§ 54-52.6-03 — Transfer of accumulated fund balances

North Dakota § 54-52.6-03

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

Text

1. For an individual who elects under section 54-52.6-02 to terminate membership in the
public employees retirement system under chapter 54-52, the board shall transfer a
lump sum amount from the retirement fund to the participating member's account in
the defined contribution retirement plan under this chapter. However, if the individual
terminates employment before receiving the lump sum transfer under this section, the
election made under section 54-52.6-02 is ineffective and the individual remains a
member of the public employees retirement system under chapter 54-52 and retains
all the rights and benefits provided under that chapter. The board shall calculate the

amount to be transferred for persons employed before October 1, 2001, using the two
following formulas, and shall transfer the greater of the two amounts obtained:
a. The actuarial present value of the individual's accumulated benefit obligation
under the public employees retirement system based on the assumption that the
individual will retire under the earliest applicable normal retirement age, plus
interest from January 1, 2001, to the date of transfer, at the rate of one-half of one
percent less than the actuarial interest assumption at the time of the election; or
b. The actual employer contribution made, less vested employer contributions made
pursuant to section 54-52-11.1, plus compound interest at the rate of one-half of
one percent less than the actuarial interest assumption at the time of the election
plus the employee account balance.
2. The board shall calculate the amount to be transferred for persons employed after
September 30, 2001, and before January 1, 2025, using only the formula contained in
subdivision b of subsection 1.