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
If enacted, House Bill 1039 would reshape the retirement landscape for public employees in North Dakota. By shifting new employees to a defined contribution plan, it reduces long-term financial risk to the state associated with unfunded pension liabilities. The bill also introduces an employer matching contribution feature for members of the defined contribution plan, enhancing the retirement security of employees while ensuring the financial integrity of the public retirement system. These changes are expected to align retirement benefits with the current economic context and workforce expectations.
Summary
House Bill 1039 proposes significant amendments to the North Dakota Century Code concerning the public employees retirement system. Central to the bill is the closure of the defined benefit main plan to new eligible employees effective January 1, 2024, mandating that new hires participate in the defined contribution retirement plan instead. This change is aimed at modernizing the retirement framework to reflect contemporary workforce dynamics and financial sustainability. The bill outlines new contribution rates and appropriates $250 million from the general fund to reduce the unfunded liability of the retirement system, establishing a pathway towards financial stability for the state's pension obligations.
Contention
Discussion surrounding House Bill 1039 has revealed both support and opposition among legislators and public employees. Proponents argue that transitioning to a defined contribution plan will better manage the financial risks of pension liabilities and adapt to changing employment patterns. However, critics express concern that this reform may diminish retirement security for future public employees compared to the traditionally more stable defined benefit plans. The debate reflects a broader tension between fiscal responsibility and the preservation of robust employee benefits in the public sector.
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.
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.
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.
The public employees retirement system retirement plans; to provide an exemption; to provide a contingent effective date; and to provide an effective date.
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.
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.
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.
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.
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.
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.
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.
The public employees retirement system retirement plans; to provide an exemption; to provide a contingent effective date; and to provide an effective date.
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.