South Dakota Codified Laws
Chapter 12C - South Dakota Retirement System
Section 3-12C-1904 - Incidental benefit rule.

South Dakota Codified Laws

Title 3 - Public Officers and Employees

Chapter 12C - South Dakota Retirement System

Section 3-12C-101 - Definitions.

Section 3-12C-102 - Actuarial equivalent defined.

Section 3-12C-103 - Child defined.

Section 3-12C-104 - COLA or cost of living adjustment defined.

Section 3-12C-105 - Compensation defined.

Section 3-12C-106 - Contributing member defined.

Section 3-12C-107 - Disability defined.

Section 3-12C-108 - Effective rate of interest defined.

Section 3-12C-109 - Minimum actuarial requirement to support benefits defined.

Section 3-12C-110 - Spouse defined.

Section 3-12C-111 - Terminated defined.

Section 3-12C-112 - Vested defined.

Section 3-12C-201 - Citation of chapter.

Section 3-12C-202 - System managed by board--Standard of conduct--Legal advice.

Section 3-12C-203 - Board of Trustees created--Composition.

Section 3-12C-204 - Election of trustees--Terms of office.

Section 3-12C-205 - Resignation of trustee due to loss of qualifying status--Filling of vacancy.

Section 3-12C-206 - Trustees--Oath of office.

Section 3-12C-207 - Compensation and expenses of trustees.

Section 3-12C-208 - Meetings of board--Chair and vice chair--Votes required for decision.

Section 3-12C-209 - Appointment of executive director--Compensation--Employment of personnel--Bond.

Section 3-12C-210 - Expense fund continued--Transfer from retirement system fund--Report of budget--Appropriation and disbursement for expenses.

Section 3-12C-211 - Rules for administration.

Section 3-12C-212 - Applications for membership or benefits--Picture identification required.

Section 3-12C-213 - Grievance procedure--Administrative and judicial review.

Section 3-12C-214 - Correction of records--Adjustment for underpayment or overpayment--Limitation.

Section 3-12C-215 - Confidentiality of records--Exceptions.

Section 3-12C-216 - Exemption of contributions and benefits from taxation and process.

Section 3-12C-217 - Domestic relations orders--Determination as to whether qualified--Restrictions on provisions.

Section 3-12C-218 - Business name of system--Treasurer.

Section 3-12C-219 - Use of fund restricted.

Section 3-12C-220 - Diversion of funds prohibited--Legislative policy.

Section 3-12C-221 - Rights of members on termination of system or discontinuance of contributions.

Section 3-12C-222 - Application of forfeitures.

Section 3-12C-223 - Investment of assets by investment council--Pooling of funds--Standards for investment--Compliance with federal divestiture enactments.

Section 3-12C-224 - Quadrennial independent report on investment performance.

Section 3-12C-225 - Review of investment policy when return lower than average--Report to Governor and Legislature.

Section 3-12C-226 - Annual actuarial valuation of system--Scope of valuation.

Section 3-12C-227 - Actuarial assumptions on which valuation based--Report of change.

Section 3-12C-228 - Funding of system--Review--Report--Corrective action.

Section 3-12C-229 - Annual report of funded status of system.

Section 3-12C-230 - Record of board proceedings--Annual report.

Section 3-12C-301 - Members of system.

Section 3-12C-302 - Membership in system--Exclusions.

Section 3-12C-303 - Newly elected officials permitted to join system--Requirements--Credited service.

Section 3-12C-304 - Continuation of previously established retirement plan--Vote of employees required to participate in consolidated system.

Section 3-12C-305 - Newly established retirement plans of political subdivisions and public corporations to participate in consolidated system.

Section 3-12C-306 - Election by political subdivision or public corporation to participate in consolidated system.

Section 3-12C-307 - Coverage of joint employees of participating and nonparticipating political subdivisions.

Section 3-12C-308 - Accrued benefit deposit required when political subdivision or public corporation joins consolidated system--Participation by employees--Deferred payment of deposit.

Section 3-12C-309 - Effective date of participation of employees of participating unit.

Section 3-12C-310 - Privatization of governmental function.

Section 3-12C-401 - Rate of contributions--Deduction from pay--Employer to make members' contributions.

Section 3-12C-402 - Additional contribution for foundation members by participating unit.

Section 3-12C-403 - Monthly transmission of contributions--Deposit in fund.

Section 3-12C-404 - Deduction of delinquent contributions from payments due from state--Penalty and interest.

Section 3-12C-405 - Service records and employee information furnished by employers.

Section 3-12C-406 - Knowing transmission of report with excluded compensation as misdemeanor.

Section 3-12C-407 - Accumulated contributions defined for foundation members.

Section 3-12C-408 - Accumulated contributions defined for generational members.

Section 3-12C-409 - Refund of unpaid accumulated contributions upon termination--Reversion of unclaimed payments to system.

Section 3-12C-410 - Lump-sum payments where designated beneficiary does not survive member--Reversion to system of unclaimed payments.

Section 3-12C-501 - Uniform application of service credit rules.

Section 3-12C-502 - Credited service defined for foundation members.

Section 3-12C-503 - Credited service defined for generational members.

Section 3-12C-504 - Purchase of prior service credit--Calculation of amount due.

Section 3-12C-505 - Prospective increase for credited service related to years of noncontributory service.

Section 3-12C-506 - Refund for purchase cost of noncontributing service.

Section 3-12C-509 - Purchase of prior service credit for public service not covered by retirement plan.

Section 3-12C-510 - Acquisition of credited service through transfer of funds--Requirements.

Section 3-12C-511 - Purchase of nonqualified permissive service credit allowed.

Section 3-12C-512 - Acquisition of credited service for members mobilized into certain federal military service.

Section 3-12C-513 - Service credit for leave of absence--Contributions to cover period of absence.

Section 3-12C-514 - Credited service for leave of absence due to qualified military service--Return to employment after discharge.

Section 3-12C-515 - Death or disability of member on leave of absence due to qualified military service--Return to service date and benefits.

Section 3-12C-516 - Members receiving differential wage payments.

Section 3-12C-517 - Valuation of purchased prior service credit--Installment payments--Death of member--Adjustment when installments not paid.

Section 3-12C-518 - Conversion of credited service.

Section 3-12C-519 - Purchase of certain public service as Class B service.

Section 3-12C-520 - Prior service credit on return of nonvested member to employment.

Section 3-12C-601 - Retirement benefit to terminated member with vested right--Calculation.

Section 3-12C-602 - Withdrawal of accumulated contributions on leaving covered employment--Picture identification required--Limitation.

Section 3-12C-603 - Distribution by direct rollover.

Section 3-12C-604 - Contributions left in system on termination of employment without vested right--Maximum period--Forfeiture.

Section 3-12C-605 - Uncollected payments from system--Reversion.

Section 3-12C-606 - Reinstatement of terminated rights.

Section 3-12C-607 - Early withdrawal precludes additional refund.

Section 3-12C-608 - Eligibility for benefits upon becoming full-time employee within twelve months after withdrawal.

Section 3-12C-701 - Benefits only payable monthly--Lump-sum payments prohibited unless specified.

Section 3-12C-702 - Person's birthday for purposes of eligibility.

Section 3-12C-703 - COLA applied to benefits--COLA elimination.

Section 3-12C-704 - Determination of COLA payable.

Section 3-12C-705 - Date of application of prorated payment of COLA.

Section 3-12C-706 - Modified monthly benefit permitted.

Section 3-12C-707 - Highest annual compensation.

Section 3-12C-708 - Time of termination of benefits.

Section 3-12C-709 - Duplicate benefits prohibited unless from another member's contributions.

Section 3-12C-710 - Member who leaves employment--Spouse and minor children.

Section 3-12C-711 - Rules regulating maximum annual benefit--Tax qualification--Limitation year defined.

Section 3-12C-712 - Compensation limits in Internal Revenue Code § 401(a)(17).

Section 3-12C-713 - Contribution credit defined--Payment of contribution credit and credited investment return.

Section 3-12C-801 - Criteria for determining disability--Uniform application.

Section 3-12C-802 - Disability documentation inadmissible for proceedings relative to workers' compensation.

Section 3-12C-803 - Disability benefits eligibility--Applications before July 1, 2015--Required information--Filing deadline.

Section 3-12C-804 - Employer certification of inability to provide effective accommodations or comparable employment--Applications before July 1, 2015.

Section 3-12C-805 - Amount of monthly disability benefit--Applications before July 1, 2015.

Section 3-12C-806 - Elimination or addition of disability benefit pertaining to children--Applications before July 1, 2015.

Section 3-12C-807 - Deduction of other public benefits from disability benefit--Reduction when children become ineligible--Applications before July 1, 2015.

Section 3-12C-808 - Conversion of disability benefit to retirement benefit at retirement age--Applications before July 1, 2015.

Section 3-12C-809 - Termination of disability benefit based on application before July 1, 2015.

Section 3-12C-810 - Maximum amount of disability benefit--Reporting earned income--Applications before July 1, 2015.

Section 3-12C-811 - Disability benefits for applications received after June 30, 2015.

Section 3-12C-812 - Disability benefits eligibility.

Section 3-12C-813 - Application for disability benefits--Required information--Filing deadline.

Section 3-12C-814 - Employer certification of inability to provide accommodations or comparable employment.

Section 3-12C-815 - Health care provider certification of disability.

Section 3-12C-816 - Advice of disability advisory committee--Independent examination or assessment--Notice of disapproval of application.

Section 3-12C-817 - Notice of approval of disability benefits--Commencement of benefits.

Section 3-12C-818 - Calculation of disability benefits--Foundation members.

Section 3-12C-819 - Disability benefits for generational members.

Section 3-12C-820 - No credited service for disability benefit period.

Section 3-12C-821 - Contributions for period of employment while receiving disability benefits.

Section 3-12C-822 - Termination of disability benefits.

Section 3-12C-823 - Contributions upon return to covered employment.

Section 3-12C-824 - Retirement benefit of member who received disability benefits and returned to covered employment.

Section 3-12C-825 - Retirement benefit of member whose disability benefits were terminated but who did not return to covered employment.

Section 3-12C-826 - Family benefit--Member dies before normal retirement age while receiving disability benefits.

Section 3-12C-827 - Surviving spouse benefit where member received disability benefits.

Section 3-12C-828 - Surviving spouse benefit where member dies after normal retirement age while receiving disability benefits.

Section 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.

Section 3-12C-902 - Payment or delivery to minors.

Section 3-12C-903 - Benefits payable directly to child at age eighteen--Elimination upon ineligibility.

Section 3-12C-904 - Elimination of family benefit as children become ineligible.

Section 3-12C-905 - Deductions of member's primary social security from benefits.

Section 3-12C-906 - Family benefits in lieu of other death benefits--Election by designated beneficiary to withdraw accumulated contributions.

Section 3-12C-907 - Family benefit--Deceased member who was working--Total benefit--Effective date.

Section 3-12C-1001 - Election of additional survivor protection--Commencement and termination of additional contribution.

Section 3-12C-1002 - Extension of survivor protection option to current contributing members--Limitation on future extensions.

Section 3-12C-1003 - New enrollments in additional survivor protection prohibited.

Section 3-12C-1004 - Amount of additional survivor protection benefits--Termination.

Section 3-12C-1101 - Final average compensation for foundation members whose contributory service concluded before July 1, 2021.

Section 3-12C-1102 - Limitations on final average compensation for foundation members whose contributory service concluded before July 1, 2020.

Section 3-12C-1103 - Final average compensation for foundation members whose contributory service concludes after June 30, 2021.

Section 3-12C-1104 - Limitations on final average compensation for foundation members whose contributory service concludes after June 30, 2020.

Section 3-12C-1105 - Normal retirement age for foundation members.

Section 3-12C-1106 - Normal retirement benefit for foundation members for Class A credited service.

Section 3-12C-1107 - Normal retirement benefit for foundation members for Class B credited service other than justice, judge, or magistrate judge.

Section 3-12C-1108 - Normal retirement benefit for foundation members for Class B credited service as justice, judge, or magistrate judge.

Section 3-12C-1109 - Adjustments in benefit for certain retirees based on time and circumstances of retirement.

Section 3-12C-1110 - Reduction age defined for foundation members.

Section 3-12C-1111 - Early retirement benefits for foundation members.

Section 3-12C-1112 - Adjustment of early retirement benefits for foundation members who retire before eligible for social security.

Section 3-12C-1113 - Effective date of retirement benefit of foundation member--Last payment--Retroactive retirement benefits.

Section 3-12C-1114 - Surviving spouse benefit--Retired foundation member--Effective dates.

Section 3-12C-1115 - Surviving spouse benefit--Foundation member--Calculation of benefit.

Section 3-12C-1116 - Early surviving spouse benefit for foundation member's spouse.

Section 3-12C-1201 - Final average compensation defined for generational members.

Section 3-12C-1202 - Limitations on final average compensation for generational members.

Section 3-12C-1203 - Normal retirement age for generational members.

Section 3-12C-1204 - Normal retirement benefit for generational members for Class A credited service.

Section 3-12C-1205 - Normal retirement benefit for generational members for Class B credited service other than justice, judge, or magistrate judge.

Section 3-12C-1206 - Normal retirement benefit for generational members for Class B credited service as justice, judge, or magistrate judge.

Section 3-12C-1207 - Early retirement benefits for generational members.

Section 3-12C-1208 - Application for retirement benefit required--Picture identification required.

Section 3-12C-1209 - Monthly benefit options for generational members.

Section 3-12C-1210 - Irrevocable benefit election by generational members.

Section 3-12C-1211 - Effective date of retirement benefit of generational member--Last payment.

Section 3-12C-1212 - Retroactive retirement benefits for generational members.

Section 3-12C-1213 - Surviving spouse benefit--Retired generational member--Amount of benefit.

Section 3-12C-1214 - Surviving spouse benefit--Generational member dying after normal retirement age but before start of benefit--Amount of benefit.

Section 3-12C-1215 - Amount of surviving spouse benefit for generational member.

Section 3-12C-1216 - Early surviving spouse benefit for generational member's spouse.

Section 3-12C-1301 - Variable retirement accounts of generational members--Contributions and credited investment return.

Section 3-12C-1302 - Variable retirement contributions of generational members.

Section 3-12C-1303 - Distributions from generational member's variable retirement account.

Section 3-12C-1400 - Three consecutive calendar months of separation described.

Section 3-12C-1401 - Reemployment of retired member--Separation of service required--Hiring procedures.

Section 3-12C-1401.1 - Reemployment of retired member--Limited exception to separation of service requirement.

Section 3-12C-1402 - Reduction of retirement benefit during reemployment before July 1, 2004--Recalculation of additional benefit.

Section 3-12C-1403 - Retirement benefits for members who reentered covered employment after June 30, 2004 and before April 1, 2010.

Section 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.

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

Section 3-12C-1405.1 - Reemployment of retired member--Limited exception to benefit and membership provisions for part-time employment.

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

Section 3-12C-1406 - Invalid retirement--Repayment of retirement benefit payments.

Section 3-12C-1501 - Supplemental pension benefit created.

Section 3-12C-1502 - Interest rate assumption--Suspension of new supplemental pension contracts--No right to particular price.

Section 3-12C-1503 - Rollover of funds--Single premium--Contract effective upon signing--Payment of benefits.

Section 3-12C-1504 - Types of supplemental pension benefits.

Section 3-12C-1505 - COLA applicable to supplemental pension benefits.

Section 3-12C-1506 - Death of participant or spouse--Lump sum distribution to beneficiaries--Time for making claim.

Section 3-12C-1507 - Contract purchases and benefit payments deemed qualified plan distributed annuity contracts.

Section 3-12C-1508 - Minimum distribution rules--Annual benefit limitations.

Section 3-12C-1509 - Applicability of certain retirement system provisions.

Section 3-12C-1510 - Exemption from Title 58 and from securities and agent registration.

Section 3-12C-1601 - Previous retirement systems consolidated--Purpose.

Section 3-12C-1602 - Intent to provide increased benefits to previously retired members of systems.

Section 3-12C-1603 - Increase in benefits for previously retired members of systems.

Section 3-12C-1604 - Adjustment of increase for retired members electing optional payment or early retirement.

Section 3-12C-1605 - Previously retired members paid from consolidated fund.

Section 3-12C-1606 - Members of consolidated systems entitled to benefits of prior law--Retention of Codified Laws.

Section 3-12C-1607 - Amount of benefits for justice or judge mandatorily retired.

Section 3-12C-1608 - Board of Regents employees--Definition of balances.

Section 3-12C-1610 - Contract for purchase of service for Board of Regents.

Section 3-12C-1611 - Contributory service credited to Board of Regents employees--Eligibility of nonparticipating employees--Qualification for prior credited service.

Section 3-12C-1612 - Normal retirement allowance reduced by actuarial equivalent--Deposit of individual balance--Member contributions.

Section 3-12C-1613 - Allowance to surviving spouse of law enforcement officer retired for disability.

Section 3-12C-1615 - Rapid City firefighter membership in system--Benefits and credited service.

Section 3-12C-1616 - Rapid City firefighter retirement benefits--Normal retirement age.

Section 3-12C-1617 - Payments from public employees retirement fund to Rapid City firefighters.

Section 3-12C-1618 - Payments by Rapid City.

Section 3-12C-1619 - Crediting of transfers from Rapid City pension fund.

Section 3-12C-1620 - Retirement benefits for certain city of Aberdeen employees.

Section 3-12C-1621 - Aberdeen firefighters to participate in system.

Section 3-12C-1622 - Eligible benefits for Aberdeen firefighters.

Section 3-12C-1623 - Amount to be paid by municipality of Aberdeen.

Section 3-12C-1624 - Funds from Aberdeen municipality considered member contributions.

Section 3-12C-1625 - Watertown firefighters pension fund members--Credited service.

Section 3-12C-1626 - Watertown firefighters benefits paid from the system--Minimum benefit.

Section 3-12C-1627 - Payments by Watertown.

Section 3-12C-1628 - Crediting transfers from city of Watertown firemen pension fund.

Section 3-12C-1629 - Mitchell firefighters as members of system.

Section 3-12C-1630 - Benefits for Mitchell firefighters.

Section 3-12C-1631 - Calculation of Mitchell firefighter benefits.

Section 3-12C-1632 - Amount of payment to system by city of Mitchell.

Section 3-12C-1633 - Transfer of city of Mitchell firemen's pension plan funds as member contributions.

Section 3-12C-1634 - Information required of city of Mitchell.

Section 3-12C-1635 - Huron firefighters as members of system.

Section 3-12C-1636 - Benefits for Huron firefighters.

Section 3-12C-1637 - Calculation of Huron firefighter benefits.

Section 3-12C-1638 - Amount of payment to system by City of Huron.

Section 3-12C-1639 - Transfer of city of Huron firemen's pension plan funds as member contributions.

Section 3-12C-1640 - Information required of city of Huron.

Section 3-12C-1641 - Election by municipality of Sioux Falls to be participating unit.

Section 3-12C-1642 - Transfer of funds in cement plan retirement fund.

Section 3-12C-1643 - Members of cement plant retirement plan to be Class C members of system.

Section 3-12C-1644 - Class C members to receive benefits as provided under cement plant retirement plan.

Section 3-12C-1646 - Payment of benefits and operational expenses related to Class C members.

Section 3-12C-1647 - Promulgation of rules to administer retirement benefits for Class C members.

Section 3-12C-1648 - Member election to receive lump sum trustee-to-trustee payment in lieu of monthly payments.

Section 3-12C-1649 - Surviving spouse election to receive lump sum trustee-to-trustee payment in lieu of monthly payments.

Section 3-12C-1650 - Department of Labor and Regulation employees' retirement plan--Membership with system--Class D.

Section 3-12C-1651 - Class D membership--Benefits received.

Section 3-12C-1701 - Correctional security staff benefits.

Section 3-12C-1703 - Calculation of benefits of parole agent.

Section 3-12C-1704 - Calculating benefits of air rescue firefighter.

Section 3-12C-1705 - Foundation member conservation officers.

Section 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.

Section 3-12C-1801 - Participant--Definition.

Section 3-12C-1802 - Qualified benefit preservation arrangement--Definition.

Section 3-12C-1803 - Qualified benefit preservations arrangement--Establishment--Purpose.

Section 3-12C-1804 - Eligibility to participate.

Section 3-12C-1805 - Benefit payable.

Section 3-12C-1806 - Cost of living adjustment after benefit begins--Change in benefit payable.

Section 3-12C-1807 - Qualified benefit preservation arrangement--Funding.

Section 3-12C-1808 - Contributions.

Section 3-12C-1809 - Qualified benefit preservation arrangement trust fund--Establishment--Purpose.

Section 3-12C-1810 - Qualified benefit preservation arrangement assets--Income.

Section 3-12C-1811 - Qualified benefit preservation arrangement--Administration.

Section 3-12C-1812 - Qualified benefit preservation arrangement--No assignment.

Section 3-12C-1813 - Conflicts.

Section 3-12C-1814 - Limitation of rights.

Section 3-12C-1815 - Erroneous payments--Corrections.

Section 3-12C-1816 - Administration of benefit--Release and receipt.

Section 3-12C-1817 - Reservation of power to change.

Section 3-12C-1901 - General rule.

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

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

Section 3-12C-1904 - Incidental benefit rule.

Section 3-12C-1905 - Reasonable and made in good faith.