South Dakota 2026 Regular Session Status: Enacted

SB 65 — revise certain required minimum distribution provisions of the South Dakota Retirement System.

Last action — Signed by the Governor on 2026-02-17 S.J. 266

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 13, 2026. Enacted.

Signed by Governor Larry Rhoden (Republican) on February 17, 2026.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

195 added · 188 removed

195 line(s) added, 188 removed.

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26.555.19 101st Legislative Session 65 South Dakota Legislature Senate Bill 65 Introduced by:
26.555.20 101st Legislative Session 65 South Dakota Legislature Senate Bill 65 ENROLLED A N ACT ENTITLED An Act to revise certain required minimum distribution provisions of the South Dakota Retirement System.
The Chair of the Committee on Retirement Laws at the request of the South Dakota Retirement System An Act to revise certain required minimum distribution provisions of the South Dakota Retirement System.
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF S OUTH D AKOTA :
B E IT ENACTED BY THE LEGISLATURE OF THE S TATE OF SOUTH D AKOTA :
If a participant dies died on or before December 31, 2021, and before required distribution of the participant's benefits has begun commenced, the participant's interest shall must be distributed as follows:
If a participant died on or before December 31, 2021, and before required distribution of the participant's benefits commenced, the participant's interest must be distributed as follows:
(1) If the participant has a surviving spouse, the surviving spouse shall must receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the participant's death;
(1) If the participant has a surviving spouse, the surviving spouse must receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the participant's death;
or (2) If the participant has no surviving spouse, the participant's remaining interest shall must be distributed in a lump sum payment to the designated beneficiary within five years from the date of the participant's death.
or (2) If the participant has no surviving spouse, the participant's remaining interest must be distributed in a lump sum payment to the designated beneficiary within five years from the date of the participant's death.
Notwithstanding any contrary provisions, effective for any participant death after December 31, 2021, the following distribution provisions shall take effect are effective for any participant death after December 31, 2021, subject to any regulations or other guidance issued under the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, Pub.
Notwithstanding any contrary provisions, the following distribution provisions are effective for any participant death after December 31, 2021, subject to any regulations or other guidance issued under the Setting Every Community Up for Retirement Enhancement Act, Pub.
(1) If the participant dies before the distribution of his or her the participant's entire account (, regardless of whether any distributions had begun commenced before the participant's death), and the participant has a designated beneficiary:
(1) If the participant dies before the distribution of the participant's entire account, regardless of whether any distributions commenced before the participant's death, and the participant has a designated beneficiary:
Overstrikes indicate deleted language.
(a) The entire account must be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
26.555.19 2 65 (a) The entire account shall must be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
26.555.20 2 65 (b) Notwithstanding subsection (a), if the designated beneficiary is an eligible designated beneficiary, the eligible designated beneficiary may elect for the participant's account to be distributed by:
(b) Notwithstanding subsection (a), if the designated beneficiary is an eligible designated beneficiary, the eligible designated beneficiary may elect for the participant's account to be distributed by:
(i) December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
(i) December thirty-first of the calendar year containing the tenth anniversary of the participant's death,;
If the eligible designated beneficiary is the surviving spouse, payment under this subsection (b)(ii) paragraph is not required until the later of December thirty-first of the calendar year immediately following the calendar year in which the participant died or December thirty-first of the calendar year in which the participant would have attained age seventy and one-half (age seventy-two with respect to a participant who would have attained age seventy and one-half after December 31, 2019).
If the eligible designated beneficiary is the surviving spouse, payment under this paragraph is not required until the later of December thirty-first of the calendar year immediately following the calendar year in which the participant died or December thirty- first of the calendar year in which the participant would have attained the applicable age, as provided in § 3-13-58.
If the eligible designated beneficiary does not elect a method of distribution, the participant's account shall be distributed in accordance with this subsection (b)(ii);
the applicable age, as provided in § 3-13-58.
or (c) Upon either the death of an eligible designated beneficiary before distribution of the participant's entire account or the attainment of the age of majority for an eligible designated beneficiary who is a minor child under subsection (4)(b), subsection (1)(b) no longer applies and the remainder of the entire account shall must be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth Overstrikes indicate deleted language.
or (c) Upon either the death of an eligible designated beneficiary before distribution of the participant's entire account or the attainment of the age of majority for an eligible designated beneficiary who is a minor child under subsection (4)(b), subsection (1)(b) no longer applies and the remainder of the entire account must be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the eligible designated beneficiary's death or December thirty-first of the calendar year containing the tenth anniversary of the date the minor child reached the age of majority, respectively;
26.555.19 3 65 anniversary of the participant's death eligible designated beneficiary's death or December thirty-first of the calendar year containing the tenth anniversary of the date the minor child reached the age of majority, respectively;
(2) If the participant dies before distribution of the account begins and the participant has no designated beneficiary, the participant's account must be distributed by December thirty-first of the calendar year containing the fifth anniversary of the participant's death.
(2) If the participant dies before distributions of his or her distribution of the account begins and the participant has no designated beneficiary, the participant's account under the plan shall must be distributed by December thirty-first of the calendar year containing the fifth anniversary of the participant's death.
If the participant dies after distribution of the account begins and the participant has no designated beneficiary, any remaining portion of the SB65 ENROLLED 26.555.20 3 65 account must continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the participant's death;
If the participant dies after distribution of the account begins and the participant has no designated beneficiary, any remaining portion of the account shall must continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the participant's death;
(3) Any distribution required under the incidental death benefit requirements of Internal Revenue Code section 401(a) must be treated as distributions required under this section;
(3) Any distribution required under the incidental death benefit requirements of Internal Revenue Code section 401(a) shall must be treated as distributions required under this section;
and (4) For purposes of this section, "eligible designated beneficiary" means a designated beneficiary who, as of the date of the death of the participant, is:
and (4) For purposes of this section, the term, "eligible designated beneficiary," means a designated beneficiary who, as of the date of the death of the participant, is:
(b) A child of the participant, who has not reached the age of majority.
(b) A child of the participant, who has not reached the age of majority, provided that the child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority;
However, provided that the child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority;
(d) Chronically ill within the meaning of Internal Revenue Code section 7702B(c)(2) (, except that the requirements of subparagraph (A)(i) thereof may only be treated as met if there is a certification that, as of such the date of certification, the period of inability described in such the subparagraph with respect to the individual is an indefinite one which is and reasonably expected to be lengthy in nature);
(d) Chronically ill within the meaning of Internal Revenue Code section 7702B(c)(2), except that the requirements of subparagraph (A)(i) may only be treated as met if there is a certification that, as of the date of certification, the period of inability described in the subparagraph with respect to the individual is indefinite and reasonably expected to be lengthy in nature;
or (e) Any other person individual who is not more than ten years younger than the participant.
or (e) Any other individual who is not more than ten years younger than the participant.
If a participant dies died on or before December 31, 2021, and before required distribution of the participant's benefits has begun, the participant’s commenced, the participant's interest shall must be distributed as follows:
If a participant died on or before December 31, 2021, and before required distribution of the participant's benefits commenced, the participant's interest must be distributed as follows:
Overstrikes indicate deleted language.
(1) If the participant has a surviving spouse, the surviving spouse must receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the participant's death;
26.555.19 4 65 (1) If the participant has a surviving spouse, the surviving spouse shall must receive benefits over the life of the surviving spouse beginning as soon as administratively possible and effective the month after the participant's death;
or (2) If the participant has no surviving spouse, the participant's remaining interest must be distributed in a lump sum payment to the designated beneficiary within five years from the date of the participant's death.
or (2) If the participant has no surviving spouse, the participant's remaining interest shall must be distributed in a lump sum payment to the designated beneficiary within five years from the date of the participant's death.
Notwithstanding any contrary provisions, effective for any participant death after December 31, 2021, the following distribution provisions shall take effect are effective for any participant death after December 31, 2021, subject to any regulations or other guidance issued under the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, Pub.
Notwithstanding any contrary provisions, the following distribution provisions are effective for any participant death after December 31, 2021, subject to any SB65 ENROLLED 26.555.20 4 65 regulations or other guidance issued under the Setting Every Community Up for Retirement Enhancement Act, Pub.
(1) If the participant dies before the distribution of his or her the participant's entire account (, regardless of whether any distributions had begun commenced before the participant's death), and the participant has a designated beneficiary:
(1) If the participant dies before the distribution of the participant's entire account, regardless of whether any distributions commenced before the participant's death, and the participant has a designated beneficiary:
(a) The entire account shall must be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
(a) The entire account must be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
(i) December thirty-first of the calendar year containing the tenth anniversary of the participant's death,;
(i) December thirty-first of the calendar year containing the tenth anniversary of the participant's death;
If the eligible designated beneficiary is the surviving spouse, payment under this subsection (b)(ii) paragraph is not required until the later of December thirty-first of the calendar year immediately following the calendar year in which the participant died or December thirty-first of the calendar year in which the participant would have attained age seventy and one-half (age seventy-two Overstrikes indicate deleted language.
If the eligible designated beneficiary is the surviving spouse, payment under this paragraph is not required until the later of December thirty-first of the calendar year immediately following the calendar year in which the participant died or December thirty- first of the calendar year in which the participant would have attained the applicable age, as provided in § 3-13A-23.1.
26.555.19 5 65 with respect to a participant who would have attained age seventy and one-half after December 31, 2019).
If the eligible designated beneficiary does not elect a method of distribution, the participant's account shall be distributed in accordance with this subsection (b)(ii);
the applicable age, as provided in § 3-13A-23.1.
or (c) Upon either the death of an eligible designated beneficiary before distribution of the participant's entire account or the attainment of the age of majority for an eligible designated beneficiary who is a minor child under subsection (4)(b), subsection (1)(b) no longer applies and the remainder of the entire account shall must be distributed to the designated beneficiary by December thirty-first of the calendar year containing the tenth anniversary of the participant's death eligible designated beneficiary's death or December thirty-first of the calendar year containing the tenth anniversary of the date the minor child reached the age of majority, respectively;
or (c) Upon either the death of an eligible designated beneficiary before distribution of the participant's entire account or the attainment of the age of majority for an eligible designated beneficiary who is a minor child under subsection (4)(b), subsection (1)(b) no longer applies and the remainder of the entire account must be distributed to the designated beneficiary by SB65 ENROLLED 26.555.20 5 65 December thirty-first of the calendar year containing the tenth anniversary of the eligible designated beneficiary's death or December thirty-first of the calendar year containing the tenth anniversary of the date the minor child reached the age of majority, respectively;
(2) If the participant dies before distributions of his or her distribution of the account begins and the participant has no designated beneficiary, the participant's account under the plan shall must be distributed by December thirty-first of the calendar year containing the fifth anniversary of the participant's death.
(2) If the participant dies before distribution of the account begins and the participant has no designated beneficiary, the participant's account under the plan must be distributed by December thirty-first of the calendar year containing the fifth anniversary of the participant's death.
If the participant dies after distribution of the account begins and the participant has no designated beneficiary, any remaining portion of the account shall must continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the participant's death;
If the participant dies after distribution of the account begins and the participant has no designated beneficiary, any remaining portion of the account must continue to be distributed at least as rapidly as under the method of distribution in effect at the time of the participant's death;
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(3) Any distribution required under the incidental death benefit requirements of Internal Revenue Code section 401(a) shall must be treated as distributions required under this section;
(3) Any distribution required under the incidental death benefit requirements of Internal Revenue Code section 401(a) must be treated as distributions required under this section;
and (4) For purposes of this section, the term, "eligible designated beneficiary," means a designated beneficiary who, as of the date of the death of the participant, is:
and (4) For purposes of this section, "eligible designated beneficiary" means a designated beneficiary who, as of the date of the death of the participant, is:
Overstrikes indicate deleted language.
(b) A child of the participant, who has not reached the age of majority, provided that the child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority;
26.555.19 6 65 (b) A child of the participant, who has not reached the age of majority.
However, provided that the child ceases to be an eligible designated beneficiary as of the date the child reaches the age of majority;
(d) Chronically ill within the meaning of Internal Revenue Code section 7702B(c)(2) (, except that the requirements of subparagraph (A)(i) thereof may only be treated as met if there is a certification that, as of such the date of the certification, the period of inability described in such the subparagraph with respect to the individual is an indefinite one which is and reasonably expected to be lengthy in nature);
(d) Chronically ill within the meaning of Internal Revenue Code section 7702B(c)(2), except that the requirements of subparagraph (A)(i) may only be treated as met if there is a certification that, as of the date of the certification, the period of inability described in the subparagraph with respect to the individual is indefinite and reasonably expected to be lengthy in nature;
or (e) Any other person individual who is not more than ten years younger than the participant.
or (e) Any other individual who is not more than ten years younger than the participant.
Underscores indicate new language.
SB65 ENROLLED 26.555.20 6 65 An Act to revise certain required minimum distribution provisions of the South Dakota Retirement System.
Overstrikes indicate deleted language.
Received at this Executive Office I certify that the attached Act originated in this _____ day of _____________, the:
at ____________M.
Senate as Bill No.
65 By Secretary of the Senate for the Governor The attached Act is hereby approved this ________ day of President of the Senate ______________, A.D., 2026 Attest:
Governor Secretary of the Senate STATE OF SOUTH DAKOTA, ss.
Office of the Secretary of State Speaker of the House Filed ____________, 2026 Attest:
at _________ o'clock __M.
Chief Clerk of the House Secretary of State Senate Bill No.
65 By File No.
____ Asst.
Secretary of State Chapter No.
______ SB65 ENROLLED
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View plain text versions (2)
  • Enrolled View text Current pdf February 10, 2026
  • Introduced View text pdf January 07, 2026

Action History

  1. Signed by the Governor on 2026-02-17 S.J. 266

  2. Delivered to the Governor on 2026-02-12 S.J. 259

  3. Signed by the Speaker H.J. 300

  4. Signed by the President S.J. 236

  5. House of Representatives Do Pass , Passed, YEAS 65, NAYS 0 H.J. 262

  6. Certified uncontested, placed on consent , Passed, H.J. 1

  7. Retirement Laws Do Pass , Passed, YEAS 4, NAYS 0 H.J. 1

  8. Scheduled for hearing H.J. 1

  9. Referred to House Retirement Laws H.J. 137

  10. First Reading House H.J. 125

  11. Senate Do Pass , Passed, YEAS 34, NAYS 0 S.J. 83

  12. Certified uncontested, placed on consent , Passed, S.J. 1

  13. Retirement Laws Do Pass , Passed, YEAS 5, NAYS 0 S.J. 1

  14. Scheduled for hearing

  15. First read in Senate and referred to Senate Retirement Laws S.J. 14

Sponsors

  • Retirement Laws · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 104 not signed on

Sponsors (1)

  • Retirement Laws

Co-sponsors (0)

None.

Not signed on (104)

104 members have not signed on to this bill.

Show all 104 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

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Frequently asked questions

Who sponsors SB 65?
SB 65 is sponsored by Retirement Laws.
What is the current status of SB 65?
This bill has been enacted into law. Introduced January 13, 2026. Enacted.
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