ENTITLED, An Act to revise certain provisions relating to the South Dakota Retirement System,
the South Dakota deferred compensation plan, and the South Dakota special pay retirement
program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That subdivision (18) of § 3-12-47 be amended to read as follows:
(18) "Class B member," a member who is a justice, judge, state law enforcement officer,
magistrate judge, police officer, firefighter, county sheriff, deputy county sheriff,
penitentiary correctional staff, parole agent, air rescue firefighter, campus security officer,
court services officer, conservation officer, or park ranger;
Section 2. That subdivision (22) of § 3-12-47 be amended to read as follows:
(22) "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 § 3-12-84 or 3-12-84.2;
Section 3. That subdivision (35) of § 3-12-47 be amended to read as follows:
(35) "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;
Section 4. That subdivision (39) of § 3-12-47 be amended to read as follows:
(39) "General employees," full-time municipal employees who are not firefighters or police
officers;
Section 5. That subdivision (42) of § 3-12-47 be amended to read as follows:
(42) "Law enforcement officer," an agent of the state division of criminal investigation, an
officer of the South Dakota Highway Patrol, a police officer, county sheriff, deputy county
sheriff, or a firefighter;
Section 6. That subdivision (55) of § 3-12-47 be amended to read as follows:
(55) "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,
police officer, 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;
Section 7. That § 3-12-52 be amended to read as follows:
3-12-52. The Board of Trustees 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 are required for a decision by the board for any of its meetings.
Section 8. That § 3-12-62 be amended to read as follows:
3-12-62. All of the following permanent full-time employees are included as members in the
system:
(1) All state employees;
(2) All teachers;
(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 their classified
employees;
(8) All employees of the Board of Regents;
(9) All state law enforcement officers.
Section 9. That § 3-12-62.1 be amended to read as follows:
3-12-62.1. All personnel hired on or after July 1, 1980, by the divisions of the Department of
Labor and Regulation established by §§ 61-2-10 and 61-2-10.1 shall be members of the system. Any
individual so employed prior to July 1, 1980, may elect to become a member of the system, if that
election is made prior to July 1, 1981. Benefits accrued to a member prior to the date of such election
shall be continued and may not be considered as other public benefits, as defined in subdivision 3-12-47(49), for the purposes of calculating or offsetting any benefit resulting from participation in the
system. Credited service earned under the retirement system provided by chapter 61-2 may not be
counted for the purpose of calculation of benefits under chapter 3-12. For any individual who elects
to be a member of the system pursuant to this section, credited service earned under the retirement
system provided by chapter 61-2 shall be counted for the purpose of vesting under chapter 3-12 and
for the eligibility requirements under §§ 3-12-95 and 3-12-98, provided that contributions made to
the system provided under chapter 61-2 are not withdrawn.
Section 10. That § 3-12-72.1 be amended to read as follows:
3-12-72.1. 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.
Section 11. That § 3-12-82 be amended to read as follows:
3-12-82. If less than three years of contributory service or noncontributory service as delineated
in subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) 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 as delineated in
subsections (b), (e), (g), and (h) of subdivision 3-12-47(24) are 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 allowance 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 § 3-12-106, if any, in the member's additional allowance. In addition, the
annual increase applied to the original allowance pursuant to § 3-12-88 shall be eliminated for such
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 § 3-12-106 and who reenters covered employment on or after July 1, 2004, but prior to
April 1, 2010.
Section 12. That § 3-12-130 be amended to read as follows:
3-12-130. 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 prior to 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 penitentiary correctional staff member
prior to July 1, 1978; credited service as a conservation officer prior to July 1, 1983; credited service
as a parole agent prior to July 1, 1991; and credited service as an air rescue firefighter prior to July
1, 1992, from credited service as a Class A member with benefits provided in accordance with § 3-12-91 to credited service as a Class B member other than a justice, judge, or magistrate judge, with
benefits provided in accordance with § 3-12-92, 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
such 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 § 3-12-84.
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 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
administrator 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 on or after July 1, 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 pursuant to subdivision 3-12-47(25) or
subdivision 3-12-47(55), the jailer is eligible to convert prior credited service as a jailer under this
section.
Section 13. That § 3-12-143 be amended to read as follows:
3-12-143. For the first thirty-six months of a disability allowance provided by this chapter, the
maximum amount that a member may receive in any calendar year from the disability allowance and
earned income, as defined in § 32(c)(2) of the Internal Revenue Code of 1986, is one hundred
percent of the member's final average compensation. Starting with the thirty-seventh month of such
disability allowance, the maximum amount that a member may receive in any calendar year from
disability allowances provided by the federal Social Security Act equal to the primary insurance
amount, the disability allowance provided by this chapter and earned income, as defined in § 32(c)(2)
of the Internal Revenue Code of 1986, 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 allowance by the improvement factor defined in subdivision
3-12-47(41). Any amount exceeding this maximum amount shall reduce each monthly disability
allowance payable pursuant to § 3-12-99 in the following fiscal year on a pro rata basis.
Any member eligible to receive a disability allowance shall report to the system in writing any
earned income of the member. The report shall be filed with the system no later than May thirty-first
following the end of each calendar year in which a disability allowance 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 in which the member dies or converts to a normal or
early retirement benefit under this chapter. The disability allowance 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 allowance is being paid by the system, but may
not reduce the disability allowance below the minimum provided for in § 3-12-99. For members with
a disability in effect before July 1, 1995, the first report is due on or before May 31, 1996.
This section applies to any member receiving or entitled to receive a disability allowance
pursuant to this chapter.
Section 14. That § 3-13-55 be amended to read as follows:
3-13-55. The definitions contained in § 3-12-47 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.
Section 15. That § 3-13A-15 be amended to read as follows:
3-13A-15. 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.
Section 16. That § 3-6A-38.2 be amended to read as follows:
3-6A-38.2. In resolving a grievance, the commission may reinstate an 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 § 3-12-71. 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.
An Act to revise certain provisions relating to the South Dakota Retirement System, the South
Dakota deferred compensation plan, and the South Dakota special pay retirement program.
=========================
I certify that the attached Act
originated in the
SENATE as Bill No. 31
____________________________
Secretary of the Senate
=========================
____________________________
President of the Senate
____________________________
Secretary of the Senate
____________________________
Speaker of the House
____________________________
Chief Clerk
Senate Bill No. 31
File No. ____
Chapter No. ______
|
|
=========================
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
=========================
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor
=========================
STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State
|