For purposes of this section, the term, compensation year, means each separate, mutually exclusive period of four consecutive calendar quarters considered in the computation of final average compensation. The earliest compensation year is the earliest four consecutive calendar quarters considered in the computation of final average compensation, and each subsequent compensation year is the subsequent period of four consecutive calendar quarters beginning after the earliest compensation year and continuing with each compensation year thereafter.

For any foundation member whose contributory service concluded after June 30, 2020, compensation is limited as follows:

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(1) Compensation in the earliest compensation year is limited to one hundred five percent of the highest compensation received for any prior four-consecutive-calendar-quarter period during the member’s last forty calendar quarters of membership in the system, including time during which the member was not a member but for which the member has received credit under the system; and

(2) Compensation for each subsequent compensation year is limited to one hundred five percent of the highest compensation considered for any prior compensation year, but the amount may not be less than the limit applied in subdivision (1).

Compensation in excess of the limited amount may not be included in the computation of final average compensation but is payable pursuant to § 3-12C-713.

If the earliest compensation year includes one or more quarters from the earliest four consecutive calendar quarters in the member’s last forty quarters of membership in the system, that compensation year may not be limited.

Compensation in the last calendar quarter considered in the computation of final average compensation is limited to one hundred five percent of the highest compensation considered for any prior calendar quarter during the member’s last forty calendar quarters of membership in the system.

The final average compensation of any foundation member whose contributory service concluded before July 1, 2022, may not be less than the member’s final average compensation computed as of June 30, 2017.

Source: SL 2017, ch 29, § 4; SDCL § 3-12-89.10; SL 2019, ch 22, § 1.