FOR IMMEDIATE RELEASE
BISMARCK, N.D. – The North Dakota Public Employees Retirement System (NDPERS) received guidance from its federal compliance consultant regarding a discrepancy between federal law and North Dakota state law. The guidance received by NDPERS in March 2025, addresses Cash or Deferred Arrangements (CODA) and their administration.
The Internal Revenue Service (IRS) Treasury Regulation addressing CODA prohibits a waiver of participation once an employee has elected to join the retirement plan, on a pre-tax basis, if the employee remains employed with the same employer in an eligible position. However, the North Dakota Century Code and Administrative Code has allowed this type of waiver for elected county officials at the start of a new term.
Upon receiving the guidance, NDPERS reached out to participating counties on April 3, 2025, to alert them of the conflict between federal law and North Dakota state law. The employer memo, citing the IRS regulations provided by the consultant, clarified that federal law supersedes state law. It also stated that NDPERS and its Board will propose legislation and rules in the future to bring state law into compliance with federal law. However, NDPERS is required to follow federal law immediately upon becoming aware of the discrepancy between federal law and state law.
Members with questions should contact the NDPERS office regarding their individual record. The NDPERS Board will be discussing steps to address the discrepancy at its May 13, 2025, regular meeting.
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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.
MEDIA CONTACT
Rebecca Fricke | NDPERS Executive Director
701.328.3900 | ndpers-info@nd.gov