SDCL § 3-6C-6: Vacation on retirement or resignation--Lump-sum payment option--Payment upon death.

An employee who retires or voluntarily resigns may terminate employment at the end of the employee's accrued vacation leave or receive a lump-sum payment for the unused vacation leave which has accrued as of the employee's final day on the payroll. An employee meeting the definition of a participant in subdivision 3-13A-2(7) shall have such lump-sum payment transmitted to the fund pursuant to the provisions of § 3-13A-5. However, if the employee dies, payment for the accumulated vacation leave shall be paid according to §§ 3-8-8 to 3-8-11, inclusive.