The bill amends several sections of the North Dakota Century Code concerning the public employees retirement system, introducing a more precise definition of "temporary employee" to clarify that these individuals are ineligible for permanent employee benefits and must be at least eighteen years old while not contributing to another employer-sponsored retirement fund. It also revises the eligibility criteria for prior service benefits, requiring individuals to have been continuously employed by a governmental unit in North Dakota for a minimum of two years before qualifying for retirement. Additionally, the bill alters the calculation of retirement benefits, particularly for peace officers and judges, and establishes new early retirement eligibility criteria based on service length, specifically for peace officers hired after July 31, 2023.

Moreover, the bill addresses the distribution of account balances upon a member's death or termination of employment, allowing surviving spouses to choose from various payment options if they are the designated beneficiary. It mandates that any remaining account balance, if benefits paid do not equal the member's account balance, must be paid to the named beneficiary or the member's estate if no beneficiary is designated. The legislation also introduces automatic refunds for members with less than three years of eligible employment, updates minimum distribution rules to comply with the Internal Revenue Code, and clarifies definitions related to "wages" and "salaries," as well as eligibility criteria for participation in the retirement system.

Statutes affected:
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
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
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