The Administrative Rules Committee of North Dakota convened on December 5, 2024, to discuss significant updates regarding incentive payments and administrative rules related to state employee retirement plans. The meeting highlighted the ongoing efforts to align existing rules with new legislative requirements, particularly concerning profit-sharing and retirement contributions.

During the session, committee members raised questions about the specifics of profit-sharing as it pertains to the state mill and elevator. It was clarified that profit-sharing bonuses are awarded based on the mill's profits during good fiscal years, and this terminology is being standardized across various retirement plans.

A key focus of the meeting was the implementation of House Bill 10-40, which aims to streamline the retirement process for state employees. Committee members expressed appreciation for the collaborative efforts that have led to this point, acknowledging the hard work involved in transforming the retirement system over the past 18 months.

Concerns were also raised regarding the funding mechanisms for incentive payments and the Actuarially Determined Employer Contribution (ADEC) for certain state boards and commissions. The committee discussed the challenges these entities face in securing budget approvals, which could impact their ability to meet new financial obligations starting in January 2026.

Additionally, the committee explored the possibility of allowing political subdivisions not currently participating in the Public Employees Retirement System (PERS) to join the new defined contribution plan. This potential change would require legislative action and reflects ongoing discussions about expanding retirement options for state employees.

The meeting concluded with a commitment to continue monitoring the implementation of these changes and to address any necessary adjustments in future legislative sessions. The collaborative spirit of the committee was evident, with members expressing gratitude for the progress made and a willingness to adapt as new information becomes available.