A Senate panel on Thursday unanimously endorsed slight
modifications and improvements to the South Dakota Retirement system, sending
the proposed package of laws to the full Senate for consideration. Senate
Retirement Laws approved three pieces of legislation – SB 29, SB 30 and SB 31 -
all of which were recommended by the administrators of the public pension plan.
Bill 29 allows the state retirement system to offer a Roth deferred
compensation plan within the supplemental retirement system. The option, made
possible by the federal Small Business Jobs Act, gives public employees a chance
to make additional contributions to their retirement with after-tax dollars.
retirement system income is taxed at the time of distribution. Individuals aren't taxed on benefits received from a Roth
because the individual paid taxes on the money before investing it in the Roth plan. In certain situations, funds
invested in Roth plans grow without taxes on gains or interest.
Lawmakers also endorsed SB 30,
a proposed law that will give system administrators the authority to develop an
alternative enhancement methodology to protect the long-term stability of the
system. Retirement system officials will develop the plan, but it couldn’t be
put into place without additional legislative approval.
The final bill, SB 31,
makes several style and form changes to a host of retirement system statutes by
cleaning up definitions, eliminating gender-specific terms and making other
ASBSD continues to monitor the legislation.