The bill amends several sections of the South Dakota Retirement System statutes to clarify the administration of disability benefits. Key changes include the process for determining eligibility for disability benefits, where the executive director will now issue an order to approve or deny applications, replacing the previous requirement to send a notice of determination. Additionally, the bill specifies that a functional capacity assessment must be conducted by a licensed professional, and refusal to undergo required examinations or assessments can lead to denial of the application or suspension of benefits.

Further amendments outline the process for terminating disability benefits if a member is no longer certified as disabled. The executive director is tasked with determining eligibility based on the same procedures used for initial determinations, and if benefits are to be terminated, an order must be issued and sent to the member's last known address. The termination of benefits will take effect sixty days after the order is mailed, ensuring that members are informed of their status and have a clear timeline for the cessation of benefits.

Statutes affected:
Introduced, 01/06/2026: 3-12C-816, 3-12C-817, 3-12C-822