Labor & Employment (Retirement Benefits)

HB 1602 changes North Dakota's public employee retirement system by closing the traditional defined benefit plan to new hires starting January 1, 2025. Instead, new permanent employees (excluding those in specific exception roles like teachers, law enforcement, or university staff) must join a defined contribution retirement plan. Existing members who joined before 2025 remain in the defined benefit plan, and political subdivisions (like cities or counties) may choose whether to participate in the new defined contribution plan. The bill clarifies that local governments are not required to offer either retirement plan, and no fees apply if they withdraw from the defined contribution system.