Bill > SB65

This bill revises the rules for distributing retirement benefits from the South Dakota Retirement System when a participant dies. For deaths occurring on or before December 31, 2021, the existing rules will continue to apply, meaning a surviving spouse would receive benefits over their lifetime, or if there's no surviving spouse, the designated beneficiary would receive a lump sum within five years of the participant's death. However, for deaths occurring after December 31, 2021, the bill introduces new distribution provisions that align with federal laws like the Setting Every Community Up for Retirement Enhancement Act (SECURE Act). These new rules generally require the entire account to be distributed to a designated beneficiary by the end of the tenth year following the participant's death. Importantly, certain individuals, termed "eligible designated beneficiaries" (including surviving spouses, minor children, disabled individuals, chronically ill individuals, or those not more than ten years younger than the participant), have more flexible distribution options, potentially allowing benefits to be paid out over their lifetime or life expectancy, with specific provisions for surviving spouses to delay distributions. If there is no designated beneficiary, the account must be distributed within five years of the participant's death.

Labor and Employment

Retirement Laws (Senate)

https://sdlegislature.gov/#/Session/Bill/26854