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.
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.
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.