Bill Summary – FastDemocracy

0092.01000
     Sixty-seventh
     Legislative Assembly                     SENATE BILL NO. 2044
     of North Dakota
     Introduced by
       Government and Veterans Affairs Committee
       (At the request of the Public Employees Retirement System)
  A BILL for an Act to amend and reenact section 39-03.1-10, subsection 2 of section
  39-03.1-11.2, subsection 8 of section 54-52-17, subsection 10 of section 54-52-26, subsection 2
  of section 54-52-28, subsection 2 of section 54-52.1-03.2, subsection 1 of section 54-52.1-03.3,
  and subsection 2 of section 54-52.6-21 of the North Dakota Century Code, relating to public
  employees retirement system unpaid benefit payments, missing member confidentiality
  requirements, compliance with Internal Revenue Code distribution requirements, insurance
  programs for which retiree health insurance credit moneys may be used, and clarification of
  eligibility for retiree health insurance credit payments.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
     SECTION 1. AMENDMENT. Section 39-03.1-10 of the North Dakota Century Code is
 amended and reenacted as follows:
     39-03.1-10. Contributions by the state.
     The state shall contribute to the fund a sum equal to sixteen and seventy-hundredths
 percent of the monthly salary or wage of a participating member. State contributions increase by
 one percent of the monthly salary or wage of a participating member beginning with the monthly
 reporting period of January 2012, and; with an additional increase of one percent, beginning
 with the reporting period of January 2013,; and with an additional increase of one percent,
 beginning with the monthly reporting period of January 2014. If the member's contribution is
 paid by the state under subsection 2 of section 39-03.1-09, the state shall contribute, in
 addition, an amount equal to the required member's contribution. The state shall pay the
 associated employer contribution for those members who elect to exercise their rights under
 subsection 3 of section 39-03.1-10.139-03.1-10.3.
     SECTION 2. AMENDMENT. Subsection 2 of section 39-03.1-11.2 of the North Dakota
 Century Code is amended and reenacted as follows:
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      2.   The minimum distribution rules under section 401(a)(9) of the Internal Revenue Code,
           including the incidental death benefit requirements under section 401(a)(9)(G), and the
           regulations issued under that provision to the extent applicable to governmental plans.
           Accordingly, benefits must be distributed or begin to be distributed no later than a
           member's required beginning date, and the required minimum distribution rules
           override any inconsistent provision of this chapter. AFor a member who attains age
           seventy and one-half before January 1, 2020, the member's required beginning date is
           April first of the calendar year following the later of the calendar year in which the
           member attains age seventy and one-half or terminates employment. For a member
          who attains age seventy and one-half after December 31, 2019, the member's
          required beginning date is April first of the calendar year following the later of the
          calendar year in which the member attains age seventy-two or terminates
          employment.
    SECTION 3. AMENDMENT. Subsection 8 of section 54-52-17 of the North Dakota Century
 Code is amended and reenacted as follows:
     8.   The surviving spouse of a member receiving retirement benefits must be the
          member's primary beneficiary unless there is no surviving spouse or the surviving
          spouse designates an alternate beneficiary in writing. If a member receiving retirement
          benefits or the member's surviving spouse receiving retirement benefits dies before
          the total amount of benefits paid to either or both equals the amount of the member's
          account balance at retirement, the difference must be paid to the named beneficiary of
          the recipient or, if there is no named beneficiary, to the recipient's estate. A benefit
          payment owed to the member, surviving spouse, or alternate beneficiary which was
          not paid before the death of the member, surviving spouse, or alternate beneficiary
          must be paid to the named beneficiary of the recipient or, if there is no named
          beneficiary, to the recipient's estate.
    SECTION 4. AMENDMENT. Subsection 10 of section 54-52-26 of the North Dakota
 Century Code is amended and reenacted as follows:
    10.   The general public, but only after the board has been unable to locate the member for
          a period in excess of two yearsone year, and limited to the member's name and the
          fact that the board has been unable to locate the member.
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     SECTION 5. AMENDMENT. Subsection 2 of section 54-52-28 of the North Dakota Century
  Code is amended and reenacted as follows:
      2.   The minimum distribution rules under section 401(a)(9) of the Internal Revenue Code,
           including the incidental death benefit requirements under section 401(a)(9)(G), and the
           regulations issued under that provision to the extent applicable to governmental plans.
           Accordingly, benefits must be distributed or begin to be distributed no later than a
           member's required beginning date, and the required minimum distribution rules
           override any inconsistent provision of this chapter. AFor a member who attains age
           seventy and one-half before January 1, 2020, the member's required beginning date is
          April first of the calendar year following the later of the calendar year in which the
          member attains age seventy and one-half or terminates employment. For a member
          who attains age seventy and one-half after December 31, 2019, the member's
          required beginning date is April first of the calendar year following the later of the
          calendar year in which the member attains age seventy-two or terminates
          employment.
    SECTION 6. AMENDMENT. Subsection 2 of section 54-52.1-03.2 of the North Dakota
 Century Code is amended and reenacted as follows:
     2.   All moneys deposited in the fund established under subsection 1, not otherwise
          appropriated, are hereby appropriated to the board for the purpose of making
          investments for the fund and to make contributions toward hospital and medical
          benefits coverage and prescription drug coverage under any health insurance program
          and for any dental, vision, and long-term care benefits coverage under the uniform
          groupany insurance program for eligible retired employees or surviving spouses of
          eligible retired employees and their dependents as elected.
    SECTION 7. AMENDMENT. Subsection 1 of section 54-52.1-03.3 of the North Dakota
 Century Code is amended and reenacted as follows:
     1.   The following individuals are entitled to receive credit for hospital benefits coverage,
          medical benefits coverage, and prescription drug coverage under any health insurance
          program and for any dental, vision, and long-term care benefits coverage under any
          insurance program:
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           a.   A member or surviving spouse receiving retirement benefits underof the highway
                patrolmen's retirement system is eligible for the credit beginning on the date
                retirement benefits are effective.
           b.   If the member first enrolled before January 1, 2020, a member or surviving
                spouse receiving retirement benefits underof the public employees retirement
                system is eligible for the credit beginning on the date retirement benefits are
                effective.
           c.   A member or surviving spouse receiving retirement benefits underof the
                retirement program established by job service North Dakota under section
               52-11-01 is eligible for the credit beginning on the date retirement benefits are
               effective.
          d.   A retired judge or surviving spouse receiving retirement benefits underof the
               retirement program established under chapter 27-17 is eligible for the credit
               beginning on the date retirement benefits are effective.
          e.   If the former participating member first enrolled before January 1, 2020, a former
               participating member of the defined contribution retirement plan receiving
               retirement benefits, or the surviving spouse of a former participating member of
               that retirement plan who was eligible to receive or was receiving benefits, under
               section 54-52.6-13, is eligible as determined by the board pursuant to the board's
               rules.
    SECTION 8. AMENDMENT. Subsection 2 of section 54-52.6-21 of the North Dakota
 Century Code is amended and reenacted as follows:
     2.   The minimum distribution rules under section 401(a)(9) of the Internal Revenue Code
          and the regulations issued under that provision to the extent applicable to
          governmental plans. Accordingly, benefits must be distributed or begin to be
          distributed no later than a member's required beginning date, and the required
          minimum distribution rules override any inconsistent provision of this chapter. AFor a
          member who attains age seventy and one-half before January 1, 2020, the member's
          required beginning date is April first of the calendar year following the later of the
          calendar year in which the member attains age seventy and one-half or terminates
          employment. For a member who attains age seventy and one-half after December 31,
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         2019, the member's required beginning date is April first of the calendar year following
         the later of the calendar year in which the member attains age seventy-two or
         terminates employment.
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Statutes affected: 
INTRODUCED: 39-03.1-10, 39-03.1-11.2, 54-52-17, 54-52-26, 54-52-28, 54-52.1-03.2, 54-52.1-03.3, 54-52.6-21
Enrollment: 39-03.1-10, 39-03.1-11.2, 54-52-17, 54-52-26, 54-52-28, 54-52.1-03.2, 54-52.1-03.3, 54-52.6-21
PREFILED: 39-03.1-10, 39-03.1-11.2, 54-52-17, 54-52-26, 54-52-28, 54-52.1-03.2, 54-52.1-03.3, 54-52.6-21