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North Dakota House Bill HB1602

North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1602 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. 1602
4-(Representatives Kasper, J. Johnson, Kempenich, Koppelman, Motschenbacher, D. Ruby, Steiner)
5-(Senators Cleary, Paulson, Hogue, Klein)
6-AN ACT to amend and reenact section 54-52-02.15 of the North Dakota Century Code, relating to
7-political subdivision participation in the public employees retirement system defined contribution
8-retirement plan.
1+25.0655.02000
2+Sixty-ninth
3+Legislative Assembly
4+of North Dakota
5+Introduced by
6+Representatives Kasper, J. Johnson, Kempenich, Koppelman, Motschenbacher, D. Ruby,
7+Steiner
8+Senators Cleary, Paulson, Hogue, Klein
9+A BILL for an Act to amend and reenact section 54-52-02.15 of the North Dakota Century Code,
10+relating to political subdivision participation in the public employees retirement system defined
11+contribution retirement plan.
912 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
10-SECTION 1. AMENDMENT. Section 54-52-02.15 of the North Dakota Century Code is amended
11-and reenacted as follows:
12-54-52-02.15. Public employees retirement system main plan - Closure to new hires - Multiple
13-plan membership.
13+SECTION 1. AMENDMENT. Section 54-52-02.15 of the North Dakota Century Code is
14+amended and reenacted as follows:
15+54-52-02.15. Public employees retirement system main plan - Closure to new hires -
16+Multiple plan membership.
1417 1.Under this section "eligible employee" means a permanent employee who:
1518 a.Meets all the eligibility requirements set by this chapter;
1619 b.Is at least eighteen years of age;
1720 c.Becomes a participating member after December 31, 2024; and
18-d.Is not eligible to participate in the law enforcement plan, judges' plan, highway patrol
19-plan, teachers' fund for retirement plan, or alternative retirement program established
20-under section 15-10-17 for university system employees.
21-2.Effective January 1, 2025, the public employees retirement system defined benefit main plan
22-maintained for employees is closed to new eligible employees. However, an employee who
23-becomes a participating or deferred member under this chapter before January 1, 2025,
24-remains in the defined benefit retirement plan under this chapter, regardless of being rehired
25-after December 31, 2024.
21+d.Is not eligible to participate in the law enforcement plan, judges' plan, highway
22+patrol plan, teachers' fund for retirement plan, or alternative retirement program
23+established under section 15-10-17 for university system employees.
24+2.Effective January 1, 2025, the public employees retirement system defined benefit
25+main plan maintained for employees is closed to new eligible employees. However, an
26+employee who becomes a participating or deferred member under this chapter before
27+January 1, 2025, remains in the defined benefit retirement plan under this chapter,
28+regardless of being rehired after December 31, 2024.
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30+ENGROSSED HOUSE BILL NO. 1602
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51+20 Sixty-ninth
52+Legislative Assembly
2653 3.Except as otherwise provided under this section, effective January 1, 2025, an eligible
27-employee who begins employment with ana participating employer shall participate in the
28-defined contribution retirement plan under chapter 54-52.6 as provided under section
29-54-52.6-02.1.
54+employee who begins employment with ana participating employer shall participate in
55+the defined contribution retirement plan under chapter 54-52.6 as provided under
56+section 54-52.6-02.1.
3057 4.This section does not impact an employee to the extent the employee is a participating
31-member in one or more of the following enumerated plans: law enforcement plan, judges'
32-plan, highway patrol plan, teachers' fund for retirement plan, or alternative retirement program
33-established under section 15-10-17 for university system employees.
34-a.A participating or deferred member in the defined contribution retirement plan under
35-chapter 54-52.6 who becomes eligible to participate in a plan enumerated under this
36-subsection is eligible to participate in the retirement plan enumerated under this
37-subsection.
38-b.A participating member of a retirement plan enumerated under this subsection who
39-becomes an eligible employee is not eligible to participate in the defined benefit
40-retirement plan under this chapter but instead participates in the defined contribution
41-retirement plan under chapter 54-52.6. However, this subdivision does not apply to an
42-individual who before January 1, 2025, is a participating or a deferred member under this H. B. NO. 1602 - PAGE 2
43-chapter, as that individual continues to participate in the defined benefit retirement plan
44-under this chapter.
58+member in one or more of the following enumerated plans: law enforcement plan,
59+judges' plan, highway patrol plan, teachers' fund for retirement plan, or alternative
60+retirement program established under section 15-10-17 for university system
61+employees.
62+a.A participating or deferred member in the defined contribution retirement plan
63+under chapter 54-52.6 who becomes eligible to participate in a plan enumerated
64+under this subsection is eligible to participate in the retirement plan enumerated
65+under this subsection.
66+b.A participating member of a retirement plan enumerated under this subsection
67+who becomes an eligible employee is not eligible to participate in the defined
68+benefit retirement plan under this chapter but instead participates in the defined
69+contribution retirement plan under chapter 54-52.6. However, this subdivision
70+does not apply to an individual who before January 1, 2025, is a participating or a
71+deferred member under this chapter, as that individual continues to participate in
72+the defined benefit retirement plan under this chapter.
4573 5.The board shall adopt rules to implement this section.
46-6.This section may not be construed to require a political subdivision to participate in the defined
47-contribution retirement plan under chapter 54 - 52.6, even if the political subdivision has
48-participated or continues to participate in the defined benefit retirement plan under this
49-chapter. Political subdivision participation in the public employees retirement system, including
50-the defined contribution retirement plan under chapter 54 - 52.6, is optional.
51-7.Notwithstanding sections 54 - 52 - 02.1 and 54 - 52 - 04, the board may not assess any fees or
52-costs against a political subdivision for withdrawing from the defined contribution retirement
53-plan under chapter 54 - 52.6. H. B. NO. 1602 - PAGE 3
54-____________________________ ____________________________
55-Speaker of the House President of the Senate
56-____________________________ ____________________________
57-Chief Clerk of the House Secretary of the Senate
58-This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
59-Assembly of North Dakota and is known on the records of that body as House Bill No. 1602.
60-House Vote: Yeas 72 Nays 18 Absent 3
61-Senate Vote:Yeas 46 Nays 0 Absent 1
62-____________________________
63-Chief Clerk of the House
64-Received by the Governor at ________M. on _____________________________________, 2025.
65-Approved at ________M. on __________________________________________________, 2025.
66-____________________________
67-Governor
68-Filed in this office this ___________day of _______________________________________, 2025,
69-at ________ o’clock ________M.
70-____________________________
71-Secretary of State
74+6.This section may not be construed to require a political subdivision to participate in the
75+defined contribution retirement plan under chapter 54 - 52.6, even if the political
76+subdivision has participated or continues to participate in the defined benefit
77+retirement plan under this chapter. Political subdivision participation in the public
78+employees retirement system, including the defined contribution retirement plan under
79+chapter 54 - 52.6, is optional.
80+7.Notwithstanding sections 54 - 52 - 04 and 54 - 52 - 02.1, the board may not assess any
81+fees or costs against a political subdivision for withdrawing from the defined
82+contribution retirement plan under chapter 54 - 52.6.
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