FOR AN ACT ENTITLED, An Act to prorate a South Dakota Retirement System benefit recipient's initial annual improvement factor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section  1.  That subdivision (41) of § 3-12-47 be amended to read as follows:

             (41)      "Improvement factor," the annual increase in the amount of the benefit allowance for each year commencing on the July first that is at least twelve months following the date on which the benefit was first payable and equal to three and one-tenth percent compounded annually . If the first improvement is for a period of less than twelve months, the initial improvement shall be an amount equal to three and one-tenth percent prorated based on the number of months that the benefit was payable, and subsequent improvements shall be an amount equal to three and one-tenth percent ;

     Section  2.  That subdivision (59) of § 3-12-47 be amended to read as follows:

             (59)      "Projected compensation," the member's compensation that was used in the calculation of the disability or family benefit multiplied by the improvement factor for each complete twelve-month the period elapsed between the date of the member's death or disability, whichever occurred earlier, and the date he the member would

attain his normal retirement age;

     Section  3.  That § 3-12-75 be amended to read as follows:
     3-12-75.   A terminated member who has a vested right in the system may leave his the member's accumulated contributions on deposit with the system and receive a retirement allowance commencing at his the member's retirement. In calculating such allowance, the member's final compensation shall be increased by the improvement factor for each full fiscal year the period between his the member's last termination and the date on which his the member's retirement allowance commences.
     Section  4.  Application of the improvement factor as amended in section 1 of this Act shall applies only to the benefits which are first payable after July 1, 1998.