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.