CHAPTER 266

(SB 108)

Employer's contributions to certain insurance plans not deemed wages.

         ENTITLED, An Act to  revise certain provisions defining employer contributions that are not deemed to be wages.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 61-1-32 be amended to read as follows:

     61-1-32.   As used in this title, unless the context otherwise requires, the term , " wages " , does not include the amount of any payment with respect to services performed on behalf of an individual any person in its employ under a plan or system established by an employing unit which makes provision for individuals persons in its employ generally or for a class or classes of individuals persons including any amount paid by an employing unit for insurance on annuities, or into a fund, to provide for any payment on account of:

             (1)      Sickness or accident disability. However, in the case of payments made to an employee or any one of his the employee's dependents, this subdivision shall exclude excludes from " wages " only payments received under a worker's compensation law;

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             (2)      Medical or hospitalization expenses in connection with sickness or accident disability; or

             (3)      Death ; or

             (4)    Retirement or pension if the payment is made pursuant to a qualified plan as provided in 26 U.S.C. § §  401(k), 403b, 408(k) and 457 as of January 1, 2006 .

     Signed February 28, 2006

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