BISMARCK, N.D. – During its meeting today, the North Dakota Public Employees Retirement System (NDPERS) Board moved to establish two new policies related to elected county officials’ participation in the NDPERS retirement plan.
The first policy allows elected county officials who are eligible for normal retirement to return to employment with their previous employer after retirement while continuing to collect their NDPERS pension. This policy is retroactive to January 1, 2007, to resolve any previous conflicts of law and to ensure NDPERS plan compliance with federal law.
The second policy resolves the conflict between federal and state law related to Cash or Deferred Arrangements (CODA) and their administration. Specifically, it requires NDPERS to require participation in the NDPERS retirement plan if a newly elected county official meets mandatory participation requirements. If not, then the elected official will be considered an optional participant and would be given participation options as such.
NDPERS will work with its attorneys in the North Dakota Office of the Attorney General to promulgate administrative rules to codify the policies, as well as bring forward proposed legislation for consideration by the 70th Legislative Assembly.
The NDPERS Board believes this is a necessary step to ensure compliance with federal law while continuing to support public servants willing to continue to serve their communities as elected county officials.
In March 2025, NDPERS received guidance from its federal tax consultant regarding a discrepancy between federal law and North Dakota state law addressing CODA and their administration. Previously NDPERS followed state regulation allowing the waiver of participation for elected county officials at the start of a new term. The Internal Revenue Service (IRS) Treasury Regulation addressing CODA prohibits a waiver of participation once an employee has elected to join the retirement plan on a pre-tax basis if the employee remains employed with the same employer in an eligible position.
Members with questions continue to be encouraged to contact the NDPERS office for further assistance.
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NDPERS serves over 60,000 participants and their dependents mostly residing in the State of North Dakota. Founded in 1966, NDPERS has grown to administer nine retirement plans, including some with multiple tiers, in addition to ten insurance plans. NDPERS also oversees an Employee Assistance Program and a Health Savings Account.