All Roll Calls
Yes: 128 • No: 7
North DakotaHB 11462025 Regular SessionHouseWALLET
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; to provide for retroactive application; and to declare an emergency.
Sponsored By: Mike Lefor (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
State workers: 2025 DC transfer window
From January 1 to March 31, 2025, some newer state employees can irrevocably switch from the pension to the defined contribution plan. You must be a permanent state employee age 18 or older, in the main plan on December 31, 2024, with five years or less of participation. The board moves a lump sum equal to the actuarial value of your earned pension, using the earlier normal retirement age, plus interest from January 1, 2025 at 0.5% below the plan rate. You must still be employed when the transfer posts, and your health benefits do not change. Starting in 2026, the state adds $3,333 a year to your DC account for up to three years, ending no later than January 2028, while you remain a permanent employee. The DC plan offers lifecycle portfolios, mutual funds, build‑your‑own options, and in‑plan lifetime annuities. Pay counted as “wages” includes salary and 125/401(k)/403(b)/414(h)/457 deferrals, and excludes many fringe and lump‑sum payouts; bonuses can count if the board annualizes them. If the IRS says a part of this would harm tax status, the board must ignore that part.
Local workers can join PERS with funding
Local governments can agree with the retirement board to cover their permanent employees under PERS. Agreements can also cover police, firefighters, and correctional officers separately, and school districts may include permanent noncertified staff. Your employer must pay the contribution rate set in law, including 4.12% of monthly pay through December 31, 2025, plus an extra 1.14% if you first enrolled after December 31, 2019. If you worked after July 1, 1977, would have vested, and elect to join, your employer must also make back contributions for that service. Local police or fire pension plans may merge into PERS under board rules.
Stronger funding rules and penalties for PERS
A local government that is not yet in PERS must first pay for an actuarial study and then amortize any past‑service costs over no more than 30 years. Employers must pay contributions monthly (or in a board‑allowed lump sum). Late payments face a $50 penalty and 1% interest per month, or interest at the actuarial rate; the board may waive charges if paid within 90 days. A portion of employer payments may be used to run the retirement board. After December 31, 2025, state employers with legislative budget approval must make extra payments to the defined benefit plan equal to the standard rate minus other required employer contributions, using state funds if wages are federally funded. Each year, the board reports to lawmakers the contribution levels needed to keep the fund sound.
Sponsors & Cosponsors
Sponsor
Mike Lefor
Republican • House
Cosponsors
Jason Dockter
Republican • House
Matthew Ruby
Republican • House
Austen Schauer
Republican • House
Gregory Stemen
Republican • House
Kyle Davison
Republican • Senate
Dick Dever
Republican • Senate
David Hogue
Republican • Senate
Roll Call Votes
Senate vote • 4/2/2025
Second reading, passed, yeas 46 nays 0, Emergency clause carried
Yes: 46 • No: 0
House vote • 2/11/2025
Second reading, passed, yeas 82 nays 7, Emergency clause carried
Yes: 82 • No: 7
Actions Timeline
Filed with Secretary Of State 04/11
4/14/2025HouseSigned by Governor 04/10
4/11/2025HouseSent to Governor
4/8/2025HouseSigned by Speaker
4/8/2025HouseSigned by President
4/4/2025SenateReturned to House
4/3/2025HouseSecond reading, passed, yeas 46 nays 0, Emergency clause carried
4/2/2025SenateReported back, do pass, place on calendar 15 0 1
3/31/2025SenateCommittee Hearing 09:00
3/20/2025SenateRereferred to Appropriations
3/7/2025SenateReported back, do pass 5 0 1
3/7/2025SenateCommittee Hearing 10:00
3/6/2025SenateIntroduced, first reading, (emergency), referred State and Local Government Committee
2/13/2025SenateReceived from House
2/12/2025SenateSecond reading, passed, yeas 82 nays 7, Emergency clause carried
2/11/2025HouseReported back, do pass, place on calendar 21 0 2
2/10/2025HouseRereferred to Appropriations
1/31/2025HouseAmendment adopted
1/31/2025HouseReported back amended, do pass, amendment placed on calendar 13 0 1
1/30/2025HouseCommittee Hearing 08:56
1/30/2025HouseCommittee Hearing 09:30
1/17/2025HouseIntroduced, first reading, referred Government and Veterans Affairs Committee
1/7/2025House
Bill Text
Enrollment
FIRST ENGROSSMENT
INTRODUCED
Prepared by the Legislative Council staff for Representative Dockter
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