The bill seeks to modernize the South Dakota Retirement System by amending various sections of existing law, particularly focusing on definitions, actuarial calculations, and the administration of benefits. Key amendments include the introduction of new definitions such as "air rescue firefighter," "campus security officer," and "emergency medical services personnel," which expand the categories of employees covered under the retirement system. The definition of "actuarial equivalent" is revised to be based on interest rates, mortality rates, and baseline cost-of-living adjustment (COLA) assumptions set by the board, enhancing the accuracy of benefit calculations. Additionally, the bill clarifies that compensation does not include certain allowances and establishes the process for filling vacancies on the Board of Trustees, as well as repayment options for members required to repay overpayments of benefits.

Further provisions address the rights of surviving spouses, the handling of errors in the system's records, and the administration of disability benefits. The bill mandates annual actuarial valuations to ensure the adequacy of contributions and specifies that any changes to actuarial assumptions must be certified as reasonable by an approved actuary. It also introduces new sections regarding deferred compensation plans, including automatic enrollment and escalation for participating employers, allowing for greater flexibility and accessibility for employees. Overall, the bill aims to enhance the clarity, efficiency, and compliance of the retirement system while protecting the rights of members and beneficiaries.

Statutes affected:
Introduced, 01/08/2025: 3-12C-101, 3-12C-102, 3-12C-104, 3-12C-105, 3-12C-106, 3-12C-107, 3-12C-108, 3-12C-109, 3-12C-110, 3-12C-111, 3-12C-112, 3-12C-203, 3-12C-207, 3-12C-209, 3-12C-214, 3-12C-226, 3-12C-227, 3-12C-308, 3-12C-310, 3-12C-402, 3-12C-403, 3-12C-407, 3-12C-502, 3-12C-503, 3-12C-504, 3-12C-514, 3-12C-518, 3-12C-519, 3-12C-603, 3-12C-702, 3-12C-703, 3-12C-711, 3-12C-804, 3-12C-808, 3-12C-809, 3-12C-901, 3-12C-1001, 3-12C-1106, 3-12C-1114, 3-12C-1403, 3-12C-1405, 3-12C-1606, 3-12C-1612, 3-12C-1624, 3-12C-1628, 3-12C-1633, 3-12C-1639, 3-12C-1645, 3-12C-1702, 3-12C-1705, 3-12C-1706, 3-12C-1801, 3-12C-1802, 3-12C-1808, 3-12C-1810, 3-13-55, 3-13-57, 3-13A-2
Enrolled, 02/10/2025: 3-12C-101, 3-12C-102, 3-12C-104, 3-12C-105, 3-12C-106, 3-12C-107, 3-12C-108, 3-12C-109, 3-12C-110, 3-12C-111, 3-12C-112, 3-12C-203, 3-12C-207, 3-12C-209, 3-12C-214, 3-12C-226, 3-12C-227, 3-12C-308, 3-12C-310, 3-12C-402, 3-12C-403, 3-12C-407, 3-12C-502, 3-12C-503, 3-12C-504, 3-12C-514, 3-12C-518, 3-12C-519, 3-12C-603, 3-12C-702, 3-12C-703, 3-12C-711, 3-12C-804, 3-12C-808, 3-12C-809, 3-12C-901, 3-12C-1001, 3-12C-1106, 3-12C-1114, 3-12C-1403, 3-12C-1405, 3-12C-1606, 3-12C-1612, 3-12C-1624, 3-12C-1628, 3-12C-1633, 3-12C-1639, 3-12C-1645, 3-12C-1702, 3-12C-1705, 3-12C-1706, 3-12C-1801, 3-12C-1802, 3-12C-1808, 3-12C-1810, 3-13-55, 3-13-57, 3-13A-2