Labor & Employment (Retirement Benefits)

SB 2227 amends North Dakota's public employees retirement system to require most new state and local government employees to enroll in the retirement plan within their first month of employment, unless they formally waive participation in writing for past service. It also allows retired employees who return to work (with a different employer or in specific unclassified state positions) to permanently opt out of future contributions and retirement plan participation. The law applies retroactively to December 14, 2024, and is declared an emergency measure. This change directly affects public employees, retirees returning to work, and participating government employers.

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.