Terms used in this chapter mean: (1) "Actuarial accrued liability," the present value of all benefits less the present value of future normal cost contributions; (2) "Actuarial experience analysis," a periodic report that reviews basic experience data and furnishes actuarial analysis that substantiates the assumptions adopted for the purpose of making an actuarial valuation of the system; (3) "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 that takes into account the census data of all active members, vested terminated members, retired members, and their beneficiaries under the system; (4) "Actuarial value of assets," equal to the fair value of assets; (5) "Actuarially determined contribution rate," the fixed, statutory contribution rate, no less than the normal cost rate with expenses assuming the minimum COLA, and no greater than the normal cost rate with expenses assuming the maximum COLA; (6) "Air rescue firefighter," an employee of the Department of the Military who is stationed at Joe Foss Field, Sioux Falls, and who is directly involved in firefighting activities on a daily basis; (7) "Approved actuary," any actuary who is a member of the American Academy of Actuaries or an associate or a fellow of the Society of Actuaries who meets the qualification standards of the American Academy of Actuaries to issue actuarial opinions regarding the system, or any firm retaining the actuary on the firm's staff, and who is appointed by the board to perform actuarial services; (8) "Assumed rate of return," the actuarial assumption adopted by the board pursuant to § 3-12C-227 , as the annual assumed percentage return on trust fund assets, compounded; (9) "Beneficiary," the person designated by a member of the system to receive any payments after the death of the member; (10) "Benefits," the amounts paid to a member, spouse, child, or beneficiary as a result of the provisions of this chapter; (11) "Board," the Board of Trustees of the South Dakota Retirement System; (12) "Calendar quarter," a period of three calendar months ending March thirty-first, June thirtieth, September thirtieth, or December thirty-first of any year; (13) "Campus security officer," an employee of the Board of Regents whose position is subject to the minimal educational training standards established by the Law Enforcement Officers Standards Commission, pursuant to chapter 23-3 , who satisfactorily completes the training required by chapter 23-3 , within one year of employment, and whose primary duty as a sworn law enforcement officer is to preserve the safety of the students, faculty, staff, visitors, and the property of the 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) "Certified school employee," any employee of a participating unit who is required to have a certificate, as defined in § 13-42-1 ; (15) "Class A credited service," service credited as a Class A member of the system; (16) "Class A member," any member other than a Class B member or a Class C member and is either a foundation member or a generational member. A member is a Class A member until proof is supplied to the executive director that a member is a Class B member; (17) "Class B credited service," service credited as a Class B member of the system; (18) "Class B judicial member," any Class B member who is a justice, judge, or magistrate judge; (19) "Class B member," a member who is a justice, judge, state law enforcement officer, magistrate judge, police officer, firefighter, county sheriff, deputy county sheriff, correctional security staff, parole agent, air rescue firefighter, emergency medical services personnel, campus security officer, court services officer, juvenile corrections agent, gaming enforcement agent, conservation officer, or park ranger, and is either a foundation member or a generational member; (20) "Class B public safety member," any Class B member other than a justice, judge, or magistrate judge; (21) "Class C credited service," service credited as a Class C member of the system; (22) "Class C member," any member of the cement plant retirement plan including any retiree or any vested member; (23) "Class D credited service," service credited as a Class D member of the system; (24) "Class D member," any member who was a member of the Department of Labor and Regulation employees' retirement plan as of June 30, 2020; (25) "Classified employee," an employee: (a) Of a public school district who is not required by law to be a certified school employee; (b) Of a college or university under the control of the Board of Regents who is not a faculty member or an administrator and comes within the provisions of chapter 3-6D ; (c) Of a public corporation; (d) Of a chartered governmental unit; or (e) Who participates in the system and is not provided for elsewhere in this chapter; (26) "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; (27) "Conservation officer," an employee of the Department of Game, Fish and Parks and the Division of Wildlife or Division of Custer State Park who is employed pursuant to § 41-2-11 and whose position is subject to the requirements as to education and training provided for in chapter 23-3 ; (28) "Consumer price index," the consumer price index for urban wage earners and clerical workers calculated by the United States Bureau of Labor Statistics; (29) "Contributory service," service to a participating unit during which contributions were made to a South Dakota Retirement System, which may not include years of credited service as provided for in § 3-12C-509 or 3-12C-511 ; (30) "Correctional security staff," the warden, deputy warden, and any other correctional staff holding a security position, as verified by the Department of Corrections and approved by the Bureau of Human Resources and Administration and the Bureau of Finance and Management, and determined by the board as Class B members; (31) "Court services officer," an individual appointed pursuant to § 26-7A-8 ; (32) "Covered employment," a member's employment as a full-time employee of a participating unit; (33) "Deputy county sheriff," an individual who is: (a) An employee of a county that is a participating unit; (b) Appointed by the board of county commissioners, pursuant to §§ 7-12-9 and 7-12-10 ; and (c) Subject to the minimum educational and training standards established by the Law Enforcement Officers Standards Commission, pursuant to chapter 23-3 . The term 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 has approved the request; (34) "Disability advisory committee," a committee composed of: (a) The secretary of the Department of Human Services or the secretary's designee; (b) An attorney appointed by the executive director; and (c) A physician appointed by the executive director; (35) "Effective date of retirement," the first day of the month in which a retirement benefit is payable; (36) "Eligible retirement plan," a plan described in section 402(c)(8)(B) of the Internal Revenue Code; (37) "Eligible rollover distribution," any distribution to a member of accumulated contributions pursuant to § 3-12C-602 . 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; (38) “Emergency medical services personnel,” an individual who is licensed by the State Board of Medical and Osteopathic Examiners in accordance with chapter 36-4B and actively practices emergency medical services; (39) "Employer," this state and any department, bureau, board, or commission of this state, any political subdivision of this state, or any public corporation of this state that elects to become a participating unit; (40) "Employer contribution," an amount contributed by the employer of a contributing member, excluding any member contribution made by an employer after June 30, 1984, pursuant to § 3-12C-401 ; (41) "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; (42) "Executive director," the executive director of the South Dakota Retirement System; (43) "Fair value of assets," the total assets of the system at fair market value for securities traded on exchanges; for securities not traded on exchanges, a value based on similar securities; and for alternative investments, reported net asset value; (44) "Fair value funded ratio," the fair value of assets divided by the actuarial accrued liability; (45) "Fiduciary," any person who: (a) Exercises any discretionary authority or control over the management of the system or the management or disposition of the system's assets; (b) Renders investment advice for a fee or other compensation, direct or indirect, or has any authority or responsibility to do so; or (c) Has any discretionary authority or responsibility in the administration of the system; (46) "Foundation member," any member of the system whose contributory service began before July 1, 2017; (47) "Firefighter," any full-time firefighter who works at least twenty hours a week and at least six months a year. The term does not include any volunteer firefighter; (48) "Full-time employee," any employee who is considered full-time by the participating unit and is customarily employed by the participating unit for twenty hours or more a week and at least six months a year, regardless of classification of employment as seasonal, temporary, leased, contract, or any other designation; (49) "Fund," public employees' retirement fund or funds established for the administration of this chapter; (50) "Gaming enforcement agent," any employee of the South Dakota Commission on Gaming who is appointed pursuant to § 42-7B-56 and who must, as a condition of employment, be law enforcement certified; (51) "Generational member," any member of the system whose contributory service began after June 30, 2017; (52) "Health care provider," a physician or other health care practitioner licensed, registered, certified, or otherwise authorized by law to provide specified health services; (53) "Juvenile corrections agent," a designee of the secretary of corrections charged with the care, custody, and control of juveniles committed to the Department of Corrections until the age of twenty-one, or a person who is charged with the care, custody, and control of juveniles at a juvenile corrections facility under the control of a participating unit; (54) "Law enforcement officer," any agent of the Division of Criminal Investigation, officer of the South Dakota Highway Patrol, police officer, county sheriff, or deputy county sheriff; (55) "Member," any individual who is contributing or has made contributions to the system and is either a foundation member or generational member. An individual's membership ceases when the individual withdraws the individual's accumulated contributions after termination of employment; (56) "Member contribution," any amount contributed by a member, including any member contribution made by an employer after June 30, 1984, pursuant to § 3-12C-401 ; (57) "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; (58) "Municipality," any incorporated municipal government under chapter 9-3 , or any chartered governmental unit, as provided for in S.D. Const., Art. IX; (59) "Noncontributory service," for any foundation member, service delineated in subdivisions 3-12C-502 (2), (5), (7), and (8), and for any generational member, service pursuant to § 3-12C-514 ; (60) "Normal cost," the expected long-term cost of the system benefits and expenses expressed as a percentage of payroll; (61) "Normal retirement," the termination of employment and application for benefits by a member with three or more years of contributory service or noncontributory service on or after the member's normal retirement age; (62) "Other public benefits," eighty percent of the primary insurance amount or primary social security benefits that would be provided under federal social security; (63) "Other public service," service: (a) For the government of the United States, including military service; (b) For the government of any state or political subdivision thereof; (c) For any agency or instrumentality of the government of the United States or the government of a state or political subdivision; or (d) As an employee of an association of government entities described in this subdivision; (64) "Park ranger," an employee of the Department of Game, Fish and Parks within the Division of Parks and Recreation and whose position is subject to the requirements as to education and training provided for in chapter 23-3 , and whose primary duty is law enforcement in the state park system; (65) "Parole agent," an employee of the Department of Corrections employed pursuant to § 24-15-14 , who directly supervises parolees on a daily basis; (66) "Participating unit," this state, any department, bureau, board, or commission of this state, and any political subdivision or public corporation of this state that has employees who are members of the system; (67) "Plan year," a period extending from July first of one calendar year through June thirtieth of the following calendar year; (68) "Police officer," any employee in the police department of any participating municipality, holding the rank of patrol officer or probationary patrol officer, or holding a 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 does not include a civilian employee of a police department nor any individual employed by a municipality whose services as a police officer require less than twenty hours a week and six months a year. If a municipality that is a participating unit operates a city jail, the participating unit may request that any jailer appointed pursuant to § 9-29-25 be considered a police officer, subject to the approval of the board; (69) "Political subdivision," any municipality, school district, county, chartered governmental unit, public corporation or entity, and special district created for any governmental function; (70) "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; (71) "Projected compensation," a deceased or disabled member's final average compensation multiplied by the COLA commencing each July first for each complete twelve-month 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 or the benefit commences, whichever occurred earlier; (72) "Projected service," the credited service plus the service that the member would have been credited with at normal retirement age had the member continued in the system and received credit at the same rate the member was credited during the year covered by the compensation that was used in the calculation of the disability or family benefit; (73) "Qualified military service," service in the uniformed services, as defined in § 414(u)(5) of the Internal Revenue Code; (74) "Retiree," any foundation or generational member who retires with a lifetime benefit payable from the system; (75) "Retirement," the severance of a member from the employ of a participating unit with a retirement benefit payable from the system; (76) "Retirement benefit," the monthly amount payable upon the retirement of a member; (77) "Single premium," the lump-sum amount paid by a supplemental pension participant pursuant to a supplemental pension contract in consideration for a supplemental pension benefit; (78) "Social investment," investment, divestment, or prohibition of investment of the assets of the system for purposes other than maximum risk-adjusted investment return, which other purposes include ideological purposes, environmental purposes, political purposes, religious purposes, or purposes of local or regional economic development; (79) "State employee," an employee of any board, bureau, commission, or department of this state; (80) "Supplemental pension benefit," any single-premium immediate pension benefit payable pursuant to §§ 3-12C-1504 and 3-12C-1505 ; (81) "Supplemental pension contract," any agreement between a participant and the system upon which a supplemental pension is based, including the amount of the single premium, the type of pension benefit, and the monthly supplemental pension payment amount; (82) "Supplemental pension contract record," the record of: (a) Each supplemental pension participant reflecting relevant participant data; (b) A designation of any beneficiary, if any; (c) The amount of the participant's funds rolled into the fund; (d) The provisions of the participant's supplemental pension contract; and (e) Any supplemental pension payments made pursuant to the contract; (83) "Supplemental pension participant," any 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 who chooses to purchase a supplemental pension benefit pursuant to the provisions of this chapter. For purposes of this chapter, "participant" means the same meaning as "supplemental pension participant"; (84) "Supplemental pension spouse," any individual who was married to a supplemental pension participant at the time the participant entered into the supplemental pension contract; (85) "System," the South Dakota Retirement System created in this chapter; (86) "Trustee," a member of the Board of Trustees; and (87) "Unfunded actuarial accrued liability," the actuarial accrued liability less the actuarial value of assets.
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