BISMARCK, N.D. - The North Dakota Public Employees Retirement System (NDPERS) proudly announces the launch of the Defined Contribution (DC) 2025 Tier 3 as the official retirement plan for new state and participating political subdivision employees starting in 2025.
Mike Lefor, Majority Leader of the House of Representatives, expressed, “I would like to thank the members of the PERS leadership team for their outstanding work in making the Defined Contribution plan a reality. This was a challenging task and they did a first class job in not only meeting the goal but going above and beyond the call of duty. Congratulations and thank you all for your hard work and service to the employees of our great state.”
The new DC 2025 Tier 3 closely resembles 401(k) retirement plans offered in the private sector. The newest tier of the existing NDPERS Defined Contribution Plan offers employees an employer match of up to 3% when they opt to contribute into an eligible NDPERS retirement plan.
"NDPERS staff, and board members, have worked masterfully at ensuring a seamless transition to a Defined Contribution plan in 2025. The work has included creating important and effective educational tools, outreach and interactive sessions with employers and consistent communication with all concerned parties,” said Mike Seminary, Chair to the NDPERS Board.
The strategic transition aimed at establishing the Defined Contribution Retirement Plan as the primary plan for new employees aligns with legislation passed during the 68th Legislative Assembly. House Bill (HB) 1040 effectively closed the pension Main Defined Benefit (DB) Retirement Plan to new hires on December 31, 2024.
Tyler Erickson, elected NDPERS Board member, stated, “NDPERS leadership has tirelessly worked to prioritize membership education surrounding the plan transition and the intricacies involved therein. Through this prioritization of member education, I believe all new plan members will be well positioned to maximize the retirement options available to them.”
“I couldn’t be prouder of the dedication that the NDPERS team has once again shown for the members we serve through this plan implementation,” said Rebecca Fricke, NDPERS Executive Director. “Other states that have implemented these types of significant retirement plan design changes have had two to three years to implement. NDPERS had just over 18 months.” Seminary added, “it is a privilege working with this hard working, compassionate and dedicated group of professionals."
The Main DB plan is 68.3% funded and is projected to be fully funded by 2056. There are nearly 42,000 participants in the pension plan and over 15,000 retired receiving a monthly pension.
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NDPERS serves over 60,000 participants and their dependents mostly residing in the State of North Dakota. Founded in 1966, NDPERS has grown to administer nine retirement plans, including some with multiple tiers, in addition to ten insurance plans. NDPERS also oversees an Employee Assistance Program and a Health Savings Account.