SB 2121 — Summary (North Dakota Public Employees Retirement System amendments)
Status
- Introduced: Jan 7, 2025 (Sixty-ninth Legislative Assembly)
- Enrolled and passed by Legislature; signed by Governor: June 20, 2025
- Effective date: September 1, 2025
Purpose
- To amend several provisions of the North Dakota Century Code governing administration of the Public Employees Retirement System (PERS). The changes clarify definitions, revise benefit‑calculation rules, and update retirement‑eligibility criteria for certain classes of members.
Key provisions (by subject)
- Definitions — temporary employee (54‑52‑01(23))
- Revises “temporary employee” to mean an employee who: (1) is not eligible to participate as a permanent employee; (2) is at least 18 years old and not actively contributing to another employer‑sponsored retirement fund; and (3) if employed by a school district, occupies a noncertified teacher position.
Formulation of plan / benefit calculation and eligibility (54‑52‑17)
- Reaffirms that benefits follow the statute and board rules; prior service benefits require continuous employment by a North Dakota governmental unit for at least two years immediately prior to retirement eligibility.
- Service credit: participating members receive credit for full‑time employment (part‑time prorated under board rules).
- Final average salary:
- Generally: average of the highest salary for any 36 months within the last 120 months.
- For members terminating on or after Aug 1, 2010: average of highest 36 months within the last 180 months.
- For members terminating between July 31, 2005 and Aug 1, 2010: average of highest 36 months within the period for which the board has accurate electronic salary records, up to 180 months.
- For members terminating after Dec 31, 2019: the final average salary is the higher of (a) the final average salary calculated on Dec 31, 2019, or (b) the average of the three highest 12‑month periods during the last 180 months. Months without earnings are excluded.
- Retirement dates (normal, postponed, early) clarified and differentiated for multiple classes:
- General members, members first enrolled after Dec 31, 2015, national guard security officers, firefighters, peace officers, correctional officers, and judges have specific age/service combinations that define normal retirement.
- Notably, for peace officers employed by the Bureau of Criminal Investigation (BCI) there is a distinction by hire date: BCI members employed after July 31, 2023, must complete 10 eligible years (instead of 3) to qualify for the standard age‑based normal retirement threshold noted in the provision.
Additional statutory sections amended (listed in bill title)
- The bill also amends: subsection 2 of §54‑52‑28; §§54‑52.1‑03.1 and 54‑52.2‑06; subsection 8 of §54‑52.6‑01; and subsection 1 of §54‑52.6‑02.2. (The public enrollment text provided is truncated and does not show the full changes to these sections; they relate generally to PERS administration, contribution/benefit mechanics, and service credit processes.)
Who is affected
- Current and future members of the North Dakota Public Employees Retirement System, including:
- State and local public employees
- Peace officers (including specified rules for BCI hires)
- Firefighters and correctional officers
- National Guard security officers
- School district employees who are noncertified teachers
- Temporary employees who meet the revised definition
Procedural / effective dates and notes
- The bill contains a retroactivity note in §54‑52‑17 (the section as amended includes a “Retroactive application — See note” header).
- The board administering PERS retains rule‑making authority to implement provisions described as “not inconsistent with this chapter.”
- Effective date set by enactment: September 1, 2025.
Potential impacts
- Alters how final average salary is computed for different cohorts, which can increase or decrease benefit calculations depending on member work histories.
- Changes to retirement age/service formulas for specific public safety classes (and increased service requirement for some BCI hires) may affect retirement timing, workforce recruitment, and PERS actuarial liabilities.
- Expanding or clarifying the definition of “temporary employee” may change who is eligible to participate in PERS, affecting both coverage and employer contributions.
- Full fiscal/actuarial impacts are not provided in the text excerpt and would typically be assessed by the PERS actuary and the state budget office.
If you want, I can:
- Extract and summarize the specific amendments in the remaining sections once you provide the full text of those sections; or
- Prepare a short analysis of likely fiscal/actuarial implications based on typical member demographics.
