North Dakota Senate Bill SB2239

North Dakota 2023-2024 Regular Session

• Introduced: 1/12/23
• Refer: 1/12/23
• Report Pass: 2/10/23
• Refer: 2/13/23
• Report Pass: 2/17/23
• Engrossed: 2/22/23
• Refer: 2/22/23
• Report DNP: 4/17/23

Caption

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.

Impact

The proposed amendments will have significant implications for the employee retirement landscape within North Dakota. By increasing both employee and employer contributions, the bill seeks to establish a more sustainable funding base and address current deficiencies in retirement benefits. The allocation of $250 million from the general fund for the purpose of reducing unfunded liabilities indicates a proactive approach by the state to enhance the financial health of the retirement system and secure benefits for public employees in the long term.

Summary

Senate Bill 2239 aims to amend the existing public employees retirement system by adjusting employer and employee contribution rates, as well as facilitating participation in a defined contribution retirement plan. The bill proposes an annual increase in contribution rates for both temporary and permanent employees, which is designed to enhance the overall funding structure of the retirement system. Furthermore, it includes provisions for an appropriation intended to reduce the unfunded liability of the public employees retirement system, addressing longstanding concerns about the financial stability of the fund.

Sentiment

The discussions surrounding SB 2239 reflect a mixed sentiment. Supporters argue that bolstering the retirement fund through increased contributions is essential for protecting the retirement security of public employees. They see the bill as a necessary step toward modernizing the retirement framework, ensuring it remains viable for future beneficiaries. Conversely, critics express concerns over the financial burden that increased employee contributions may impose, suggesting that this could present challenges for public employees already facing economic pressures.

Contention

Notable points of contention revolve around the adequacy of the retirement benefits provided and the implications for employees. Some legislators are concerned that the increase in contribution rates may deter potential public-sector workers from entering the workforce, while others fear it may not adequately resolve the underlying issues of the unfunded liabilities. Additionally, the bill's implementation timeline, particularly the phased contributions set to begin in January 2024, raises questions regarding the immediate effectiveness and adjustment period for current and future employees.