§ 54-52-05 — Membership and assessments - Employer payment of employee contributions (Retroactive application - See note)

North Dakota § 54-52-05

• Jurisdiction: North Dakota
• Title 54: State Government
• Ch. 54-52: Public Employees Retirement System

Text

contributions. (Retroactive application - See note)
1. a. Every eligible participating political subdivision employee, at the time the political
subdivision joins the plan shall so state in writing if the employee concurs in the
plan and all future eligible employees of the participating political subdivision are
participating members in the plan and must be enrolled in the plan within the first
month of employment.
b. Except as otherwise provided by law, every other eligible governmental unit
employee of a participating governmental unit is a participating member in the
plan and must be enrolled in the plan within the first month of employment. An
employee who was not enrolled in the retirement system when eligible to
participate must be enrolled immediately upon notice of the employee's eligibility,
unless the employee waives in writing the employee's right to participate for the
previous time of eligibility, to avoid contributing to the fund for past service.
c. An employee eligible for normal retirement who accepts a retirement benefit
under this chapter and subsequently becomes employed with a participating
employer other than the employer the employee was employed with at the time
the employee retired under this chapter may, before being re-enrolled in the
retirement plan within the first month of employment, elect to permanently waive
future participation in the retirement plan and the retiree health program and
maintain that employee's retirement status. An employee making this election is
not required to make any future employee contributions to the public employees
retirement system nor is the employee's employer required to make any further
contributions on behalf of that employee.
d. An employee eligible for normal retirement who accepts a retirement benefit
under this chapter and subsequently becomes employed with the same
participating employer the employee was employed with at the time the employee
retired under this chapter may not participate in the retirement plan or the retiree
health program and may maintain that employee's retirement status if the
employee is appointed by an elected state official to an unclassified state position
for the duration of the elected official's term until a successor is appointed.
2. Each member must be assessed and required to pay monthly seven percent of the
monthly salary or wage paid to the member, and such assessment must be deducted
and retained out of such salary in equal monthly installments commencing with the first
month of employment.
3. Each employer, at its option, may pay all or a portion of the employee contributions
required by subsection 2 and sections 54-52-06.1, 54-52-06.2, 54-52-06.3, and
54-52-06.4 or the employee contributions required to purchase service credit on a
pretax basis pursuant to subsection 5 of section 54-52-17.4. Employees may not
receive the contributed amounts directly once the employer has elected to pay the
employee contributions. The amount paid must be paid by the employer in lieu of
contributions by the employee. If the state determines not to pay the contributions, the
amount that would have been paid must continue to be deducted from the employee's
compensation. If contributions are paid by the employer, they must be treated as
employer contributions in determining tax treatment under this code and the federal
Internal Revenue Code. If contributions are paid by the employer, they may not be
included as gross income of the employee in determining tax treatment under this
code and the Internal Revenue Code until they are distributed or made available. The
employer shall pay these employee contributions from the same source of funds used
in paying compensation to the employee. The employer shall pay these contributions

by effecting an equal cash reduction in the gross salary of the employee or by an offset
against future salary increases or by a contribution of a reduction in gross salary and
offset against future salary increases. If employee contributions are paid by the
employer, they must be treated for the purposes of this chapter in the same manner
and to the same extent as employee contributions made prior to the date on which
employee contributions were assumed by the employer. An employer exercising its
option under this subsection shall report its choice to the board in writing.
4. For compensation earned after August 1, 2009, all employee contributions required
under section 54-52-06.1 and the job service North Dakota retirement plan, and not
otherwise paid under subsection 3, must be paid by the employer in lieu of
contributions by the member. All contributions paid by the employer under this
subsection must be treated as employer contributions in determining tax treatment
under this code and the Internal Revenue Code. Contributions paid by the employer
under this subsection may not be included as gross income of the member in
determining tax treatment under this code and the Internal Revenue Code until the
contributions are distributed or made available. Contributions paid by the employer in
accordance with this subsection must be treated for the purposes of this chapter in the
same manner and to the same extent as member contributions made before the date
the contributions were assumed by the employer. The employer shall pay these
member contributions from the same source of funds used in paying compensation to
the employee. The employer shall pay these contributions by effecting an equal cash
reduction in the gross salary of the employee. The employer shall continue making
payments under this section unless otherwise specifically provided for under the
agency's biennial appropriation or by amendment to law.