Senate committee advances $35.7 million deposit to Highway Patrol pension fund

The Senate Appropriations — Government Operations Division voted to recommend Senate Bill 2120, which would deposit $35,700,000 into the Highway Patrol Defined Benefit Plan trust to improve long-term funding stability.

The bill, presented to the committee by Derek Holbein of the Public Employees Retirement System, would raise the plan’s funded status to roughly 90% and place it “on a path to be fully funded in 25 years,” Holbein said. The committee voted for a “do pass” recommendation; the motion was made by Senator John Dwyer and seconded by Senator Burkhart, and several members recorded aye votes.

The nut graf: The Highway Patrol Defined Benefit Plan covers a small population — the PERS July 1, 2024 valuation shows 147 retirees and 167 active employees — and is not part of Social Security. That combination produces relatively high contribution rates and a risk that the trust could be exhausted if additional funding is not provided, witnesses told the committee.

Derek Holbein, chief operating and financial officer at the North Dakota Public Employees Retirement System, told the committee the plan is currently about 68.6% funded and that a $35.7 million lump-sum deposit was chosen to get the fund to about 90% funding by Jan. 1, 2026. “The intent to Senate Bill 2120 is to help fund a…