This bill amends the South Dakota Retirement System's required minimum distribution provisions, specifically addressing the distribution of benefits upon the death of a participant. For participants who died on or before December 31, 2021, the bill maintains that if there is a surviving spouse, they will receive benefits over their lifetime starting the month after the participant's death. If there is no surviving spouse, the remaining interest must be distributed in a lump sum to the designated beneficiary within five years of the participant's death.

For participants who die after December 31, 2021, the bill introduces new distribution rules that align with federal regulations under the Setting Every Community Up for Retirement Enhancement Act. It stipulates that if a participant dies before their entire account is distributed and has a designated beneficiary, the entire account must be distributed by the end of the tenth year following the participant's death. Eligible designated beneficiaries, such as surviving spouses or minor children, have the option to elect different distribution methods. The bill also clarifies the definitions of eligible designated beneficiaries and outlines the distribution requirements for cases where there is no designated beneficiary.

Statutes affected:
Introduced, 01/07/2026: 3-13-60, 3-13-62, 3-13A-23.3, 3-13A-23.5
Enrolled, 02/10/2026: 3-13-60, 3-13-62, 3-13A-23.3, 3-13A-23.5