§ 54-52-28 — Internal Revenue Code compliance

North Dakota § 54-52-28

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

Text

The board shall administer the plan in compliance with the following sections of the Internal
Revenue Code, as amended, as it applies for governmental plans.
1. Section 415, including the defined benefit dollar limitation under section 415(b)(1)(A) of
the Internal Revenue Code.
a. The defined benefit dollar limitation under section 415(b)(1)(A) of the Internal
Revenue Code, as approved by the legislative assembly, must be adjusted under
section 415(d) of the Internal Revenue Code, effective January first of each year
following a regular legislative session. The adjustment of the defined benefit
dollar limitation under section 415(d) applies to participating members who have
had a separation from employment, but that member's benefit payments may not
reflect the adjusted limit prior to January first of the calendar year in which the
adjustment applies.
b. If a participating member's benefit is increased by plan amendment after the
commencement of benefit payments, the member's annual benefit may not
exceed the defined benefit dollar limitation under section 415(b)(1)(A) of the
Internal Revenue Code, as adjusted under section 415(d) for the calendar year in
which the increased benefit is payable.

c. If a participating member is, or ever has been, a participant in another defined
benefit plan maintained by the employer, the sum of the participant's annual
benefits from all the plans may not exceed the defined benefit dollar limitation
under section 415(b)(1)(A) of the Internal Revenue Code. If the participating
member's employer-provided benefits under all such defined benefit plans would
exceed the defined benefit dollar limitation, the benefit must be reduced to
comply with section 415 of the Internal Revenue Code. The reduction must be
made pro rata between the plans, in proportion to the participating member's
service in each plan.
2. The minimum distribution rules under section 401(a)(9) of the Internal Revenue Code,
including the incidental death benefit requirements under section 401(a)(9)(G), and the
regulations issued under that provision to the extent applicable to governmental plans,
as amended. Accordingly, benefits must be distributed or begin to be distributed no
later than a member's required beginning date, and the required minimum distribution
rules override any inconsistent provision of this chapter.
3. The annual compensation limitation under section 401(a)(17) of the Internal Revenue
Code, as adjusted for cost-of-living increases under section 401(a)(17)(B).
4. The rollover rules under section 401(a)(31) of the Internal Revenue Code. Accordingly,
a distributee may elect to have an eligible rollover distribution, as defined in section
402(c)(4) of the Internal Revenue Code, paid in a direct rollover to an eligible
retirement plan, as defined in section 402(c)(8)(B) of the Internal Revenue Code,
specified by the distributee. For purposes of this section, "distributee" includes a
beneficiary, other than a spouse, of a deceased member, provided however, in the
case of a beneficiary other than a spouse, the direct rollover may be made only to an
individual retirement account or individual retirement annuity described in section 408
or 408A of the Internal Revenue Code which is established on behalf of the beneficiary
and will be treated as an inherited individual retirement account or individual retirement
annuity under section 402(c)(11) of the Internal Revenue Code.
5. If the plan of retirement benefits set forth in this chapter is terminated or discontinued,
the rights of all affected participating members to accrued retirement benefits under
this chapter as of the date of termination or discontinuance is nonforfeitable, to the
extent then funded.