credited service is the sum of credited past service before August 1, 1961 and the total of the employee's continuous service with the employer on and after August 1, 1961, expressed in whole years and fractional parts of a year including a complete month as a fractional part of a year.
However, credited service is modified as follows:
(1) Service while an employee was not an active participant or an active participant under the prior plan is excluded;
(2) Service while an employee failed or refused to make a contribution required under the plan or prior plan is excluded. This provision also applies to an employee's service while contributions were not made because the employee failed or refused to complete a written agreement to make the contributions;
(3) A period of military duty shall be included as service with the employer to the extent it has not already been credited. The service is considered to be service as an eligible employee only if an employee was an eligible employee on the day immediately preceding the period of military duty; and
(4) Unused accumulated annual leave and unused accumulated sick leave, and special military service credit, if any, shall be included as service with the employer to the extent it has not already been credited.
Source: SL 2020, ch 13, § 12.
3-13C-6 . Eligible retirement plan--Determination.
For purposes of this chapter, an eligible retirement plan is an eligible plan under 26 U.S.C. § 457(b) maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that agrees to separately account for amounts transferred into that plan from this plan, a traditional individual retirement account, a Roth individual retirement account, an annuity plan described in 26 U.S.C. § 403(a), an annuity contract described in 26 U.S.C. § 403(b), or a qualified plan described in 26 U.S.C. § 401(a), accepting the distributee's eligible rollover distribution. The definition of eligible retirement plan also applies if a distribution is made to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in 26 U.S.C. § 414(p).
Source: SL 2020, ch 13, § 13.
3-13C-7 . Eligible rollover distribution.
For purposes of this chapter, an eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except an eligible rollover distribution does not include:
(1) Any distribution of a series of substantially equal periodic payments, not less frequently than annually, made for the life expectancy of the distributee or the joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;
(2) Any distribution to the extent the distribution is required under 26 U.S.C. § 401(a)(9);
(3) The portion of any other distribution not includible in gross income determined without regard to the exclusion for net unrealized appreciation with respect to employer securities; and
(4) Any other distribution reasonably expected to total less than two hundred dollars during a year.
A portion of a distribution does not fail to be an eligible rollover distribution because the portion consists of after-tax employee contributions that are not includible in gross income. The portion may be transferred only to a traditional individual retirement account or annuity described in 26 U.S.C. § 408(a) or (b), a Roth individual retirement account or annuity described in 26 U.S.C. § 408A, or a qualified defined contribution, defined benefit, or annuity plan described in 26 U.S.C. § 401(a) or 403(a) or to an annuity described in 26 U.S.C. § 403(b), if the plan or contract agrees to separately account for amounts so transferred including interest thereon, while separately accounting for the portion of the distribution which is includible in gross income and the portion of the distribution which is not so includible.
Source: SL 2020, ch 13, § 14.
3-13C-8 . Normal retirement date--Determination.
For purposes of this chapter, normal retirement date is the earliest first day of the month on or after the earliest of the date the employee:
(1) Attains age sixty-five;
(2) Attains age sixty-two and has completed ten years of credited service;
(3) Attains age sixty and has completed twenty years of credited service; or
(4) Attains age fifty-five and has completed thirty years of credited service.
For purposes of determining the normal retirement date, credited service does not include unused accumulated annual or sick leave. The normal retirement date shall be the date the employee's retirement benefit begins if the employee has ceased to be an employee on that date and the retirement benefit has not already begun. Unless otherwise provided in this plan, a participant's retirement benefits shall begin on the participant's normal retirement date if the participant has had a severance from employment on that date.
Source: SL 2020, ch 13, § 15.
3-13C-9 . Confidentiality of records--Exceptions.
Any information contained in any record pertaining to a member governed by this chapter is confidential and shall be used for the sole purpose of carrying into effect the provisions of this chapter. Any record containing the information is not open to inspection by any person or entity except the member, the board, the employees of the system, or the member's employer. The information and records may be released to the member or with the member's consent. The information and records may also be released pursuant to a court order or subpoena.
Source: SL 2020, ch 13, § 16.
3-13C-10 . Class D members vested--Contributions not required--Participation ceases.
All Class D members of the South Dakota Retirement System as of July 1, 2020, are considered vested.
No contributions by Class D members are required on or after January 1, 1990.
A participant, whether active or inactive, shall cease to be a participant on the earlier of the following:
(1) The date of the participant's death; or
(2) The date the participant receives a single sum distribution in lieu of all of the benefits under the plan.
An inactive participant shall also cease to be a participant on the earliest date on which the participant is not entitled to a deferred monthly income.
Source: SL 2020, ch 13, § 17.
3-13C-11 . Beneficiaries--Records.
Each participant may name a beneficiary to receive any death benefit due for participation in the plan, other than any income payable to a contingent. The participant may change any beneficiary from time to time. The participant's beneficiary designation and any change of beneficiary shall be subject to the provisions of § 3-13C-13.
It is the responsibility of the participant to give written notice to the system of the name of the beneficiary on a form furnished for this purpose. The system shall maintain a record of each participant's beneficiary designation before the participant's retirement date.
If there is no beneficiary named or surviving when a participant dies, the participant's beneficiary shall be the participant's surviving spouse, or if there is no surviving spouse, the executor or administrator of the participant's estate.
Source: SL 2020, ch 13, § 18.
3-13C-12 . Direct rollovers--Election by distributee.
Notwithstanding any provision of the plan to the contrary limiting a distributee's election under this section, a distributee may elect at the time and in the manner prescribed by the system, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
In the event of a mandatory distribution of an eligible rollover distribution greater than one thousand dollars in accordance with § 3-13C-14, if the participant does not elect to have the distribution paid directly to an eligible retirement plan specified by the participant in a direct rollover or to receive the distribution directly, the system shall pay the distribution in a direct rollover to an individual retirement plan designated by the system.
In the event of any other eligible rollover distribution to a distributee in accordance with § 3-13C-13, if the distributee does not elect to have the distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover or to receive the distribution directly, the system shall pay the distribution to the distributee.
Source: SL 2020, ch 13, § 19.
3-13C-13. Required minimum distributions--General rule.
The system shall pay all benefits in accordance with a good faith interpretation of the requirements in § 401(a)(9) of the Internal Revenue Code and the regulations in effect under that section, as applicable to a governmental plan within the meaning of § 414(d) of the Internal Revenue Code.
The member's entire interest must be distributed, or begin to be distributed, by the required beginning date, which is April first of the calendar year following the later of:
(1) The calendar year in which the member reaches the applicable age, which is determined as follows:
(a) If the member was born before July 1, 1949, the applicable age is seventy and one-half;
(b) If the member attained age seventy-two before January 1, 2023, the applicable age is seventy-two;
(c) If the member attains age seventy-two after December 31, 2022, the applicable age is seventy-three; or
(d) Effective January 1, 2033, applicable age shall have the meaning set forth in § 401(a)(9)(C)(v) of the Internal Revenue Code; or
(2) The calendar year in which the member retires and separates from service with the member's employer.
A member or beneficiary eligible for benefits must apply for benefits in order to commence distribution of benefits. The system, pursuant to a qualified domestic relations order, may establish separate benefits for a member and alternate payee.
Source: SL 2020, ch 13, § 20; SL 2021, ch 28, § 20; SL 2024, ch 21, § 5.
3-13C-13.1. Required minimum distributions--Member's death after distributions begun.
If a member dies after the required distribution of benefits has begun, the remaining portion of the member's interest shall be distributed at least as rapidly as under the same method of distribution before the member's death.
Source: SL 2021, ch 28, § 21.
3-13C-13.2. Required minimum distributions--Member's death before distributions begun.
If a member dies before required distribution of the member's benefits has begun, the member's interest shall be distributed as follows:
(1) If the member has a surviving spouse, the surviving spouse shall receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the member's death; or
(2) If the member has no surviving spouse, the member's remaining interest shall be distributed in a lump sum payment to the designated beneficiary within five years from the date of the member's death.
Source: SL 2021, ch 28, § 22.
3-13C-13.3. Required minimum distributions--Incidental benefit rule.
The death and disability benefits provided by the system are limited by the incidental benefit rule set forth in § 401(a)(9)(G) of the Internal Revenue Code and Treasury Regulation § 1.401-1(b)(1)(i). As a result, the total death or disability benefits payable may not exceed twenty-five percent of the cost for all of the member's benefits received from the system.
Source: SL 2021, ch 28, § 23.
3-13C-13.4. Required minimum distributions--Reasonable and made in good faith.
Notwithstanding the other provisions of §§ 3-13C-13 to 3-13C-13.3, inclusive, or the provisions of United States Treasury regulations, benefit options may continue so long as the option satisfies § 401(a)(9) of the Internal Revenue Code based on a reasonable and good faith interpretation of that section.
Source: SL 2021, ch 28, § 24.
3-13C-14 . Vested accrued benefit--Distribution--Small amounts payment.
If the present value of the participant's vested accrued benefit does not exceed five thousand dollars, and the participant has not started retirement benefits with respect to any portion of the vested accrued benefit, the present value of the participant's entire vested accrued benefit shall be distributed as of the earliest of the participant's retirement date or the date of severance from employment for any reason other than death. For purposes of this section, if the present value of the participant's vested accrued benefit is zero, the participant shall be deemed to have received a distribution of the present value. This is a small amounts payment. The small amounts payment is in full settlement of all benefits otherwise payable.
If a participant has a severance from employment for any reason other than death or retirement and does not elect to have a small amounts payment paid directly to an eligible retirement plan specified by the participant in a direct rollover or to receive the distribution directly and the present value of the participant's vested accrued benefit is greater than one thousand dollars, a mandatory distribution will be made in accordance with § 3-13C-12 . If the present value of the participant's vested accrued benefit is one thousand dollars or less, the present value of the participant's entire vested accrued benefit shall be paid directly to the participant.
If the present value of the preretirement spouse and dependent child death benefit or the certain period death benefit as provided in § 3-13C-18 does not exceed five thousand dollars on the date of the participant's death, the present value of the preretirement spouse and dependent child death benefit or the certain period death benefit shall be distributed as of the date the participant dies. If the single sum death benefit payable to a beneficiary does not exceed five thousand dollars, on the date of the participant’s death, the death benefit shall be distributed in a single sum as of the date the participant dies. This is a small amounts payment.
A small amounts payment is in full settlement of the death benefit otherwise payable. No other small amounts payments may be made.
Source: SL 2020, ch 13, § 21.
3-13C-15 . Accrued benefit determined.
An active participant's monthly accrued benefit as of any date, subject to the modifications below, will be equal to the product of (1) and (2) as follows:
(1) An amount equal to two percent of average compensation; and
(2) Credited service on such date.
An active participant's monthly accrued benefit may not be less than the amount of the participant's monthly retirement benefit accrued as of December 11, 1984.
After all other modifications have been applied, an active participant's monthly accrued benefit shall be reduced by the amount of deferred monthly retirement benefit under the normal form beginning on the normal retirement date in lieu of which the participant has received a single sum payment under the plan. The participant's accrued benefit resulting from employer contributions is equal to the participant's total accrued benefit reduced by the required contribution accrued benefit.
Source: SL 2020, ch 13, § 22.
3-13C-16 . Amount of benefit at retirement.
The amount of retirement benefits to be provided under the normal form for an active participant on the participant's retirement date is:
(1) On the participant's normal retirement date, the amount is equal to the participant's accrued benefit on that date;
(2) On the participant's early retirement date, the amount is equal to the participant's accrued benefit on that date, reduced by one-sixth of one percent for each month the participant's early retirement date precedes the participant's normal retirement date; or
(3) On the participant's late retirement date, the amount is equal to the participant's accrued benefit on the late retirement date.
In any event, an active participant's retirement benefit under the normal form on the participant's retirement date may not be less than the greater of the participant's required contribution accrued benefit on the participant's retirement date, reduced in the same manner as the participant's accrued benefit is reduced at early retirement date if the participant's retirement date is an early retirement date, or the monthly benefit under the normal form that is the actuarial equivalent of the participant's required contribution account on that date.
Source: SL 2020, ch 13, § 23.
3-13C-17 . Benefit limitation.
Annual benefits payable under the plan may not exceed the amount provided in 26 U.S.C. § 415 and are payable in accordance with § 3-12C-711 .
Source: SL 2020, ch 13, § 24.
3-13C-18 . Preretirement death benefits--Payment recipient--Conditions--Determination of amount.
If a participant dies before retirement benefits start, monthly payments shall be made to the surviving spouse or, if there is no surviving spouse, to the dependent child's principal support if the following provisions are met:
(1) The participant is survived by a spouse to whom the participant was continuously married throughout the one-year period ending on the date of this death;
(2) The participant is survived by a dependent child on the date of death; and
(3) The participant had not ceased to be an employee, dependent child, or beneficiary.
The amount of payments to the surviving spouse with a dependent child are equal to fifty-five percent of the amount of monthly retirement benefit expected to become payable upon attaining age sixty, assuming the participant's employment continues, and monthly compensation remains unchanged.
For each dependent child of the participant with a surviving spouse, the amount of payments is equal to the least of: sixty percent of the participant's average compensation on the date of death, divided by the number of dependent children; seventy-five dollars; or two hundred twenty-five dollars, divided by the number of dependent children.
The payments to a dependent child are in addition to the payments made to the surviving spouse.
For each dependent child of a participant who does not have a spouse on the date of death, the amount of payments is equal to the least of: seventy-five percent of the participant's average compensation on the date of death, divided by the number of dependent children; ninety dollars; or two hundred seventy dollars, divided by the number of dependent children.
In addition, a single-sum benefit equal to the participant's required contribution account on the date of death shall be payable to the participant's beneficiary.
The death benefits shall begin on the first day of the month after the participant dies and shall continue until the later of the date the surviving spouse dies, or the date there no longer is a dependent child.
If the surviving spouse remarries before the attainment of age sixty, no further monthly payments shall be made after the first day of the month immediately preceding the date of the spouse's remarriage.
Benefits payable to the dependent children of a participant who did not have a spouse on the date of death shall be assumed to continue until the date the youngest dependent child attains age twenty-two.
If the participant is not survived by a spouse, dependent child, or beneficiary, the death benefit shall be the preservation of retirement option death benefit. This death benefit is the death benefit payable to the participant's beneficiary or contingent participant if the participant's retirement date had occurred on the date of death. The optional form of distribution elected in accordance with § 3-13C-23 before the participant's death is the form in effect for determining the death benefit. Any death benefit payable shall be subject to the provisions of § 3-13C-13 .
The distribution of death benefits shall be subject to the provisions of § 3-13C-14 .
Source: SL 2020, ch 13, § 25.
3-13C-19 . Death benefit after retirement determination--Payment amount determined.
Any death benefit after a participant's retirement will be determined by the form of retirement benefit in effect on that date. If the participant has a dependent child on the date of death after retirement date, payments shall be made as follows:
(1) For each dependent child of the participant with a surviving spouse, the amount of payments is equal to the least of:
(a) Sixty percent of the participant's average compensation on the date of death, divided by the number of dependent children;
(b) Seventy-five dollars; or
(c) Two hundred twenty-five dollars, divided by the number of dependent children.
The payments to a dependent child are in addition to the payments made to the surviving spouse; and
(2) For each dependent child of a participant who does not have a spouse on the date of death, the amount of payments is equal to the least of:
(a) Seventy-five percent of the participant's average compensation on the date of death, divided by the number of dependent children;
(b) Ninety dollars; or
(c) Two hundred seventy dollars, divided by the number of dependent children.
Source: SL 2020, ch 13, § 26.
3-13C-20 . Vested benefits--Distribution amount determined.
Any distribution of vested benefits shall be a retirement benefit and subject to § 3-13C-14 . A participant who becomes an inactive participant before retirement or death is entitled to one of the following vested benefits, whichever is applicable:
(1) A deferred monthly retirement benefit under the normal form to begin on the participant's normal retirement date equal to the sum of (a) and (b):
(a) On and after June 30, 1999, the amount of monthly benefit which could be provided on the participant's normal retirement date on the normal form by the participant's required contribution account, based on the rates described in the definition of actuarial equivalent; and
(b) The product of (i) and (ii):
(i) The excess of the participant's accrued benefit on the day before becoming an inactive participant over the amount determined under (a); and
(ii) The participant's vesting percentage on the date of severance from employment; or
(2) A deferred monthly retirement benefit under the normal form to begin on the participant's late retirement date determined as follows:
(a) For a participant who became an inactive participant on or before normal retirement date, an amount equal to the amount under subdivision (1); and
(b) For a participant who became an inactive participant after normal retirement date, an amount equal to the participant's accrued benefit on the day before becoming an inactive participant.
The deferred retirement benefit for the participant on the participant's retirement date may not be less than the monthly benefit equal to the actuarial equivalent of the required contribution account on that date.
The amount of payment under any form other than the normal form shall be determined in accordance with § 3-13C-21.
The participant may receive the participant's required contribution account in a single sum payment at any time after severance from employment and before the participant's retirement date, provided the participant has not again become an employee. If the amount is not payable in accordance with § 3-13C-14 , it will be distributed only if the participant so elects. The participant's election shall be subject to the requirements in § 3-13C-23. The payment shall be in lieu of the required contribution accrued benefit.
If the participant dies before retiring, death benefits shall be distributed in accordance with § 3-13C-18 .
Source: SL 2020, ch 13, § 27.
3-13C-21 . Retirement benefits--Optional forms.
The optional forms of retirement benefits are the following:
(1) A straight life annuity;
(2) A single life annuity with a certain period of ten, fifteen, or twenty years;
(3) A single life annuity with modified cash refund of the participant’s required contribution account;
(4) A survivorship life annuity equal to the participant's monthly retirement benefit, reduced by two and one-half percent of the amount of the benefit not exceeding three hundred dollars plus ten percent of the amount by which the benefit exceeds three hundred dollars, with survivorship percentages of fifty or seventy-five percent; and
(5) A Social Security adjustment option based on the normal form and adjusted in a manner so when added to the primary insurance benefits under Title II of the Federal Social Security Act in effect on the participant's retirement date will provide, as nearly as practicable, a uniform series of payments before and after attaining Social Security retirement age. This option is effective only for a participant whose retirement date occurs before the participant attains Social Security retirement age.
Social Security retirement age means, on any date, the age at which full Social Security benefits become payable as determined by the Social Security table in effect on that date.
The benefit payable under any optional form available under this section, other than the normal form, shall be the actuarial equivalent of the benefit otherwise payable to the participant under the normal form on the participant's retirement date. If the participant's retirement date is before the participant's normal retirement date, the benefit payable under any optional form other than a nondecreasing annuity payable for a period of not less than the life of the participant or an annuity decreasing during the life of the participant because of either the death of the survivor contingent participant but only if the reduction is not below fifty percent of the benefit payable before the death of the survivor contingent participant or the cessation or reduction of Social Security supplements or qualified disability payments as defined in 26 U.S.C. § 401(a)(11), may not be less than the actuarial equivalent of the benefit otherwise payable to the participant under the normal form on the participant's normal retirement date.
The election of an optional form is subject to the provisions of §§ 3-13C-13 and 3-13C-23.
Retirement benefits are nontransferable.
Source: SL 2020, ch 13, § 28.
3-13C-22 . Death benefits--Optional forms.
The optional forms of death benefit are any of the optional forms of retirement benefit stated in § 3-13C-21 that are not survivorship life annuities. The election of an optional form is subject to the provisions of §§ 3-13C-13 and 3-13C-23.
Source: SL 2020, ch 13, § 29.
3-13C-23 . Election of benefits--Requirements.
The participant, beneficiary, or spouse shall make any election in writing. The system may require the person to complete and sign any necessary documents as to the provisions made.
A participant may elect a beneficiary or contingent participant and may elect to have retirement benefits distributed under the provisions of § 3-13C-21 .
A participant may elect a beneficiary for any single sum death benefits and may elect to have the death benefits distributed in accordance with §§ 3-13C-18 and 3-13C-19 . If the participant has not elected an optional form of distribution for the death benefit payable to the beneficiary, the beneficiary may elect the form of distribution in like manner as a participant.
The participant, beneficiary, or spouse may make an election at any time during the election period. The participant, beneficiary, or spouse may revoke the election made or make a new election at any time and any number of times during the election period as follows:
(1) A participant may make an election as to retirement benefits at any time before the retirement benefits start date; and
(2) A participant may make an election as to death benefits at any time before the death of the participant. The spouse's election period begins on the date the participant dies and ends on the date benefits begin. The beneficiary's election period begins on the date the participant dies and ends on the date benefits begin.
Source: SL 2020, ch 13, § 30.
3-14-1
Holding over until successor qualified.
3-14-2
Public property and accounts to be delivered to successor in office.
3-14-3
Refusal to surrender official seal, books, or papers as misdemeanor.
3-14-4
Exercising functions of office after expiration of term as misdemeanor.
3-14-5
Definitions.
3-14-1. Holding over until successor qualified.
Except when otherwise expressly provided, every lawful incumbent of any public office, with a definite term, upon the expiration of such term shall continue to discharge its duties until his successor shall have been elected or appointed and has qualified, and shall be entitled to receive the prescribed compensation of such office during the time he shall so discharge its duties.
Source: RC 1919, § 7035; SDC 1939, § 48.0314.
3-14-2. Public property and accounts to be delivered to successor in office.
Every public officer elected or appointed under the laws of this state, on going out of office at the expiration of his term thereof, shall forthwith deliver, and upon his death, resignation, suspension, or removal from office, there shall be forthwith delivered to his successor in office all public money, books, records, accounts, papers, documents, and property in his possession or under his control belonging or appertaining to such office.
Source: PolC 1877, ch 5, § 14; PolC 1877, ch 22, § 7; CL 1887, §§ 1384, 1391; RPolC 1903, §§ 1801, 1810; SL 1915, ch 268, § 1; RC 1919, §§ 7016, 7038; SDC 1939, § 48.0317.
3-14-3. Refusal to surrender official seal, books, or papers as misdemeanor.
Every person who, having been an executive officer of this state, wrongfully refuses to surrender the official seal or any of the books and papers appertaining to his office, to his successor, who has been duly elected or appointed, and has duly qualified, and has demanded the surrender of the books and papers of such office, is guilty of a Class 2 misdemeanor.
Source: PenC 1877, § 112; CL 1887, § 6312; RPenC 1903, § 117; RC 1919, § 3700; SDC 1939, § 13.1104; SL 1980, ch 24, § 42.
3-14-4. Exercising functions of office after expiration of term as misdemeanor.
Every person who, having been an executive officer, willfully exercises any of the functions of his office after his term of office has expired and a successor has been duly elected or appointed, and has qualified in his place, and he has notice thereof, is guilty of a Class 2 misdemeanor.
Source: PenC 1877, § 111; CL 1887, § 6311; RPenC 1903, § 116; RC 1919, § 3699; SDC 1939, § 13.1103; SL 1980, ch 24, § 43.
3-14-5. Definitions.
The terms "office," "officer," "executive," and "administrative," when used in § 3-14-3 or 3-14-4 mean and apply to any executive or administrative officer of the state; to any county, municipality, township, or school district; and to any district, board, bureau, commission, department, or other body or office, exercising executive or administrative powers as part of the government, or any arm of the government, of the state. The terms "executive" and "administrative" apply interchangeably to any or all of said offices.
Source: SL 1985, ch 15, § 17; SL 1992, ch 60, § 2.
3-16-1
Willful failure to perform official duty as misdemeanor.
3-16-2
Keeping office or property at unauthorized place as misdemeanor.
3-16-3
Repealed.
3-16-4, 3-16-5. Repealed.
3-16-6
Repealed.
3-16-7
Officer's interest in public contract as misdemeanor
.
3-16-8
Self-dealing in award or terms of agency contract prohibited.
3-16-9
Retaliation prohibited for reporting violations, abuse, or danger to public.
3-16-10
Retaliation prohibited for reporting public official's misuse of public funds.
3-16-1. Willful failure to perform official duty as misdemeanor.
Where any duty is or shall be enjoined by law upon any public officer, or upon any person holding any public trust or employment, every intentional omission to perform such duty, where no special provision shall have been made for the punishment of such delinquency, is a Class 2 misdemeanor.
Source: PenC 1877, § 216; CL 1887, § 6416; RPenC 1903, § 220; RC 1919, § 3806; SDC 1939, § 13.1301; SL 1980, ch 24, § 44.
3-16-2. Keeping office or property at unauthorized place as misdemeanor.
No state, county, township, or precinct officer in this state shall keep his office, or keep any books, papers, records, or other property belonging thereto, at any place other than that prescribed by law. Any state, county, township, or precinct officer violating this section is guilty of a Class 2 misdemeanor.
Source: SL 1883, ch 90, §§ 1, 2; CL 1887, §§ 1401, 1402; RPolC 1903, §§ 1820, 1821; RC 1919, §§ 7022, 7023; SDC 1939, § 48.9901; SL 1980, ch 24, § 45.
3-16-7. Officer's interest in public contract as misdemeanor.
No public officer who is authorized to sell or lease any property, or make any contract in the officer's official capacity may become voluntarily interested individually in any sale, lease, or contract, directly or indirectly with such entity. A violation of this section is a Class 2 misdemeanor unless the act is exempted by law.
Source: PenC 1877, § 499; CL 1887, § 6700; RPenC 1903, § 521; RC 1919, § 3816; SDC 1939, § 13.1308; SL 1980, ch 24, § 46; SL 2014, ch 44, § 2.
3-16-8. Self-dealing in award or terms of agency contract prohibited.
A state officer or employee may not solicit nor accept any gift, favor, reward, service, or promise of reward, including a promise of future employment, in exchange for recommending, influencing, or attempting to influence the award of or the terms of a contract by the state agency the officer or employee serves.
Source: SL 2015, ch 30, § 1.
3-16-9. Retaliation prohibited for reporting violations, abuse, or danger to public.
No department, bureau, board, or commission of the state or any of its political subdivisions may dismiss, suspend from employment, demote, decrease the compensation of, or take any other retaliatory action against an employee because the employee reports in good faith to an appropriate authority a violation or suspected violation of a law or rule, an abuse of funds or abuse of authority, or substantial and specific danger to public health or safety, unless the report is specifically prohibited by law. The provisions of this section do not apply to any employee who knows the report is false or was made in a reckless disregard for the truth. A state employee who is the subject of retaliation under this section may file a grievance with the Civil Service Commission pursuant to § 3-6D-22. For purposes of an employee of a political subdivision, an appropriate authority includes any human resources department of that political subdivision, if any, any state's attorney, or the attorney general.
Source: SL 2017, ch 25, § 1.
3-16-10. Retaliation prohibited for reporting public official's misuse of public funds.
An employee may file a grievance with the appropriate governmental entity if the employee believes that there has been retaliation, because of reporting a violation of § 22-30A-46 through the chain of command of the employee's department, to the Office of the Attorney General, or to the Department of Legislative Audit. If no grievance process exists, a civil action may be filed in circuit court.
Source: SL 2017, ch 98, § 3.
CHAPTER 3-17
REMOVAL FROM OFFICE
3-17-1 Removal of constitutional state officers by Governor--Grounds--Notice and hearing.
3-17-2 Removal of appointive state officers by Governor without cause.
3-17-3 Removal of local law enforcement officers by Governor--Grounds.
3-17-4 Notice and hearing on removal of law enforcement officer.
3-17-5 Law enforcement officer removed from office not eligible for new appointment during term--Salary payment for office as misdemeanor.
3-17-6 Grounds for removal of local officers from office.
3-17-7 Proceedings for removal of local officer--Pleadings and process.
3-17-8 Suspension of local officer pending removal proceedings.
3-17-9 Judgment of ouster in removal proceedings--Enforcement of judgment--Salary during period of suspension if officer vindicated.
3-17-10 Officer allowed expenses of defense after judgment for him in removal proceedings.
3-17-11 Advancement of appeals on Supreme Court calendar--Circuit court order not stayed pending appeal.
3-17-12 Suspension of state's attorney or sheriff pending prosecution.
3-17-13 Effect of suspension.
3-17-14 Appointment of acting state's attorney or sheriff.
3-17-15 Compensation of acting state's attorney or sheriff.
3-17-16 Powers and duties of acting state's attorney or sheriff.
3-17-17 Restoration of state's attorney or sheriff to office.
3-17-18 Time for trial of state's attorney or sheriff.
3-17-19 Removal provisions unaffected.
3-17-20 Suspension of certain county officials pending completion of criminal prosecution--Appointment of person to discharge duties--Restoration to office.
3-17-21 Leave of absence status of suspended person.
3-17-22 Compensation and duties of temporary appointee.
3-17-23 Suspension of county commissioner pending completion of criminal prosecution--Restoration to office.
3-17-24 Removal from office provisions unaffected.
3-17-1. Removal of constitutional state officers by Governor--Grounds--Notice and hearing.
All constitutional state officers not liable to impeachment may be removed by the Governor, after notice and hearing, for crimes, misconduct, or malfeasance in office or for drunkenness or gross incompetency.
Source: SL 1901, ch 192, § 1; RPolC 1903, § 1804; RC 1919, § 7009; SDC 1939, § 48.0201.
3-17-2. Removal of appointive state officers by Governor without cause.
All state officers not liable to impeachment and not subject to removal by the Governor, in accordance with the provisions of § 3-17-1, and appointed by the Governor with or without the advice and consent of the Senate, shall be subject to removal by the Governor without assigning cause therefor.
Source: SL 1901, ch 192, § 2; RPolC 1903, § 1805; RC 1919, § 7010; SDC 1939, § 48.0202.
3-17-3. Removal of local law enforcement officers by Governor--Grounds.
The Governor shall have power, after notice and hearing, to remove from office any state's attorney, sheriff, or police officer, or any deputy or assistant state's attorney, or deputy sheriff who shall willfully fail, neglect, or refuse to perform any of the duties imposed upon him by, or to enforce any of the provisions of law relating to intoxicating liquors, or who shall willfully fail, neglect, or refuse to perform any duties imposed upon them by law, or who shall be guilty of intoxication or drunkenness, or who shall be guilty of the violation of any law, or who shall assist or connive in the violation of any law, or who shall be grossly incompetent to perform the duties of his office.
Source: SL 1917, ch 281, § 2; RC 1919, § 7011; SL 1923, ch 248; SDC 1939, § 48.0203.
3-17-4. Notice and hearing on removal of law enforcement officer.
Proceedings for the removal of any such officer may be commenced either by the Governor on the Governor's own motion, or on written complaint of any citizen of the state, filed with the Governor. Written notice of the time and place fixed for the hearing of the complaint, together with a copy thereof, must be personally served on the officer at least ten days before the hearing.
Source: SL 1917, ch 281, § 2; RC 1919, § 7011; SL 1923, ch 248; SDC 1939, § 48.0203; SL 2023, ch 3, § 20.
3-17-5. Law enforcement officer removed from office not eligible for new appointment during term--Salary payment for office as misdemeanor.
Any person removed under the provisions of §§ 3-17-3 and 3-17-4 shall be ineligible to hold any public appointive or elective office or position of the state or any political subdivision thereof, during the unexpired part of the term of office to which such person was elected or appointed, and from which he has been removed.
It is a Class 2 misdemeanor for any officer or board to allow or pay any person so removed, any salary for any public appointive or elective office or position during the period for which he shall be disqualified to hold such office or position, and any person or board who shall allow or pay any such salary contrary to the provisions of this section shall be liable to the state or political subdivision as the case may be, for the salary so paid or allowed.
Source: SL 1917, ch 281, § 2; RC 1919, § 7011; SL 1923, ch. 248; SDC 1939, § 48.0203; SL 1980, ch 24, § 47.
3-17-6. Grounds for removal of local officers from office.
Any officer of any local unit of government may be charged, tried, and removed from office for misconduct, malfeasance, nonfeasance, crimes in office, drunkenness, gross incompetency, corruption, theft, oppression, or gross partiality.
Source: PolC 1877, ch 22, § 3; CL 1887, § 1387; RPolC 1903, § 1806; SL 1915, ch 268, § 1; RC 1919, § 7012; SL 1929, ch 214; SDC 1939, § 48.0204; SL 1977, ch 57; SL 1981, ch 177, § 2.
3-17-7. Proceedings for removal of local officer--Pleadings and process.
The proceedings for removal shall be in the nature of a special proceeding, and shall be brought in the name of the state by the state's attorney of the county in which the officer charged resides, upon his own relation, or by the attorney general of the state upon his own relation, and must be so brought by either of such officers when so directed by the Governor. Such proceeding shall be commenced by the filing of a complaint in the office of the clerk of courts of the proper county, which complaint shall contain a brief and concise statement of the facts constituting the cause of action, without unnecessary repetition and the issuance of a summons in the form of a relief summons in civil action, which summons shall require the defendant to answer the complaint within ten days after the date of service thereof, and shall be served by the sheriff or other officer authorized to serve process, by handing to and leaving with the defendant, personally, a copy of the summons, accompanied by a copy of the complaint, and such proceeding shall be brought on for hearing and determination upon a notice of not less than five days, served upon the opposite party or his attorney, except as hereinafter provided, whereupon it shall be the duty of the judge of the circuit court to at once appoint and hold a special term thereof, at which term the issues in such proceeding shall be heard and determined by the court.
Source: PolC 1877, ch 22, § 3; CL 1887, § 1387; RPolC 1903, § 1806; SL 1915, ch 268, § 1; RC 1919, § 7012; SL 1929, ch 214; SDC 1939, § 48.0204.
3-17-8. Suspension of local officer pending removal proceedings.
At any time after the commencement of the proceeding under § 3-17-7 the court shall, upon satisfactory showing, suspend the accused from the functions of his office until the final determination of the issues, and upon such suspension the judge shall immediately appoint some competent person to fill the office during such suspension.
Source: PolC 1877, ch 22, § 5; SL 1881, ch 123, § 1; CL 1887, § 1389; RPolC 1903, § 1808; SL 1915, ch 268, § 1; RC 1919, § 7013; SDC 1939, § 48.0205.
3-17-9. Judgment of ouster in removal proceedings--Enforcement of judgment--Salary during period of suspension if officer vindicated.
The judgment thereof, if against the defendant, shall be that of immediate ouster from his office, and declaring his office to be vacant.
If the judgment in such proceeding be that of ouster, and the defendant fails or refuses to surrender his office, the circuit court shall issue all needful writs or process, directed to the proper officer, for the execution of such judgment. If the ultimate determination of the issues in the proceeding be in favor of the accused, such suspension shall not work a forfeiture of his salary during the period of such suspension.
Source: PolC 1877, ch 22, §§ 3, 5; SL 1881, ch 123, § 1; CL 1887, §§ 1387, 1389; RPolC 1903, §§ 1806, 1808; SL 1915, ch 268, § 1; RC 1919, §§ 7012, 7013; SDC 1939, §§ 48.0204, 48.0205.
3-17-10. Officer allowed expenses of defense after judgment for him in removal proceedings.
If the final determination of such proceeding be favorable to such accused officer, he shall be allowed the reasonable and necessary expenses he has incurred in his defense, including a reasonable attorney fee, to be fixed by the court or judge. Such expenses shall be paid by the county, if he be a county officer; by the township, if he be a township officer; and by the municipality if he be an officer of such municipality.
Source: SL 1915, ch 268, § 1; RC 1919, § 7015; SDC 1939, § 48.0206; SL 1992, ch 60, § 2.
3-17-11. Advancement of appeals on Supreme Court calendar--Circuit court order not stayed pending appeal.
In case of appeal to the Supreme Court, such appeal shall be advanced and take precedence over all causes upon the court calendar, and be assigned for hearing as soon after the record on appeal and briefs are filed as the business of the court will permit. The taking of an appeal by the defendant and the filing of a supersedeas bond shall not operate to stay the proceedings of the circuit court or judge, or restore the defendant to office pending such appeal.
Source: SL 1915, ch 268, § 1; RC 1919, § 7015; SDC 1939, § 48.0206.
3-17-12. Suspension of state's attorney or sheriff pending prosecution.
If any state's attorney or sheriff is arrested for or charged with any offense against the laws of this state or the United States of America, and the Governor is informed that criminal proceedings are pending before any court or officer, the Governor shall in the case of a felony and may in the case of a misdemeanor suspend that state's attorney or sheriff from office until such charge is prosecuted. The effect of such a suspension is to relieve the affected state's attorney or sheriff from all responsibilities provided by law which are pertinent to that position.
Source: SL 1985, ch 28, § 1.
3-17-13. Effect of suspension.
A state's attorney or sheriff who is suspended from employment in accordance with the provisions of § 3-17-12 shall assume leave of absence status and shall receive the same salary and employment benefits to which he would otherwise be entitled to be paid by the county he represents. Except as otherwise provided in §§ 3-17-12 to 3-17-19, inclusive, a state's attorney or sheriff who is suspended pursuant to §§ 3-17-12 to 3-17-19, inclusive, has the same rights, benefits, and obligations as any county employee who is on a leave of absence status for any other purpose. Notwithstanding any other law, a state's attorney or sheriff shall receive credit for the period of suspension toward any retirement benefit afforded by the county represented if ultimately reinstated pursuant to §§ 3-17-12 to 3-17-19, inclusive.
Source: SL 1985, ch 28, § 2.
3-17-14. Appointment of acting state's attorney or sheriff.
The Governor shall, in the case of a state's attorney, appoint the attorney general or one of his assistants or some competent attorney of the state selected by the attorney general, and the Governor shall, in the case of a sheriff suspended pursuant to §§ 3-17-12 to 3-17-19, inclusive, appoint a suitable person to discharge the duties of such office during any suspension imposed in accordance with the provisions of §§ 3-17-12 to 3-17-19, inclusive.
Source: SL 1985, ch 28, § 3.
3-17-15. Compensation of acting state's attorney or sheriff.
The county in which an attorney is temporarily appointed state's attorney or a person is temporarily appointed sheriff shall pay such appointee for his services and expenses in an amount determined and fixed by the Governor and certified to the county auditor of the affected county.
Source: SL 1985, ch 28, § 4.
3-17-16. Powers and duties of acting state's attorney or sheriff.
Any attorney temporarily appointed may discharge all the duties of an elected state's attorney and shall speedily bring to hearing and determination any charges made against the state's attorney so suspended. Any person temporarily appointed as sheriff may discharge all the duties of an elected sheriff.
Source: SL 1985, ch 28, § 5.
3-17-17. Restoration of state's attorney or sheriff to office.
If it is determined during the criminal proceeding that the state's attorney or sheriff so suspended is not guilty of the offense charged, this fact shall be certified to the county auditor by the Governor, whereupon such suspended state's attorney or sheriff shall be restored to office provided the term for which he was elected or appointed has not expired.
Source: SL 1985, ch 28, § 6.
3-17-18. Time for trial of state's attorney or sheriff.
Any trial of a state's attorney or sheriff who has been charged with a criminal offense under the laws of this state, shall be commenced no later than sixty days from the date upon which formal charges are brought unless continued by court order.
Source: SL 1985, ch 28, § 7.
3-17-19. Removal provisions unaffected.
Sections 3-17-12 to 3-17-18, inclusive, in no manner affect provisions of law relating to the removal from office of a state's attorney or sheriff.
Source: SL 1985, ch 28, § 8.
3-17-20. Suspension of certain county officials pending completion of criminal prosecution--Appointment of person to discharge duties--Restoration to office.
If any officer is arrested for or charged with any offense against the laws of this state or the United States of America, and the board of county commissioners is informed that criminal proceedings are pending before any court or officer, the board of county commissioners may in the case of a Class 1 misdemeanor charge that is relevant to the responsibilities and duties of the office and shall in the case of a felony charge suspend that officer from office until such charge is prosecuted. The officer who is suspended pursuant to this section is relieved from all responsibilities provided by law which are pertinent to that office. The county commission shall appoint one of the officer's assistants or a suitable person to discharge the duties of the office during any suspension imposed in accordance with the provisions of §§ 3-17-20 to 3-17-22, inclusive. If it is determined during the criminal proceeding that the officer suspended is not guilty of the offense charged, the court shall so notify the board of county commissioners. If the term for which the officer was elected or appointed has not expired, the suspended officer shall be restored to that office by the board of county commissioners. For the purposes of §§ 3-17-20 to 3-17-22, inclusive, the term, officer, includes the county auditor, county treasurer, and county register of deeds.
Source: SL 2007, ch 22, § 1.
3-17-21. Leave of absence status of suspended person.
Any officer who is suspended from employment in accordance with the provisions of § 3-17-20 shall assume leave of absence status and shall receive the same salary and employment benefits to which the officer would otherwise be entitled to be paid by the county. Except as otherwise provided in §§ 3-17-20 to 3-17-22, inclusive, an officer who is suspended pursuant to § 3-17-20 has the same rights, benefits, and obligations as any county employee who is on a leave of absence status for any other purpose. Notwithstanding any other provision of law, an officer shall receive credit for the period of suspension toward any retirement benefit afforded by the county, if the officer is reinstated pursuant to § 3-17-20.
Source: SL 2007, ch 22, § 2.
3-17-22. Compensation and duties of temporary appointee.
The county in which an officer is temporarily appointed pursuant to § 3-17-20 shall pay the appointee for services and expenses in an amount determined and fixed by the board of county commissioners for such office. Any person temporarily appointed as an officer may discharge all the duties of such office.
Source: SL 2007, ch 22, § 3.
3-17-23. Suspension of county commissioner pending completion of criminal prosecution--Restoration to office.
If any county commissioner is arrested for or charged with any offense against the laws of this state or the United States of America, and the board of county commissioners is informed that criminal proceedings are pending before any court or officer, the remaining board of county commissioners may in the case of a Class 1 misdemeanor charge that is relevant to the responsibilities and duties of the office and shall in the case of a felony charge suspend that county commissioner from office until such charge is prosecuted. The county commissioner who is suspended pursuant to this section is relieved from all responsibilities provided by law which are pertinent to that office. If it is determined during the criminal proceeding that the county commissioner suspended is not guilty of the offense charged, this fact shall be certified to the board of county commissioners. If the term for which the county commissioner was elected or appointed has not expired, the suspended county commissioner shall be restored to that office by the remaining board of county commissioners.
Source: SL 2007, ch 22, § 4.
3-17-24. Removal from office provisions unaffected.
Sections 3-17-20 to 3-17-23, inclusive, do not affect the provisions of law relating to the removal from office of any county commissioner, county auditor, county treasurer, or county register of deeds.
Source: SL 2007, ch 22, § 5.
CHAPTER 3-18
PUBLIC EMPLOYEES' UNIONS
3-18-1 Employees subject to chapter--Rights preserved to excluded persons.
3-18-1.1 "Grievance" defined.
3-18-2 Rights relating to labor organizations--Designation of representatives--Discrimination against employees exercising rights as misdemeanor--Good faith negotiations--Intimidation.
3-18-3 Exclusive representation by designated representatives--Right to adjust grievances preserved.
3-18-3.1 Unfair practices of employers defined.
3-18-3.2 Unfair practices of employee organizations defined.
3-18-3.3 Rules on unfair practices.
3-18-3.4 Time for filing complaint on unfair practice.
3-18-4 Investigation and hearing on refusal to grant formal recognition or on question of designation of representation unit.
3-18-5 Question on representative of employees--Petition for investigation or certification--Hearing to ascertain representatives for formal recognition.
3-18-6 Promulgation of rules of procedure for elections and negotiations.
3-18-6.1 3-18-6.1. Repealed by SL 1979, ch 21, § 4.
3-18-7 Tentative settlement between labor or employee organization and designated representatives of agency--Action by governing body or officer.
3-18-8 Implementation of settlement between labor or employee organization and governing body.
3-18-8.1 Intervention by department on failure to reach agreement.
3-18-8.2 Issuance of contracts by school districts prior to reaching agreement--Terms and conditions.
3-18-9 Strike defined.
3-18-10 Strikes prohibited--Right to submission of grievance.
3-18-11 Consent to strikes by supervisors prohibited--Discharge from employment for submission of grievance prohibited.
3-18-12 3-18-12, 3-18-13. Repealed by SL 1997, ch 33, §§ 1, 2.
3-18-14 Injunctive relief in case of strike.
3-18-15 Right of employee or representative to expression or communication of grievance not limited.
3-18-15.1 Grievance procedures to be established.
3-18-15.2 Appeal to department--Investigation, hearing, and order by department--Summary disposition of certain claims--Public employees of Board of Regents.
3-18-15.3 Grievance procedure adopted in absence of agency action.
3-18-15.4 Change in policies not prohibited--Contractual rights preserved.
3-18-15.5 Grievance procedures for employees of political subdivisions.
3-18-16 Proceedings to establish nonparticipation in strike--Request by employee--Time for proceedings.
3-18-17 Review by trial de novo of decision establishing violation.
3-18-18 Rejected by referendum.
3-18-1. Employees subject to chapter--Rights preserved to excluded persons.
The term, public employee, as used in this chapter means any person holding a position by appointment or employment in the government of the State of South Dakota or in the government of any one or more of the political subdivisions thereof, or in the service of the public schools, or in the service of any authority, commission, or board, or any other branch of the public service. The term does not include:
(1) Elected officials and persons appointed to fill vacancies in elective offices and members of any board or commission;
(2) Administrators except elementary and secondary school administrators, administrative officers, directors, or chief executive officers of a public employer or major divisions thereof as well as chief deputies, first assistants, and any other public employees having authority in the interest of the public employer to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward, or discipline other public employees, or the responsibility to direct them, or to adjust their grievances, or to effectively recommend any action, if in connection with the foregoing, and the exercise of the authority is not of a merely routine or clerical nature, but requires the use of independent judgment;
(3) Students working as part-time employees twenty hours per week or less;
(4) Temporary public employees employed for a period of four months or less;
(5) Commissioned and enlisted personnel of the South Dakota National Guard;
(6) Judges and employees of the unified court system;
(7) Legislators and the full-time and part-time employees of the legislature or any state agency that statutorily is directed by the legislative branch; or
(8) Any person employed by the Board of Regents or employed by an institution under the control of the Board of Regents, except a person employed at South Dakota Services for the Deaf or the South Dakota School for the Blind and the Visually Impaired, who is not otherwise excluded by subdivision (2), (3), or (4).
This section does not preclude employees described in subdivisions (1) to (8), inclusive, from joining professional, noncollective bargaining organizations.
Source: SL 1969, ch 88, § 1, subdiv 1; SL 1978, ch 35, § 1; SL 1982, ch 41; SL 2020, ch 63, § 2; SL 2023, ch 62, § 1.
3-18-1.1. "Grievance" defined.
The term "grievance" as used in this chapter means a complaint by a public employee or group of public employees based upon an alleged violation, misinterpretation, or inequitable application of any existing agreements, contracts, ordinances, policies, or rules of the government of the State of South Dakota or the government of any one or more of the political subdivisions thereof, or of the public schools, or any authority, commission, or board, or any other branch of the public service, as they apply to the conditions of employment. Negotiations for, or a disagreement over, a nonexisting agreement, contract, ordinance, policy, or rule is not a "grievance" and is not subject to this section.
Source: SL 1970, ch 27, § 1; SL 1993, ch 375, § 1.
3-18-2. Rights relating to labor organizations--Designation of representatives--Discrimination against employees exercising rights as misdemeanor--Good faith negotiations--Intimidation.
Public employees shall have the right to form and join labor or employee organizations, and shall have the right not to form and join such organizations. Public employees shall have the right to designate representatives for the purpose of meeting and negotiating with the governmental agency or representatives designated by it with respect to grievance procedures and conditions of employment and after initial recognition by the employer, it shall be continuous until questioned by the governmental agency, labor or employee organization, or employees, pursuant to § 3-18-5. It is a Class 2 misdemeanor to discharge or otherwise discriminate against an employee for the exercise of such rights, and the governmental agency or its designated representatives shall be required to meet and negotiate with the representatives of the employees at reasonable times in connection with such grievance procedures and conditions of employment. The negotiations by the governmental agency or its designated representatives and the employee organization or its designated representatives shall be conducted in good faith. Such obligation does not compel either party to agree to a proposal or require the making of a concession but shall require a statement of rationale for any position taken by either party in negotiations. It shall be unlawful for any person or group of persons, either directly or indirectly to intimidate or coerce any public employee to join, or refrain from joining, a labor or employee organization.
Source: SL 1969, ch 88, § 7, subdiv 2; SL 1970, ch 26, § 1; SL 1973, ch 31; SL 1974, ch 33; SL 1980, ch 24, § 48.
3-18-3. Exclusive representation by designated representatives--Right to adjust grievances preserved.
Representatives designated or selected for the purpose of formal representation by the majority of the employees in a unit appropriate for such purposes shall be the exclusive representatives of all employees in such unit for the purpose of representation in respect to rates of pay, wages, hours of employment, or other conditions of employment; provided that salary increases for Board of Regents' faculty and exempt staff may only be distributed to address institutional priorities, program needs, performance meeting or exceeding expectations, or internal or external market considerations. Notwithstanding any other provision of this section, any individual employee, or a group of employees, shall have the right at any time to present grievances to their employer and to have such grievances adjusted without the intervention of the formal representative as long as the adjustment is not inconsistent with the terms of any settlement with the formal representative then in effect; provided that the formal representative has been given opportunity to be present at such adjustment.
Source: SL 1969, ch 88, § 7, subdiv 3; SL 1970, ch 26, § 2; SL 1971, ch 20, § 1; SL 1999, ch 17, § 1.
3-18-3.1. Unfair practices of employers defined.
It shall be an unfair practice for a public employer to:
(1) Interfere with, restrain, or coerce employees in the exercise of rights guaranteed by law;
(2) Dominate, interfere, or assist in the formation or administration of any employee organization, or contribute financial or other support to it; provided, an employer shall not be prohibited from permitting employees to confer with him during working hours without loss of time or pay;
(3) Discriminate in regard to hire or tenure or employment or any term or condition of employment to encourage or discourage membership in any employee organization;
(4) Discharge or otherwise discriminate against an employee because he has filed a complaint, affidavit, petition, or given any information or testimony under this chapter;
(5) Refuse to negotiate collectively in good faith with a formal representative; and
(6) Fail or refuse to comply with any provision of this chapter.
Source: SL 1973, ch 30, § 1.
3-18-3.2. Unfair practices of employee organizations defined.
It is an unfair practice for an employee organization or its agents to:
(1) Restrain or coerce an employee in the exercise of the rights guaranteed by this chapter. However, this subdivision does not impair the right of an employee organization to prescribe its own requirements with respect to the acquisition or retention of membership therein;
(2) Restrain or coerce an employer in the selection of his representative for the purpose of collective bargaining or the adjustment of grievances;
(3) Cause or attempt to cause an employer to discriminate against an employee in violation of subdivision 3-18-3.1(3) or to discriminate against an employee with respect to whom membership in such organization has been denied or terminated on some ground; and
(4) Refuse to negotiate collectively in good faith with an employer, provided it is the formal representative.
Source: SL 1973, ch 30, § 2; SL 1993, ch 375, § 7.
3-18-3.3. Rules on unfair practices.
The Department of Labor and Regulation shall promulgate rules pursuant to chapter 1-26 to specify procedures to enforce the provisions of §§ 3-18-3.1 and 3-18-3.2.
Source: SL 1973, ch 30, § 3; SL 1993, ch 375, § 3; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-3.4. Time for filing complaint on unfair practice.
Any complaint brought under the provisions of §§ 3-18-3.1 and 3-18-3.2 shall be filed with the Department of Labor and Regulation within sixty days after the alleged commission of an unfair labor practice occurs or within sixty days after the complainant should have known of the offense.
Source: SL 1983, ch 23; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-4. Investigation and hearing on refusal to grant formal recognition or on question of designation of representation unit.
When a governmental agency declines to grant formal recognition or when a question concerning the designation of a representation unit is raised by the governmental agency, labor or employee organization, or employees, the Department of Labor and Regulation or any person designated by it shall, at the request of any of the parties, investigate such question and, after a hearing if requested by any party, rule on the definition of the appropriate representation unit. The department shall certify to the parties in writing the proper definition of the unit. In defining the unit, the department shall take into consideration, along with other relevant factors, the principles of efficient administration of government, the principles and the coverage of uniform comprehensive position classification and compensation plans in the governmental agency, the history and extent of organization, occupational classification, administrative and supervisory levels of authority, geographical location, and the recommendations of the parties.
Source: SL 1969, ch 88, § 7, subdiv 4; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-5. Question on representative of employees--Petition for investigation or certification--Hearing to ascertain representatives for formal recognition.
When a question concerning the representative of employees is raised by the governmental agency, labor or employee organization, or employees, the Department of Labor and Regulation or any person designated by it shall, at the request of any of the parties, investigate such question and certify to the parties in writing, the name or names of the representatives that have been designated or selected. The filing of a petition for the investigation or certification of a representative of employees by any of the parties shall constitute a question within the meaning of this section. In any such investigation, the department may provide for an appropriate hearing, and shall take a secret ballot of employees to ascertain such representatives for the purposes of formal recognition. If the department has certified a formally recognized representative in a unit of employees as provided in § 3-18-4, it shall not be required to consider the matter again for a period of one year unless it appears to it that sufficient reason exists.
Source: SL 1969, ch 88, § 7, subdiv 5; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-6. Promulgation of rules of procedure for elections and negotiations.
The secretary of labor and regulation shall promulgate rules pursuant to chapter 1-26 to carry out the provisions of §§ 3-18-4, 3-18-5, and 3-18-8.1. The rules shall specify:
(1) The procedure to be used for the election to determine representation for formal recognition; and
(2) The procedure to follow if negotiations reach an impasse.
Source: SL 1969, ch 88, § 7, subdiv 5; SL 1983, ch 22, § 4; SL 1993, ch 375, § 4; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-7. Tentative settlement between labor or employee organization and designated representatives of agency--Action by governing body or officer.
If a tentative settlement is reached between a labor or employee organization or organizations and the designated representatives of the governmental agency, such representatives shall recommend such settlement to the governing body or officer having authority to take action. The governing body or officer shall as soon as practicable consider the recommendations and take such action, if any, upon them as it or he deems appropriate.
Source: SL 1969, ch 88, § 8.
3-18-8. Implementation of settlement between labor or employee organization and governing body.
If a settlement is reached with a labor or employee organization or organizations and the governing body, such governing body shall implement the settlement in the form of an agreement which shall be effective only upon approval by resolution of the governing body. If the settlement requires the adoption of a law or charter amendment to implement it fully, the governmental agency shall make every reasonable effort to propose and secure the enactment of the law or charter amendment.
Source: SL 1969, ch 88, § 8; SL 1970, ch 27, § 2; SL 1971, ch 20, § 2.
3-18-8.1. Intervention by department on failure to reach agreement.
In case of impasse or failure to reach an agreement in negotiations conducted under the provisions of this chapter, either party may request the Department of Labor and Regulation to intervene under the provisions of §§ 60-10-1 to 60-10-3, inclusive. Such request shall be mailed within ten days after a written statement is delivered to the designated representative for the other party declaring an impasse. Nothing in this section prohibits the parties to an impasse from adopting any other procedure to facilitate a settlement that is mutually agreeable.
Source: SL 1970, ch 26, § 3; SL 1983, ch 24, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-8.2. Issuance of contracts by school districts prior to reaching agreement--Terms and conditions.
Any school district issuing contracts to teachers for the ensuing year, but prior to reaching agreement with the representatives of the recognized employee unit, shall issue the contracts under the same terms and conditions as for the current year. If no agreement is reached in negotiations and the intervention of the Department of Labor and Regulation under § 3-18-8.1 fails to bring about an agreement, the board shall implement, as a minimum, the provisions of its last offer, including tentative agreements. If the Department of Labor and Regulation is not requested to intervene under the provisions of § 3-18-8.1, the board shall implement the provisions of its last offer, including tentative agreements, eleven days after an impasse is declared.
Source: SL 1988, ch 38; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-9. Strike defined.
The word "strike" as used in this chapter shall mean the failure to report for duty, the willful absence from one's position, the stoppage of work, or the abstinence in whole or in part from the full, faithful and proper performance of the duties of employment by concerting action with others, and without the lawful approval of one's superior, or in any manner interfering with the operation of government of the State of South Dakota, the government of any of the political subdivisions thereof, the public schools or any authority, commission, board, or branch thereof, for the purpose of coercing a change in the conditions or compensation or the rights, privileges, or obligations of employment.
Source: SL 1969, ch 88, § 1, subdiv 2; SL 1970, ch 27, § 3.
3-18-10. Strikes prohibited--Right to submission of grievance.
No public employee shall strike against the State of South Dakota, any of the political subdivisions thereof, any of its authorities, commissions, or boards, the public school system or any other branch of the public service. Provided, however, that nothing contained in this chapter shall be construed to limit, impair, or affect, the right of any public employee to the expression or communication of a view, grievance, complaint, or opinion on any matter related to the conditions or compensation of public employment or their betterment with the full, faithful and proper performance of the duties of employment.
Source: SL 1969, ch 88, § 2.
3-18-11. Consent to strikes by supervisors prohibited--Discharge from employment for submission of grievance prohibited.
No person exercising any authority, supervision, or direction over any public employee shall have the power to authorize, approve or consent to a strike by one or more employees, and such person shall not authorize, approve, or consent to such strike, nor shall any such person discharge or cause any public employee to be discharged or separated from his or her employment because of participation in the submission of a grievance in accordance with the provision of § 3-18-10.
Source: SL 1969, ch 88, § 3.
3-18-14. Injunctive relief in case of strike.
The governing boards of the state and its political subdivisions may apply for injunctive relief in circuit court immediately upon the existence of a strike or related activities, and the state's attorney of every county shall have the same duty and enforcement of the chapter.
Source: SL 1969, ch 88, § 6; SL 1973, ch 32.
3-18-15. Right of employee or representative to expression or communication of grievance not limited.
Nothing contained in this chapter shall be construed to limit, impair, or affect the right of any public employee or his or her representative to the expression or communication of a view, grievance, complaint, or opinion on any matter related to the conditions or compensation of public employment or their betterment, so long as the same is not designed to and does not interfere with the full, faithful, and proper performance of the duties of employment; nor shall it be construed to require any public employee to perform labor or services against his will.
Source: SL 1969, ch 88, § 7, subdiv 1.
3-18-15.1. Grievance procedures to be established.
The governing officer or board of each governmental agency shall enact, by agreement, ordinance, rule, or resolution, and make known to its employees a procedure which its employees may follow for prompt informal dispositions of their grievances.
Source: SL 1970, ch 27, § 1; SL 1993, ch 375, § 5.
3-18-15.2. Appeal to department--Investigation, hearing, and order by department--Summary disposition of certain claims--Public employees of Board of Regents.
If, after following the grievance procedure enacted by the governing body, the grievance remains unresolved, except in cases provided in § 3-6D-15, the grievance may be appealed to the Department of Labor and Regulation by filing an appeal with the department within thirty days after the final decision by the governing body is mailed or delivered to the employee. The department shall conduct an investigation and hearing and shall issue an order covering the points raised, which order is binding on the employee and the governmental agency. However, the department, upon the motion of any party, may dispose of any grievance, defense, or claim:
(1) If the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and a party is entitled to a judgment as a matter of law; or
(2) At the close of the evidence offered by the proponent of the grievance, defense, or claim if the department determines that the evidence offered by the proponent of the grievance, defense, or claim is legally insufficient to sustain the grievance, defense, or claim.
Nothing in this section gives the department power to grant any contract of employment to a public employee employed by the Board of Regents.
Source: SL 1970, ch 27, § 1; SL 1976, ch 33, § 5; SL 1983, ch 25; SL 1985, ch 29; SL 2002, ch 16, § 3; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011; SL 2018, ch 12, § 5; SL 2020, ch 63, § 3.
3-18-15.3. Grievance procedure adopted in absence of agency action.
If no grievance procedure is enacted as provided in § 3-18-15.1, the Department of Labor and Regulation shall promulgate rules pursuant to chapter 1-26 to adopt a standard grievance procedure to carry out the provisions of § 3-18-15.1.
Source: SL 1970, ch 27, § 1; SL 1973, ch 33; SL 1993, ch 375, § 6; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.
3-18-15.4. Change in policies not prohibited--Contractual rights preserved.
Nothing in this chapter prevents a governmental agency from legally changing any ordinance, policy, or rule that is currently the subject matter of a grievance procedure. However, any prior contractual rights may not be affected by a subsequent change of any ordinance, policy, or rule.
Source: SL 1970, ch 27, § 1; SL 1993, ch 375, § 2.
3-18-15.5. Grievance procedures for employees of political subdivisions.
The provisions of § 3-18-15.1 do not apply to employees of political subdivisions unless those employees are members of a public employee union or the governing body of a political subdivision has adopted an ordinance or resolution establishing a grievance procedure for all employees of the political subdivision.
Source: SL 2013, ch 23, § 1.
3-18-16. Proceedings to establish nonparticipation in strike--Request by employee--Time for proceedings.
Any public employee, upon request, shall be entitled, as hereinafter provided, to establish that he did not violate the provisions of § 3-18-10 or 3-18-11. Such requests must be filed in writing with the officer or body having the power and authority over such employees, within ten days after any action has been taken against such employee, whereupon such officer, or body, shall within ten days commence a proceeding at which time such person shall be entitled to be heard for the purpose of determining whether the provisions of § 3-18-10 or 3-18-11 have been violated by such public employee. Such proceedings shall be undertaken without any unnecessary delay. The decision of such proceedings shall be made within ten days.
Source: SL 1969, ch 88, § 7.
3-18-17. Review by trial de novo of decision establishing violation.
In the event that the employee involved is held to have violated § 3-18-10 or 3-18-11 and action is taken against him, he shall have the right of review by a trial de novo in the circuit court. Petition for such trial must be made within twenty days after the decision of the above proceedings is made known to the employee.
Source: SL 1969, ch 88, § 7.
3-18-18. Rejected by referendum.
3-19-1
Payment or indemnity allowable for costs, fees, judgments, or settlements in claims
or actions against officers or employees.
3-19-2
Maximum payment or indemnity_Different maximum established by governing
body--Excess claim to Legislature.
3-19-3
Determination of payment or indemnity by governing board or attorney general.
3-19-1. Payment or indemnity allowable for costs, fees, judgments, or settlements in claims or actions against officers or employees.
If any claim or action is instituted against any governing board or member thereof, or an officer or employee of the State of South Dakota, or any political subdivision of the state, including the board of supervisors or members of an improvement district, arising out of an act or omission occurring within the scope of the employment of such employee, or when exercising official duties or responsibilities as an officer or member of such governing board, the entity may elect to do any one or more of the following things:
(1) Indemnify such officer or employee for the court costs incurred in the defense of such claim or action;
(2) Pay or indemnify such officer or employee the reasonable attorney fees incurred by virtue of such claim or action;
(3) Pay or indemnify such officer or employee for a judgment based upon such claim or action; or
(4) Pay or indemnify such officer or employee for a compromise or settlement of such claim or action.
Source: SL 1969, ch 232; SL 1990, ch 52, § 2.
3-19-2. Maximum payment or indemnity--Different maximum established by governing body--Excess claim to Legislature.
In no event may the total amount of payment or indemnity for any one officer or employee exceed the sum of twenty-five thousand dollars. However, any political subdivision may establish a different maximum amount of payment or indemnity by a resolution approved by its governing body. Indemnity in excess of twenty-five thousand dollars or the maximum amount of the payment or indemnity approved by a resolution adopted by a political subdivision's governing body, whichever is greater, may be presented as a claim to the Legislature.
Source: SL 1969, ch 232; SL 1974, ch 34; SL 1977, ch 34; SL 1985, ch 30; SL 2005, ch 29, § 1.
3-19-3. Determination of payment or indemnity by governing board or attorney general.
The governing board of the particular political subdivision, including improvement districts, shall act for the entity in determining the election and amount of indemnity or payment to be made to such officer or employee. If the officer or employee is a state officer or employee, the attorney general shall make such election, and determine the amount of reimbursement or payment to be made to such employee.
Source: SL 1969, ch 232; SL 1990, ch 52, § 3.
3-20-1
Reduced tuition for certain state employees--Annual record.
3-20-2
Maximum credit hours to which reduced tuition may be applied.
3-20-3
Participation in reduced tuition program limited to available space.
3-20-4
Eligibility for reduced tuition benefits.
3-20-5
Application for reduced tuition--Rules by Board of Regents.
3-20-6
Effect of other reduced tuition benefits.
3-20-1. Reduced tuition for certain state employees--Annual record.
Any employee of the state who has been continuously employed by the state for a period of one year may, upon compliance with § 3-20-4 and all of the requirements for admission, attend and pursue any undergraduate or graduate course in any state educational institution under the control and management of the Board of Regents upon the payment of fifty percent of tuition and one hundred percent of required fees. The Board of Regents shall maintain an annual record of the number of participants and the tuition dollar value of such participation.
Source: SL 1986, ch 28, § 1; SL 1993, ch 45, § 1; SL 2003, ch 27, § 1.
3-20-2. Maximum credit hours to which reduced tuition may be applied.
Any employee of the state is eligible for the reduced tuition amount provided for in this chapter for a maximum of six credit hours per semester.
Source: SL 1986, ch 28, § 2; SL 1991, ch 35; SL 1993, ch 45, § 2.
3-20-3. Participation in reduced tuition program limited to available space.
The right of any employee of the state to participate in the reduced tuition program is limited to the space available, as determined by the instructor, in any course after all of the full-time or full tuition paying students have registered.
Source: SL 1986, ch 28, § 3.
3-20-4. Eligibility for reduced tuition benefits.
To be eligible for the reduced tuition benefit, any employee of the state shall:
(1) Be a bona fide resident of the state and employed by the state in a permanent classification that is eligible for benefits pursuant to chapter 3-12A;
(2) Maintain an average academic grade of 2.0 or better; and
(3) Have received a merit rating of competent or better in his most recent merit appraisal or is otherwise certified as competent by his immediate supervisor.
Source: SL 1986, ch 28, § 4; SL 1993, ch 45, § 3.
3-20-5. Application for reduced tuition--Rules by Board of Regents.
Any employee of the state desiring the benefits of this chapter shall make application to the Board of Regents. The Board of Regents shall determine whether the person is entitled to the benefits of this chapter. The Board of Regents may promulgate rules pursuant to chapter 1-26 to accomplish the purposes of this chapter.
Source: SL 1986, ch 28, § 5.
3-20-6. Effect of other reduced tuition benefits.
No benefits may accrue under this chapter if a state employee is entitled to other reduced tuition benefits by law.
Source: SL 1986, ch 28, § 6.
CHAPTER 3-21
LIABILITY OF PUBLIC ENTITIES AND PUBLIC OFFICIALS
3-21-1 Definitions.
3-21-2 Notice prerequisite to action for damages--Time limit.
3-21-3 Persons to whom notice must be given.
3-21-4 Extension of time for service of notice for persons under certain disabilities--Time limit for application to make extended service.
3-21-5 Effect of inaccuracy in notice.
3-21-6 3-21-6. Repealed by SL 2007, ch 23, § 2.
3-21-7 No waiver of sovereign immunity.
3-21-8 No liability for failure to provide correctional facilities or equipment, services, etc., therein.
3-21-9 No liability for parole or release of prisoner or revocation thereof or for certain other matters.
3-21-10 Immunity from lawsuits in courts of other jurisdictions.
3-21-11 Who are agents of state for purposes of § 21-32-17.
3-21-12 3-21-12. Repealed by SL 2007, ch 24, § 1.
3-21-13 Restrictions on agreements providing for indemnification.
3-21-14 Nondisparagement clause--Unenforceable--State government.
3-21-1. Definitions.
Terms used in this chapter, unless the context plainly otherwise requires, mean:
(1) "Employee," all current and former employees and elected and appointed officers of any public entity whether classified, unclassified, licensed or certified, permanent or temporary whether compensated or not. The term includes employees of all branches of government including the judicial and legislative branches and employees of constitutional boards and offices. The term does not include independent contractors;
(2) "Public entities," the State of South Dakota, all of its branches and agencies, boards and commissions. The term also includes all public entities established by law exercising any part of the sovereign power of the state, including, but not limited to municipalities, counties, school districts, townships, sewer and irrigation districts, and all other legal entities that public entities are authorized by law to establish.
Source: SL 1986, ch 4, § 1.
3-21-2. Notice prerequisite to action for damages--Time limit.
No action for the recovery of damages for personal injury, property damage, error, or omission or death caused by a public entity or its employees may be maintained against the public entity or its employees unless written notice of the time, place, and cause of the injury is given to the public entity as provided by this chapter within one hundred eighty days after the injury. Nothing in this chapter tolls or extends any applicable limitation on the time for commencing an action.
Source: SL 1986, ch 4, § 2; SL 2007, ch 23, § 1.
3-21-3. Persons to whom notice must be given.
Notice shall be given to the following officers as applicable:
(1) In the case of the State of South Dakota, to the attorney general and the commissioner of human resources and administration;
(2) In the case of a county, to the county auditor;
(3) In the case of a municipality, to the mayor or city finance officer;
(4) In the case of a school district, to the superintendent of schools;
(5) In the case of other public entities, to the chief executive officer or secretary of the governing board.
Source: SL 1986, ch 4, § 3; SL 1994, ch 40; SL 2024, ch 1 (Ex. Ord. 24-1), §§ 13, 34, eff. Apr. 8, 2024.
3-21-4. Extension of time for service of notice for persons under certain disabilities--Time limit for application to make extended service.
If the person injured is a minor or is mentally or physically incapacitated, the court may allow that person to serve the notice required by § 3-21-2 within a reasonable time after the expiration of the period of disability. The application to the court to make extended service shall be made within two years of the event upon which the claim is based.
Source: SL 1986, ch 4, § 4.
3-21-5. Effect of inaccuracy in notice.
The notice required by § 3-21-2 may not be deemed invalid or insufficient by reason of any inaccuracy in stating the time, place or cause of the injury if it is shown that the claimant had no intention to mislead and that the public entity was not misled.
Source: SL 1986, ch 4, § 5.
3-21-7. No waiver of sovereign immunity.
Nothing in this chapter shall be deemed to waive the sovereign immunity of the public entities of the State of South Dakota or of their employees.
Source: SL 1986, ch 4, § 7.
3-21-8. No liability for failure to provide correctional facilities or equipment, services, etc., therein.
No person, political subdivision, or the state is liable for failure to provide a prison, jail, or penal or correctional facility, or if such facility is provided, for failure to provide sufficient equipment, personnel, programs, facilities, or services in a prison or other correctional facility.
Source: SL 1986, ch 4, § 10.
3-21-9. No liability for parole or release of prisoner or revocation thereof or for certain other matters.
No person, political subdivision, or the state is liable for any injury resulting from the parole or release of a prisoner or from the terms and conditions of his parole or release or from the revocation of his parole or release, or for any injury caused by or resulting from:
(1) An escaping or escaped prisoner;
(2) An escaping or escaped person;
(3) A person resisting arrest;
(4) A prisoner to any other prisoner; or
(5) Services or programs administered by or on behalf of the prison, jail, or correctional facility.
Source: SL 1986, ch 4, § 11.
3-21-10. Immunity from lawsuits in courts of other jurisdictions.
No waiver of state immunity by statute or, where permitted, by any officer or agent of the state may constitute or be interpreted as a waiver of the state's immunity from lawsuits in federal court or the courts of any jurisdiction other than the South Dakota Unified Judicial System.
Source: SL 1986, ch 4, § 12; SL 2002, ch 24, § 1.
3-21-11. Who are agents of state for purposes of § 21-32-17.
Any employee, agent, or board member of any authority established by state law are agents of the State of South Dakota for the purposes of § 21-32-17.
Source: SL 1986, ch 4, § 13.
3-21-13. Restrictions on agreements providing for indemnification.
No agreement providing for indemnification by the state is enforceable against the state, except to the extent that liability coverage is provided for the indemnification pursuant to § 3-22-1, funds are specifically appropriated by the Legislature to provide for the indemnification, or the Legislature has expressly authorized the indemnification.
Source: SL 2019, ch 25, § 1.
3-21-14. Nondisparagement clause--Unenforceable--State government.
A nondisparagement or similar clause is void and unenforceable to prevent the communication or disclosure of facts to the Executive Board of the Legislative Research Council or the Government Operations and Audit Committee as to any state government activities associated with any settlement agreement to which the state, an agency thereof, or officer or employee thereof in an official capacity pursuant to chapter 3-19, is a party.
Source: SL 2022, ch 16, § 1.
CHAPTER 3-22
LIABILITY COVERAGE PROGRAM FOR PUBLIC ENTITIES
3-22-1 Public entity pool for liability established--Coverage provided--Effect on certain claims and defenses.
3-22-2 Definition of terms.
3-22-3 3-22-3, 3-22-4. Repealed by SL 1995, ch 323 (Ex Ord 95-7), § 17.
3-22-5 Bureau of Human Resources and Administration powers.
3-22-5.1 3-22-5.1. Repealed by SL 1995, ch 323 (Ex Ord 95-7), § 17.
3-22-6 Promulgation of rules.
3-22-7 Payment of covered claims--Employee not liable for covered claim in excess of coverage--Subrogation.
3-22-8 3-22-8 to 3-22-10. Repealed by SL 2010, ch 24, §§ 6 to 8.
3-22-11 Disposition or payment of claims.
3-22-12 Fund created--Expenditures--Investment--Purchase of annuity in settlement of claim.
3-22-13 3-22-13 to 3-22-14. Repealed by SL 2010, ch 24, §§ 10 to 12.
3-22-15 3-22-15. Repealed by SL 1995, ch 323 (Ex Ord 95-7), § 17.
3-22-16 Coverage year.
3-22-17 Suits against state authorized only to extent coverage provided in coverage document.
3-22-18 Liability pool not to be considered insurance or insurance company.
3-22-19 3-22-19. Repealed by SL 1986, ch 413, § 20.
3-22-20 Federal antitrust laws--Direct state action.
3-22-21 Immunity of judicial officers and agents--Payment of legal costs.
3-22-22 3-22-22 to 3-22-25. Repealed by SL 2010, ch 24, §§ 15 to 18.
3-22-26 3-22-26. Repealed by SL 1987, ch 40, § 11.
3-22-27 Pool arrangement.
3-22-1. Public entity pool for liability established--Coverage provided--Effect on certain claims and defenses.
There is hereby established the South Dakota public entity pool for liability effective March 1, 1987. PEPL shall provide defense and liability coverage for any state entity or employee as provided for within the coverage document issued by PEPL. Nothing in this chapter may be construed to require payment of a particular claim or class of claims, to create any cause of action, nor to waive or limit any immunity or legal defense otherwise available to any covered claim. Punitive damages may not be recovered pursuant to this chapter. No claim for indemnity or contribution by the United States, arising directly or indirectly from the acts or omissions of the South Dakota National Guard, its agents, officers, members, or employees, which is cognizable under the Federal Tort Claims Act may be prosecuted under this chapter.
Source: SL 1986, ch 413, § 1; SL 1993, ch 46; SL 2010, ch 24, § 1.
3-22-2. Definition of terms.
Terms used in this chapter mean:
(1) "PEPL," the public entity pool for liability established pursuant to this chapter;
(2) "Bureau," the Bureau of Human Resources and Administration;
(3) "Covered claim," a claim or civil action arising in tort from the operation of a motor vehicle, a ministerial act, or another act for which coverage is provided under the PEPL coverage document;
(4) "Coverage document," the written agreement between the director and the Governor setting forth the terms, conditions, limits, and scope of coverage provided by PEPL for a covered claim;
(5) "Director," the director of PEPL appointed by the commissioner of human resources and administration pursuant to this chapter;
(6) "Employee," any permanent or temporary employee or elected or appointed officer of any state entity whether compensated or not;
(7) "Fund," the public entity pool for liability fund established pursuant to this chapter; and
(8) "State entity," the State of South Dakota and all of its branches, agencies, boards and commissions.
Source: SL 1986, ch 413, § 2; SL 1987, ch 40, § 1; SL 1995, ch 323 (Ex. Ord. 95-7), §§ 17, 18; SL 2010, ch 24, § 2; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.
3-22-5. Bureau of Human Resources and Administration powers.
The bureau may:
(1) Select a director who shall serve at the pleasure of the bureau;
(2) Enter contracts for actuarial determinations, claims adjustment and investigation, loss control and risk management, legal services, or other services the director determines to be necessary to carry out the purposes of this chapter;
(3) Enter contracts for insurance and reinsurance the director determines to be necessary to carry out the purposes of this chapter. Any such contract is not subject to the provisions of chapters 5-18A and 5-18-D;
(4) Develop a coverage document, agreed to by the director and the Governor, to establish the type and scope of covered claims, limits of coverage, terms and conditions of coverage, and costs of coverage; and
(5) Based on annual actuarial calculations, impose and collect contributions from covered state entities for the estimated amount necessary to extend coverage and maintain appropriate reserves for covered claims.
Source: SL 1986, ch 413, § 5; SL 1987, ch 40, § 2; SL 2010, ch 24, § 3; SL 2013, ch 24, § 1; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.
3-22-6. Promulgation of rules.
The bureau may, pursuant to chapter 1-26, establish rules for:
(1) Submission, reporting, handling, and payment of claims;
(2) Implementation of risk management and loss control practices;
(3) Rates and timing of contributions by state entities for coverage;
(4) Collection and reporting of data regarding claims; and
(5) Other procedures necessary for operation of PEPL.
Source: SL 1986, ch 413, § 6; SL 2010, ch 24, § 4.
3-22-7. Payment of covered claims--Employee not liable for covered claim in excess of coverage--Subrogation.
PEPL may pay a covered claim established by judgment or negotiated settlement as provided in the coverage document and which is not barred or avoidable through sovereign immunity or other substantive law. No employee is subject to personal liability for any covered claim in excess of the coverage provided by PEPL. The PEPL shall be fully subrogated to any right of recovery a state entity or employee may be entitled to, associated with any claim paid pursuant to this section.
Source: SL 1986, ch 413, § 7; SL 1987, ch 40, § 5; SL 2010, ch 24, § 5.
3-22-11. Disposition or payment of claims.
The director, at the director's sole discretion, may determine the disposition or payment amount of any covered claim. However, the director shall consult with the attorney general prior to entering a negotiated settlement of any civil action arising from a covered claim.
Source: SL 1986, ch 413, § 11; SL 2010, ch 24, § 9.
3-22-12. Fund created--Expenditures--Investment--Purchase of annuity in settlement of claim.
There is hereby created on March 1, 1987, the public entity pool for liability fund to be used to pay claims pursuant to this chapter and the personal services and operating expenses for the management and operation of the PEPL. Any money in the fund shall be continuously appropriated and expenditures shall be made on warrants drawn by the state auditor on vouchers approved by the director and commissioner of human resources and administration. The money in the fund shall be invested by the State Investment Council and the fund shall retain the interest earned. If the bureau determines to purchase an annuity in settlement of a claim, it may purchase an annuity approved by the State Investment Council.
Source: SL 1986, ch 413, § 13; SL 1995, ch 316, § 18; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.
3-22-16. Coverage year.
The PEPL coverage year shall be July first through June thirtieth.
Source: SL 1986, ch 413, § 17.
3-22-17. Suits against state authorized only to extent coverage provided in coverage document.
Pursuant to S.D. Const., Art. III, § 27, suits against the state are authorized only for a covered claim to the extent coverage is provided in the coverage document. Nothing in this chapter may be construed to otherwise waive or abrogate any immunity or defense available to any state entity or employee.
Source: SL 1986, ch 413, § 18; SL 2010, ch 24, § 13.
3-22-18. Liability pool not to be considered insurance or insurance company.
The PEPL does not constitute insurance nor may it be considered an insurance company under the laws of South Dakota nor is the PEPL under the jurisdiction of the commissioner of insurance.
Source: SL 1986, ch 413, § 19.
3-22-20. Federal antitrust laws--Direct state action.
This chapter is intended as direct state action within the meaning of federal antitrust laws.
Source: SL 1986, ch 413, § 21; SL 2010, ch 24, § 14.
3-22-21. Immunity of judicial officers and agents--Payment of legal costs.
Nothing in this chapter may be construed to remove or waive the immunity of judicial officers or agents in the performance of their duties. The fund shall, however, provide legal services, if requested by the Supreme Court, to defend judicial officers or agents should they be sued in any court for official acts in the performance of their duties. The payment of legal costs shall in no way be construed as a waiver of judicial immunity.
Source: SL 1986, ch 413, § 22.
3-22-27. Pool arrangement.
Nothing in this chapter limits the formation or operation of any pool arrangement formed pursuant to chapter 1-24.
Source: SL 2010, ch 24, § 19.
CHAPTER 3-23
CONFLICTS OF INTEREST
3-23-1 State authority, board, and commission members prohibited from having interest in or deriving direct benefit from contract.
3-23-1.1 Definitions.
3-23-2 Circumstances under which state authority, board, or commission member derives direct benefit.
3-23-2.1 Circumstances under which state authority, board, or commission member has interest in contract.
3-23-2.2 Circumstances under which state authority, board, or commission member does not derive direct benefit from or have interest in contract.
3-23-3 Circumstances under which state authority, board, or commission may authorize member to derive direct benefit from contract.
3-23-3.1 Circumstances under which state authority, board, or commission member may have interest in contract.
3-23-4 Circumstances under which authority, board, or commission may contract with former member.
3-23-5 Removal of state authority, board, or commission member for violation--Criminal penalties--Disgorgement--Voidable contract.
3-23-6 School districts and cooperative education service units--Officials with contract authority--Prohibitions on interest in or direct benefit from contract.
3-23-7 Officials with contract authority--Description of direct benefit from contract.
3-23-7.1 Officials with contract authority--Description of interest in contract.
3-23-7.2 Officials with contract authority--Exclusions from interest in or direct benefit from contract.
3-23-8 Officials with contract authority--Authorizing interest in or direct benefit from contract.
3-23-8.1 Written conflict of interest policy.
3-23-9 Removal of board member or other person from office or employment--Criminal penalties--Disgorgement--Voidable contract.
3-23-10 Authorities, boards, and commissions subject to chapter.
3-23-1. State authority, board, and commission members prohibited from having interest in or deriving direct benefit from contract.
No elected or appointed member of a state authority, board, or commission may have an interest in or derive a direct benefit from any contract:
(1) With the state agency to which the authority, board, or commission is attached for reporting or oversight purposes that requires the expenditure of government funds;
(2) With the state that requires the approval of the authority, board, or commission and the expenditure of government funds; or
(3) With a political subdivision of the state if the political subdivision approves the contract and is under the regulatory oversight of the authority, board, or commission, or the agency to which the authority, board, or commission is attached for reporting or oversight purposes.
No elected or appointed member of a state authority, board, or commission may derive a direct benefit from any contract as provided under this section for one year after the end of the member's term on the authority, board, or commission, except as provided in § 3-23-3 or 3-23-4.
Source: SL 2016, ch 33, § 1; SL 2017, ch 31, § 2.
3-23-1.1. Definitions.
Terms used in this chapter mean:
(1) "Board member," an elected or appointed member of the governing board;
(2) "Cooperative education service unit," a legal entity created pursuant to §§ 13-5-31 to 13-5-33, inclusive, including subcontractors, agents or assigns of the cooperative education service unit;
(3) "Disgorgement," the act of giving up on demand or by legal compulsion something that was obtained by illegal or unethical acts; and
(4) "School district," a school district as defined in § 13-5-1.
Source: SL 2017, ch 31, § 1; SL 2021, ch 73, § 22.
3-23-2. Circumstances under which state authority, board, or commission member derives direct benefit.
An elected or appointed member of a state authority, board, or commission derives a direct benefit from a contract if the member, the member's spouse, or any other person with whom the member lives or commingles assets:
(1) Is a party to or intended beneficiary of the contract;
(2) Has more than a five percent ownership interest in an entity that is a party to the contract;
(3) Acquires property under the contract; or
(4) Will receive from the contracting party compensation, commission, promotion, or other monetary benefit that is directly attributable to the contract.
Source: SL 2016, ch 33, § 2; SL 2017, ch 31, § 3.
3-23-2.1. Circumstances under which state authority, board, or commission member has interest in contract.
An elected or appointed member of a state authority, board, or commission has an interest in a contract if the member, the member's spouse, or any other person with whom the member lives or commingles assets:
(1) Is employed by a party to the contract; or
(2) Receives more than nominal compensation or reimbursement for actual expenses for serving on the board of directors of an entity that derives income or commission directly from the contract or acquires property under the contract.
Source: SL 2017, ch 31, § 4.
3-23-2.2. Circumstances under which state authority, board, or commission member does not derive direct benefit from or have interest in contract.
A state authority, board, or commission member does not derive a direct benefit from or have an interest in a contract:
(1) Based solely on the value associated with the member's publicly-traded investments or holdings, or the investments or holdings of any other person with whom the member lives or commingles assets;
(2) By participating in a vote or a decision in which the member's only interest arises from an act of general application;
(3) If the member is a state employee and is authorized to enter into the contract pursuant to §§ 5-18A-17 through 5-18A-17.6, inclusive;
(4) If the contract is for the sale of goods, or for maintenance or repair services, in the regular course of business at or below a price offered to all customers;
(5) If the contract is subject to a public bidding process; or
(6) If the contract is for the deposit of public funds in a financial institution as otherwise authorized by law.
Source: SL 2017, ch 31, § 5.
3-23-3. Circumstances under which state authority, board, or commission may authorize member to derive direct benefit from contract.
Any elected or appointed state authority, board, or commission may authorize an authority, board, or commission member to derive a direct benefit from a contract if:
(1) The member has provided full disclosure to the authority, board, or commission, including:
(a) All parties to the contract;
(b) The member's role in the contract;
(c) The purpose and objective of the contract;
(d) The consideration or benefit conferred or agreed to be conferred upon each party; and
(e) The duration of the contract;
(2) The authority, board, or commission finds that the terms of the contract are fair, reasonable, and not contrary to the public interest; and
(3) The authorization is a public record included in the official minutes of the authority, board, or commission, that shall be filed with the auditor-general and attorney general.
The auditor-general shall compile the authorizations and present them annually for review by the Government Operations and Audit Committee. A member who requests an authorization under this section shall make the request prior to entering into any contract that requires disclosure or within forty-five days after entering into the contract. Once disclosed and authorized by the governing board, no further disclosure or authorization is required unless the contract extends into consecutive fiscal years. A contract that extends into consecutive fiscal years requires an annual disclosure but no new authorization is required. If the authority, board, or commission rejects the request for authorization made by the member, the contract is voidable and subject to disgorgement pursuant to § 3-23-5, or the member may resign from the authority, board, or commission. No member of a state authority, board, or commission may participate in or vote upon a decision of the state authority, board, or commission relating to a matter in which the member derives a direct benefit.
Source: SL 2016, ch 33, § 3; SL 2017, ch 31, § 6.
3-23-3.1. Circumstances under which state authority, board, or commission member may have interest in contract.
Any elected or appointed state authority, board, or commission member may have an interest in a contract if:
(1) The member, upon learning of the interest subject to the provisions of this chapter or a transaction that may create an interest subject to the provisions of this chapter discloses the interest no later than the first meeting of the authority, board, or commission held after the first day of July of each year;
(2) The authority, board, or commission is notified of the contract and the member's role in the contract;
(3) The terms of the contract do not violate any other provision of law; and
(4) The disclosure is included in the minutes that are publicly available and are filed with the auditor-general and attorney general.
Each member shall receive a form, developed by the attorney general, for the purpose of annual disclosure of any interest and direct benefit covered by the provisions of this chapter. In addition to any interest in a contract and direct benefit covered by the provisions of this chapter, the member shall also disclose at least annually any ownership interest of five percent or greater in any entity that receives grant money from the state, either directly or by a pass-through grant, or that contracts with the state or any political subdivision for services. An authority, board, or commission member who has an interest in a contract pursuant to this section shall disclose the existence of a contract in which the member has an interest but for which authorization by the authority, board, or commission is not required for the person to have an interest in the contract. The auditor-general shall compile and present any disclosure annually for review by the Department of Legislative Audit and the Government Operations and Audit Committee.
Source: SL 2017, ch 31, § 7.
3-23-4. Circumstances under which authority, board, or commission may contract with former member.
Within the one-year period prohibiting any contract with an elected or appointed authority, board, or commission member, the authority, board, or commission may approve a former member to contract with the elected or appointed authority, board, or commission if the authority, board, or commission determines that the terms of the contract are fair, reasonable, and are in the best interests of the public.
Any approval given pursuant to this section shall be included in the official minutes of the authority, board, or commission and is a public record. The minutes including the approval shall be filed with the auditor-general and attorney general. The auditor-general shall compile and present any approval annually for review by the Government Operations and Audit Committee.
Source: SL 2016, ch 33, § 4; SL 2017, ch 31, § 8.
3-23-5. Removal of state authority, board, or commission member for violation--Criminal penalties--Disgorgement--Voidable contract.
Any elected or appointed state authority, board, or commission member who knowingly violates §§ 3-23-1 to 3-23-4, inclusive, shall be removed from the authority, board, or commission and is guilty of a Class 1 misdemeanor. Any person who knowingly violates §§ 3-23-1 to 3-23-4, inclusive, and is also guilty of theft under chapter 22-30A, shall be penalized at the next greater class of penalty prescribed by chapters 22-6 and 22-30A. No authority, board, or commission member who has submitted a good faith request for authorization pursuant to § 3-23-3 may be convicted of a crime under this chapter. Any benefit to the authority, board, or commission member in violation of §§ 3-23-1 and 3-23-2 is subject to disgorgement and any contract made in violation of this chapter is voidable by the authority, board, or commission.
Source: SL 2016, ch 33, § 5; SL 2017, ch 31, § 9.
3-23-6. School districts and cooperative education service units--Officials with contract authority--Prohibitions on interest in or direct benefit from contract.
No board member, business manager, chief financial officer, superintendent, chief executive officer, or other person with the authority to enter into a contract or spend money in an amount greater than five thousand dollars of a school district, cooperative education service unit, or jointly governed education service entity that receives money from or through the state may have an interest in a contract nor receive a direct benefit from a contract in amount greater than five thousand dollars or multiple contracts in an amount greater than five thousand dollars with the same party within a twelve-month period to which the school district or cooperative education service unit is a party except as provided in § 3-23-8.
Source: SL 2016, ch 33, § 6; SL 2017, ch 31, § 10; SL 2017, ch 74, § 1; SL 2021, ch 73, § 23.
3-23-7. Officials with contract authority--Description of direct benefit from contract.
A person described in § 3-23-6 derives a direct benefit from a contract if the person, the person's spouse, or any other person with whom the person lives and commingles assets:
(1) Is a party to or intended beneficiary of any contract held by the school district or cooperative education service unit;
(2) Has more than a five percent ownership interest in an entity that is a party to any contract held by the school district or cooperative education service unit;
(3) Acquires property under the contract; or
(4) Will receive compensation, commission, promotion, or other monetary benefit directly attributable to any contract with the school district or cooperative education service unit.
Source: SL 2016, ch 33, § 7; SL 2017, ch 31, § 11; SL 2021, ch 73, § 24.
3-23-7.1. Officials with contract authority--Description of interest in contract.
A person described in § 3-23-6 has an interest in a contract if the person, the person's spouse, or any other person with whom the person lives and commingles assets:
(1) Is employed by a party to any contract with the school district or cooperative education service unit; or
(2) Receives more than nominal compensation or reimbursement for actual expenses for serving on the board of directors of an entity that derives income or commission directly from the contract or acquires property under the contract.
Source: SL 2017, ch 31, § 12; SL 2021, ch 73, § 25.
3-23-7.2. Officials with contract authority--Exclusions from interest in or direct benefit from contract.
A person described in § 3-23-6 does not derive a direct benefit from or have an interest in a contract:
(1) Based solely on the value associated with the person's publicly-traded investments or holdings, or the investments or holdings of any other person with whom the board member, business manager, chief financial officer, superintendent, or chief executive officer lives or commingles assets;
(2) By participating in a vote or a decision in which the person's only interest arises from an act of general application;
(3) Based on the person receiving income as an employee or independent contractor of a party with whom the school district or cooperative education service unit has a contract, unless the person receives compensation or a promotion directly attributable to the contract, or unless the person is employed by the party as a board member, executive officer, or other person working for the party in an area related to the contract;
(4) If the contract is for the sale of goods or services, or for maintenance or repair services, in the regular course of business at a price at or below a price offered to all customers;
(5) If the contract is subject to a public bidding process;
(6) If the contract is with the official depository as set forth in § 6-1-3;
(7) Based solely on the person receiving nominal income or compensation, a per diem authorized by law or reimbursement for actual expenses incurred; or
(8) If the contract or multiple contracts with the same party within a twelve-month period with whom the school district or cooperative education service unit contracts is in an amount less than five thousand dollars.
Source: SL 2017, ch 31, § 13; SL 2021, ch 73, § 26.
3-23-8. Officials with contract authority--Authorizing interest in or direct benefit from contract.
A school district or cooperative education service unit may authorize a person described in § 3-23-6 to derive a direct benefit from a contract if:
(1) The person has provided full written disclosure to the agency, district, or unit governing board of all parties to the contract, the person's role in the contract, the purpose or objective of the contract, the consideration or benefit conferred or agreed to be conferred upon each party, and the duration of the contract;
(2) The governing board finds that the terms of the contract are fair, reasonable, and not contrary to the public interest; and
(3) Any request for authorization or governing board action are public records. The official minutes of the governing board shall include any governing board action on each request for authorization and shall be filed with the auditor-general and attorney general.
A person described in § 3-23-6 who has an interest in a contract pursuant to § 3-23-7.1 shall disclose the existence of a contract in which the person has an interest and the person's role in the contract but no governing board authorization is required for the person to have an interest in the contract. Disclosure shall also be made at the annual reorganization meeting if the contract extends into consecutive fiscal years. The interest disclosure shall be included in the official minutes of the governing board.
Any person receiving a direct benefit from a contract and requesting an authorization pursuant to § 3-23-8 shall make the request prior to entering into any contract that requires disclosure or within forty-five days after entering into the contract that requires disclosure. Any authorization by the governing board requires no further disclosure or authorization unless the contract extends into consecutive fiscal years. If the contract extends into consecutive fiscal years, disclosure shall be made annually at the annual reorganization meeting but no new authorization is required. If the entity rejects any request for authorization, the contract is voidable and subject to disgorgement pursuant to § 3-23-9 or the person may resign from the school district or cooperative education service unit.
No board member of a school district or cooperative education service unit may participate in or vote upon a decision of a school district or cooperative education service unit relating to a matter in which the member derives a direct benefit.
Source: SL 2016, ch 33, § 8; SL 2017, ch 31, § 14; SL 2017, ch 74, § 2; SL 2021, ch 73, § 27.
3-23-8.1. Written conflict of interest policy.
Each school district or cooperative education service unit shall develop a written conflict of interest policy, including any disclosure and authorization form that includes the list of any disclosable interest in contracts or direct benefits covered by this chapter.
Source: SL 2017, ch 31, § 15; SL 2021, ch 73, § 28.
3-23-9. Removal of board member or other person from office or employment--Criminal penalties--Disgorgement--Voidable contract.
Any person who knowingly violates §§ 3-23-6 to 3-23-8, inclusive, shall be removed from office or employment and is guilty of a Class 1 misdemeanor. Any person who knowingly violates §§ 3-23-6 to 3-23-8, inclusive, and is also guilty of theft under chapter 22-30A, shall be penalized at the next greater class of penalty prescribed by chapters 22-6 and 22-30A. No person described in § 3-23-6 who has submitted a good faith disclosure or request for authorization pursuant to § 3-23-8 may be convicted of a crime under this chapter. Any benefit to a person derived from the person's knowing violation of §§ 3-23-6 to 3-23-8, inclusive, is subject to disgorgement . Any contract made in violation of §§ 3-23-6 to 3-23-8, inclusive, is voidable by the governing body of the local service agency, school district, or cooperative education service unit.
Source: SL 2016, ch 33, § 9; SL 2017, ch 31, § 16; SL 2017, ch 74, § 3.
3-23-10. Authorities, boards, and commissions subject to chapter.
The following authorities, boards, or commissions are subject to this chapter:
(1) South Dakota Building Authority;
(2) Board of Economic Development;
(3) South Dakota Housing Development Authority;
(4) South Dakota Health and Education Facilities Authority;
(5) Science and Technology Authority Board of Directors;
(6) South Dakota Ellsworth Development Authority;
(7) South Dakota Commission on Gaming;
(8) South Dakota Lottery Commission;
(9) State Brand Board;
(10) Game, Fish and Parks Commission;
(11) Banking Commission;
(12) Board of Trustees of the South Dakota Retirement System;
(13) Aeronautics Commission;
(14) South Dakota State Railroad Board;
(15) Transportation Commission;
(16) South Dakota Board of Education Standards;
(17) Board of Regents;
(18) Board of Pardons and Paroles;
(19) Board of Minerals and Environment;
(20) Board of Water and Natural Resources;
(21) South Dakota Railroad Authority;
(22) Board of Water Management; and
(23) Board of Technical Education.
Source: SL 2016, ch 33, § 10; SL 2017, ch 81, §§ 57, 59.
3-24-1
State Government Accountability Board established
.
3-24-2
Terms of office
.
3-24-3
Review and investigation of allegations of misconduct.
3-24-4
Information, reports, and complaints to board--Confidentiality of records
.
3-24-5
Referral to Division of Criminal Investigation--Referral to state's attorney or attorney
general.
3-24-6
Immunity of person acting in good faith--Civil actions
.
3-24-7
Contested case hearing
.
3-24-8
Determination of misconduct
.
3-24-9
Status update from board.
3-24-10
Annual report by board.
3-24-11
Administrative and budgetary support--Staff.
3-24-1. State Government Accountability Board established.
There is hereby created a State Government Accountability Board to be composed of four members appointed by the Governor. Each member to be appointed shall be a former or retired circuit court judge or Supreme Court Justice. No more than two of the appointed members may be of the same political party. All appointees are subject to confirmation by the Senate and no appointee may be a member of the Legislature during the member's term on the board. The term for a board member is five years and a board member may only be removed for good cause. Good cause to remove a member is conduct such as: malfeasance or misfeasance in office, neglect of duty, corrupt conduct, gross incompetency, or active partisanship. A vacancy in the board's membership shall be filled by the Governor within thirty days of the event causing the vacancy. If a vacancy occurs before a term expires, the new member shall serve for the remaining portion of the unexpired term. If the Senate is not in session at the time the appointment is made, the appointee may serve until the Senate has the opportunity to consider the appointment. The per diem and expenses of the board are the same as the per diem and expenses for members of interim committees of the Legislature. The Governor may appoint a temporary board member if a member is recused or otherwise unavailable to participate. A temporary appointment is not subject to confirmation by the Senate.
Source: SL 2017, ch 32, § 1; SL 2019, ch 26, § 1.
3-24-2. Terms of office.
The initial appointments for the members of the board are temporary and staggered with one member serving two years, one member serving three years, one member serving four years, and one member serving five years. Each member's initial term is to be determined by the Governor.
Source: SL 2017, ch 32, § 2.
3-24-3. Review and investigation of allegations of misconduct.
The State Government Accountability Board may review and investigate any person holding a statewide office, as defined in § 12-27-1, and employees of the executive branch of the state regarding:
(1) Allegations of impropriety related to any contract, grant, or loan with any public entity that provides the authority to any other entity to expend public funds;
(2) Documents filed under chapter 3-23 or alleged violations relating to conflicts of interest;
(3) Allegations of a direct or indirect interest in a contract in violation of the constitution or law;
(4) Allegations of malfeasance;
(5) Allegations of misappropriation of public funds;
(6) Allegations of use of false instruments to obtain public funds;
(7) Allegations of theft or embezzlement of public funds;
(8) Allegations of bribery; or
(9) Allegations of use of public money not authorized by law or in violation of the constitution.
The board may establish its own procedures, issue subpoenas, administer oaths, and take sworn testimony.
Source: SL 2017, ch 32, § 3.
3-24-4. Information, reports, and complaints to board--Confidentiality of records.
Any person acting in good faith may:
(1) Furnish information to the board relating to suspected, anticipated, or completed violations of a corrupt act relating to any subdivision in § 3-24-3;
(2) File a report with the board; or
(3) File a complaint with the board alleging a violation of any subdivision of § 3-24-3.
The information, reports, or complaints and the investigative records and files of the board are confidential and not a public record according to chapter 1-27 until the board votes in favor of conducting a contested case hearing.
Source: SL 2017, ch 32, § 4.
3-24-5. Referral to Division of Criminal Investigation--Referral to state's attorney or attorney general.
The board may refer any information, report, or complaint it receives to the Division of Criminal Investigation for investigation. If, based on the information, report, or complaint, the board has reasonable cause to believe that a crime has been committed, the matter shall be referred to the Division of Criminal Investigation. If the Division of Criminal Investigation has cause to believe that a law has been violated, the division shall refer the matter to a state's attorney or the attorney general for prosecution. If an investigation does not reveal sufficient facts to support a criminal prosecution, the Division of Criminal Investigation shall refer the matter back to the board for the board's consideration. If the Division of Criminal Investigation determines that the information, report, or complaint is frivolous, it shall communicate this determination to the board in writing and the board may close the matter.
Source: SL 2017, ch 32, § 5.
3-24-6. Immunity of person acting in good faith--Civil actions.
A person acting in good faith is immune from civil liability for furnishing information, filing a report, or making a complaint. If a civil action is commenced against a person for damages related to furnishing information, filing a report, or making a complaint and the court determines that the person acted in good faith, the person may recover costs or disbursements under chapter 15-17 including reasonable attorney's fees. However, if the court determines that the person furnishing information, filing a report, or making a complaint did not act in good faith, the person who commenced the civil action may recover costs or disbursements under chapter 15-17, including reasonable attorney's fees, from the person who did not act in good faith.
Source: SL 2017, ch 32, § 6.
3-24-7. Contested case hearing.
If a majority of the members of the board vote that there is sufficient information to believe that a statewide office holder or executive branch employee has engaged in misconduct related to any subdivision of § 3-24-3, the board shall conduct a contested case hearing according to chapter 1-26 to afford the accused person the opportunity to respond to the allegation.
Source: SL 2017, ch 32, § 7.
3-24-8. Determination of misconduct.
At the conclusion of the contested case hearing before the board, if the board determines by a majority vote of the board that a violation has occurred, the board may:
(1) Issue a public or private reprimand;
(2) Direct a person to engage in coursework or community service; or
(3) Make a specific recommendation to the Governor.
Source: SL 2017, ch 32, § 8.
3-24-9. Status update from board.
A person who has submitted information, a report, or complaint to the board pursuant to § 3-24-4 may request a status update from the board. The board shall respond in writing.
Source: SL 2017, ch 32, § 9.
3-24-10. Annual report by board.
The board shall annually report to the people, the Governor, and the Legislature on its activities. The report shall include data regarding any allegations of violations of subdivisions of § 3-24-3, including the number of reports filed, complaints received, number of unique persons filing complaints or reports, and hearings conducted by the board. The board may not disclose information that is not subject to disclosure under chapter 1-27 or pursuant to § 3-24-4.
Source: SL 2017, ch 32, § 10.
3-24-11. Administrative and budgetary support--Staff.
The State Government Accountability Board is attached to the Office of the Attorney General for administrative and budgetary support. In order to review and investigate any alleged violation of the subdivisions listed in § 3-24-3, the board may employ staff as it deems necessary.
Source: SL 2017, ch 32, § 11.