§ 39-03.1-08.2 — Purchase of additional service credit

North Dakota § 39-03.1-08.2

• Jurisdiction: North Dakota
• Title 39: Motor Vehicles
• Ch. 39-03.1: Highway Patrol Troopers' Retirement System

Text

1. The fund may accept rollovers from other eligible plans under rules adopted by the
board for the purchase of additional service credit, but only to the extent the transfer is
a rollover contribution that meets the requirement of section 408 of the Internal
Revenue Code [26 U.S.C. 408].
2. The board may accept trustee-to-trustee transfers as permitted by Internal Revenue
Code section 403(b)(13) and section 457(e)(17) from an Internal Revenue Code
section 403(b) annuity or Internal Revenue Code section 457 deferred compensation
plan for the purchase of permissive service credit, as defined in Internal Revenue
Code section 415(n)(3)(A), or as repayment of a cashout from a governmental plan
under Internal Revenue Code section 415(k)(3).
3. A contributor may elect to purchase credit for years of service and prior service for
which the contributor is not presently receiving credit. A contributor is entitled to
purchase additional credit under this section for the following service or prior service,
except this service is not eligible for credit if the years claimed also qualify for
retirement benefits from another retirement system:
a. Except as provided in subsection 3 of section 39-03.1-10.1, up to four years of
credit for active employment in the armed forces of the United States.
b. Employment as a permanent employee by a public employer either within or
outside the state.
c. Employment as a permanent employee by the federal government.
4. A contributor may elect to purchase credit for the following absences for which the
participating contributor is not receiving service credit:
a. Employer-approved leave of absence; and
b. Months away from work while participating as a seasonal employee.
5. The contributor may purchase credit under this section by paying to the board an
amount equal to the actuarial cost to the fund of providing the credit. The board shall
adopt rules governing the purchase of additional credit under this section.
6. The board may establish individual retirement accounts and individual retirement
annuities as permitted under section 408(q) of the Internal Revenue Code to allow
employees to make voluntary employee contributions. The board may adopt
appropriate rules as may be necessary to implement and administer the accounts and
annuities under this section.
7. In addition to service credit identified in this section, a vested contributor may
purchase up to five years of service credit.
8. Pursuant to rules adopted by the board, the board may allow a contributor to purchase
service credit with either pretax or aftertax moneys, at the board's discretion. If a
contributor elects to purchase service credit using pretax moneys, the requirements
and restrictions in subsection 2 of section 39-03.1-09 apply to the purchase
arrangement.