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HB 1117

Teachers, Principals and School Personnel - As introduced, creates a pathway for a person to obtain an alternative instructional leader license for purposes of serving as a principal, an assistant principal, or an instructional supervisor. - Amends TCA Title 49, Chapter 5.

114th Regular Session (2025-2026) Introduced by Michele Carringer

Allows some teachers' retirement recipients who reached age 72 after 2019 to delay distributions until 72, aligning with federal RMD rules.

Assigned to s/c Education Administration Subcommittee
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Bill Summary · HB 1117

Summary — HB 1117 (North Dakota)

AN ACT to amend and reenact subsection 4 of section 15‑39.1‑10 of the North Dakota Century Code — eligibility for normal retirement benefits

Purpose / intent

The bill updates the “required beginning date” for when members of the state teachers’ retirement system (covered by section 15‑39.1‑10) must begin receiving retirement payments. The change aligns the state’s required‑beginning‑date rule with federal changes to required minimum distribution (RMD) ages (as adjusted by federal law enacted after 2019), allowing certain members to delay benefit distributions until age 72.

Key provisions

  • Rewrites subsection 4 of NDCC §15‑39.1‑10 to set two different required‑beginning‑date rules based on when a member reached age 70½:
    • Members who attained age 70½ before January 1, 2020: required beginning date remains no later than April 1 of the calendar year following the year the member attains age 70½, or April 1 following the year the member terminates covered employment — whichever is later.
    • Members who attained age 70½ after December 31, 2019: required beginning date is no later than April 1 of the calendar year following the year the member attains age 72, or April 1 following the year the member terminates covered employment — whichever is later.
  • Confirms that benefit payments must be made over a period not exceeding the member’s (or joint) life expectancy.
  • Requires payment of minimum distributions to comply with section 401(a)(9) of the Internal Revenue Code and applicable federal regulations (i.e., federal RMD rules for governmental plans).

Who is affected

  • Active and retired members of the Teachers’ Fund for Retirement (public school teachers covered under the referenced statute) and their beneficiaries.
  • Retirement system administrators responsible for timing and calculation of benefit distributions and for complying with federal RMD rules.

Impact and rationale

  • Main practical effect: members who reached RMD age after Dec. 31, 2019 can delay required distributions until the later federal RMD age (72), allowing additional tax‑deferred accumulation and later commencement of pension payments.
  • Fiscal impact on the state or retirement fund is not specified in the bill text; effects are primarily timing-related (deferral of payouts for some members) and administrative (updating procedures to match the revised beginning date).

Procedural / timeline

  • Introduced by the Government and Veterans Affairs Committee (Teachers' Fund for Retirement Board of Trustees).
  • House vote: Yeas 87, Nays 0. Senate vote: Yeas 47, Nays 0.
  • Enrolled and sent to the Governor; signed by the Governor (recorded March 21, 2025) and filed with the Secretary of State on March 24, 2025 (reported as Act 229 / notification March 4, 2025 in the legislative history).
  • Statutory text amends NDCC §15‑39.1‑10(4). (Check the enacted act for the effective date if not stated in the enrolled bill.)

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

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