The passage of House Bill (HB) 1040 will close the Main Plan to new employees and will require them to join a newly-created Defined Contribution (DC) plan.
Members currently enrolled in the Main Plan are not impacted by the future closure of this Plan.
Effective Date for HB 1040 is to be determined
The effective date of HB 1040 is dependent on how quickly the North Dakota Public Employees Retirement System (NDPERS) and its vendors can implement the changes necessary to administer the new DC plan. If those changes can be accomplished by December 31, 2023, then the effective date of the Main Plan closure and the beginning of the new DC plan will be January 1, 2024. If those changes cannot be accomplished by then, the effective date will be January 1, 2025.
HB 1040 Ensures funding of the Main Plan
The Legislative Assembly and the Governor are committed to protecting the existing responsibility to Main Plan members. HB 1040 guarantees the funding of the Main Plan by injecting $200 million into the fund and increases the employer contribution rates by one percent starting January 1, 2024. In addition, the State will pay the Actuarially Determined Employer Contribution (ADEC) rate for both state and participating political subdivisions effective January 1, 2026.
HB 1040 Closes the Main Plan only
Employees eligible to participate in other retirement plans administered by NDPERS, such as the Public Safety Plan, Judges Plan, Highway Patrol Plan, Job Service Plan, Teachers’ Fund for Retirement, and TIAA Plan for university system employees, are excluded from HB 1040 and will not be impacted.
NDPERS will provide additional updates, as available, in the future.