There is a newer version of the South Dakota Codified Laws
2006 South Dakota Code - 3-12-83.2 — Purchase of prior service credit by member of tax-qualifying purchase unit.
3-12-83.2. Purchase of prior service credit by member of tax-qualifying purchase unit. The provisions of § 3-12-83 notwithstanding, a member who is employed by a tax-qualifying purchase unit may purchase credited service pursuant to the procedures outlined in §§ 3-12-83 and 3-12-84 on a tax-deferred basis pursuant to § 414(h)(2) of the Internal Revenue Code, as in effect on January 1, 1996. The purchase shall be in the nature of a credited service purchase under the provisions of § 3-12-83, except that:
(1) The purchase shall be pursuant to an
irrevocable employer contribution agreement entered into between
the member and the tax-qualifying purchase unit and shall be
executed prior to the period of contribution;
(2) The irrevocable employer contribution
agreement may not exceed a period of ten years;
(3) The contributions may represent
reductions in the member's compensation but shall be deemed
employer contributions pursuant to § 3-12-71;
(4) The contributions may be for any
period of uncredited service; and
(5) No other purchase of uncredited
service pursuant to § 3-12-83 or other provision of this
chapter, may take place while an irrevocable employer contribution
agreement is in effect pursuant to this section.
In no event
may a member receive the contributions directly. If a member dies
or terminates employment prior to completion of the member's
irrevocable employer contribution agreement, the member's credited
service shall be adjusted by the system on the basis of that
portion of the agreement that was completed prior to the death or
termination.
A member who
is participating in an installment credited service purchase
pursuant to § 3-12-87 on the date that the member's
employer unit becomes a tax-qualifying purchase unit shall either
terminate the purchase or complete the purchase as a tax-deferral
purchase pursuant to this section. If the member elects to continue
the purchase, the original purchase agreement shall be deemed an
irrevocable employer contribution agreement.
Source: SL 1996, ch 30, § 3.
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