2006 South Dakota Code - 3-12-47 — Definition of terms.
3-12-47. Definition of terms. Terms
as used in this chapter, unless the context otherwise requires,
mean:
(1) Repealed by SL 2000, ch 24,
§ 1.
(2) "Accumulated contributions," the sum
of:
(a) All contributions by a member,
including member contributions made by an employer on or after July
1, 1984, pursuant to § 3-12-71;
(b) Seventy-five percent of employer
contributions if the member has less than three years credited
service or one hundred percent of employer contributions if the
member has three years or more credited service; and
(c) Member redeposits pursuant to
§ 3-12-80 and member credited service purchases pursuant
to §§ 3-12-83 and 3-12-84;
all together with the effective rate of interest credited
thereon.
If credited service is purchased pursuant to
§§ 3-12-83 and 3-12-84, only the amount of the
purchase shall be included as accumulated contributions for the
purposes of a refund under this chapter;
(2A) "Actuarial accrued liability," the
present value of all benefits less the present value of future
normal cost contributions;
(3) "Actuarial equivalent," a benefit of
equal value, including a three percent annual improvement, when
discounted at a seven percent rate of interest and the 1971 group
annuity mortality table, projected by Scale D to 1975, using a
unisex rate that is fifty percent male and fifty percent female for
employees and beneficiaries. However, for purposes of
§ 3-12-69.5, the 1971 group annuity mortality table,
projected by Scale D to 1975 according to the sex of the payee,
shall be used;
(4) "Actuarial requirement," the normal
cost and the interest on and amortization of the unfunded actuarial
accrued liability accumulated to date over a thirty year period,
all expressed in terms of a percentage of covered
payroll;
(5) "Actuarial experience analysis," a
periodic report which reviews basic experience data and furnishes
actuarial analysis which substantiates the assumptions adopted for
the purpose of making an actuarial valuation of the
system;
(6) "Actuarial valuation," a projection of
the present value of all benefits and the current funded status of
the system, based upon stated assumptions as to rates of interest,
mortality, disability, salary progressions, withdrawal, and
retirement as established by a periodic actuarial experience
analysis which takes into account census data of all active
members, vested terminated members and retired members and their
beneficiaries under the system;
(6A) "Actuarial value of assets," the
total assets of the system, taking market appreciation into account
on a rational and systematic basis;
(7) "Air rescue firefighters," employees
of the Department of Military and Veterans Affairs who are
stationed at Joe Foss Field, Sioux Falls, and who are directly
involved in fire fighting activities on a daily basis;
(8) "Annuity," payment for life; all
annuities shall be payable for life unless specifically provided
for otherwise;
(9) "Approved actuary," any actuary who is
a Fellow of the Society of Actuaries or who has at least fifteen
years of service to major public employee funds or any firm
retaining such an actuary on its staff;
(10) "Beneficiary," the person designated
by a member of the system to receive any payments after the death
of such member;
(11) "Benefits," the amounts paid to a
member, or spouse and family, or beneficiary as a result of the
provisions of this chapter;
(12) "Board," the Board of Trustees of the
South Dakota Retirement System;
(13) "Campus security officers," employees
of the Board of Regents whose positions are subject to the minimal
educational training standards established by the law enforcement
standards commission pursuant to chapter 23-3 and who
satisfactorily complete the training required by chapter 23-3
within one year of employment and whose primary duty as sworn law
enforcement officers is to preserve the safety of the students,
faculty, staff, visitors and the property of the University of
South Dakota and South Dakota State University. The employer shall
file with the system evidence of the appointment as a sworn law
enforcement officer at the time of employment and shall file
evidence of satisfactory completion of the training program
pursuant to chapter 23-3 within one year of employment;
(14) "Child or children," the unmarried
dependent children of the member, who have not passed their
eighteenth birthday and each unmarried dependent child, who is
totally and permanently disabled, either physically or mentally,
regardless of such child's age, provided such disability occurred
prior to age eighteen. It includes stepchildren and foster children
who depend on the member for support and live in the household of
the member in a regular parent-child relationship. It also includes
any child of the member conceived during his lifetime and born
after his death;
(15) "Class A credited service," service
credited as a Class A member of the system;
(16) "Class A member," all members other
than Class B members;
(17) "Class B credited service," service
credited as a Class B member of the system;
(18) "Class B member," members who are
justices, judges, state law enforcement officers, magistrate
judges, municipal police officers, municipal firefighters, county
sheriffs, deputy county sheriffs, and penitentiary correctional
staff, parole agents, air rescue firefighters, campus security
officers, court services officers, conservation officers, and park
rangers;
(19) "Classified employees," employees of
public school districts who are not required by law to be certified
as teachers, employees of the colleges and universities under the
control of the board of regents who are not faculty or
administrators and come within the provisions of chapter 3-6A,
employees of public corporations, employees of chartered
governmental units, and all other participating employees not
elsewhere provided for in this chapter;
(19A) "Comparable level position," a
member's position of employment that is generally equivalent to the
member's prior position of employment in terms of required
education, required experience, required training, required work
history, geographic location, and compensation and
benefits;
(20) "Compensation," gross wages paid to a
member by the employer for personal services rendered during the
period considered as credited service:
(a) Compensation includes amounts reported
as wages, tips and other compensation on the member's federal form
W-2 wage and tax statement, except as otherwise excluded in this
subdivision; the amount of member contributions made by an employer
on or after July 1, 1984, pursuant to § 3-12-71; any
amount contributed to a member's individual retirement plan which
meets the requirements of section 401, 403, 408, or 457 of the
Internal Revenue Code of 1986, as amended; and any amount
contributed to a plan described in section 125 of the Internal
Revenue Code of 1986, as amended; and any amount contributed to the
system pursuant to § 3-12- 83.2 in accord with
§ 414(h)(2) of the Internal Revenue Code as in effect on
January 1, 1996;
(b) Compensation does not include travel,
meals, lodging, moving or any other expenses incidental to an
employer's business which is reimbursed by the employer; lump sum
payments for sick leave; lump sum payments for annual leave;
payments for insurance coverage of any kind or any other employee
benefit by an
employer on behalf of an employee or an employee and dependents;
any amount paid in a one time lump sum payment or over a period of
time and based on or attributable to retirement or an agreement to
retire in the future; payments made upon dismissal or severance;
worker's compensation payments; and payments contingent on a member
terminating employment at a specified time in the future paid or
payable in a lump sum or over a period of time;
(c) Any compensation in excess of the
limits established in § 401(a)(17) of the Internal
Revenue Code as in effect on January 1, 2002, shall be disregarded
for purposes of contributions or for benefit calculations under the
system. However, the limit does not apply to compensation earned by
a member if the member was employed by a participating unit on or
before June 30, 1996;
(21) "Conservation officers," employees of
the Department of Game, Fish and Parks and the Division of Wildlife
or Division of Custer State Park who are employed pursuant to
§ 41- 2-11 and whose positions are subject to the
requirements as to education and training provided in chapter
23-3;
(22) "Contributory service," service to a
participating unit during which contributions were made to a South
Dakota Retirement System, which shall not include years of credited
service as granted in § 3-12-84;
(23) "Court services officers," persons
appointed pursuant to § 26-7A-8;
(23A) "Covered employment," a member's
employment as a permanent full-time employee by a participating
unit;
(24) "Credited service,"
(a) Years of service, or fractions
thereof, for which member contributions were made to the
system;
(b) Years of noncontributory service, or
fractions thereof, credited prior to July 1, 1974, previously
credited under the provisions of the retirement systems
consolidated pursuant to § 3-12-46;
(c) Any period of authorized leave of
absence or sick leave with pay for which deductions for member
contributions are made, deposited, and credited to the
fund;
(d) Any period of authorized leave of
absence or sick leave without pay or temporary layoff, during or
for which a member obtained credit by payments to the fund made in
lieu of salary deductions;
(e) Any period during which a member is on
an authorized leave of absence to enter military service, if the
member returns to public service upon discharge from military
service;
(f) Years of service, or fractions
thereof, by faculty and administrators employed by the board of
regents prior to April 1, 1964, credited pursuant to
§§ 3-12-69.4 and 3-12-69.5;
(g) Years of noncontributory service, or
fractions thereof, earned prior to July 1, 1967, but not credited
under the South Dakota public employee retirement system as it was
consolidated pursuant to § 3-12-46 because the person
earned the service prior to attaining the age of thirty. The
service shall be credited only to those persons who are
contributing members on July 1, 1987. No service may be credited
pursuant to this subsection to any member who has withdrawn the
member's accumulated contributions after July 1, 1967;
and
(h) Years of noncontributory service, or
fractions thereof, earned by a member from July 1, 1967, to June
30, 1974, inclusive, but not credited under the South Dakota public
employee retirement system because of the age and service
restrictions established under that system.
If the conditions described in
§ 3-12-122 occur and benefit reductions are necessary to
correct those conditions, the credited service granted by this
subdivision may be reduced or eliminated;
(25) "Deputy county sheriff," an employee
of a county that is a participating unit, appointed by the board of
county commissioners pursuant to §§ 7-12-9 and
7-12-10, who is a permanent full-time employee and whose position
is subject to the minimum educational and training standards
established by the law enforcement standards commission pursuant to
chapter 23-3. The term "deputy county sheriff," does not include
jailers or clerks appointed pursuant to §§ 7-12-9
and 7-12-10 unless the participating unit has requested that the
jailer be considered as a deputy county sheriff and the Board of
Trustees has approved the request;
(26) "Disability" or "disabled," any
medically determinable physical or mental impairment which prevents
a member from performing the member's usual duties for the member's
employer or the duties of other employment as outlined in
§ 3-12-141, and excludes any condition resulting from
willful, self-inflicted injury;
(27) "Effective rate of interest,"
interest at an annually compounded rate to be established by the
board for each fiscal year. The rate shall be no greater than
ninety percent of the average ninety-one day United States treasury
bill rate for the immediately preceding calendar year and in no
event may the rate be more than the rate established by the board
pursuant to § 3-12-121 for investment return for purposes
of the actuarial valuation. If a member withdraws contributions
pursuant to § 3-12-76, 3-12-76.1, or 3-12-77, or if
benefits are payable under § 3-12-110, the interest shall
be prorated on a monthly basis to the first of the month of the
withdrawal. With respect to amounts due the system under
§§ 3-12-69, 3-12-69.3, 3-12-80, 3-12-83 and 3-12-84,
the effective rate of interest shall be the rate established by the
board pursuant to § 3-12-121 for investment return for
purposes of the actuarial valuation;
(28) "Eligible retirement plan," the term
eligible retirement plan includes those plans described in section
402(c)(8)(B) of the Internal Revenue Code as in effect on January
1, 2002;
(29) "Eligible rollover distribution," any
distribution to a member of accumulated contributions pursuant to
§§ 3-12-76 and 3-12-76.1. The term does not include
any portion of a distribution that represents contributions made to
the system on an after tax basis nor distributions paid as a result
of the member reaching the required beginning date;
(30) "Employer," the State of South Dakota
and any department, bureau, board, or commission thereof, or any of
its governmental or political subdivisions or any public
corporation of the State of South Dakota which elects to become a
participating unit;
(31) "Employer contributions," amounts
contributed by the employer of a contributing member, excluding
member contributions made by an employer on or after July 1, 1984,
pursuant to § 3-12-71;
(32) Repealed by SL 2004, ch 41,
§ 6.
(32A) "Equivalent public service," any
public service other than as a justice, a judge, or a magistrate
judge and comparable to class B service as defined by this section,
if the service is in the employ of a public entity that is not a
participating unit;
(33) "Fiduciary," any person who exercises
any discretionary authority or control over the management of the
system or the management or disposition of its assets, renders
investment advice for a fee or other compensation, direct or
indirect, or has any authority or responsibility to do so, or has
any discretionary authority or responsibility in the administration
of the system;
(34) "Final average compensation," the
highest average annual compensation earned by a member during any
period of twelve consecutive calendar quarters during the member's
last forty calendar quarters of membership in the system including
time during which the
member was not a member but for which he has received credit
under the system. If the compensation received in the last calendar
quarter considered exceeds a set percentage of the amount in the
highest previous calendar quarter, or if the average compensation
received in the last four calendar quarters exceeds a set
percentage of the amount earned in the highest calendar quarter
prior to the last four calendar quarters considered, only the
lesser amount shall be considered and the excess shall be excluded
in the computation of final compensation. Those respective set
percentages are as follows:
(a) On or before June 30, 2004, one
hundred twenty-five percent and one hundred fifteen
percent;
(b) Between July 1, 2004, and June 30,
2005, one hundred fifteen and one hundred ten percent;
and
(c) On or after July 1, 2005, one hundred
five percent and one hundred five percent.
For purposes of determining final compensation periods for service
separated by breaks, the service may be aggregated to constitute a
period of twelve consecutive calendar quarters. The term calendar
quarter means a period of three calendar months ending March
thirty-first, June thirtieth, September thirtieth or December
thirty-first of any year;
(35) "Firemen," full-time municipal
firemen who work at least twenty hours a week and at least six
months a year. The term does not include volunteer municipal
firemen;
(36) "Full-time student," a person who is
in full-time attendance as a student at an educational institution,
as determined by the board in light of the standards and practices
of the institution involved, except that no individual shall be
considered a full-time student, if he is paid by his employer while
attending such an educational institution at the request of, or
pursuant to a requirement of, his employer;
(37) "Fund," public employees retirement
fund or funds established for the purposes of administration of
this chapter;
(38) "Funded ratio," the actuarial value
of assets divided by the actuarial accrued liability;
(39) "General employees," full-time
municipal employees who are not firemen or policemen;
(40) "Highest annual compensation," a
member's compensation used to calculate benefits under
§§ 3-12-95, 3-12-99 and 3-12-105 prior to July 1,
2004, which was the highest annual compensation earned by the
member during any one of the last three years of credited service
and which was not more than one hundred fifteen percent of the
member's final compensation calculated as of the date of the
member's death or disability;
(41) "Improvement factor," the annual
increase in the amount of the benefit allowance for each year
commencing on the July first following the date on which the
benefit was first payable and equal to three and one-tenth percent
compounded annually. If the first improvement is for a period of
less than twelve months, the initial improvement shall be an amount
equal to three and one-tenth percent prorated based on the number
of months that the benefit was payable, and subsequent improvements
shall be an amount equal to three and one-tenth
percent;
(42) "Law enforcement officer," an agent
of the state division of criminal investigation, an officer of the
South Dakota Highway Patrol, a municipal policeman, county sheriff,
deputy county sheriff, or a municipal fireman;
(42A) "Market value of assets," the total
assets of the system at fair market value;
(43) "Member," any person who is
participating in and has made contributions to the system. A person
is no longer a member if he withdraws his contributions at
termination of employment;
(44) "Member contributions," amounts
contributed by members, including member contributions made by an
employer on or after July 1, 1984, pursuant to
§ 3-12-71;
(44A) "Military service," a period of
active duty with the United States Army, the United States
Navy, the United States Air Force, the United States Marine
Corps, or the United States Coast Guard, from which duty the member
received an honorable discharge or an honorable release;
(45) "Municipality," any incorporated
municipal government under chapter 9-3 or any chartered
governmental unit under the provisions of Article IX of the
Constitution of the State of South Dakota;
(46) Repealed by SL 2004, ch 42,
§ 8.
(46A) "Normal cost," the expected
long-term cost of the system benefits and expenses expressed as a
percentage of payroll;
(47) "Normal retirement," the termination
of employment and application for benefits by a member with three
or more years of contributory service or noncontributory service as
delineated in subsections (b), (e), (g) and (h) of
§ 3-12-47(24) on or after the member's normal retirement
age;
(48) "Normal retirement age," age
sixty-five for Class A credited service and for Class B credited
service as a justice, judge and magistrate judge and age fifty-five
for other Class B credited service;
(49) "Other public benefits," eighty
percent of the primary insurance amount or primary social security
benefits that would be provided under federal social
security;
(49A) "Other public service," service for
the government of the United States, including military service;
service for the government of any state or political subdivision
thereof; service for any agency or instrumentality of any of the
foregoing; or service as an employee of an association of
government entities described in this subdivision;
(50) "Park rangers," employees of the
Department of Game, Fish and Parks within the Division of Parks and
Recreation and whose positions are subject to the requirements as
to education and training provided in chapter 23-3 and whose
primary duty is law enforcement in the state park
system;
(51) "Parole agent," employees of the
Department of Corrections employed pursuant to § 24-
15-14 who are actually involved in direct supervision of parolees
on a daily basis;
(52) "Participating unit," the State of
South Dakota and any department, bureau, board, or commission
thereof, and any of its political subdivisions or any public
corporation of the State of South Dakota which has employees who
are members of the retirement system created in this
chapter;
(53) "Penitentiary correctional staff,"
the warden, deputy warden, guards, correctional supervisors,
correctional officers and their immediate supervisors of the South
Dakota state penitentiary and any other classification of
penitentiary employees approved by the board of trustees. For
purposes of administration of this chapter final determination of
penitentiary correctional staff as Class B members shall be made by
the board of trustees;
(54) "Permanent full-time employee," those
employees who have been placed in a permanent classification who
are customarily employed by a participating unit for twenty hours
or more a week and at least six months a year. The participating
unit shall decide if an employee is a permanent full-time employee
and that decision is conclusive;
(54A) "Plan year," a period extending from
July first of one calendar year through June thirtieth of the
following calendar year;
(55) "Policemen," any employee in the
police department of any participating municipality holding the
rank of patrolman, including probationary patrolman, 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 "policemen"
does not include civilian employees of a police department nor any
person employed by a municipality whose services as a policeman
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 jailers
appointed pursuant to § 9-29-25 be considered policemen,
subject to the approval of the board;
(56) "Political subdivision" includes but
is not limited to municipalities, school districts, counties,
chartered governmental units, any public corporation or entity, and
any special districts created for any governmental
function;
(56A) "Present value of all benefits," the
present value of all benefits expected to be paid to all retired,
terminated, and active members and beneficiaries, based on past and
future credited service and future compensation
increases.
(57) "Present value of benefits earned to
date," the present value of the benefits currently being paid to
retired members and their beneficiaries and the present value of
benefits payable at retirement to active members, based on their
earnings and credited service to date of the actuarial
valuation;
(58) "Projected compensation," a deceased
or disabled member's final average compensation multiplied by the
improvement factor for the period elapsed between the date of the
member's death or disability, whichever occurred earlier, and the
date the member would attain normal retirement age;
(59) "Projected service," the credited
service plus the service which the member would have been credited
with at his normal retirement age had he continued in the system
and received credit at the same rate he was credited during the
year covered by the compensation that was used in the calculation
of the disability or family benefit;
(60) "Reduction age,"
(a) For Class A credited service, the age
at which the sum of the member's age and credited service equals
eighty-five. However, the reduction age may not be less than
fifty-five for Class A credited service;
(b) For Class B credited service as a
justice, judge, or magistrate judge, the age at which the sum of
the member's age and credited service equals eighty. The reduction
age may not be less than fifty-five for Class B credited service as
a justice, judge, or magistrate judge;
(c) For Class B credited service other
than as a justice, judge or magistrate judge, the age at which the
sum of the member's age and credited service equals seventy-five.
The reduction age for Class B credited service other than as a
justice, judge, or magistrate judge may not be less than
forty-five;
(61) "Required beginning date," the later
of April first of the calendar year following the calendar year in
which the member attains age seventy and one-half or April first of
the calendar year following the calendar year in which the member
retires;
(62) "Retiree," any member who retires
with an annuity payable from the system;
(63) "Retirement," the severance of a
member from the employ of a participating unit with a retirement
allowance payable from the system;
(64) "Retirement allowance," the benefits
that are payable upon the retirement of a member;
(65) "Spouse," a person who was married to
the member at the time of the death of the member and whose
marriage was both more than twelve months prior to the death of the
member and prior to his retirement;
(66) "State employees," employees of the
departments, bureaus, commissions, and boards of the State of South
Dakota;
(67) "System," the South Dakota Retirement
System created in this chapter;
(68) "Tax-qualifying purchase unit," any
participating unit which elects to allow the unit's employees to
purchase credited service on a tax-deferred basis by means of
employer contribution agreements as outlined in
§§ 3-12-83.1 and 3-12-83.2;
(69) "Teacher," any person who has a valid
teacher's certificate issued by the State of South Dakota, who is
in the employ of a public school district, and shall also include
the
certified teachers employed by the Human Services Center, South
Dakota Developmental Center--Redfield, State Penitentiary, Division
of Education Services and Resources, State Training School, School
for the Deaf, School for the Blind and the Visually Impaired,
Children's Care Hospital and School, public nonprofit special
education facilities, adjustment training centers certified by the
Department of Human Services and public financed multi-district
education programs;
(70) "Terminated," complete severance of
employment from public service of any member by resignation or
discharge, not including leave of absence, layoff, vacation leave,
sick leave, or jury duty, and involving all termination proceedings
routinely followed by the member's participating unit, including
payment to the member for unused vacation leave, payment to the
member for unused sick leave, payment to the member for severance
of an employment contract, severance of health insurance coverage,
severance of life insurance coverage, or severance of any other
such perquisite of employment granted by the member's participating
unit to an active employee;
(71) "Trustee," a member of the board of
trustees;
(72) "Unfunded actuarial accrued
liability," the actuarial accrued liability less the actuarial
value of assets;
(73) "Vested," the right to an annuity
payable at normal retirement age from the system after three years
of contributory service or noncontributory service as delineated in
subsections (b), (e), (g) and (h) of § 3-12-47(24), even
if the member leaves the employment of a participating unit,
provided that the member does not withdraw accumulated
contributions. A member who leaves the employment of a
participating unit is not entitled to benefits under
§§ 3-12-95, 3-12-98, 3-12-99, 3-12-104, and
3-12-105.
Disclaimer: These codes may not be the most recent version. South Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.