The bill amends various sections of the North Dakota Century Code concerning the public employees retirement system, introducing significant changes to the definitions and eligibility criteria for retirement benefits. It redefines "temporary employee" to clarify that such employees are ineligible for permanent benefits and must not contribute to another employer-sponsored retirement fund. Additionally, it establishes that individuals must have been continuously employed by a governmental unit in North Dakota for at least two years to qualify for prior service benefits. The calculation of retirement benefits is also revised, particularly for those who terminate employment after December 31, 2019, with the final average salary determined by the higher of two calculations. New early retirement eligibility requirements are set for peace officers based on their hire date, and provisions for disability retirement and deferred vested benefits are introduced.

Further amendments address the distribution of account balances upon a member's death, including automatic refunds for members with less than three years of eligible employment and account balances under one thousand dollars, with specific conditions for judges and peace officers hired after July 31, 2023. The bill clarifies surviving spouses' options for payment forms and establishes rules for benefit distribution in accordance with the Internal Revenue Code. It also includes provisions for the participation of certain political subdivisions in the uniform group insurance program and specifies that deferred compensation contributions, excluding Roth contributions, are not taxable until distribution. Overall, the bill aims to streamline and clarify retirement benefit processes and account distributions within the public employees retirement system.

Statutes affected:
PREFILED: 54-52-01, 54-52-17, 54-52-28, 54-52.1-03.1, 54-52.2-06, 54-52.6-01, 54-52.6-02.2
Enrollment: 54-52-01, 54-52-17, 54-52-28, 54-52.1-03.1, 54-52.2-06, 54-52.6-01, 54-52.6-02.2
INTRODUCED: 54-52-01, 54-52-17, 54-52-28, 54-52.1-03.1, 54-52.2-06, 54-52.6-01, 54-52.6-02.2