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.

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Terms Used In South Dakota Codified Laws 3-12C-1503

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Contract: A legal written agreement that becomes binding when signed.

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.