Political subdivisions – not currently participating in NDPERS Retirement – may join the NDPERS Defined Contribution (DC) Plan starting August 1, 2025.
The Defined Contribution total contribution is 15.26%.
Political subdivisions interested in joining the NDPERS DC Plan must be aware of eligibility limitations.
- If currently offering another retirement plan (excluding a 457 Deferred Compensation Plan), this may disqualify a political subdivision from joining the NDPERS Retirement.
- Pre-tax employee contributions elections in the current retirement plan, if applicable, must exactly match the contribution levels within the NDPERS DC Plan as required by the Cash or Deferred Arrangement (CODA) provisions under federal law.
- NDPERS will require the current employer-sponsored retirement plan document to evaluate enrollment eligibility.
Steps to Enrollment
- Refer to the Defined Contribution New Employer Group Enrollment Information to understand employee eligibility as well as employer and employee contribution requirements.
- Complete and submit an Eligibility Assessment Questionnaire (SFN 58781) for NDPERS to determine if your agency is an eligible political subdivision.
Submit a signed board resolution with required NDPERS language.
Sample Board Resolution: A motion was made by [Insert Board Member Name] for «Agency» to affirm to North Dakota Public Employees Retirement System that «Agency» is formed pursuant to N.D.C.C. § [Insert citation] and is neither a non-profit corporation nor a for-profit corporation, to join the NDPERS Defined Contribution Retirement Plan and offer the plan to all eligible employees of the «Agency». The motion was seconded by [Insert Board Member Name]. The Board approved joining the NDPERS Defined Contribution Retirement Plan effective [Insert Month 1, Year].
- Complete, sign and submit the Employer Retirement Participation Agreement.
- Submit a Record of Service Form to NDPERS to document all eligible employees.
- Contact NDPERS to schedule employee education and outreach efforts regarding retirement plan enrollment. You can also reach out to NDPERS with any questions.
- Defined Contribution Applications/Waivers must be completed and returned to NDPERS prior to the effective date when the political subdivision joins. If joining, a beneficiary designation must also be completed.
Previous Employment Considerations
Grandfathered accounts
Employees newly hired with your agency may be grandfathered into NDPERS “Main” Defined Benefit (DB) retirement plan if first enrolled with NDPERS prior to January 1, 2025, and left their Main account intact.
Employer contributions
If the employer employs a grandfathered Main DB member, according to NDAC 71-02-06, employers are required to pick up the same percentage for all employees in the Defined Contribution and the Defined Benefit. This is because the employees are considered the same “class” of employees, they are just in different plans. The Defined Contribution total contribution rate is 15.26% whereas the Defined Benefit total contribution rate is 16.26%.
Refunded or rolled over accounts
Any NDPERS members that have previously refunded (cashed out) or rolled over their NDPERS account – either DB or DC – will be considered newly enrolled members in the DC Plan; therefore, service credit and vesting will start over from the subsequent date of hire with an NDPERS participating employer.