All Roll Calls
Yes: 137 • No: 0
North DakotaSB 21212025 Regular SessionSenateWALLET
AN ACT to amend and reenact subsection 23 of section 54-52-01, section 54-52-17, subsection 2 of section 54-52-28, sections 54-52.1-03.1 and 54-52.2-06, subsection 8 of section 54-52.6-01, and subsection 1 of section 54-52.6-02.2 of the North Dakota Century Code, relating to administering the public employees retirement system.
Sponsored By: Senate State and Local Government
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 2 benefits, 3 costs, 3 mixed.
BCI officers need more years to retire
If you are a BCI peace officer, the law raises the service years needed to retire. Normal retirement stays at age 55, but hires before August 1, 2023 need at least 3 eligible years; hires after July 31, 2023 need 10 years. Early retirement is at age 50 with the same split: 3 years if hired before August 1, 2023, and 10 years if hired after July 31, 2023.
More access to state group health insurance
Eligible local governments can join the state group health plan for their permanent employees. Participation has a board‑set minimum period of 60 months. The Garrison Diversion Conservancy District and certain district health units must participate on the same terms as state agencies. Retirees who accepted a retirement allowance can enroll without meeting board minimums at key times—when they or their spouse turn 65, when they start receiving a benefit, when their former employer joins the plan and they were in the old plan, or when their spouse stops working. Retirees and surviving spouses pay premiums directly to the board.
Deferred comp stays tax-deferred and protected
If you use the state deferred compensation plan, your non‑Roth deferrals are not taxed until you receive them. Unpaid benefits are protected from garnishment, attachment, bankruptcy, and similar actions, with narrow statutory exceptions. You cannot sell, assign, or transfer your right to future payments.
What pay counts toward your pension
Only pay reported as salary on your tax withholding, plus salary reductions under sections 125, 401(k), 403(b), 414(h), or 457, counts as pensionable salary. The law excludes many items, like lump‑sum vacation payouts, unused sick leave, overtime, housing or transportation allowances, incentive or severance pay, and insurance benefits. Bonuses can count only if reported and annualized under board rules.
New vesting and survivor rules for PERS
You keep a deferred vested benefit after leaving if you have 3 years of eligible service. Judges need 5 years. BCI officers hired after July 31, 2023 need 10 years. If a member dies before retiring, the beneficiary gets the account balance only if those same service-year rules are met. The board must automatically refund accounts under $1,000 when service is below the rule (3, 5, or 10 years), unless the member waives the refund in writing within 30 days after termination. Also, you are denied a prior service benefit if you did not work for a North Dakota government employer continuously for the 2 years right before you became eligible to retire.
Local employers owe costs if leaving early
If a political subdivision exits the state group health plan before 60 months, it must repay the board for program expenses that were higher than income received for its employees. The board sets the amount under its rules. This affects local budgets, not individual medical bills.
When retirement RMDs must start
If you reached age 70½ before January 1, 2020, your first required distribution is due by April 1 of the year after the later of the year you turned 70½ or the year you left work. If you reached age 70½ after December 31, 2019, your first required distribution is due by April 1 of the year after the later of the year you turn 72 or the year you left work.
Who is an eligible or temporary employee
On December 31, 2024, an eligible employee is a permanent state worker in the PERS main plan with 5 years or less of participation and age 18 or older. A temporary employee is 18 or older, not eligible as a permanent worker, not actively contributing to another employer retirement fund, and, in a school district, in a noncertified teacher job.
Sponsors & Cosponsors
Sponsor
Senate State and Local Government
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 3/11/2025
Second reading, passed, yeas 90 nays 0
Yes: 90 • No: 0
Senate vote • 1/17/2025
Second reading, passed, yeas 47 nays 0
Yes: 47 • No: 0
Actions Timeline
Filed with Secretary Of State 03/18
3/20/2025HouseSigned by Governor 03/18
3/18/2025SenateSent to Governor
3/17/2025SenateSigned by President
3/17/2025SenateSigned by Speaker
3/14/2025HouseReturned to Senate
3/12/2025SenateSecond reading, passed, yeas 90 nays 0
3/11/2025HouseReported back, do pass, place on calendar 11 0 2
3/7/2025HouseCommittee Hearing 09:00
3/7/2025HouseIntroduced, first reading, referred Government and Veterans Affairs Committee
2/13/2025HouseReceived from Senate
1/20/2025HouseSecond reading, passed, yeas 47 nays 0
1/17/2025SenateReported back, do pass, place on calendar 6 0 0
1/16/2025SenateCommittee Hearing 09:30
1/16/2025SenateIntroduced, first reading, referred State and Local Government Committee
1/7/2025Senate
Bill Text
Enrollment
INTRODUCED
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