North Dakota 2023-2024 Regular Session

North Dakota House Bill HB1486

Introduced
1/18/23  
Refer
1/18/23  
Report DNP
2/6/23  

Caption

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.

Impact

The bill modifies several sections of the North Dakota Century Code regarding contributions and the management of retirement funds. It mandates the state treasurer to transfer specific funds to tackle the unfunded liability, particularly emphasizing a transfer of $250 million from the general fund to the public employees retirement system. The management of funds and benefits will now require compliance with updated contribution rates based on actuarial studies, which will ensure more sustainable funding for retirees while protecting the benefits of current employees.

Summary

House Bill 1486 focuses on the structure and funding of North Dakota's public employees retirement system. One of the key provisions in the bill is the closure of the defined benefit main plan to new eligible employees effective January 1, 2025. Instead, new employees will join a defined contribution retirement plan, signaling a significant shift in how public employees will save for retirement in the future. The bill aims to address and reduce the unfunded liability within the existing retirement system, which has been a growing concern among lawmakers and constituents alike.

Contention

There is notable contention surrounding HB 1486, particularly regarding the implications of closing the defined benefit plan. Some lawmakers argue that this transition is necessary for fiscal sustainability, while opponents express concerns about the potential reduction in benefits for future employees. Critics argue that defined contribution plans do not guarantee the same level of retirement security as defined benefit plans, which may lead to instability for employees after they retire. Overall, the bill represents a fundamental change to public employee retirement benefits and the financial strategies of the state.

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 HB1040

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.

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 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 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 HB1547

The membership of the public employees retirement system board; to provide for duties of the public employees retirement system and public employees retirement system board; to provide for a transition; to provide an exemption; to provide for retroactive application; and to provide an effective date.

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 HB1575

Legacy fund definitions, the legacy earnings fund, and the primary residence credit; to provide an appropriation; to provide for a transfer; to provide an effective date; and to provide an expiration date.

ND SB2393

The state leave sharing program, capitol grounds rent collections, and the law enforcement retirement program; to provide for a transfer; to provide an exemption; to provide a report; to provide for a retroactive application; and to provide an effective date.

ND HB1379

The legacy sinking and interest fund and the legacy earnings fund; to provide an effective date; and to declare an emergency.

Similar Bills

ND HB1040

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.

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 HB1548

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

WV SB760

Modifying length of service for certain employees to obtain credit for retirement

VA SB1228

Line of Duty Act; campus police officers, contributing private institutions of higher education.

KS SB64

Adjusting certain internal KPERS act statutory references, extending the time for filing administrative appeals and updating provisions relating to compliance with the federal internal revenue code.

VA SB466

Line of Duty Act; benefits for campus and private police officers.

VA SB1142

Line of Duty Act; benefits for campus police and private police officers, definitions.