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. It establishes that if a participant died on or before December 31, 2021, and before the required distribution of benefits commenced, the participant's interest must be distributed either to a surviving spouse over their lifetime or, if there is no surviving spouse, 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 outlines new distribution provisions that align with federal regulations under the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

The bill specifies that if a participant dies before the distribution of their entire account and has a designated beneficiary, the entire account must be distributed by December 31 of the year containing the tenth anniversary of the participant's death. It also introduces the concept of "eligible designated beneficiaries," who may have different distribution options, including the ability to take distributions over their lifetime. Additionally, the bill clarifies that if a participant dies without a designated beneficiary, the account must be distributed by December 31 of the fifth anniversary of the participant's death. Overall, the amendments aim to provide clearer guidelines for the distribution of retirement benefits in the event of a participant's death.

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