South Dakota § 3-13-55 - Definition of terms.

§ 3-13-55. Definition of terms.

The definitions contained in chapter 3-12C apply to this chapter unless the context clearly otherwise requires. Terms used in this chapter mean:

(1)    "Account," the record for each participant reflecting the amount of the participant's deferrals, allocated investment gains and losses, and administrative charges against those amounts;

(2)    "Accounting date," the date on which an investment is valued and the total investment return is allocated to a participant's account;

(3)    "Accumulated deferred compensation," compensation deferred by a participant in the plan, plus any investment return thereon;

(4)    "Automatic enrollee," an individual who becomes an employee of an automatic enrollment unit;

(5)    “Automatic enrollment unit," any unit of state or local government that participates in the system and whose leadership chooses to provide automatic enrollment to the unit's employees;

(6)    "Compensation," total cash remuneration paid to an employee by a participating employer for personal services rendered to the participating employer;

(7)    "Deferred compensation" or "deferrals," the portion of a participant's compensation deferred pursuant to this plan, including, pre-tax contributions, designated Roth contributions, or both;

(8)    "Dependent," a participant's qualifying child or a participant's qualifying relative, as defined in § 152 of the Internal Revenue Code;

(9)    "Designated Roth contributions," a participant's deferred compensation that is includable in the participant's gross income at the time deferred and has been irrevocably designated as Roth contributions by the participant in accordance with federal law;

(10)    "Employee," an individual providing services to this state or a political subdivision of this state, for which compensation is paid by a participating employer, including:

(a)    A member of the Legislature;

(b)    A member of a board or commission of this state or a political subdivision of this state;

(c)    An individual employed by an agency, board, or commission of this state or a political subdivision of this state; and

(d)    An individual furnishing services to this state or a political subdivision of this state pursuant to a contract as an independent contractor;

(11)    "Includible compensation," the compensation remaining after subtracting any pre-tax contributions under the plan;

(12)    "Normal retirement date," the date a participant is eligible to retire, pursuant to chapter 3-12C, without reduced benefits;

(13)    "Participant," an employee of a participating employer who elects to participate in the plan;

(14)    "Participation agreement," the written agreement between an employer and an employee under which compensation is deferred pursuant to this plan;

(15)    "Plan," the South Dakota deferred compensation plan as provided for in this chapter;

(16)    "Pre-tax contribution," a participant's deferred compensation, which is not includable in the participant's gross income at the time deferred;

(17)    "Plan year," a calendar year ending on December thirty-first;

(18)    "Severance from employment," the complete severance of a participant's employment relationship with a participating employer, as set forth in § 457(d)(1)(A) of the Internal Revenue Code;

(19)    "Third-party administrator," a person who, pursuant to contract, handles administration of the plan on behalf of the board and the executive director;

(20)    "Unforeseeable emergency," a severe financial hardship to a participant resulting from:

(a)    An illness or accident of the participant, a dependent of the participant, or a designated beneficiary of the participant;

(b)    The funeral expenses of a dependent of the participant or a designated beneficiary of the participant;

(c)    A severe loss of income that is beyond the control of the participant;

(d)    The loss of the participant's property due to casualty;

(e)    The imminent foreclosure or eviction from a participant's primary residence; or

(f)    Any other similar, extraordinary, and unforeseeable circumstance arising as a result of events beyond the control of the participant; and

(21)    "Vendor," a person selected by the state investment officer to provide investment or insurance products to the plan.

Source: SL 1987, ch 38, § 7; SL 2012, ch 26, § 14; SL 2025, ch 27, § 76.