1261A 97th Legislative Session 661
AMENDMENT 1261A FOR THE INTRODUCED BILL
Introduced by: Representative Kent Peterson
An Act to establish emergency retire-rehire provisions for the South Dakota Retirement System.
Be it enacted by the Legislature of the State of South Dakota:
Section
1. That § 3-12C-401
be AMENDED:
3-12C-401.
Any
employee included in § 3-12C-301
shall make a contribution to the system, except as specified in
§ 3-12C-1405
and section 4 of this Act,
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
must
be made by the participating unit pursuant to the provisions of
§ 414(h)(2) of the Internal Revenue Code. The contributions
shall must
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.
Section 1. That § 3-12C-703 be AMENDED:
3-12C-703.
The COLA payable
shall be
is 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
is eliminated
for any period of time that a retired member reenters covered
employment in the system, unless
the:
(1) 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;
(2) The member retired without a benefit suspension pursuant to § 3-12C-1402 and then reentered active status before July 1, 2004; or
(3) The
member retired and then reentered employment with any participating
unit pursuant to section
4
2 of this Act.
SuchThe
elimination
shall
must cease when
the member again retires and draws either a refund or an additional
retirement benefit.
Section
3.
That § 3-12C-1401
be AMENDED:
3-12C-1401.
Except
as provided in § 3-12C-1401.1
and section 4 of this Act,
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.
Section
4.
That chapter 3-12C
be amended with a NEW SECTION:
A
retired member's retirement remains valid if the member comes back to
work a full-time, Class A credited service position for a
participating unit at least thirty days after the termination of the
member's employment with the participating unit or another
participating unit, during which time the member had no contract or
employment relationship with a participating unit, if:
(1) The
salary of the position is seventy-five percent or less of the salary
the member received from the participating unit prior to termination;
(2) The
participating unit hiring the member certifies that it has not been
successful in filling the position with a qualified candidate before
hiring the member; and
(3) The
participating unit hiring the member contributes to the system twelve
percent of the salary of the position, with no contribution from the
member.
A
retired member reemployed under this section will continue to receive
COLA increases and will not be subject to the benefit reduction
referenced in § 3-12C-1405.
Section 2. That chapter 3-12C be amended with a NEW SECTION:
A retired member may be reemployed in an emergency full-time position for a participating unit if:
(1) The member has been separated from service for at least twelve consecutive months after the member’s effective retirement date; and
(2) The participating unit hiring the member demonstrates that a good faith effort, as described in section 3 of this Act, was made to hire appropriately qualified personnel who are not receiving a retirement benefit from the system.
A retired member reemployed under this section will continue to receive COLA increases and will not be subject to the benefit reduction referenced in § 3-12C-1405 until June 30, 2025. However, all other provisions of § 3-12C-1405 apply.
Section 3. That chapter 3-12C be amended with a NEW SECTION:
To demonstrate that a good faith effort was made, the participating unit shall provide the following documentation of actions taken to recruit an appropriately qualified person for the emergency position:
(1) The participating unit's need for the emergency position and the efforts made to fill the position;
(2) A plan for hiring appropriately qualified personnel without using the emergency position in the future;
(3) A description of the retired member's experience, knowledge, and abilities; and
(4) A certification that no formal or informal agreement existed to reemploy the retired member.
Participating units shall advertise the position in at least two publicly accessible resources for at least one month, within the six months preceding the emergency employment. All copies of postings must be included with the documentation.
Section 4. That § 3-12C-1405 be AMENDED:
3-12C-1405.
Except as provided
in § 3-12C-1405.1
and section 4 of this Act,
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
must be
administered pursuant to this section.
TheExcept
as provided in section 2 of this Act, the
member's monthly retirement benefit
shall be
is reduced by
fifteen percent and the COLA
shall be
is eliminated
throughout the period that the member reenters covered employment.
The reduction and elimination
shall cease
ceases 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
must 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
must 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.
Section 5.
The
provisions of this Act are repealed on June 30, 2025. Upon repeal,
the Code Commission, pursuant to § 2-16-9,
shall remove
section 4
sections 2 and 3 of this
act
Act from the Code and revert in word and substance the Code sections
amended by this Act to their status immediately prior to the
effective date of this Act.
Underscores indicate new language.
Overstrikes
indicate deleted language.