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HB 1602

creating a safe battery recycling stewardship program.

2026 Regular Session Introduced by Judy Aron and 8 co-sponsors

New hires after 2024 move from the defined-benefit PERS main plan to a defined-contribution plan, while current DB members stay, with optional participation for subdivisions.

Sen. Rosenwald Move to Refer to Interim Study, MA, VV; 04/23/2026; SJ 10
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Bill Summary · HB 1602

Summary — HB 1602 (North Dakota)

Title: An Act to amend and reenact section 54‑52‑02.15, N.D.C.C., relating to political subdivision participation in the Public Employees Retirement System (PERS) defined contribution retirement plan

Main purpose

Close the PERS defined‑benefit (DB) main plan to most new hires and shift new eligible employees to the PERS defined‑contribution (DC) plan, clarify rules for multiple plan membership, preserve protections for current DB members, and make participation in the DC plan optional for political subdivisions (and prohibit charging withdrawal fees to them).

Key provisions

  • Definition of “eligible employee”: a permanent employee who (a) meets chapter eligibility requirements, (b) is at least 18 years old, (c) becomes a participating member after December 31, 2024 (i.e., hired after that date), and (d) is not eligible for certain specialized plans (law enforcement, judges, highway patrol, teachers’ fund for retirement, or the university system alternative retirement program under §15‑10‑17).
  • Closure of DB main plan to new eligible employees:
    • Effective January 1, 2025, the PERS defined‑benefit main plan is closed to new eligible employees. (The bill also contains contingent‑effective language tied to the Act’s effective date.)
    • Employees who became participating or deferred members before January 1, 2025 remain in the DB main plan even if rehired after that date.
  • New hires to DC plan:
    • Except as otherwise provided, eligible employees hired on or after the effective date will participate in the PERS defined‑contribution plan under chapter 54‑52.6 and applicable rules (see §54‑52.6‑02.1).
  • Multiple plan membership / inter‑plan movement:
    • The changes do not affect employees who are members of the enumerated specialized plans (law enforcement, judges, highway patrol, teachers, university alternative retirement).
    • A participant (or deferred member) in the DC plan who later becomes eligible for an enumerated plan may join that enumerated plan.
    • A member of an enumerated plan who later becomes an “eligible employee” (as defined) does not revert to the DB main plan but instead participates in the DC plan — except that individuals who were members (participating or deferred) of the DB main plan before January 1, 2025 continue in the DB main plan.
  • Administrative actions and protections:
    • The PERS board must adopt rules to implement the section.
    • The statute explicitly does not require political subdivisions to participate in the DC plan — participation by political subdivisions in PERS (including the DC plan) remains optional.
    • The board may not assess any fees or costs against a political subdivision for withdrawing from the DC plan.

Who is affected

  • New public employees (state and local) hired on/after Jan 1, 2025 who are not eligible for the specified specialized plans will be placed in the DC plan rather than the DB main plan.
  • Current DB main plan participants and deferred members (participating before Jan 1, 2025) remain in the DB main plan.
  • Participating employers and political subdivisions (counties, cities, school districts, etc.) — particularly decisions about whether to join or remain in the DC plan — and the PERS administration (rulemaking and implementation).

Timeline / procedural status

  • Introduced: December 12, 2024.
  • Effective (plan closure): generally stated as January 1, 2025 (the bill text also includes contingent‑effective language).
  • Legislative actions on file show the bill proceeded through the House and Senate and, per available records, the Act was transmitted to and filed with the Secretary of State on April 3, 2025 (Act No. 633). The PERS board must adopt rules to implement the new law.

Practical implications

  • Shifts retirement benefit structure for most future hires from a defined‑benefit to a defined‑contribution model, altering retirement risk and predictability for employees and employers.
  • Preserves vested rights of current DB participants.
  • Allows political subdivisions discretion whether to participate in the statewide DC plan and protects them from withdrawal fees, which may lead to a patchwork of local decisions about retirement plan offerings.

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

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