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PERS staff outline rule changes to implement defined‑contribution transition after House Bills
Summary
NDEPRS staff presented detailed administrative‑rule changes stemming from House Bill 1040 and special‑session House Bill 1547, covering board membership, benefit calculations, defined‑contribution enrollment mechanics and new beneficiary and contribution sections; staff warned some items will need further legislative or administrative fixes.
Rebecca Frikey, executive director of the North Dakota Public Employees Retirement System, presented an extensive set of administrative‑rule amendments to implement statutory changes from House Bill 1040 and special‑session House Bill 1547.
Frikey told the Administrative Rules Committee the package includes updates to board membership and election processes, adjustments to calculation methods for unused sick leave and final average salary, clarifications about life‑insurance continuation after retirement, repeal of sections tied to plan closures, and new automatic‑enrollment and beneficiary designation sections for the defined‑contribution plan.
"The proposed amendments that are in front of you today are the same ones that we discussed at our September meeting," Frikey said, noting public notices, hearing dates, and that the agency performed a regulatory analysis and did not expect impacts on the regulated community in excess of $50,000. Several rule sections were adjusted to be consistent with the century code and to implement special session House Bill 1547 and House Bill 1040.
Frikey also flagged unresolved questions: funding of incentive payments and the actuarially determined employer contribution (ADEC) for certain boards and commissions that do not receive legislative budget approval, and whether political subdivisions may be allowed to join the new defined‑contribution plan. She said some cleanup legislation may be proposed and that staff had already sent notices to eligible employees in advance of the special election window beginning Jan. 1.
Committee members asked for clarifications on profit‑sharing definitions and employer contribution flows; Frikey said much of the language harmonizes existing rule language across plans and that administrative tweaks will likely follow implementation. Representative Rudy and others recommended approving the technical rule changes now while pursuing legislative or administrative follow‑up to address the larger funding and policy questions.
The committee did not record substantive objections and members indicated support for moving the amendments forward.
