§ 54-52.6-02 — Election through December 31, 2024

North Dakota § 54-52.6-02

• Jurisdiction: North Dakota
• Title 54: State Government
• Ch. 54-52.6: Defined Contribution Retirement Plan

Text

1. The board shall provide an opportunity for each eligible employee who is a member of
the public employees retirement system on September 30, 2001, and who has not
made a written election under this section to transfer to the defined contribution
retirement plan before October 1, 2001, to elect in writing to terminate membership in
the public employees retirement system and elect to become a participating member
under this chapter. Except as provided in section 54-52.6-03, an election made by an
eligible employee under this section is irrevocable. The board shall accept written
elections under this section from eligible employees during the period beginning on
July 1, 1999, and ending 12:01 a.m. December 14, 2001. An eligible employee who
does not make a written election or who does not file the election during the period
specified in this section continues to be a member of the public employees retirement
system. An eligible employee who makes and files a written election under this section
ceases to be a member of the public employees retirement system effective twelve
midnight December 31, 2001; becomes a participating member in the defined
contribution retirement plan under this chapter effective 12:01 a.m. January 1, 2002;
and waives all of that person's rights to a pension, annuity, retirement allowance,

insurance benefit, or any other benefit under the public employees retirement system
effective December 31, 2001. This section does not affect an individual's right to health
benefits or retiree health benefits under chapter 54-52.1. An eligible employee who is
first employed and entered upon the payroll of that person's employer after
September 30, 2001, and before January 1, 2025, may make an election to participate
in the defined contribution retirement plan established under this chapter at any time
during the first six months after the date of employment. If the board, in its sole
discretion, determines that the employee was not adequately notified of the
employee's option to participate in the defined contribution retirement plan, the board
may provide the employee a reasonable time within which to make that election, which
may extend beyond the original six-month decision window.
2. If an individual who is a deferred member of the public employees retirement system
on September 30, 2001, is re-employed before January 1, 2025, and by virtue of that
employment is again eligible for membership in the public employees retirement
system under chapter 54-52, the individual may elect in writing to remain a member of
the public employees retirement system or if eligible to participate in the defined
contribution retirement plan established under this chapter to terminate membership in
the public employees retirement system and become a participating member in the
defined contribution retirement plan established under this chapter. An election made
by a deferred member under this section is irrevocable. The board shall accept written
elections under this section from a deferred member during the period beginning on
the date of the individual's re-employment and ending upon the expiration of six
months after the date of that re-employment. If the board, in its sole discretion,
determines that the employee was not adequately notified of the employee's option to
participate in the defined contribution retirement plan, the board may provide the
employee a reasonable time within which to make that election, which may extend
beyond the original six-month decision window. A deferred member who makes and
files a written election to remain a member of the public employees retirement system
retains all rights and is subject to all conditions as a member of that retirement system.
A deferred member who does not make a written election or who does not file the
election during the period specified in this section continues to be a member of the
public employees retirement system. A deferred member who makes and files a
written election to terminate membership in the public employees retirement system
ceases to be a member of the public employees retirement system effective on the last
day of the payroll period that includes the date of the election; becomes a participating
member in the defined contribution retirement plan under this chapter effective the first
day of the payroll immediately following the date of the election; and waives all of that
person's rights to a pension, an annuity, a retirement allowance, insurance benefit, or
any other benefit under the public employees retirement system effective the last day
of the payroll that includes the date of the election. This section does not affect any
right to health benefits or retiree health benefits to which the deferred member may
otherwise be entitled.
3. An eligible employee who elects under this section to participate in the retirement plan
established under this chapter must remain a participant even if that employee returns
to the classified service or becomes employed by a political subdivision that
participates in the public employees retirement system. The contribution amount must
be as provided in this chapter, regardless of the position in which the employee is
employed. Notwithstanding the irrevocability provisions of this chapter, if a member
who elects to participate in the retirement plan established under this chapter becomes
a supreme or district court judge, becomes a member of the highway patrol, becomes
employed in a position subject to teachers' fund for retirement membership, or
becomes an employee of the board of higher education or state institution under the
jurisdiction of the board of higher education who is eligible to participate in an
alternative retirement program established under subsection 6 of section 15-10-17, the
member's status as a member of the defined contribution retirement plan is
suspended, and the member becomes a new member of the retirement plan for which

that member's new position is eligible. The member's account balance remains in the
defined contribution retirement plan, but no new contributions may be made to that
account. The member's service credit and salary history that were forfeited as a result
of the member's transfer to the defined contribution retirement plan remain forfeited,
and service credit accumulation in the new retirement plan begins from the first day of
employment in the new position. If the member later returns to employment that is
eligible for the defined contribution retirement plan, the member's suspension must be
terminated, the member again becomes a member of the defined contribution
retirement plan, and the member's account resumes accepting contributions. At the
member's option, and pursuant to rules adopted by the board, the member may
transfer any available balance as determined by the provisions of the alternate
retirement plan into the member's account under this chapter.
4. After consultation with its actuary, the board shall determine the method by which a
participating member or deferred member may make a written election under this
section. If the participating member or deferred member is married at the time of the
election, the election is not effective unless the election is signed by the individual's
spouse. However, the board may waive this requirement if the spouse's signature
cannot be obtained because of extenuating circumstances.
5. If the board receives notification from the internal revenue service that this section or
any portion of this section will cause the public employees retirement system or the
retirement plan established under this chapter to be disqualified for tax purposes under
the Internal Revenue Code, then the portion that will cause the disqualification does
not apply.
6. A participating member under this section who becomes a temporary employee may
still participate in the defined contribution retirement plan upon filing an election with
the board within one hundred eighty days of transferring to temporary employee
status. The participating member may not become a member of the defined benefit
plan as a temporary employee.
a. The temporary employee electing to participate in the defined contribution
retirement plan shall pay into the plan as provided under section 54-52.6-09.6.
b. An employer may not pay the temporary employee's contributions.
c. A temporary employee may continue to participate as a temporary employee until
termination of employment or reclassification of the temporary employee as a
permanent employee.
7. A former participating member under this section who has accepted a retirement
distribution pursuant to section 54-52.6-13 and who subsequently becomes employed
by an entity different from the employer with which the member was employed at the
time the member retired but which does participate in any state-sponsored retirement
plan may, before re-enrolling in the defined contribution retirement plan, elect to
permanently waive future participation in the defined contribution retirement plan,
whatever plan in which the new employing entity participates, and the retiree health
program and maintain that member's retirement status. Neither the member nor the
employer are required to make any future retirement contributions on behalf of that
employee.
8. After December 31, 2024, an eligible employee is no longer allowed to elect
participation under this section.