FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the application of the special pay retirement program of the South Dakota Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That subdivision (8) of § 3-13A-2 be amended to read as follows:

            (8)    "Participant," a terminated employee of a participating unit who has reached the calendar month prior to the month of the member's employee's fifty-fifth birthday and who received six hundred dollars or more in special pay;

    Section 2. That subdivision (11) of § 3-13A-2 be amended to read as follows:

            (11)    "Special pay," compensation other than regular salary or wages granted to a member of the system participant and transferred in a lump-sum to the fund at the termination of the member's participant's employment;

    Section 3. That § 3-13A-5 be amended to read as follows:
    3-13A-5. Upon a participant's termination of employment, the participating unit shall transmit the gross amount of the participant's special pay to the fund. However, except to the extent permitted under § 414(v) of the code, if applicable, a contribution allocated to a member's

participant's account under the program may not exceed forty-one thousand dollars, as adjusted for increases in the cost-of-living pursuant to § 415(d) of the code, or one hundred percent of the participant's compensation, as identified in § 415(c)((3) of the code and § 1.415-2(d)(1) of the Code of Federal Regulations in effect on January 1, 2005, for the calendar year. For the purposes of the limitations under this section, all of the defined contribution plans of a participant's employer, whether terminated or current, shall be treated as a single defined contribution plan.