Bill > HB1602

This bill amends the North Dakota Century Code to modify rules for public employees' retirement plans, primarily focusing on changes to the Public Employees Retirement System (PERS) starting January 1, 2025. Specifically, the bill closes the defined benefit main plan to new eligible employees, who will instead be required to participate in the defined contribution retirement plan. An "eligible employee" is defined as a permanent employee who is at least 18 years old, becomes a participating member after December 31, 2024, and is not already covered by other specialized retirement plans like those for law enforcement, judges, or teachers. Importantly, the bill clarifies that political subdivisions are not required to participate in the defined contribution retirement plan, making such participation optional. The bill also prohibits the retirement board from assessing fees or costs against a political subdivision for withdrawing from the defined contribution retirement plan. Employees who were already participating or had deferred membership in the defined benefit plan before January 1, 2025, can continue to remain in that plan, even if they are rehired after that date. The bill aims to provide flexibility for political subdivisions while transitioning new employees to a defined contribution retirement plan.

Government Affairs, Military Affairs and Security

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1602.html