The amendment clarified and standardized the disability benefits process by requiring the executive director to issue formal written orders (rather than just notices) for all approval and denial decisions, and extended the termination notice period from thirty days to sixty days after an order is mailed, thereby STRENGTHENING protections for disabled members by giving them more time to respond to benefit terminations.
26.552.12 26.552.13 101st Legislative Session 52 2026 South Dakota Legislature Senate Bill 52 Introduced by: The Chair of the Committee on Retirement Laws at the request of the South Dakota Retirement System Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to clarify statutes governing the administration of disability benefits by the 1 South Dakota Retirement System. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 3-12C-816 be AMENDED: 4 3-12C-816. Upon receipt of an application for disability benefits after June 30, 5 2015, along with statements from a health care provider and the member's employer, the 6 executive director shall determine whether the member is eligible for disability benefits. 7 The executive director may request the advice of the disability advisory committee with 8 respect to any application. The recommendation of the disability advisory committee is 9 not binding on the executive director. The disability advisory committee or the executive 10 director may require an independent medical examination of the member to be conducted 11 by a disinterested health care provider selected by the disability advisory committee or 12 the executive director to evaluate the member's condition. The disability advisory 13 committee or the executive director may require a functional capacity assessment of the 14 member to be conducted by a licensed professional qualified to administer such an the 15 assessment. The assessment may be used to evaluate the member's qualification for 16 benefits. Refusal to undergo an examination or assessment pursuant to this section is 17 cause for denying the application. 18 If the executive director determines that the member is not disabled, a notice of 19 the executive director's determination and the reasons for the determination shall be sent 20 by certified mail to the member's last known addressThe The executive director shall issue an 21 order to approve or deny a member’s application for disability benefits, and shall mail the 22 order to the member's last known address by certified mail. 23 Section 2. That § 3-12C-817 be AMENDED: 24 26.552.12 2 52 Underscores indicate new language. Overstrikes indicate deleted language. 3-12C-817. If the executive director determines that the member whose 1 application was received pursuant to § 3-12C-816, meets the qualifications to receive 2 disability benefits, a notice of the executive director's determination shall be sent by 3 certified mail to the member's last known address. A member whose application for 4 disability benefits is approved shall receive the benefits beginning with the month following 5 the date on which the member's contributory service terminates. If any member fails to 6 terminate contributory service 26.552.13 2 52 SB52 ENROLLED within one year after receiving notice that the member's 7 application has been approved, the member's application approval expires. 8 Section 3. That § 3-12C-822 be AMENDED: 9 3-12C-822. A member's disability benefits terminate if the member is no longer 10 disabled, as certified by a health care provider. Upon receipt of certification, the executive 11 director shall determine whether the member meets the qualifications for disability 12 benefits. In making this determination the executive director shall follow the same 13 procedure used in making the initial determination of disability provided in § 3-12C-816. 14 A member's disability benefits shall must be suspended and subject to termination if the 15 member refuses to undergo an examination or assessment requested by the disability 16 advisory committee or the executive director. If the executive director finds that the 17 member no longer meets the qualifications for disability benefits, the executive director 18 shall notify the member of this finding by certified mail and the payment of disability 19 benefits shall terminate thirty days after receipt of the notice. The finding by the executive 20 director is subject to appeal and review as a contested case 21 If the executive director determines that the member no longer qualifies for 22 disability benefits, the executive director must issue an order to terminate the member's 23 benefits and send the order to the member's last known address through certified mail. 24 The member's benefits terminate sixty days after the date the order is mailed to the 25 member. 26 26.552.13 3 52 SB52 ENROLLED An Act to clarify statutes governing the administration of disability benefits by the South Dakota Retirement System. I certify that the attached Act originated in the: Senate as Bill No. 52 Secretary of the Senate President of the Senate Attest: Secretary of the Senate Speaker of the House Attest: Chief Clerk of the House Senate Bill No. 52 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State