ND
North Dakota House Bill HB1040

North Dakota 2023-2024 Regular Session

North Dakota House Bill HB1040

Introduced
1/3/23  
Refer
1/3/23  
Report Pass
2/6/23  
Refer
2/7/23  
Report Pass
2/17/23  
Engrossed
3/3/23  
Refer
3/3/23  
Refer
4/4/23  
Report Pass
4/17/23  
Enrolled
4/26/23  

Caption

Public employees retirement system retirement plan contribution rates upon reaching full funding and balance transfer when opting to participate in the defined contribution plan; to provide for a legislative management study; to provide for a transfer; to provide for application; and to provide an effective date.

Impact

The changes introduced by HB 1040 aim to improve the financial sustainability of the public employees retirement system by reducing the unfunded liabilities associated with the defined benefit plan. The bill mandates the transfer of $135 million from the strategic investment fund to address current liabilities and funds ongoing contributions toward the public employees retirement system. Additionally, it provides for a legislative study to evaluate and recommend best practices for retirement plans, ensuring adaptability to future financial challenges.

Summary

House Bill 1040 proposes significant changes to the public employees retirement system in North Dakota, specifically related to the structure and rates of retirement plan contributions. The bill establishes a defined contribution retirement plan for new eligible employees starting January 1, 2025, and intends to close the existing defined benefit main plan to new hires. This shift represents a pivotal modification in how retirement benefits are managed and contributed to within the state's employees' retirement system.

Sentiment

Sentiment around HB 1040 is mixed, with proponents arguing that the transition to a defined contribution plan will offer greater flexibility and control for employees over their retirement savings. Supporters also believe this change will alleviate the financial burden on future public funds. Conversely, critics of the bill express concerns that it potentially diminishes retirement security for public employees by shifting the risk from the state to the individual, which may result in inadequate retirement savings for many workers.

Contention

A notable point of contention revolves around the implications of closing the defined benefit plan to new hires and the transition to a defined contribution system. Opponents worry that this shift undermines the long-term retirement benefits traditionally provided to public employees and could adversely affect recruitment and retention. The debate also touches on broader themes of public sector compensation and the responsibilities of the state to its employees in ensuring a secure retirement.

Latest HB1040 Activity

Companion Bills

No companion bills found.

Previously Filed As

ND HB1039

Public employees retirement system retirement plan contribution rates upon reaching full funding; to provide an appropriation; to provide for a transfer; to provide for application; and to provide an effective date.

ND HB1486

Public employees retirement system retirement plan contribution rates upon reaching full funding; to provide an appropriation; to provide for a transfer; to provide for application; and to provide an effective date.

ND SB2239

Public employees retirement system main system plan employer and employee contribution rates and participation in the public employees retirement system defined contribution plan; to provide an appropriation; to provide for application; and to provide an effective date.

ND HB1146

Employer eligibility to participate in the public employees retirement system defined contribution retirement plan, employer contribution requirements for the defined benefit and defined contribution retirement plans, and employee eligibility to elect to transfer to the defined contribution retirement plan; to provide for retroactive application; and to declare an emergency.

ND HB1548

The public employees retirement system retirement plans; to provide an exemption; to provide a contingent effective date; and to provide an effective date.

ND HB1602

Political subdivision participation in the public employees retirement system defined contribution retirement plan.

ND SB2015

A transfer of Bank of North Dakota profits to a water infrastructure revolving loan fund; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide a report; to provide a penalty; to provide for application; to provide a retroactive effective date; to provide a contingent effective date; to provide an effective date; and to declare an emergency.

ND HB1183

A public employees retirement system retirement plan for peace officers; and to provide for a legislative management study.

ND HB1419

The public employees retirement system public safety retirement plan.

ND HB1274

Membership of the public employees retirement system public safety retirement plan.

Similar Bills

ND HB1039

Public employees retirement system retirement plan contribution rates upon reaching full funding; to provide an appropriation; to provide for a transfer; to provide for application; and to provide an effective date.

ND HB1486

Public employees retirement system retirement plan contribution rates upon reaching full funding; to provide an appropriation; to provide for a transfer; to provide for application; and to provide an effective date.

ND HB1548

The public employees retirement system retirement plans; to provide an exemption; to provide a contingent effective date; and to provide an effective date.

ND HB1274

Membership of the public employees retirement system public safety retirement plan.

ND HB1419

The public employees retirement system public safety retirement plan.

ND SB2239

Public employees retirement system main system plan employer and employee contribution rates and participation in the public employees retirement system defined contribution plan; to provide an appropriation; to provide for application; and to provide an effective date.