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Committee advances bill letting certain state retirees return to work without losing retirement pay
Summary
Senate Bill 2227 would allow a retiree who retired under normal retirement to return to employment with the state in an unclassified, appointed position for the duration of an elected official’s term without having to suspend retirement benefits or re‑enter the retirement plan.
Senate Bill 2227 would permit an individual who retired under normal retirement to return to work for the same employer (the State of North Dakota, treated as a single employer for IRS purposes) in an unclassified, appointed position for the duration of the appointing elected official’s term without losing their monthly retirement benefit.
Senator (or Representative) Brad Beckett (as introduced) and Chris Joseph, general counsel to the governor, urged passage on behalf of the governor’s office. They said the change would allow newly elected officials to preferentially rehire experienced, retired state employees into unclassified positions without creating retirement plan compliance problems. “It would provide the elected state officials the opportunity and the flexibility to rehire or bring back former state employees, the most experienced, the most qualified state employees to serve the state once again,” Joseph said.
Rebecca Fricke testified in a neutral position for the PERS board and described the amended, narrowed drafting that PERS staff and legal counsel worked with the governor’s office to produce. Fricke said the amendment removed an earlier version’s voluntary participation option (which could have created plan compliance risk) and instead makes such returning retirees ineligible to participate in the retirement plan while serving in the appointed unclassified position; they would continue to receive their retired monthly benefits. PERS confirmed its federal tax compliance consultant, Ice Miller, reviewed the amended language and did not identify a plan compliance concern because returning retirees would not be given the choice to re‑enter the plan.
Committee members discussed retroactivity (the bill includes a retroactive clause to the day before the current governor took office) and whether other benefits such as health insurance would be affected; Fricke said the bill addresses retirement and retiree health insurance credit program eligibility and that other benefits would be handled under existing eligibility rules.
The committee voted to recommend the bill (11 yes, 1 no, 1 present) after testimony and discussion. The committee record shows the motion carried.
