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)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Retirement transfer bonuses for state workers

The law created a January 1–March 31, 2025 window to switch from the main pension plan to the defined contribution plan; it is closed. Eligible workers were permanent employees of state entities with legislative budget approval, age 18 or older. They also had to participate in the main plan on December 31, 2024, with no more than five years of participation. The choice was final, but leaving employment before the lump-sum transfer canceled it and kept the worker in the pension plan. The transfer equals the actuarial value of earned pension benefits, plus interest from January 1, 2025, through transfer. Interest uses the plan’s assumed rate minus 0.5 percentage points. Qualifying workers receive an extra $3,333 in their retirement accounts each January in 2026, 2027, and 2028 while continuing permanent state employment. The transfer provision applies retroactively to January 1, 2025, and does not change existing health benefits.

New pension funding for state workers

Beginning January 1, 2026, state employers with legislative budget approval must make additional payments to the defined benefit pension plan. The funding formula covers benefits earned that year plus unfunded pension costs spread over 30.5 years, through June 30, 2056. Required employer contributions to the highway patrol and defined contribution plans are subtracted when calculating the additional payment. The legislature can authorize transfers equal to or above the actuarially calculated amount. State funds must cover the additional payment even when federal funds pay some wages; employees do not owe this payment.

Retirement access for local government workers

North Dakota local governments can offer eligible workers defined contribution retirement benefits through an agreement with the Public Employees Retirement System. Workers gain access only when their employer signs an agreement and they meet the plan’s eligibility rules. Agreements must include the required employer contributions. A local government newly joining the system must pay for an actuarial study of any past-service pension costs. Those costs can be spread over up to 30 years, as set by the retirement board.

More retirement choices for public workers

The public employees’ defined contribution plan must offer diversified investments and lifetime annuity options. Members can choose age-based portfolios that automatically adjust investments over time or build portfolios from the available choices. Annuities can be offered inside or outside the plan, with fixed payments, variable payments, or a mix. The retirement board must follow the legal standards for choosing annuity providers.

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

All Roll Calls

Yes: 128 • No: 7

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

  1. Filed with Secretary Of State 04/11

    4/14/2025House
  2. Signed by Governor 04/10

    4/11/2025House
  3. Sent to Governor

    4/8/2025House
  4. Signed by Speaker

    4/8/2025House
  5. Signed by President

    4/4/2025Senate
  6. Returned to House

    4/3/2025House
  7. Second reading, passed, yeas 46 nays 0, Emergency clause carried

    4/2/2025Senate
  8. Reported back, do pass, place on calendar 15 0 1

    3/31/2025Senate
  9. Committee Hearing 09:00

    3/20/2025Senate
  10. Rereferred to Appropriations

    3/7/2025Senate
  11. Reported back, do pass 5 0 1

    3/7/2025Senate
  12. Committee Hearing 10:00

    3/6/2025Senate
  13. Introduced, first reading, (emergency), referred State and Local Government Committee

    2/13/2025Senate
  14. Received from House

    2/12/2025Senate
  15. Second reading, passed, yeas 82 nays 7, Emergency clause carried

    2/11/2025House
  16. Reported back, do pass, place on calendar 21 0 2

    2/10/2025House
  17. Rereferred to Appropriations

    1/31/2025House
  18. Amendment adopted

    1/31/2025House
  19. Reported back amended, do pass, amendment placed on calendar 13 0 1

    1/30/2025House
  20. Committee Hearing 08:56

    1/30/2025House
  21. Committee Hearing 09:30

    1/17/2025House
  22. Introduced, 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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