Summary — SB 2227 (North Dakota, 2025)
Status: Enacted (Filed with Secretary of State 03/18/2025). Effective immediately as an emergency measure; retroactive to December 14, 2024.
Purpose
- To amend subsection 1 of section 54-52-05, North Dakota Century Code, clarifying enrollment rules for governmental employees in the Public Employees Retirement System (PERS) and to specify when retirees who return to public employment may permanently waive future participation (and associated contributions) in the retirement plan and retiree health program.
Key provisions (section-by-section, substantive changes)
- General enrollment timing (subsection 1.a & 1.b)
- Requires eligible employees of a political subdivision joining the plan to state in writing whether they concur in plan membership and mandates enrollment of future eligible employees within the first month of employment.
- Confirms other eligible governmental unit employees must be enrolled within the first month of employment. An employee who was eligible previously but not enrolled must be enrolled upon notice of eligibility unless the employee executes a written waiver of the right to participate for the prior eligibility period (to avoid retroactive contributions for past service).
Reemployed retirees (subsection 1.c)
- A person who was eligible for normal retirement, accepted a PERS retirement benefit, and later becomes employed by a different participating employer may, prior to re‑enrollment within the first month of the new employment, elect to permanently waive future participation in the retirement plan and the retiree health program while maintaining retirement status.
- Such an election relieves the retiree from future employee contributions and relieves the reemploying employer from further employer contributions for that individual.
Reemployed retirees with same employer in specific appointments (subsection 1.d)
- A retiree who returns to work for the same participating employer in an unclassified state position by appointment of an elected state official (for the duration of that official’s term until a successor is appointed) may not participate in the retirement plan or the retiree health program and may maintain their retirement status. (No further employee or employer contributions would be required in that circumstance.)
Retroactivity and emergency
- Applies retroactively to December 14, 2024.
- Declares an emergency; effective immediately upon enactment.
Who is affected
- Retired PERS participants who return to public employment (same or different participating employers).
- Public employers (state agencies, political subdivisions) that rehire retirees.
- The Public Employees Retirement System and the retiree health program (potential contribution and enrollment impacts).
- New hires in participating political subdivisions (enrollment procedures clarified).
Potential impacts and considerations
- Financial/actuarial: Permitting permanent waivers for reemployed retirees reduces future employee and employer contributions for those individuals. This could have modest fund‑level effects; no fiscal note included in the text provided.
- Administrative: Employers and PERS must track written waiver elections, re‑enrollment timing, and retiree status to implement the changes.
- Policy tradeoffs: The law preserves retirees’ ability to keep retirement benefits while returning to work without restarting contributions, but it may alter long‑term funding dynamics.
Sponsors and related legislation
- Introduced by Senators Bekkedahl, Boschee, Roers; Representatives Fegley, Lefor, Schauer.
- Companion bills: HB 590 and HB 1857.
Effective dates and legislative action
- Enacted and filed with Secretary of State: March 18, 2025.
- Retroactive application: December 14, 2024.
- Emergency clause: passed and carried in the legislative action.
