North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1274 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	HOUSE BILL NO. 1274
4		-	(Representatives Porter, Dockter, Heinert, Satrom, Schauer, Karls)
5		-	(Senators Cleary, Roers, Axtman, Dever)
6		-	AN ACT to amend and reenact sections 54-52-01, 54-52-02.15, 54-52-06.4, and 54-52-17 of the North
7		-	Dakota Century Code, relating to membership of the public employees retirement system public
8		-	safety retirement plan.
	1	+	25.0040.02001
	2	+	Title.03000
	3	+	Adopted by the Senate State and Local
	4	+	Government Committee
	5	+	Sixty-ninth
	6	+	March 21, 2025
	7	+	Legislative Assembly
	8	+	of North Dakota
	9	+	Introduced by
	10	+	Representatives Porter, Dockter, Heinert, Satrom, Schauer, Karls
	11	+	Senators Cleary, Roers, Axtman, Dever
	12	+	A BILL for an Act to amend and reenact sections 54-52-01, 54-52-02.15, 54-52-06.4, and
	13	+	54-52-17 of the North Dakota Century Code, relating to membership of the public employees
	14	+	retirement system public safety retirement plan.
9	15		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
10		-	SECTION 1. AMENDMENT. Section 54-52-01 of the North Dakota Century Code is ~~amended and~~
11		-	reenacted as follows:
	16	+	SECTION 1. AMENDMENT. Section 54-52-01 of the North Dakota Century Code is
	17	+	amended and reenacted as follows:
12	18		54-52-01. Definition of terms.
13	19		As used in this chapter, unless the context otherwise requires:
14		-	1."Account balance" means the total contributions made by the employee, vested employer
15		-	contributions under section 54-52-11.1, the vested portion of the vesting fund as of June 30,
16		-	1977, and interest credited thereon at the rate established by the board.
17		-	2."Beneficiary" means any person in receipt of a benefit provided by this plan or any person
18		-	designated by a participating member to receive benefits.
19		-	3."Correctional officer" means a participating member who is employed as a correctional officer
20		-	by a political subdivisiongovernmental unit and, notwithstanding subsection 14, for an
21		-	individual employed on or after the effective date of this Act, is employed at least thirty - two
22		-	hours per week and at least twenty weeks each year of employment. A correctional officer who
23		-	is a participating member of the public safety retirement plan created by this chapter who
24		-	begins employment on or after the effective date of this Act is ineligible to participate
25		-	concurrently in any other retirement plan administered by the public employees retirement
26		-	system. The term includes an individual employed by a correctional facility as defined in
27		-	section 12 - 44.1 - 01, who is enrolled in, but has not yet completed, a correctional officer course
28		-	approved or certified by the North Dakota department of corrections and rehabilitation.
29		-	4."Deferred member" means a participating member who is not actively participating in the main
30		-	plan under this chapter and who has an account intact in the main plan under this chapter.
31		-	5."Eligible employee", except as otherwise provided under section 54-52-02.15, means a
32		-	permanent employee who meets all of the eligibility requirements set by this chapter and who
33		-	is eighteen years or more of age. The term includes appointive and elective officials under
34		-	sections 54-52-02.5, 54-52-02.11, and 54-52-02.12, and nonteaching employees of the
35		-	superintendent of public instruction, including the superintendent of public instruction, who
36		-	elect to transfer from the teachers' fund for retirement to the public employees retirement
37		-	system under section 54-52-02.13, and employees of the state board for career and technical
38		-	education who elect to transfer from the teachers' fund for retirement to the public employees
39		-	retirement system under section 54-52-02.14. The term does not include nonclassified state
40		-	employees who elected under section 54-52.6-02 to become members of the retirement plan
41		-	established under chapter 54-52.6. The term does include employees of the judicial branch
42		-	and employees of the board of higher education and state institutions under the jurisdiction of
43		-	the board of higher education.
44		-	6."Employee" means any individual employed by a governmental unit, whose compensation is
45		-	paid out of the governmental unit's funds, or funds controlled or administered by a H. B. NO. 1274 - PAGE 2
46		-	governmental unit, or paid by the federal government through any of its executive or
47		-	administrative officials; licensed employees of a school district means those employees
48		-	eligible to participate in the teachers' fund for retirement who, except under subsection 2 of
49		-	section 54-52-17.2, are not eligible employees under this chapter.
	20	+	1."Account balance" means the total contributions made by the employee, vested
	21	+	employer contributions under section 54-52-11.1, the vested portion of the vesting
	22	+	fund as of June 30, 1977, and interest credited thereon at the rate established by the
	23	+	board.
	24	+	2."Beneficiary" means any person in receipt of a benefit provided by this plan or any
	25	+	person designated by a participating member to receive benefits.
	26	+	3."Correctional officer" means a participating member who is employed as a correctional
	27	+	officer by a political subdivisiongovernmental unit and, notwithstanding subsection 14,
	28	+	for an individual employed on or after the effective date of this Act, is employed at
	29	+	least thirty - two hours per week and at least twenty weeks each year of employment. A
	30	+	correctional officer who is a participating member of the public safety retirement plan
	31	+	created by this chapter who begins employment on or after the effective date of this
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	33	+	ENGROSSED HOUSE BILL NO. 1274
	34	+	FIRST ENGROSSMENT
	35	+	PROPOSED AMENDMENTS TO
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	57	+	Act is ineligible to participate concurrently in any other retirement plan administered by
	58	+	the public employees retirement system . The term includes an individual employed by
	59	+	a correctional facility as defined in section 12 - 44.1 - 01, who is enrolled in, but has not
	60	+	yet completed, a correctional officer course approved or certified by the North Dakota
	61	+	department of corrections and rehabilitation.
	62	+	4."Deferred member" means a participating member who is not actively participating in
	63	+	the main plan under this chapter and who has an account intact in the main plan under
	64	+	this chapter.
	65	+	5."Eligible employee", except as otherwise provided under section 54-52-02.15, means
	66	+	a permanent employee who meets all of the eligibility requirements set by this chapter
	67	+	and who is eighteen years or more of age. The term includes appointive and elective
	68	+	officials under sections 54-52-02.5, 54-52-02.11, and 54-52-02.12, and nonteaching
	69	+	employees of the superintendent of public instruction, including the superintendent of
	70	+	public instruction, who elect to transfer from the teachers' fund for retirement to the
	71	+	public employees retirement system under section 54-52-02.13, and employees of the
	72	+	state board for career and technical education who elect to transfer from the teachers'
	73	+	fund for retirement to the public employees retirement system under section
	74	+	54-52-02.14. The term does not include nonclassified state employees who elected
	75	+	under section 54-52.6-02 to become members of the retirement plan established
	76	+	under chapter 54-52.6. The term does include employees of the judicial branch and
	77	+	employees of the board of higher education and state institutions under the jurisdiction
	78	+	of the board of higher education.
	79	+	6."Employee" means any individual employed by a governmental unit, whose
	80	+	compensation is paid out of the governmental unit's funds, or funds controlled or
	81	+	administered by a governmental unit, or paid by the federal government through any of
	82	+	its executive or administrative officials; licensed employees of a school district means
	83	+	those employees eligible to participate in the teachers' fund for retirement who, except
	84	+	under subsection 2 of section 54-52-17.2, are not eligible employees under this
	85	+	chapter.
50	86		7."Employer" means a governmental unit.
51		-	8."Firefighter" means a participating member who is employed as a firefighter by a political
52		-	subdivision and, notwithstanding subsection 13, for an individual employed after July 31,
53		-	2017, is employed at least thirty-two hours per week and at least twenty weeks each year of
54		-	employment. A firefighter who is a participating member of the law enforcementpublic safety
55		-	retirement plan created by this chapter who begins employment after July 31, 2017, is
56		-	ineligible to participate concurrently in any other retirement plan administered by the public
57		-	employees retirement system. The term does not include a firefighter employee of the North
58		-	Dakota national guard.
59		-	9."Funding agent" or "agents" means an investment firm, trust bank, or other financial institution
60		-	which the retirement board may select to hold and invest the employers' and members'
61		-	contributions.
62		-	10."Governmental unit" means the state of North Dakota, except the highway patrol for members
63		-	of the retirement plan created under chapter 39-03.1, or a participating political subdivision of
64		-	the state.
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	119	+	8."Firefighter" means a participating member who is employed as a firefighter by a
	120	+	political subdivision and, notwithstanding subsection 13, for an individual employed
	121	+	after July 31, 2017, is employed at least thirty-two hours per week and at least twenty
	122	+	weeks each year of employment. A firefighter who is a participating member of the law
	123	+	enforcementpublic safety retirement plan created by this chapter who begins
	124	+	employment after July 31, 2017, is ineligible to participate concurrently in any other
	125	+	retirement plan administered by the public employees retirement system. The term
	126	+	does not include a firefighter employee of the North Dakota national guard.
	127	+	9."Funding agent" or "agents" means an investment firm, trust bank, or other financial
	128	+	institution which the retirement board may select to hold and invest the employers' and
	129	+	members' contributions.
	130	+	10."Governmental unit" means the state of North Dakota, except the highway patrol for
	131	+	members of the retirement plan created under chapter 39-03.1, or a participating
	132	+	political subdivision of the state.
65	133		11."National guard security officer or firefighter" means a participating member who is:
66	134		a.A security police employee of the North Dakota national guard; or
67	135		b.A firefighter employee of the North Dakota national guard.
68		-	12."Participating member" means an eligible employee who through payment into the plan has
69		-	established a claim against the plan.
70		-	13."Peace officer" means a participating member who is a peace officer as defined in section
71		-	12-63-01 and is employed as a peace officer by the state, except by the highway patrol for
72		-	members of the retirement plan created under chapter 39-03.1, or is employed by a political
73		-	subdivision and, notwithstanding subsection 14, for persons employed after August 1, 2005, is
74		-	employed thirty-two hours or more per week and at least twenty weeks each year of
75		-	employment. A peace officer who is a participating member of the law enforcementpublic
76		-	safety retirement plan created by this chapter who begins employment after August 1, 2005, is
77		-	ineligible to participate concurrently in any other retirement plan administered by the public
78		-	employees retirement system.
79		-	14."Permanent employee" means an employee whose services are not limited in duration and
80		-	who is filling an approved and regularly funded position in an eligible governmental unit, and is
81		-	employed twenty hours or more per week and at least twenty weeks each year of
82		-	employment.
	136	+	12."Participating member" means an eligible employee who through payment into the
	137	+	plan has established a claim against the plan.
	138	+	13."Peace officer" means a participating member who is a peace officer as defined in
	139	+	section 12-63-01 and is employed as a peace officer by the state, except by the
	140	+	highway patrol for members of the retirement plan created under chapter 39-03.1, or is
	141	+	employed by a political subdivision and, notwithstanding subsection 14, for persons
	142	+	employed after August 1, 2005, is employed thirty-two hours or more per week and at
	143	+	least twenty weeks each year of employment. A peace officer who is a participating
	144	+	member of the law enforcementpublic safety retirement plan created by this chapter
	145	+	who begins employment after August 1, 2005, is ineligible to participate concurrently in
	146	+	any other retirement plan administered by the public employees retirement system.
	147	+	14."Permanent employee" means an employee whose services are not limited in duration
	148	+	and who is filling an approved and regularly funded position in an eligible
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	181	+	governmental unit, and is employed twenty hours or more per week and at least
	182	+	twenty weeks each year of employment.
83	183		15."Prior service" means service or employment before July 1, 1966.
84		-	16."Prior service credit" means such credit toward a retirement benefit as the retirement board
85		-	may determine under the provisions of this chapter.
86		-	17."Public employees retirement system" means the retirement plan and program established by
87		-	this chapter.
88		-	18."Retirement" means the acceptance of a retirement allowance under this chapter upon either
89		-	termination of employment or termination of participation in the retirement plan. H. B. NO. 1274 - PAGE 3
90		-	19."Retirement board" or "board" means the governing authority created under section 54-52-03.
91		-	20."Seasonal employee" means a participating member who does not work twelve months a
92		-	year.
	184	+	16."Prior service credit" means such credit toward a retirement benefit as the retirement
	185	+	board may determine under the provisions of this chapter.
	186	+	17."Public employees retirement system" means the retirement plan and program
	187	+	established by this chapter.
	188	+	18."Retirement" means the acceptance of a retirement allowance under this chapter upon
	189	+	either termination of employment or termination of participation in the retirement plan.
	190	+	19."Retirement board" or "board" means the governing authority created under section
	191	+	54-52-03.
	192	+	20."Seasonal employee" means a participating member who does not work twelve
	193	+	months a year.
93	194		21."Service" means employment on or after July 1, 1966.
94		-	22."Service benefit" means the credit toward retirement benefits as determined by the retirement
95		-	board under the provisions of this chapter.
96		-	23."Temporary employee" means an employee who is not eligible to participate as a permanent
97		-	employee, who is at least eighteen years old and not actively contributing to another
98		-	employer-sponsored pension fund, and, if employed by a school district, occupies a
99		-	noncertified teacher's position.
100		-	24."Wages" and "salaries" means the member's earnings in eligible employment under this
101		-	chapter reported as salary on the member's federal income tax withholding statements plus
102		-	any salary reduction or salary deferral amounts under 26 U.S.C. 125, 401(k), 403(b), 414(h),
103		-	or 457. "Salary" does not include fringe benefits such as payments for unused sick leave,
104		-	personal leave, vacation leave paid in a lump sum, overtime, housing allowances,
105		-	transportation expenses, early retirement incentive pay, severance pay, medical insurance,
106		-	workforce safety and insurance benefits, disability insurance premiums or benefits, or salary
107		-	received by a member in lieu of previously employer-provided fringe benefits under an
108		-	agreement between the member and participating employer. Bonuses may be considered as
109		-	salary under this section if reported and annualized pursuant to rules adopted by the board.
110		-	SECTION 2. AMENDMENT. Section 54-52-02.15 of the North Dakota Century Code is amended
111		-	and reenacted as follows:
112		-	54-52-02.15. Public employees retirement system main plan - Closure to new hires - Multiple
113		-	plan membership.
	195	+	22."Service benefit" means the credit toward retirement benefits as determined by the
	196	+	retirement board under the provisions of this chapter.
	197	+	23."Temporary employee" means an employee who is not eligible to participate as a
	198	+	permanent employee, who is at least eighteen years old and not actively contributing
	199	+	to another employer-sponsored pension fund, and, if employed by a school district,
	200	+	occupies a noncertified teacher's position.
	201	+	24."Wages" and "salaries" means the member's earnings in eligible employment under
	202	+	this chapter reported as salary on the member's federal income tax withholding
	203	+	statements plus any salary reduction or salary deferral amounts under 26 U.S.C. 125,
	204	+	401(k), 403(b), 414(h), or 457. "Salary" does not include fringe benefits such as
	205	+	payments for unused sick leave, personal leave, vacation leave paid in a lump sum,
	206	+	overtime, housing allowances, transportation expenses, early retirement incentive pay,
	207	+	severance pay, medical insurance, workforce safety and insurance benefits, disability
	208	+	insurance premiums or benefits, or salary received by a member in lieu of previously
	209	+	employer-provided fringe benefits under an agreement between the member and
	210	+	participating employer. Bonuses may be considered as salary under this section if
	211	+	reported and annualized pursuant to rules adopted by the board.
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	245	+	SECTION 2. AMENDMENT. Section 54-52-02.15 of the North Dakota Century Code is
	246	+	amended and reenacted as follows:
	247	+	54-52-02.15. Public employees retirement system main plan - Closure to new hires -
	248	+	Multiple plan membership.
114	249		1.Under this section "eligible employee" means a permanent employee who:
115	250		a.Meets all the eligibility requirements set by this chapter;
116	251		b.Is at least eighteen years of age;
117	252		c.Becomes a participating member after December 31, 2024; and
118	253		d.Is not eligible to participate in the law enforcementpublic safety plan, judges' plan,
119		-	highway patrol plan, teachers' fund for retirement plan, or alternative retirement ~~program~~
120		-	established under section 15-10-17 for university system employees.
121		-	2.Effective January 1, 2025, the public employees retirement system defined benefit ~~main plan~~
122		-	maintained for employees is closed to new eligible employees. However, an ~~employee who~~
123		-	becomes a participating or deferred member under this chapter before ~~January 1, 2025,~~
124		-	remains in the defined benefit retirement plan under this chapter, ~~regardless of being rehired~~
125		-	after December 31, 2024.
	254	+	highway patrol plan, teachers' fund for retirement plan, or alternative retirement
	255	+	program established under section 15-10-17 for university system employees.
	256	+	2.Effective January 1, 2025, the public employees retirement system defined benefit
	257	+	main plan maintained for employees is closed to new eligible employees. However, an
	258	+	employee who becomes a participating or deferred member under this chapter before
	259	+	January 1, 2025, remains in the defined benefit retirement plan under this chapter,
	260	+	regardless of being rehired after December 31, 2024.
126	261		3.Except as otherwise provided under this section, effective January 1, 2025, an eligible
127	262		employee who begins employment with an employer shall participate in the defined
128		-	contribution retirement plan under chapter 54-52.6 as provided under section 54-52.6-02.1.
	263	+	contribution retirement plan under chapter 54-52.6 as provided under section
	264	+	54-52.6-02.1.
129	265		4.This section does not impact an employee to the extent the employee is a participating
130		-	member in one or more of the following enumerated retirement plans: law enforcementpublic
131		-	safety plan, judges' plan, highway patrol plan, teachers' fund for retirement plan, or alternative
132		-	retirement program established under section 15-10-17 for university system employees. H. B. NO. 1274 - PAGE 4
133		-	a.A participating or deferred member in the defined contribution retirement plan under
134		-	chapter 54-52.6 who becomes eligible to participate in a plan enumerated under this
135		-	subsection is eligible to participate in the retirement plan enumerated under this
136		-	subsection.
137		-	b.A participating member of a retirement plan enumerated under this subsection who
138		-	becomes an eligible employee is not eligible to participate in the defined benefit
139		-	retirement plan under this chapter but instead participates in the defined contribution
140		-	retirement plan under chapter 54-52.6. However, this subdivision does not apply to an
141		-	individual who before January 1, 2025, is a participating or a deferred member under this
142		-	chapter, as that individual continues to participate in the defined benefit retirement plan
143		-	under this chapter.
	266	+	member in one or more of the following enumerated retirement plans: law
	267	+	enforcementpublic safety plan, judges' plan, highway patrol plan, teachers' fund for
	268	+	retirement plan, or alternative retirement program established under section 15-10-17
	269	+	for university system employees.
	270	+	a.A participating or deferred member in the defined contribution retirement plan
	271	+	under chapter 54-52.6 who becomes eligible to participate in a plan enumerated
	272	+	under this subsection is eligible to participate in the retirement plan enumerated
	273	+	under this subsection.
	274	+	b.A participating member of a retirement plan enumerated under this subsection
	275	+	who becomes an eligible employee is not eligible to participate in the defined
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	309	+	benefit retirement plan under this chapter but instead participates in the defined
	310	+	contribution retirement plan under chapter 54-52.6. However, this subdivision
	311	+	does not apply to an individual who before January 1, 2025, is a participating or a
	312	+	deferred member under this chapter, as that individual continues to participate in
	313	+	the defined benefit retirement plan under this chapter.
144	314		5.The board shall adopt rules to implement this section.
145		-	SECTION 3. AMENDMENT. Section 54-52-06.4 of the North Dakota Century Code is amended and
146		-	reenacted as follows:
147		-	54-52-06.4. Contribution by peace officers and correctional officers employed by the state or
148		-	security officers employed by the national guard - Employer contribution. (Retroactive
149		-	application - See note )
150		-	1.a.Each peace officer employed by the bureau of criminal investigation who is a member of
151		-	the public employees retirement system is assessed and shall pay monthly four percent
152		-	of the employee's monthly salary. Peace officer contributions increase by one percent of
153		-	the member's monthly salary beginning with the monthly reporting period of
154		-	January 2012; with an additional increase of one percent, beginning with the reporting
155		-	period of January 2013; with an additional increase of one percent, beginning with the
156		-	reporting period of January 2024; and with an additional increase of one percent,
157		-	beginning with the reporting period of January 2025.
158		-	b.Each correctional officer and peace officer employed by the state, other than a peace
159		-	officer employed by the bureau of criminal investigation, who is a member of the public
160		-	employees retirement system is assessed and shall pay six percent of the employee's
161		-	monthly salary.
162		-	c.Effective August 1, 2015, each national guard security officer who is a member of the
163		-	public employee's retirement system is assessed and monthly shall pay six percent of the
164		-	employee's monthly salary. National guard security officer contributions decrease by
165		-	one-half of one percent of the member's monthly salary beginning with the monthly
166		-	reporting period of January 2016.
	315	+	SECTION 3. AMENDMENT. Section 54-52-06.4 of the North Dakota Century Code is
	316	+	amended and reenacted as follows:
	317	+	54-52-06.4. Contribution by peace officers and correctional officers employed by the
	318	+	state or security officers employed by the national guard - Employer contribution.
	319	+	(Retroactive application - See note )
	320	+	1.a.Each peace officer employed by the bureau of criminal investigation who is a
	321	+	member of the public employees retirement system is assessed and shall pay
	322	+	monthly four percent of the employee's monthly salary. Peace officer
	323	+	contributions increase by one percent of the member's monthly salary beginning
	324	+	with the monthly reporting period of January 2012; with an additional increase of
	325	+	one percent, beginning with the reporting period of January 2013; with an
	326	+	additional increase of one percent, beginning with the reporting period of
	327	+	January 2024; and with an additional increase of one percent, beginning with the
	328	+	reporting period of January 2025.
	329	+	b.Each correctional officer and peace officer employed by the state, other than a
	330	+	peace officer employed by the bureau of criminal investigation, who is a member
	331	+	of the public employees retirement system is assessed and shall pay six percent
	332	+	of the employee's monthly salary.
	333	+	c.Effective August 1, 2015, each national guard security officer who is a member of
	334	+	the public employee's retirement system is assessed and monthly shall pay
	335	+	six percent of the employee's monthly salary. National guard security officer
	336	+	contributions decrease by one-half of one percent of the member's monthly
	337	+	salary beginning with the monthly reporting period of January 2016.
167	338		d.The assessment under this subsection must be deducted and retained out of the
168	339		employee's salary in equal monthly installments.
169		-	2.The employer of a correctional officer or peace officer employed by the state or a national
170		-	guard security officer shall contribute an amount determined by the board to be actuarially
171		-	required to support the level of benefits specified in section 54-52-17. The employer's
172		-	contribution must be paid from funds appropriated for salary or from any other funds available
173		-	for such purposes. If the correctional officer's, peace officer's, or security officer's assessment
174		-	is paid by the employer under subsection 3 of section 54-52-05, the employer shall contribute,
175		-	in addition, an amount equal to the required correctional officer's, peace officer's, or security
176		-	officer's assessment.
177		-	SECTION 4. AMENDMENT. Section 54-52-17 of the North Dakota Century Code is amended and
178		-	reenacted as follows: H. B. NO. 1274 - PAGE 5
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	373	+	2.The employer of a correctional officer or peace officer employed by the state or a
	374	+	national guard security officer shall contribute an amount determined by the board to
	375	+	be actuarially required to support the level of benefits specified in section 54-52-17.
	376	+	The employer's contribution must be paid from funds appropriated for salary or from
	377	+	any other funds available for such purposes. If the correctional officer's, peace
	378	+	officer's, or security officer's assessment is paid by the employer under subsection 3 of
	379	+	section 54-52-05, the employer shall contribute, in addition, an amount equal to the
	380	+	required correctional officer's, peace officer's, or security officer's assessment.
	381	+	SECTION 4. AMENDMENT. Section 54-52-17 of the North Dakota Century Code is
	382	+	amended and reenacted as follows:
179	383		54-52-17. Formulation of plan. (Retroactive application - See note)
180		-	Participating members shall receive benefits according to this section and according to rules
181		-	adopted by the board, not inconsistent with this chapter. No personAn individual is not entitled to
182		-	receive a prior service benefit if the personindividual was not continuously employed by a governmental
183		-	unit in North Dakota for a period of not less than two years immediately prior tobefore eligibility for
184		-	retirement.
185		-	1.Participating members shall receive credit for full-time employment or its equivalent from the
186		-	date they attain eligibility until their normal retirement date, postponed retirement date, or early
187		-	retirement date, as defined in this section. Part-time employment will be recognized as
188		-	full-time employment on a prorated basis as the board may prescribe.
189		-	2.Retirement benefits are calculated from the participating member's final average salary, which
190		-	is the average of the highest salary received by the member for any thirty-six months
191		-	employed during the last one hundred twenty months of employment. For members who
192		-	terminate employment on or after August 1, 2010, final average salary is the average of the
193		-	highest salary received by the member for any thirty-six months employed during the last one
194		-	hundred eighty months of employment. For members who terminate employment between
195		-	July 31, 2005, and August 1, 2010, final average salary is the average of the highest salary
196		-	received by the member for any thirty-six months employed during the period for which the
197		-	board has appropriate and accurate salary records on the board's electronic database, but
198		-	that period may not be more than the last one hundred eighty months of employment. For
199		-	members who terminate employment after December 31, 2019, final average salary is the
200		-	higher of the final average salary calculated on December 31, 2019, or the average salary
201		-	earned in the three highest periods of twelve consecutive months employed during the last
202		-	one hundred eighty months of employment. Months without earnings are excluded for the
203		-	purpose of computing an average. If the participating member has worked for less than
204		-	thirty-six months at the normal retirement date, the final average salary is the average salary
205		-	for the total months of employment.
	384	+	Participating members shall receive benefits according to this section and according to
	385	+	rules adopted by the board, not inconsistent with this chapter. No personAn individual is not
	386	+	entitled to receive a prior service benefit if the personindividual was not continuously employed
	387	+	by a governmental unit in North Dakota for a period of not less than two years immediately prior
	388	+	topreceding before eligibility for retirement.
	389	+	1.Participating members shall receive credit for full-time employment or its equivalent
	390	+	from the date they attain eligibility until their normal retirement date, postponed
	391	+	retirement date, or early retirement date, as defined in this section. Part-time
	392	+	employment will be recognized as full-time employment on a prorated basis as the
	393	+	board may prescribe.
	394	+	2.Retirement benefits are calculated from the participating member's final average
	395	+	salary, which is the average of the highest salary received by the member for any
	396	+	thirty-six months employed during the last one hundred twenty months of employment.
	397	+	For members who terminate employment on or after August 1, 2010, final average
	398	+	salary is the average of the highest salary received by the member for any thirty-six
	399	+	months employed during the last one hundred eighty months of employment. For
	400	+	members who terminate employment between July 31, 2005, and August 1, 2010, final
	401	+	average salary is the average of the highest salary received by the member for any
	402	+	thirty-six months employed during the period for which the board has appropriate and
	403	+	accurate salary records on the board's electronic database, but that period may not be
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	437	+	more than the last one hundred eighty months of employment. For members who
	438	+	terminate employment after December 31, 2019, final average salary is the higher of
	439	+	the final average salary calculated on December 31, 2019, or the average salary
	440	+	earned in the three highest periods of twelve consecutive months employed during the
	441	+	last one hundred eighty months of employment. Months without earnings are excluded
	442	+	for the purpose of computing an average. If the participating member has worked for
	443	+	less than thirty-six months at the normal retirement date, the final average salary is the
	444	+	average salary for the total months of employment.
206	445		3.Retirement dates are defined as follows:
207	446		a.Normal retirement date, except for a national guard security officer or firefighter, a
208		-	firefighter employed by a political subdivision, acorrectional officer or peace officer
209		-	employed by the state, or a firefighter, peace officer, or correctional officer employed by a
210		-	political subdivision, is:
211		-	(1)The first day of the month next following the month in which the member attains the
212		-	age of sixty-five years; or
213		-	(2)When the member has a combined total of years of service credit and years of age
214		-	equal to eighty-five and has not received a retirement benefit under this chapter.
215		-	b.Normal retirement date for members first enrolled after December 31, 2015, except for a
216		-	national guard security officer or firefighter, a firefighter employed by a political
217		-	subdivision, acorrectional officer or peace officer employed by the state, a firefighter,
218		-	peace officer, or correctional officer employed by a political subdivision, or a supreme
219		-	court or district court judge, is:
220		-	(1)The first day of the month next following the month in which the member attains the
221		-	age of sixty-five years; or
222		-	(2)When the member has a combined total of years of service credit and years of age
223		-	equal to ninety and the member attains a minimum age of sixty and has not
	447	+	firefighter employed by a political subdivision, acorrectional officer or peace
	448	+	officer employed by the state, or a firefighter, peace officer, or correctional officer
	449	+	employed by a political subdivision, is:
	450	+	(1)The first day of the month next following the month in which the member
	451	+	attains the age of sixty-five years; or
	452	+	(2)When the member has a combined total of years of service credit and years
	453	+	of age equal to eighty-five and has not received a retirement benefit under
	454	+	this chapter.
	455	+	b.Normal retirement date for members first enrolled after December 31, 2015,
	456	+	except for a national guard security officer or firefighter, a firefighter employed by
	457	+	a political subdivision, acorrectional officer or peace officer employed by the
	458	+	state, a firefighter, peace officer, or correctional officer employed by a political
	459	+	subdivision, or a supreme court or district court judge, is:
	460	+	(1)The first day of the month next following the month in which the member
	461	+	attains the age of sixty-five years; or
	462	+	(2)When the member has a combined total of years of service credit and years
	463	+	of age equal to ninety and the member attains a minimum age of sixty and
	464	+	has not received a retirement benefit under this chapter.
	465	+	c.Normal retirement date for a national guard security officer or firefighter is:
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	497	+	(1)The first day of the month next following the month in which the national
	498	+	guard security officer or firefighter attains the age of fifty-five years and has
	499	+	completed at least three eligible years of employment; or
	500	+	(2)When the national guard security officer or firefighter has a combined total
	501	+	of years of service credit and years of age equal to eighty-five and has not
224	502		received a retirement benefit under this chapter.
225		-	c.Normal retirement date for a national guard security officer or firefighter is: H. B. NO. 1274 - PAGE 6
226		-	(1)The first day of the month next following the month in which the national guard
227		-	security officer or firefighter attains the age of fifty-five years and has completed at
228		-	least three eligible years of employment; or
229		-	(2)When the national guard security officer or firefighter has a combined total of years
230		-	of service credit and years of age equal to eighty-five and has not received a
	503	+	d.Normal retirement date for a peace officer, firefighter, or correctional officer
	504	+	employed by a political subdivision is:
	505	+	(1)The first day of the month next following the month in which the peace
	506	+	officer, firefighter, or correctional officer attains the age of fifty-five years and
	507	+	has completed at least three eligible years of employment; or
	508	+	(2)When the peace officer, firefighter, or correctional officer has a combined
	509	+	total of years of service credit and years of age equal to eighty-five and has
	510	+	not received a retirement benefit under this chapter.
	511	+	e.(1)Normal retirement date for a peace officer employed by the bureau of
	512	+	criminal investigation is:
	513	+	(a)[1]For a member employed before August 1, 2023, the first day of
	514	+	the month next following the month in which the peace officer
	515	+	attains the age of fifty-five years and has completed at least
	516	+	three eligible years of employment; and
	517	+	[2]For a member employed after July 31, 2023, the first day of the
	518	+	month next following the month in which the peace officer attains
	519	+	the age of fifty-five years and has completed at least ten eligible
	520	+	years of employment; or
	521	+	(b)When the peace officer has a combined total of years of service credit
	522	+	and years of age equal to eighty-five and has not received a
231	523		retirement benefit under this chapter.
232		-	d.Normal retirement date for a peace officer, firefighter, or correctional officer employed by
233		-	a political subdivision is:
234		-	(1)The first day of the month next following the month in which the peace officer,
235		-	firefighter, or correctional officer attains the age of fifty-five years and has completed
236		-	at least three eligible years of employment; or
237		-	(2)When the peace officer, firefighter, or correctional officer has a combined total of
238		-	years of service credit and years of age equal to eighty-five and has not received a
239		-	retirement benefit under this chapter.
240		-	e.(1)Normal retirement date for a peace officer employed by the bureau of criminal
241		-	investigation is:
242		-	(a)[1]For a member employed before August 1, 2023, the first day of the
243		-	month next following the month in which the peace officer attains the age
244		-	of fifty-five years and has completed at least three eligible years of
245		-	employment; and
246		-	[2]For a member employed after July 31, 2023, the first day of the month
247		-	next following the month in which the peace officer attains the age of
248		-	fifty-five years and has completed at least ten eligible years of
249		-	employment; or
250		-	(b)When the peace officer has a combined total of years of service credit and
251		-	years of age equal to eighty-five and has not received a retirement benefit
252		-	under this chapter.
253		-	(2)Normal retirement date for a correctional officer or peace officer employed by the
254		-	state, other than a peace officer employed by the bureau of criminal investigation,
255		-	is:
256		-	(a)The first day of the month next following the month in which the correctional
257		-	officer or peace officer attains the age of fifty-five years and has completed at
258		-	least three eligible years of employment; or
259		-	(b)When the correctional officer or peace officer has a combined total of years of
260		-	service credit and years of age equal to eighty-five and has not received a
261		-	retirement benefit under this chapter.
262		-	f.Postponed retirement date is the first day of the month next following the month in which
263		-	the member, on or after July 1, 1977, actually severs or has severed the member's
264		-	employment after reaching the normal retirement date.
265		-	g.(1)Early retirement date, except for a national guard security officer or firefighter, a
266		-	firefighter, peace officer, or correctional officer employed by a political subdivision,
267		-	or a correctional officer or peace officer employed by the state, is the first day of the
268		-	month next following the month in which the member attains the age of fifty-five
269		-	years and has completed three years of eligible employment. H. B. NO. 1274 - PAGE 7
270		-	(2)For a national guard security officer or firefighter, early retirement date is the first
271		-	day of the month next following the month in which the national guard security
272		-	officer or firefighter attains the age of fifty years and has completed at least three
273		-	years of eligible employment.
274		-	(3)For a correctional officer or peace officer employed by the state, other than a peace
275		-	officer employed by the bureau of criminal investigation, or a firefighter, peace
276		-	officer, or correctional officer employed by a political subdivision, early retirement
277		-	date is the first day of the month next following the month in which the peace officer,
278		-	firefighter, or correctional officer attains the age of fifty years and has completed at
	524	+	(2)Normal retirement date for a correctional officer or peace officer employed
	525	+	by the state, other than a peace officer employed by the bureau of criminal
	526	+	investigation, is:
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	559	+	(a)The first day of the month next following the month in which the
	560	+	correctional officer or peace officer attains the age of fifty-five years
	561	+	and has completed at least three eligible years of employment; or
	562	+	(b)When the correctional officer or peace officer has a combined total of
	563	+	years of service credit and years of age equal to eighty-five and has
	564	+	not received a retirement benefit under this chapter.
	565	+	f.Postponed retirement date is the first day of the month next following the month
	566	+	in which the member, on or after July 1, 1977, actually severs or has severed the
	567	+	member's employment after reaching the normal retirement date.
	568	+	g.(1)Early retirement date, except for a national guard security officer or
	569	+	firefighter, a firefighter, peace officer, or correctional officer employed by a
	570	+	political subdivision, or a correctional officer or peace officer employed by
	571	+	the state, is the first day of the month next following the month in which the
	572	+	member attains the age of fifty-five years and has completed three years of
	573	+	eligible employment.
	574	+	(2)For a national guard security officer or firefighter, early retirement date is the
	575	+	first day of the month next following the month in which the national guard
	576	+	security officer or firefighter attains the age of fifty years and has completed
	577	+	at least three years of eligible employment.
	578	+	(3)For a correctional officer or peace officer employed by the state, other than
	579	+	a peace officer employed by the bureau of criminal investigation, or a
	580	+	firefighter, peace officer, or correctional officer employed by a political
	581	+	subdivision, early retirement date is the first day of the month next following
	582	+	the month in which the peace officer, firefighter, or correctional officer attains
	583	+	the age of fifty years and has completed at least three years of eligible
	584	+	employment.
	585	+	(4)For a peace officer employed by the bureau of criminal investigation, early
	586	+	retirement date is the first day of the month next following the month in
	587	+	which the peace officer attains the age of fifty years and has completed at
279	588		least three years of eligible employment.
280		-	(4)For a peace officer employed by the bureau of criminal investigation, early
281		-	retirement date is the first day of the month next following the month in which the
282		-	peace officer attains the age of fifty years and has completed at least three years of
283		-	eligible employment.
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284	621		h.Disability retirement date is the first day of the month after a member becomes
285		-	permanently and totally disabled, according to medical evidence called for under ~~the~~
286		-	rules of the board, and has completed at least one hundred eighty days of ~~eligible~~
287		-	employment. For supreme and district court judges, permanent and total ~~disability is~~
288		-	based solely on a judge's inability to perform judicial duties arising out ~~of physical or~~
289		-	mental impairment, as determined pursuant to rules adopted by the ~~board or as provided~~
290		-	by subdivision a of subsection 3 of section 27-23-03.
291		-	(1)A member is eligible to receive disability retirement benefits only if the ~~member~~
292		-	became disabled during the period of eligible employment and ~~applies for disability~~
293		-	retirement benefits within twelve months of the date the ~~member terminates~~
294		-	employment.
	622	+	permanently and totally disabled, according to medical evidence called for under
	623	+	the rules of the board, and has completed at least one hundred eighty days of
	624	+	eligible employment. For supreme and district court judges, permanent and total
	625	+	disability is based solely on a judge's inability to perform judicial duties arising out
	626	+	of physical or mental impairment, as determined pursuant to rules adopted by the
	627	+	board or as provided by subdivision a of subsection 3 of section 27-23-03.
	628	+	(1)A member is eligible to receive disability retirement benefits only if the
	629	+	member became disabled during the period of eligible employment and
	630	+	applies for disability retirement benefits within twelve months of the date the
	631	+	member terminates employment.
295	632		(2)A member is eligible to continue to receive disability benefits as long as the
296		-	permanent and total disability continues and the member submits the necessary
297		-	documentation and undergoes medical testing required by the board, or for as long
298		-	as the member participates in a rehabilitation program required by the board, or
299		-	both. If the board determines a member no longer meets the eligibility definition, the
300		-	board may discontinue the disability retirement benefit. The board may pay the cost
301		-	of any medical testing or rehabilitation services the board deems necessary and
302		-	these payments are appropriated from the retirement fund for those purposes. A
303		-	member's receipt of disability benefits under this section is limited to receipt from
304		-	the fund to which the member was actively contributing at the time the member
	633	+	permanent and total disability continues and the member submits the
	634	+	necessary documentation and undergoes medical testing required by the
	635	+	board, or for as long as the member participates in a rehabilitation program
	636	+	required by the board, or both. If the board determines a member no longer
	637	+	meets the eligibility definition, the board may discontinue the disability
	638	+	retirement benefit. The board may pay the cost of any medical testing or
	639	+	rehabilitation services the board deems necessary and these payments are
	640	+	appropriated from the retirement fund for those purposes. A member's
	641	+	receipt of disability benefits under this section is limited to receipt from the
	642	+	fund to which the member was actively contributing at the time the member
305	643		became disabled.
306	644		4.The board shall calculate retirement benefits as follows:
307		-	a.Normal retirement benefits for all retirees, except supreme and district court ~~judges, and~~
308		-	peace officers employed by the bureau of criminal investigation, and ~~other peace officers~~
309		-	employed by the state, reaching normal retirement date ~~equal an annual amount,~~
310		-	payable monthly, comprised of a service benefit and a ~~prior service benefit, as defined in~~
311		-	this chapter, which is determined as follows:
	645	+	a.Normal retirement benefits for all retirees, except supreme and district court
	646	+	judges, and peace officers employed by the bureau of criminal investigation, and
	647	+	other peace officers employed by the state, reaching normal retirement date
	648	+	equal an annual amount, payable monthly, comprised of a service benefit and a
	649	+	prior service benefit, as defined in this chapter, which is determined as follows:
312	650		(1)For members first enrolled:
313		-	(a)Before January 1, 2020, service benefit equals two percent of final average
314		-	salary multiplied by the number of years of service employment.
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	671	+	20
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	683	+	(a)Before January 1, 2020, service benefit equals two percent of final
	684	+	average salary multiplied by the number of years of service
	685	+	employment.
315	686		(b)After December 31, 2019, service benefit equals one and seventy-five
316		-	hundredths percent of final average salary multiplied by the number of years
317		-	of service employment. H. B. NO. 1274 - PAGE 8
318		-	(2)Prior service benefit equals two percent of final average salary multiplied by the
319		-	number of years of prior service employment.
320		-	b.Normal retirement benefits for all supreme and district court judges under the public
321		-	employees retirement system reaching normal retirement date equal an annual amount,
322		-	payable monthly, comprised of a benefit as defined in this chapter, determined as follows:
323		-	(1)Benefits must be calculated from the time of appointment or election to the bench
324		-	and must equal three and one-half percent of final average salary multiplied by the
325		-	first ten years of judicial service, two and eighty hundredths percent of final average
326		-	salary multiplied by the second ten years of judicial service, and one and one-fourth
327		-	percent of final average salary multiplied by the number of years of judicial service
328		-	exceeding twenty years.
329		-	(2)Service benefits must include, in addition, an amount equal to the percent specified
330		-	in subdivision a of final average salary multiplied by the number of years of
331		-	nonjudicial employee service and employment.
	687	+	hundredths percent of final average salary multiplied by the number of
	688	+	years of service employment.
	689	+	(2)Prior service benefit equals two percent of final average salary multiplied by
	690	+	the number of years of prior service employment.
	691	+	b.Normal retirement benefits for all supreme and district court judges under the
	692	+	public employees retirement system reaching normal retirement date equal an
	693	+	annual amount, payable monthly, comprised of a benefit as defined in this
	694	+	chapter, determined as follows:
	695	+	(1)Benefits must be calculated from the time of appointment or election to the
	696	+	bench and must equal three and one-half percent of final average salary
	697	+	multiplied by the first ten years of judicial service, two and eighty hundredths
	698	+	percent of final average salary multiplied by the second ten years of judicial
	699	+	service, and one and one-fourth percent of final average salary multiplied by
	700	+	the number of years of judicial service exceeding twenty years.
	701	+	(2)Service benefits must include, in addition, an amount equal to the percent
	702	+	specified in subdivision a of final average salary multiplied by the number of
	703	+	years of nonjudicial employee service and employment.
332	704		c.Normal retirement benefits for a peace officer employed by the bureau of criminal
333		-	investigation reaching the normal retirement date equals an annual amount, payable
334		-	monthly, comprised of a service benefit and a prior service benefit determined as follows:
335		-	(1)The first twenty years of credited service multiplied by three percent of final average
336		-	salary.
337		-	(2)For years in excess of twenty years of credited service multiplied by one and
338		-	seventy-five hundredths percent of final average salary.
339		-	d.Normal retirement benefits for a peace officer employed by the state, other than by the
340		-	bureau of criminal investigation, reaching the normal retirement date equals an annual
341		-	amount, payable monthly, comprised of a service benefit and a prior service benefit
	705	+	investigation reaching the normal retirement date equals an annual amount,
	706	+	payable monthly, comprised of a service benefit and a prior service benefit
342	707		determined as follows:
	708	+	(1)The first twenty years of credited service multiplied by three percent of final
	709	+	average salary.
	710	+	(2)For years in excess of twenty years of credited service multiplied by one
	711	+	and seventy-five hundredths percent of final average salary.
	712	+	d.Normal retirement benefits for a peace officer employed by the state, other than
	713	+	by the bureau of criminal investigation, reaching the normal retirement date
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	747	+	equals an annual amount, payable monthly, comprised of a service benefit and a
	748	+	prior service benefit determined as follows:
343	749		(1)For members first enrolled:
344		-	(a)Before January 1, 2020, service benefit equals two percent of final average
345		-	salary multiplied by the number of years of service employment.
	750	+	(a)Before January 1, 2020, service benefit equals two percent of final
	751	+	average salary multiplied by the number of years of service
	752	+	employment.
346	753		(b)After December 31, 2019, service benefit equals one and seventy-five
347		-	hundredths percent of final average salary multiplied by the number of years
348		-	of service employment.
349		-	(2)Prior service benefit equals two percent of final average salary multiplied by the
350		-	number of years of prior service employment.
351		-	e.Postponed retirement benefits are calculated as for single life benefits for those members
352		-	who retired on or after July 1, 1977.
353		-	f.e.Early retirement benefits are calculated as for single life benefits accrued to the date of
354		-	termination of employment, but must be actuarially reduced to account for benefit
355		-	payments beginning before the normal retirement date, as determined under
356		-	subsection 3. Except for a national guard security officer or firefighter, a firefighter, peace
357		-	officer, or correctional officer employed by a political subdivision, a peace officer or
358		-	correctional officer employed by the statea governmental unit, or a supreme court or
359		-	district court judge, early retirement benefits for members first enrolled after
360		-	December 31, 2015, are calculated for single life benefits accrued to the date of
361		-	termination of employment, but must be reduced by fixed rate of eight percent per year to
362		-	account for benefit payments beginning before the normal retirement date. A retiree, H. B. NO. 1274 - PAGE 9
363		-	other than a supreme or district court judge, is eligible for early retirement benefits only
364		-	after having completed three years of eligible employment. A supreme or district court
365		-	judge retiree is eligible for early retirement benefits only after having completed five years
366		-	of eligible employment.
367		-	g.f.Except for supreme and district court judges, disability retirement benefits are twenty-five
368		-	percent of the member's final average salary. Disability retirement benefits for supreme
369		-	and district court judges are seventy percent of final average salary reduced by the
370		-	member's primary social security benefits and by any workforce safety and insurance
371		-	benefits paid. The minimum monthly disability retirement benefit under this section is one
372		-	hundred dollars.
373		-	5.Upon termination of employment after completing three years of eligible employment, except
374		-	for supreme and district court judges, who must complete five years of eligible employment,
375		-	but before normal retirement date, a member who does not elect to receive early retirement
376		-	benefits is eligible to receive deferred vested retirement benefits payable commencing on the
377		-	member's normal retirement date in one of the optional forms provided in subsection 9.
378		-	Members who have delayed or inadvertently failed to apply for retirement benefits to
379		-	commence on their normal retirement date may choose to receive either a lump sum payment
380		-	equal to the amount of missed payments, or an actuarial increase to the form of benefit the
381		-	member has selected, which increase must reflect the missed payments.
382		-	6.If before retiring a member dies after completing three years of eligible employment, except for
383		-	supreme and district court judges, who must have completed five years of eligible
384		-	employment, the board shall pay the member's account balance to the member's designated
385		-	beneficiary as provided in this subsection. If the member has designated an alternate
386		-	beneficiary with the surviving spouse's written consent, the board shall pay the member's
387		-	account balance to the named beneficiary. If the member has named more than one primary
388		-	beneficiary, the board shall pay the member's account balance to the named primary
389		-	beneficiaries in the percentages designated by the member or, if the member has not
390		-	designated a percentage for the beneficiaries, in equal percentages. If one or more of the
391		-	primary beneficiaries has predeceased the member, the board shall pay the predeceased
392		-	beneficiary's share to the remaining primary beneficiaries. If any beneficiary survives the
393		-	member, yet dies before distribution of the beneficiary's share, the beneficiary must be treated
394		-	as if the beneficiary predeceased the member. If there are no remaining primary beneficiaries,
395		-	the board shall pay the member's account balance to the contingent beneficiaries in the same
396		-	manner. If there are no remaining designated beneficiaries, the board shall pay the member's
397		-	account balance to the member's estate. If the member has not designated an alternate
398		-	beneficiary or the surviving spouse is the beneficiary, the surviving spouse of the member may
399		-	select a form of payment as follows:
400		-	a.If the member was a supreme or district court judge, the surviving spouse may select one
401		-	of the following optional forms of payment:
402		-	(1)A lump sum payment of the member's retirement account as of the date of death.
403		-	(2)Payments as calculated for the deceased member as if the member was of normal
404		-	retirement age at the date of death, payable until the spouse dies.
405		-	b.The surviving spouse of all other members may select one of the following options:
406		-	(1)A lump sum payment of the member's retirement account as of the date of death.
407		-	(2)Payment of a monthly retirement benefit equal to fifty percent of the deceased
408		-	member's accrued single life retirement benefits until the spouse dies.
409		-	(3)If the member dies on or after the member's normal retirement date, the payment of
410		-	a monthly retirement benefit equal to an amount that would have been paid to the H. B. NO. 1274 - PAGE 10
411		-	surviving spouse if the member had retired on the day of the member's death and
412		-	had selected a one hundred percent joint and survivor annuity, payable until the
413		-	spouse dies. A surviving spouse who received a benefit under this subsection as of
414		-	July 31, 1995, is entitled to the higher of that person's existing benefit or the
415		-	equivalent of the accrued benefit available under the one hundred percent joint and
416		-	survivor provision as if the deceased member were of normal retirement age, with
417		-	the increase payable beginning August 1, 1995.
418		-	7.If a member not coming under the provisions of subsection 6 terminates employment because
419		-	of death, permanent and total disability, or any voluntary or involuntary reason prior to
420		-	retirement, the member or the member's designated beneficiary is entitled to the member's
421		-	account balance at termination. The board automatically shall refund a member's account
422		-	balance if the member has completed less than three years of eligible employment, has an
423		-	account balance of less than one thousand dollars, and was not a supreme or district court
424		-	judge. If the member was a supreme or district court judge, the board automatically shall
425		-	refund a member's account balance if the member completed less than five years of eligible
426		-	employment. A member may waive the refund if the member submits a written statement to
427		-	the board, within thirty days after termination, requesting that the member's account balance
	754	+	hundredths percent of final average salary multiplied by the number of
	755	+	years of service employment.
	756	+	(2)Prior service benefit equals two percent of final average salary multiplied by
	757	+	the number of years of prior service employment.
	758	+	e.Postponed retirement benefits are calculated as for single life benefits for those
	759	+	members who retired on or after July 1, 1977.
	760	+	f.e.Early retirement benefits are calculated as for single life benefits accrued to the
	761	+	date of termination of employment, but must be actuarially reduced to account for
	762	+	benefit payments beginning before the normal retirement date, as determined
	763	+	under subsection 3. Except for a national guard security officer or firefighter, a
	764	+	firefighter, peace officer, or correctional officer employed by a political
	765	+	subdivision, a peace officer or correctional officer employed by the statea
	766	+	governmental unit , or a supreme court or district court judge, early retirement
	767	+	benefits for members first enrolled after December 31, 2015, are calculated for
	768	+	single life benefits accrued to the date of termination of employment, but must be
	769	+	reduced by fixed rate of eight percent per year to account for benefit payments
	770	+	beginning before the normal retirement date. A retiree, other than a supreme or
	771	+	district court judge, is eligible for early retirement benefits only after having
	772	+	completed three years of eligible employment. A supreme or district court judge
	773	+	retiree is eligible for early retirement benefits only after having completed five
	774	+	years of eligible employment.
	775	+	g.f.Except for supreme and district court judges, disability retirement benefits are
	776	+	twenty-five percent of the member's final average salary. Disability retirement
	777	+	benefits for supreme and district court judges are seventy percent of final
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	811	+	average salary reduced by the member's primary social security benefits and by
	812	+	any workforce safety and insurance benefits paid. The minimum monthly
	813	+	disability retirement benefit under this section is one hundred dollars.
	814	+	5.Upon termination of employment after completing three years of eligible employment,
	815	+	except for supreme and district court judges, who must complete five years of eligible
	816	+	employment, but before normal retirement date, a member who does not elect to
	817	+	receive early retirement benefits is eligible to receive deferred vested retirement
	818	+	benefits payable commencing on the member's normal retirement date in one of the
	819	+	optional forms provided in subsection 9. Members who have delayed or inadvertently
	820	+	failed to apply for retirement benefits to commence on their normal retirement date
	821	+	may choose to receive either a lump sum payment equal to the amount of missed
	822	+	payments, or an actuarial increase to the form of benefit the member has selected,
	823	+	which increase must reflect the missed payments.
	824	+	6.If before retiring a member dies after completing three years of eligible employment,
	825	+	except for supreme and district court judges, who must have completed five years of
	826	+	eligible employment, the board shall pay the member's account balance to the
	827	+	member's designated beneficiary as provided in this subsection. If the member has
	828	+	designated an alternate beneficiary with the surviving spouse's written consent, the
	829	+	board shall pay the member's account balance to the named beneficiary. If the
	830	+	member has named more than one primary beneficiary, the board shall pay the
	831	+	member's account balance to the named primary beneficiaries in the percentages
	832	+	designated by the member or, if the member has not designated a percentage for the
	833	+	beneficiaries, in equal percentages. If one or more of the primary beneficiaries has
	834	+	predeceased the member, the board shall pay the predeceased beneficiary's share to
	835	+	the remaining primary beneficiaries. If any beneficiary survives the member, yet dies
	836	+	before distribution of the beneficiary's share, the beneficiary must be treated as if the
	837	+	beneficiary predeceased the member. If there are no remaining primary beneficiaries,
	838	+	the board shall pay the member's account balance to the contingent beneficiaries in
	839	+	the same manner. If there are no remaining designated beneficiaries, the board shall
	840	+	pay the member's account balance to the member's estate. If the member has not
	841	+	Page No. 14 25.0040.02001
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	873	+	designated an alternate beneficiary or the surviving spouse is the beneficiary, the
	874	+	surviving spouse of the member may select a form of payment as follows:
	875	+	a.If the member was a supreme or district court judge, the surviving spouse may
	876	+	select one of the following optional forms of payment:
	877	+	(1)A lump sum payment of the member's retirement account as of the date of
	878	+	death.
	879	+	(2)Payments as calculated for the deceased member as if the member was of
	880	+	normal retirement age at the date of death, payable until the spouse dies.
	881	+	b.The surviving spouse of all other members may select one of the following
	882	+	options:
	883	+	(1)A lump sum payment of the member's retirement account as of the date of
	884	+	death.
	885	+	(2)Payment of a monthly retirement benefit equal to fifty percent of the
	886	+	deceased member's accrued single life retirement benefits until the spouse
	887	+	dies.
	888	+	(3)If the member dies on or after the member's normal retirement date, the
	889	+	payment of a monthly retirement benefit equal to an amount that would have
	890	+	been paid to the surviving spouse if the member had retired on the day of
	891	+	the member's death and had selected a one hundred percent joint and
	892	+	survivor annuity, payable until the spouse dies. A surviving spouse who
	893	+	received a benefit under this subsection as of July 31, 1995, is entitled to
	894	+	the higher of that person's existing benefit or the equivalent of the accrued
	895	+	benefit available under the one hundred percent joint and survivor provision
	896	+	as if the deceased member were of normal retirement age, with the increase
	897	+	payable beginning August 1, 1995.
	898	+	7.If a member not coming under the provisions of subsection 6 terminates employment
	899	+	because of death, permanent and total disability, or any voluntary or involuntary
	900	+	reason prior to retirement, the member or the member's designated beneficiary is
	901	+	entitled to the member's account balance at termination. The board automatically shall
	902	+	refund a member's account balance if the member has completed less than three
	903	+	years of eligible employment, has an account balance of less than one thousand
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	937	+	dollars, and was not a supreme or district court judge. If the member was a supreme
	938	+	or district court judge, the board automatically shall refund a member's account
	939	+	balance if the member completed less than five years of eligible employment. A
	940	+	member may waive the refund if the member submits a written statement to the board,
	941	+	within thirty days after termination, requesting that the member's account balance
428	942		remain in the fund.
429		-	8.The surviving spouse of a member receiving retirement benefits must be the member's
430		-	primary beneficiary unless there is no surviving spouse or the surviving spouse designates an
431		-	alternate beneficiary in writing. If a member receiving retirement benefits or the member's
432		-	surviving spouse receiving retirement benefits dies before the total amount of benefits paid to
433		-	either or both equals the amount of the member's account balance at retirement, the
434		-	difference must be paid to the named beneficiary of the recipient or, if there is no named
435		-	beneficiary, to the recipient's estate. A benefit payment owed to the member, surviving spouse,
436		-	or alternate beneficiary which was not paid before the death of the member, surviving spouse,
437		-	or alternate beneficiary must be paid to the named beneficiary of the recipient or, if there is no
438		-	named beneficiary, to the recipient's estate.
439		-	9.The board shall adopt rules providing for the receipt of retirement benefits in the following
440		-	optional forms:
	943	+	8.The surviving spouse of a member receiving retirement benefits must be the
	944	+	member's primary beneficiary unless there is no surviving spouse or the surviving
	945	+	spouse designates an alternate beneficiary in writing. If a member receiving retirement
	946	+	benefits or the member's surviving spouse receiving retirement benefits dies before
	947	+	the total amount of benefits paid to either or both equals the amount of the member's
	948	+	account balance at retirement, the difference must be paid to the named beneficiary of
	949	+	the recipient or, if there is no named beneficiary, to the recipient's estate. A benefit
	950	+	payment owed to the member, surviving spouse, or alternate beneficiary which was
	951	+	not paid before the death of the member, surviving spouse, or alternate beneficiary
	952	+	must be paid to the named beneficiary of the recipient or, if there is no named
	953	+	beneficiary, to the recipient's estate.
	954	+	9.The board shall adopt rules providing for the receipt of retirement benefits in the
	955	+	following optional forms:
441	956		a.Single life.
442		-	b.An actuarially equivalent joint and survivor option, with fifty percent or one ~~hundred~~
443		-	percent options.
	957	+	b.An actuarially equivalent joint and survivor option, with fifty percent or one
	958	+	hundred percent options.
444	959		c.Actuarially equivalent life with ten-year or twenty-year certain options.
445	960		d.An actuarially equivalent partial lump sum distribution option with a twelve-month
446	961		maximum lump sum distribution.
447		-	e.An actuarially equivalent graduated benefit option with either a one percent or two
448		-	percent increase to be applied the first day of January of each year.
449		-	Except for supreme and district court judges, unless a member specifically requests that the
450		-	member receive benefits according to one of these options at the time of applying for
451		-	retirement, all retirement benefits must be in the form of a single life benefit. For supreme and
452		-	district court judges, unless a member specifically requests that the member receive benefits
453		-	according to one of these options at the time of applying for retirement, all retirement benefits
454		-	must be in the form of a lifetime monthly pension with fifty percent of the benefit continuing for
455		-	the life of the surviving spouse, if any.
456		-	10.The fund may accept rollovers from other eligible plans under rules adopted by the board for
457		-	the purchase of additional service credit, but only to the extent the transfer is a rollover
458		-	contribution that meets the requirement of section 408 of the Internal Revenue Code. H. B. NO. 1274 - PAGE 11
459		-	11.The board may accept trustee-to-trustee transfers as permitted by Internal Revenue Code
460		-	section 403(b)(13) and section 457(e)(17) from an Internal Revenue Code section 403(b)
461		-	annuity or Internal Revenue Code section 457 deferred compensation plan for the purchase of
462		-	permissive service credit, as defined in Internal Revenue Code section 415(n)(3)(A) or as
463		-	repayment of a cashout from a governmental plan under Internal Revenue Code section
464		-	415(k)(3).
465		-	12.The board may establish individual retirement accounts and individual retirement annuities as
466		-	permitted under section 408(q) of the Internal Revenue Code to allow employees to make
467		-	voluntary employee contributions. The board may adopt rules to implement and administer the
468		-	accounts and annuities under this section. H. B. NO. 1274 - PAGE 12
469		-	____________________________ ____________________________
470		-	Speaker of the House President of the Senate
471		-	____________________________ ____________________________
472		-	Chief Clerk of the House Secretary of the Senate
473		-	This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
474		-	Assembly of North Dakota and is known on the records of that body as House Bill No. 1274.
475		-	House Vote: Yeas 71 Nays 19 Absent 4
476		-	Senate Vote:Yeas 47 Nays 0 Absent 0
477		-	____________________________
478		-	Chief Clerk of the House
479		-	Received by the Governor at ________M. on _____________________________________, 2025.
480		-	Approved at ________M. on __________________________________________________, 2025.
481		-	____________________________
482		-	Governor
483		-	Filed in this office this ___________day of _______________________________________, 2025,
484		-	at ________ o’clock ________M.
485		-	____________________________
486		-	Secretary of State
	962	+	e.An actuarially equivalent graduated benefit option with either a one percent or
	963	+	two percent increase to be applied the first day of January of each year.
	964	+	Except for supreme and district court judges, unless a member specifically requests
	965	+	that the member receive benefits according to one of these options at the time of
	966	+	applying for retirement, all retirement benefits must be in the form of a single life
	967	+	benefit. For supreme and district court judges, unless a member specifically requests
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	999	+	31 Sixty-ninth
	1000	+	Legislative Assembly
	1001	+	that the member receive benefits according to one of these options at the time of
	1002	+	applying for retirement, all retirement benefits must be in the form of a lifetime monthly
	1003	+	pension with fifty percent of the benefit continuing for the life of the surviving spouse, if
	1004	+	any.
	1005	+	10.The fund may accept rollovers from other eligible plans under rules adopted by the
	1006	+	board for the purchase of additional service credit, but only to the extent the transfer is
	1007	+	a rollover contribution that meets the requirement of section 408 of the Internal
	1008	+	Revenue Code.
	1009	+	11.The board may accept trustee-to-trustee transfers as permitted by Internal Revenue
	1010	+	Code section 403(b)(13) and section 457(e)(17) from an Internal Revenue Code
	1011	+	section 403(b) annuity or Internal Revenue Code section 457 deferred compensation
	1012	+	plan for the purchase of permissive service credit, as defined in Internal Revenue
	1013	+	Code section 415(n)(3)(A) or as repayment of a cashout from a governmental plan
	1014	+	under Internal Revenue Code section 415(k)(3).
	1015	+	12.The board may establish individual retirement accounts and individual retirement
	1016	+	annuities as permitted under section 408(q) of the Internal Revenue Code to allow
	1017	+	employees to make voluntary employee contributions. The board may adopt rules to
	1018	+	implement and administer the accounts and annuities under this section.
	1019	+	Page No. 17 25.0040.02001
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