S.D. Codified Laws § 3-6C-12
A permanent employee, who has been continuously employed in a permanent position for at least seven years prior to the date of the employee's retirement, voluntary resignation, layoff, termination for inability to perform job functions due to physical disability, or death, shall receive payment for one-fourth of the unused sick leave which has accrued as of the employee's final day on payroll. The payment may not exceed the sum of four hundred eighty hours. Payment shall be made in a lump sum with the employee's last payroll warrant. An employee meeting the definition of a participant in subdivision 3-13A-2(7) shall have the lump-sum payment transmitted to the fund pursuant to the provisions of § 3-13A-5. However, if the employee dies, payment for the accumulated sick leave shall be paid in accordance with §§ 3-8-8 to 3-8-11, inclusive.
SDCL 3-6C-12