This bill updates how the South Dakota Retirement System distributes benefits to beneficiaries when a participant dies, aligning the rules with changes made by federal retirement law passed in 2019 and 2022. For deaths after December 31, 2021, beneficiaries now have up to ten years to receive the full account balance (instead of potentially longer), though spouses and certain other "eligible" beneficiaries get more flexibility in how they receive their distributions. The bill also clarifies that for deaths before 2022, surviving spouses can take distributions over their lifetime while other beneficiaries must receive a lump sum within five years.
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The amendment makes technical corrections and clarifications to the retirement distribution rules, primarily by simplifying language (replacing "shall" with "must," changing tenses to past tense), streamlining references to the SECURE Act, and replacing outdated age references (age 70½) with a more flexible reference to "the applicable age, as provided in § 3-13-58"—which NARROWS the specificity of the original bill while making it more adaptable to future regulatory changes.
Signed by the Governor S.J. 266
Delivered to the Governor S.J. 259
Signed by the Speaker H.J. 300
Signed by the President S.J. 236
House of Representatives Do Pass Passed, YEAS 65, NAYS 0. H.J. 262
Retirement Laws Certified uncontested, placed on consent H.J. 1
Retirement Laws Do Pass Passed, YEAS 4, NAYS 0. H.J. 1
Retirement Laws Scheduled for hearing H.J. 1
House of Representatives Referred to House Retirement Laws H.J. 137
First Reading House H.J. 125
Senate Do Pass Passed, YEAS 34, NAYS 0. S.J. 83
Retirement Laws Certified uncontested, placed on consent S.J. 1
Retirement Laws Do Pass Passed, YEAS 5, NAYS 0. S.J. 1
Retirement Laws Scheduled for hearing
First read in Senate and referred to Senate Retirement Laws S.J. 14
Do Pass
Retirement Laws — Do Pass
Do Pass
Retirement Laws — Do Pass