HB 1146 — Relating to 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.

25.0743.03000 Sixty-ninth Legislative Assembly of North Dakota FIRSTIn ENGROSSMENTRegular ENGROSSEDSession Commencing Tuesday, January 7, 2025 HOUSE BILL NO.

1146 Introduced(Representatives by Representatives Lefor, Dockter, Schauer, Stemen, M.

RubyRuby) Senators(Senators Davison, Dever, HogueHogue) AAN BILLACT for an Act to amend and reenact sections 54-52-02.1, 54-52-06, 54-52.6-01, 54-52.6-02.2, 54-52.6-05, and 54-52.6-09.5 of the North Dakota Century Code, relating to 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;

The political subdivision will contribute on behalf of each eligible employee an amount equal to that provided in section 54-52-06 or 54-52-06.3 for peace Pageofficers, No.firefighters, and correctional officers participating separately from other political subdivision employees.

1 25.0743.03000 Sixty-ninth Legislative Assembly officers, firefighters, and correctional officers participating separately from other political subdivision employees.

54-52-06.H.

B.

NO.

1146 - PAGE 2 54-52-06.

Page2. No.

2 25.0743.03000 Sixty-ninth Legislative Assembly 2.

(Effective after December 31, 2025) Page1. No.

3 25.0743.03000 Sixty-ninth Legislative Assembly 1.

In lieu of each stateH. governmental unit that receives budgetary approval from the legislative assembly contributing the additional actuarially determined rate, the legislative assembly may authorize a transfer to the public employees retirement system fund in an amount equal to or greater than the actuarially determined amount as most recently published by the board for the succeeding biennium.

B.

NO.

1146 - PAGE 3 state governmental unit that receives budgetary approval from the legislative assembly contributing the additional actuarially determined rate, the legislative assembly may authorize a transfer to the public employees retirement system fund in an amount equal to or greater than the actuarially determined amount as most recently published by the board for the succeeding biennium.

For a participating member who first enrolls after December 31, 2019, a participating political subdivision shall contribute an additional amount equal to one and fourteen-hundredthsfourteen- hundredths percent of the monthly salary or wage of the participating member.

Each governmental unit shall pay the contribution monthly, or in the case of an election made pursuant to Pagesection No.54-52-17.14 a lump sum, into the retirement fund from the governmental unit's funds appropriated for payroll and salary or any other funds available for these purposes.

4 25.0743.03000 Sixty-ninth Legislative Assembly section 54-52-17.14 a lump sum, into the retirement fund from the governmental unit's funds appropriated for payroll and salary or any other funds available for these purposes.

3.H.

B.

NO.

1146 - PAGE 4 3.

For employees who elected to join the defined contribution retirement plan under this Pagechapter No.before January 1, 2025, the term includes a permanent state employee, except an employee of the judicial branch or an employee of the board of higher education and state institutions under the jurisdiction of the board of higher education, who is at least eighteen years of age and who is in a position not classified by the North Dakota human resource management services.

5 25.0743.03000 Sixty-ninth Legislative Assembly chapter before January 1, 2025, the term includes a permanent state employee, except an employee of the judicial branch or an employee of the board of higher education and state institutions under the jurisdiction of the board of higher education, who is at least eighteen years of age and who is in a position not classified by the North Dakota human resource management services.

Page54-52.6-02.2. No.

6 25.0743.03000 Sixty-ninth Legislative Assembly 54-52.6-02.2.

However, if the eligible employee terminates employment before receivingH. the lump sum transfer under this section, the election made is ineffective and the eligible employee remains a member of the public employees retirement system under chapter 54-52 and retains all the rights and privileges under that chapter.

B.

NO.

1146 - PAGE 5 receiving the lump sum transfer under this section, the election made is ineffective and the eligible employee remains a member of the public employees retirement system under chapter 54-52 and retains all the rights and privileges under that chapter.

Page3. No.

7 25.0743.03000 Sixty-ninth Legislative Assembly 3.

Page54-52.6-09.5. No.

8 25.0743.03000 Sixty-ninth Legislative Assembly 54-52.6-09.5.

(Effective after December 31, 2025) In addition to the employer contribution under section 54-52.6-09, a state employer that receives budgetary approval from the legislative assembly shall contribute to the defined benefit retirement plan under chapter 54-52, an amount equal to the contribution rate calculated under section 54-52-06 less theH. amount of the required employer contribution under sections 54-52.2-09 and 54-52.6-09.

B.

NO.

1146 - PAGE 6 the amount of the required employer contribution under sections 54-52.2-09 and 54-52.6-09.