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Proposed Legislation in Review

Posted 4/23/20 (Thu)

The NDPERS Board introduced nine bills earlier this month to the Employee Benefits Programs Committee. The committee reviews legislative measures and proposals impacting the public employees' group insurance benefits and retirement programs as well as retiree health plans. Their thorough study of each of the proposed bills allows them to provide recommendations to the 2021 Legislative Assembly.

The following proposed bills are not final and are provided for your information only.

FUNDING OF THE NDPERS RETIREMENT SYSTEM

The NDPERS Board submitted four different funding bills to address the unfunded liability of the NDPERS Main Plan. Recognizing the current economic fluctuations, the NDPERS Board will amend any funding bills after the retirement plan valuation is completed for year end June 30, 2020.

The four proposed funding bills being studied by the Employee Benefits Programs Committee include the following:

Proposed Bill 1.
Increases the employer contributions by 1.95% on January 1, 2022.
  • Represents a "catch-up" employer contribution.
Proposed Bill 2.
Increases the employer contributions by 2% on January 1, 2022.
  • Permits for the plan to achieve full funding in 30 years.
Proposed Bill 3.
Increases the employer contributions by 5.2% on January 1, 2022.
  • Denotes the Actuarially Determined Contribution rate which must be reported by the NDPERS Board during each legislative session (N.D. Century Code 54-52-06(4)).
Proposed Bill 4.
Increases the employee and employer contributions by 1% each effective January 1, 2022.
FUNDING OF THE HIGHWAY PATROL RETIREMENT PLAN
Proposed Bill 5.
Increases the employer contribution by 2% on January 1, 2022, and another 2% increase on January 1, 2023.
OTHER BILLS
Proposed Bill 6.
Establishes continuing appropriation to pay for the 457 Deferred Compensation Administrative Expenses. . Sources for payment can include fees paid by participating members and fines collected by the NDPERS Board from vendors.
 
Proposed Bill 7.
Excludes Medicare Part D from the Pharmacy Benefit Manager requirements established during the 2019 Legislative Assembly through HB 1374.
 
Proposed Bill 8.
Implements financial penalties for participating employers failing to accurately report payroll.
 
Proposed Bill 9.
Technical corrections bill includes the following:
  • Amends the eligibility requirements for Retiree Health Insurance Credit (RHIC) payments.
  • Provides for payments of any remaining account balance after a member or their survivor passes away.
  • Changes the age at which Required Minimum Distributions must begin to be consistent with recent federal law changes