The bill amends South Dakota law regarding the conditions under which deferrals from the deferred compensation plan can be distributed. Specifically, it adds a new condition allowing participants who are at least fifty-nine and one-half years old to elect to receive an in-service distribution, which is a change from the previous requirements. This new provision is included in a new section that states that such distributions can be made in any form permitted under existing law, and importantly, receiving this distribution does not prevent the participant from continuing to make deferrals into the plan.

Additionally, the bill retains the existing conditions for distribution, which include severance from employment, death of the participant, unforeseeable emergencies, and military service exceeding thirty days. The inclusion of the new in-service distribution option provides greater flexibility for older participants in managing their deferred compensation while still allowing them to contribute to the plan.

Statutes affected:
Introduced, 01/06/2026: 3-13-78
Enrolled, 02/10/2026: 3-13-78