3-12C-713. Excess contributions defined--Payment of excess contributions and credited investment return. For purposes of this section, the term, excess contributions, means the employer and member contributions on compensation not included in the computation of final average compensation pursuant to §§ 3-12C-1104 and 3-12C-1202.

The excess contributions plus the credited investment return on the excess contributions are 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 excess contributions 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 retirement benefit is paid or the disability benefit is paid or death occurred, as applicable.

The excess contributions plus credited investment return are payable to the member when the member commences a retirement benefit or a disability benefit or to the member's eligible child, eligible spouse, or beneficiary upon the death of the member. The amount is not payable to any member who withdraws his or her accumulated contributions from the system. For the purpose of paying a distribution, the amount payable is the total of excess contributions plus credited investment return or the total of excess contributions, 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.