The Senate endorsed changes Wednesday that will make is much more difficult for school districts to hire employees who have ever retired from a public employer.

The body approved the measure on a 24-10 vote, giving it the two-thirds majority required for passage.

The legislation, filed as SB 18, creates a mandatory three-month "clean break" between retirement and employment and levees financial penalties against individuals who retire and return to work in the public sector.

Sen. Tom Nelson, R-Lead, introduced the legislation, calling it "necessary legislation" to provide for the stability of the state retirement system. The practice costs the fund $5.2 million annually and, as currently permitted in state law, risks IRS intervention and sanction, he said.

Not all lawmakers were willing to accept the recommendations of the South Dakota retirement system.

Sen. Gene Abdullah, R-Brandon, challenged the IRS’s interest in sanctioning the system, and made repeated calls for documentation to support Sen. Nelson’s claim.

Other lawmakers, led by Sen. Julie Bartling, D-Burke, tried to remove the waiting period and individual penalties. She urged her lawmakers to keep return-to-work provisions in place, arguing that the restrictions would rob school districts and other local government entities of qualified employees. Her amendment failed, gaining support from just 11 lawmakers.

The legislation now moves onto the House.