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.
What changed between versions
Employers must now pay contributions for employees who elect to transfer to the defined contribution retirement plan under section 54-52-17.14, including matching employee contributions when the employer pays them.
Employers must submit contributions for past eligible employees who were employed after July 1, 1977 and would have been vested had they participated in the retirement system.
New penalties established for employers failing to make timely contributions, including a $50 civil penalty plus 1% monthly interest, with potential waiver if paid within 90 days.
Contribution requirements split into two effective periods: through December 31, 2025, and after December 31, 2025, with the latter requiring actuarially determined contributions based on unfunded liability amortization over 30.5 years.
Future contribution rates for the defined benefit plan will be determined by actuarial valuations rather than fixed percentages, ensuring the fund remains actuarially sound.
