April 10, 1975
Mr. Al A. Asher, Administrator
Public Employees Insurance System
Public Employees Retirement System
222 East Capitol
Pierre, South Dakota 57501
OFFICIAL OPINION NO. 75-65
Interpretation of SDCL 3-12A-13
Dear Mr. Asher:
You have requested an official opinion from this office as to the proper interpretation of SDCL 3-12A-13. You state that the difficulty you have with the statute is how the words "shall be enrolled on the first day of the second month following employment" should be interpreted.
SDCL 3-12A-13 provides:
All eligible employees who are employed after the insurance plan becomes effective shall become enrolled on the first day of the second month following employment.
Your request is based on the following factual situation:
(a) Employee A is hired on July 8, 1974
(b) Effective date of insurance coverage is September 1, 1974 (first day of the second month following employment)
(c) Deduct date-August 2, 1974
(d) The first premium was withheld from employee A's pay check for the pay period ending August 9, 1974 which check was actually paid to employee A on August 20, 1974.
(e) The second premium was withheld for the pay period ending August 23, 1974, which check was actually paid to employee A on September 3, 1974.
Based on this factual situation you ask:
Question 1: A dependent of employee A was confined to a hospital from 8/22/74 to 8/30/74. Given the facts outlined for employee A, is the Public Employees' Insurance System required to pay the incurred claim?
Question 2: If the answer to Question 1 is yes, at what specific point in time is the Public Employees' Insurance System on the risk for new hires?
The answer to your first question is YES. SDCL 3-12A-13 provides that the effective date of coverage shall be on the first day of the second month following employment. SDCL 2-14-2 provides that:
Terms used throughout the code of laws enacted by §2-16-13, unless the context otherwise plainly requires, shall mean: (13) "month," a calendar month;
The term "calendar month" has been defined by numerous cases as being a period of time from any day of the month to the corresponding day, if any, of the next month, if there is no corresponding day in the next month, then the last day of that next month marks the termination of the "calendar month." Application of Ruan Transport Corp. of Neb., 79 N.W. 2d 575, 577, 163 Neb. 319, Daniel v. Ormand, 163 So 361, 26 Ala. App. 441.
Applying this standard to the fact situation you present, the first month following employment was from July 8, 1974, to August 8, 1974. On August 9, 1974, employee A was beginning the second month following employment and as such was covered under the provisions of SDCL 3-12A-13.
The answer to your second question should be apparent from the above discussion. New employees are covered under SDCL 3-12A-13 on the first day of the second "calendar month" following employment.
Respectfully submitted,
WILLIAM J. JANKLOW
ATTORNEY GENERAL
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