23.1172.01000
Sixty-eighth
Legislative Assembly HOUSE BILL NO. 1548
of North Dakota
Introduced by
Legislative Management
1 A BILL for an Act to amend and reenact sections 54-52-02.5, 54-52-02.9, 54-52-02.11,
2 54-52-02.12, 54-52-02.15, 54-52.2-09, 54-52.6-01, 54-52.6-02, 54-52.6-02.1, 54-52.6-02.2,
3 54-52.6-03, and 54-52.6-09 of the North Dakota Century Code, relating to the public employees
4 retirement system retirement plans; to provide an exemption; to provide a contingent effective
5 date; and to provide an effective date.
6 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
7 SECTION 1. AMENDMENT. Section 54-52-02.5 of the North Dakota Century Code is
8 amended and reenacted as follows:
9 54-52-02.5. Newly elected and appointed state officials. (Effective through
10 December 31, 20242023)
11 After December 31, 1999, a person elected or appointed to a state office for the first time
12 must, from and after the date that person qualifies and takes office, be a participating member
13 of the public employees retirement system unless that person makes an election at any time
14 during the first six months after the date the person takes office to participate in the retirement
15 plan established under chapter 54-52.6. As used in this section, the phrase "for the first time"
16 means a person appointed, who, after December 31, 1999, does not hold office as an
17 appointed official at the time of that person's appointment.
18 Newly elected and appointed state officials. (Effective after December 31, 20242023)
19 1. After December 31, 1999, but before January 1, 20252024, an individual elected or
20 appointed to a state office for the first time must, from and after the date that individual
21 qualifies and takes office, be a participating member of the public employees
22 retirement system unless that person makes an election at any time during the first six
23 months after the date the person takes office to participate in the defined contribution
24 retirement plan established under chapter 54-52.6.
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1 2. After December 31, 20242023, an individual elected or appointed to a state office for
2 the first time, from and after the date that individual qualifies and takes office, must be
3 a participating member of the defined contribution retirement plan established under
4 chapter 54-52.6, unless at the time of election or appointment the individual is a
5 participating or deferred member under this chapter, in which case the official remains
6 a participating member under this chapter.
7 3. As used in this section, the phrase "for the first time" means an individual appointed,
8 who, after December 31, 1999, does not hold office as an appointed official at the time
9 of that individual's appointment.
10 SECTION 2. AMENDMENT. Section 54-52-02.9 of the North Dakota Century Code is
11 amended and reenacted as follows:
12 54-52-02.9. Participation by temporary employees. (Effective through December 31,
13 20242023)
14 1. Within one hundred eighty days of beginning employment, a temporary employee may
15 elect to participate in the public employees retirement system and receive credit for
16 service after enrollment. Monthly, the temporary employee shall pay to the fund an
17 amount equal to eight and twelve hundredths percent times the temporary employee's
18 present monthly salary. The amount required to be paid by a temporary employee
19 increases by two percent times the temporary employee's present monthly salary
20 beginning with the monthly reporting period of January 2012, and with an additional
21 two percent increase, beginning with the reporting period of January 2013, and with an
22 additional increase of two percent, beginning with the monthly reporting period of
23 January 2014.
24 2. If the temporary employee first enrolled:
25 a. Before January 1, 2020, in addition the temporary employee shall pay the
26 required monthly contribution to the retiree health benefit fund established under
27 section 54-52.1-03.2. This contribution must be recorded as a member
28 contribution pursuant to section 54-52.1-03.2.
29 b. After December 31, 2019, the temporary employee shall pay to the fund an
30 additional amount equal to one and fourteen hundredths percent times the
31 temporary employee's present monthly salary.
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1 3. An employer may not pay the temporary employee's contributions. A temporary
2 employee may continue to participate as a temporary employee in the public
3 employees retirement system until termination of employment or reclassification of the
4 temporary employee as a permanent employee. A temporary employee may not
5 purchase any additional credit, including additional credit under section 54-52-17.4 or
6 past service under section 54-52-02.6.
7 Participation by temporary employees. (Effective after December 31, 20242023)
8 1. Before January 1, 20252024, within one hundred eighty days of beginning
9 employment, a temporary employee may elect to participate in the public employees
10 retirement system under this chapter and receive credit for service after enrollment.
11 Monthly, the temporary employee shall pay to the fund an amount equal to fourteen
12 and twelve hundredths percent times the temporary employee's present monthly
13 salary. The amount required to be paid by a temporary employee increases by one
14 percent times the temporary employee's present monthly salary beginning with the
15 monthly reporting period of January 20252024.
16 2. If the temporary employee first enrolled:
17 a. Before January 1, 2020, in addition the temporary employee shall pay the
18 required monthly contribution to the retiree health benefit fund established under
19 section 54-52.1-03.2. This contribution must be recorded as a member
20 contribution pursuant to section 54-52.1-03.2.
21 b. After December 31, 2019, the temporary employee shall pay to the fund an
22 additional amount equal to one and fourteen hundredths percent times the
23 temporary employee's present monthly salary.
24 3. A temporary employee who is a participating member under this chapter due to
25 employment before January 1, 20252024, who becomes a permanent employee after
26 December 31, 20242023, qualifies to participate in the defined benefit retirement plan
27 under this chapter and receive credit for service after enrollment.
28 4. After December 31, 20242023, and within one hundred eighty days of beginning
29 employment, a temporary employee may elect to participate in the defined contribution
30 retirement plan under chapter 54-52.6.
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1 5. An employer may not pay the temporary employee's contributions. A temporary
2 employee may continue to participate as a temporary employee in the public
3 employees retirement system until termination of employment or reclassification of the
4 temporary employee as a permanent employee. A temporary employee may not
5 purchase any additional credit, including additional credit under section 54-52-17.4 or
6 past service under section 54-52-02.6.
7 SECTION 3. AMENDMENT. Section 54-52-02.11 of the North Dakota Century Code is
8 amended and reenacted as follows:
9 54-52-02.11. Participation requirements for nonstate elected officials. (Effective
10 through December 31, 20242023)
11 Elected officials of participating counties, at their individual option, may enroll in the defined
12 benefit plan within the first six months of their term.
13 Participation requirements for nonstate elected officials. (Effective after
14 December 31, 20242023)
15 1. Before January 1, 20252024, eligible elected officials of participating counties, at their
16 individual option, may enroll in the defined benefit plan within the first six months of
17 their term.
18 2. After December 31, 20242023, eligible elected officials of participating counties, at
19 their individual option, may enroll in the defined contribution retirement plan under
20 chapter 54-52.6 within the first six months of their term.
21 SECTION 4. AMENDMENT. Section 54-52-02.12 of the North Dakota Century Code is
22 amended and reenacted as follows:
23 54-52-02.12. Participation requirements for nonstate appointed officials. (Effective
24 through December 31, 20242023)
25 Nonstate appointed officials of participating employers appointed on or after August 1,
26 1999, who meet the participation requirements of this chapter must be enrolled in the defined
27 benefit plan effective within the first month of taking office.
28 Participation requirements for nonstate appointed officials. (Effective after
29 December 31, 20242023)
30 1. Nonstate appointed officials of participating employers appointed on or after August 1,
31 1999, but before January 1, 20252024, who meet the participation requirements of this
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1 chapter must be enrolled in the defined benefit plan effective within the first month of
2 taking office.
3 2. After December 31, 20242023, nonstate appointed officials of participating employers
4 who meet the participation requirements must be enrolled in the defined contribution
5 retirement plan under chapter 54-52.6 effective within the first month of taking office.
6 SECTION 5. AMENDMENT. Section 54-52-02.15 of the North Dakota Century Code is
7 amended and reenacted as follows:
8 54-52-02.15. Public employees retirement system main plan - Closure to new hires -
9 Multiple plan membership. (Effective after December 31, 20242023)
10 1. Under this section "eligible employee" means a permanent employee who:
11 a. Meets all the eligibility requirements set by this chapter;
12 b. Is at least eighteen years of age;
13 c. Becomes a participating member after December 31, 20242023; and
14 d. Is not eligible to participate in the law enforcement plan, judges' plan, highway
15 patrol plan, teachers' fund for retirement plan, or alternative retirement program
16 established under section 15-10-17 for university system employees.
17 2. Effective January 1, 20252024, the public employees retirement system defined
18 benefit main plan maintained for employees is closed to new eligible employees.
19 However, an employee who becomes a participating or deferred member under this
20 chapter before January 1, 20252024, remains in the defined benefit retirement plan
21 under this chapter, regardless of being rehired after December 31, 20242023.
22 3. Except as otherwise provided under this section, effective January 1, 20252024, an
23 eligible employee who begins employment with an employer shall participate in the
24 defined contribution retirement plan under chapter 54-52.6 as provided under section
25 54-52.6-02.1.
26 4. This section does not impact an employee to the extent the employee is a participating
27 member in one or more of the following enumerated plans: law enforcement plan,
28 judges' plan, highway patrol plan, teachers' fund for retirement plan, or alternative
29 retirement program established under section 15-10-17 for university system
30 employees.
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1 a. A participating or deferred member in the defined contribution retirement plan
2 under chapter 54-52.6 who becomes eligible to participate in a plan enumerated
3 under this subsection is eligible to participate in the retirement plan enumerated
4 under this subsection.
5 b. A participating member of a retirement plan enumerated under this subsection
6 who becomes an eligible employee is not eligible to participate in the defined
7 benefit retirement plan under this chapter but instead participates in the defined
8 contribution retirement plan under chapter 54-52.6. However, this subdivision
9 does not apply to an individual who before January 1, 20252024, is a
10 participating or a deferred member under this chapter, as that individual
11 continues to participate in the defined benefit retirement plan under this chapter.
12 5. The board shall adopt rules to implement this section.
13 SECTION 6. AMENDMENT. Section 54-52.2-09 of the North Dakota Century Code is
14 amended and reenacted as follows:
15 54-52.2-09. Employer match for members of defined contribution retirement plan.
16 An employee who first participated in the defined contribution retirement plan under chapter
17 54-52.6 after December 31, 20242023, who elects to contribute less than the optional three
18 percent of wages or salary under subdivision b of subsection 1 of section 54-52.6-09, who
19 participates in the deferred compensation program under this chapter, qualifies for employer
20 matching of contributions made under this section. The employee may elect to contribute an
21 amount of wages or salary which does not exceed any remaining balance of the optional three
22 percent contribution and the employer shall match this contribution. This section does not limit
23 the ability of an employee to contribute unmatched wages or salary under this chapter, subject
24 to federal contribution limitations.
25 SECTION 7. AMENDMENT. Section 54-52.6-01 of the North Dakota Century Code is
26 amended and reenacted as follows:
27 54-52.6-01. Definition of terms. (Effective through December 31, 20242023)
28 As used in this chapter, unless the context otherwise requires:
29 1. "Board" means the public employees retirement system board.
30 2. "Deferred member" means a person who elected to receive deferred vested retirement
31 benefits under chapter 54-52.
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1 3. "Eligible employee" means a permanent state employee, except an employee of the
2 judicial branch or an employee of the board of higher education and state institutions
3 under the jurisdiction of the board, who is eighteen years or more of age and who is in
4 a position not classified by North Dakota human resource management services. If a
5 participating member loses permanent employee status and becomes a temporary
6 employee, the member may still participate in the defined contribution retirement plan.
7 4. "Employee" means any person employed by the state, whose compensation is paid
8 out of state funds, or funds controlled or administered by the state or paid by the
9 federal government through any of its executive or administrative officials.
10 5. "Employer" means the state of North Dakota.
11 6. "Participating member" means an eligible employee who elects to participate in the
12 defined contribution retirement plan established under this chapter.
13 7. "Permanent employee" means a state employee whose services are not limited in
14 duration and who is filling an approved and regularly funded position and is employed
15 twenty hours or more per week and at least five months each year.
16 8. "Wages" and "salaries" means earnings in eligible employment under this chapter
17 reported as salary on a federal income tax withholding statement plus any salary
18 reduction or salary deferral amounts under 26 U.S.C. 125, 401(k), 403(b), 414(h), or
19 457. "Salary" does not include fringe benefits such as payments for unused sick leave,
20 personal leave, vacation leave paid in a lump sum, overtime, housing allowances,
21 transportation expenses, early retirement, incentive pay, severance pay, medical
22 insurance, workforce safety and insurance benefits, disability insurance premiums or
23 benefits, or salary received by a member in lieu of previously employer-provided fringe
24 benefits under an agreement between an employee and a participating employer.
25 Bonuses may be considered as salary under this section if reported and annualized
26 pursuant to rules adopted by the board.
27 Definition of terms. (Effective after December 31, 20242023) As used in this chapter,
28 unless the context otherwise requires:
29 1. "Board" means the public employees retirement system board.
30 2. "Deferred member" means a person who elected to receive deferred vested retirement
31 benefits under chapter 54-52.