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SB 2119

AN ACT to create and enact a new paragraph to subdivision h of subsection 3 of section 54-52-17 of the North Dakota Century Code, relating to disability retirement benefit eligibility.

69th Legislative Assembly (2025-26)

Disallows disability retirement for members who have reached normal retirement age/date and are eligible for unreduced retirement under NDCC §54-52-17.

Filed with Secretary Of State 03/18
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Bill Summary · SB 2119

Summary — SB 2119 (North Dakota)

An Act to add a new paragraph to subdivision h of subsection 3 of section 54‑52‑17, North Dakota Century Code — disability retirement benefit eligibility

Purpose / Intent

The bill authorizes a narrow eligibility restriction for disability retirement under the North Dakota Public Employees Retirement System (or the retirement law located at NDCC §54‑52‑17). Its intent is to prevent members who already have reached normal retirement eligibility and are entitled to unreduced (full) retirement benefits from applying for a disability retirement benefit.

Key provision (exact language added)

The bill creates and enacts the following new paragraph to subdivision h of subsection 3 of NDCC §54‑52‑17:

  • "A member who has reached normal retirement age or normal retirement date and is eligible for unreduced retirement benefits may not apply for a disability retirement benefit."

What changes

  • Adds a single, explicit disqualification: members at or beyond their normal retirement age/date who are already eligible for unreduced (full) retirement may not seek a disability retirement.
  • Does not amend other eligibility rules for members who are younger than normal retirement age or who would receive reduced retirement benefits.

Who is affected

  • Primary: Members of the public-employee retirement system covered by NDCC §54‑52‑17 (state and local public employees enrolled in the applicable plan) who have reached their normal retirement age/date and qualify for unreduced retirement.
  • Secondary: Retirement system administrators (who will enforce the new eligibility rule), employers and actuaries (potentially affected by slight changes in timing or type of benefit claims).

Potential impacts

  • Limits benefit-choice options for members already eligible for an unreduced pension; such members must take normal retirement rather than apply for disability retirement.
  • Could reduce administrative workload and avoid duplicated disability application processing for members already eligible for standard retirement.
  • May have minor actuarial or fiscal effects depending on whether disability benefit formulas differ from unreduced retirement benefits (impact will depend on plan-specific formulas and claim patterns). The bill does not itself change benefit amounts or the definitions of normal retirement age/date.

Procedural / timeline information

  • Introduced: March 10, 2025.
  • Legislative action (enrollment sheet excerpt): Passed both chambers (Senate vote 47–0; House vote 90–0). Reported and enrolled by legislative officers; indicated as signed by the Governor and filed with the Secretary of State on March 18, 2025.
  • Effect: The bill text does not include a separate delayed effective date; procedural records indicate the Governor’s signature and filing on 03/18/2025 (i.e., generally effective upon becoming law unless a different effective date is specified elsewhere).

If you want, I can: (1) locate and cite the current text of NDCC §54‑52‑17 to show the new paragraph in context, or (2) summarize likely actuarial/benefit-formula differences between unreduced retirement and disability retirement for the affected plan.

Compiled from official sources — confirm details with the bill’s official record.

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