This bill amends South Dakota's deferred compensation plan regulations, specifically section 3-13-78, to revise the conditions under which deferrals may be distributed. The bill introduces new conditions for in-service distributions, including the ability for participants who are at least fifty-nine and one-half years old to elect to receive an in-service distribution without affecting their ability to continue making deferrals. Additionally, it specifies that participants called to perform qualified military service for more than thirty days are also eligible for distribution.

The bill removes the previous condition that allowed for in-service distributions only under certain circumstances, replacing it with a broader framework that includes the new eligibility criteria. This change aims to provide 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