Retirement Laws

SB 54 allows South Dakota state employees aged 59.5 or older to withdraw money from their deferred compensation plan while still employed, without stopping future contributions. This new option, added to existing conditions like retirement, death, or emergencies, lets participants choose any permitted withdrawal method. It directly affects state workers enrolled in the deferred compensation plan who meet the age requirement. The bill does not change other distribution rules or eligibility for emergency withdrawals.

This bill clarifies the process for applying for and receiving disability benefits through the South Dakota Retirement System. It specifically amends three sections of state law to define how the executive director determines eligibility (requiring provider/employer statements, allowing medical exams, and specifying refusal leads to denial), when benefits begin (starting the month after service ends), and how benefits are terminated (requiring certification of non-disability, following the same review process as initial applications, and providing 30 days' notice before termination). The bill directly affects current and future South Dakota Retirement System members applying for or receiving disability benefits. It focuses on administrative clarity without changing eligibility criteria or benefit amounts.

SB 65 revises South Dakota Retirement System distribution rules for beneficiaries when a participant dies after December 31, 2021. It requires that if a participant dies before their entire account is distributed and has a designated beneficiary, the account must be paid out by the 10th anniversary of the death, or beneficiaries may choose lifetime payments based on their life expectancy. This applies directly to retirees' beneficiaries (including surviving spouses) who were not covered under the previous rules for deaths before 2022. The bill aligns South Dakota's rules with federal SECURE Act provisions, replacing the prior requirement for lump-sum payments within five years for non-spouse beneficiaries.

SB 50 updates a South Dakota statute to reference the correct year of the federal Internal Revenue Code (2026 instead of 2025) for administering the state's retirement system laws. It directly affects the South Dakota Retirement System's administrative processes by ensuring their statutes align with current federal tax law references. The bill makes a technical, non-substantive change to a legal citation - no new benefits, rules, or eligibility criteria are altered. It is purely procedural, requiring no action from retirees or employers.

SB 51 revises the process for individuals to contest decisions made by the South Dakota Retirement System. It changes the deadline for requesting a contested case hearing from 30 days to 60 days after receiving a decision, requiring written requests sent by certified mail to specify the contested portion and the alleged factual or legal error. The bill also clarifies that requests postmarked within 60 days count as timely received, and failure to meet this deadline bars court review. This directly affects retirees or beneficiaries who disagree with Retirement System determinations about their benefits. The changes streamline the appeal timeline and documentation requirements without altering benefit eligibility or amounts.