§ 54-52.6-03.1 — Changes to election

North Dakota § 54-52.6-03.1

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

Text

1. In this section the term "participating member" is limited in application to a participating
member who elected to participate in the defined contribution retirement plan
established under this chapter as an active employee of a participating employer, is an
actively participating member of the defined contribution plan as of July 1, 2015, and is
an active employee with a participating employer on the date an election is made
under this section. The term does not include a participant who is not actively
employed with a participating employer on the date of transfer of the funds under this
section, has taken a distribution from the defined contribution plan, is retired, is no
longer actively employed with a participating employer, or who is a member who has a
qualified domestic relations order or other court order on the member's account.
2. Notwithstanding any other provision of law, the board shall provide an opportunity for
each participating member to elect in writing to terminate membership in the defined
contribution retirement plan under this chapter and to elect to become a participating
member in the public employees retirement system under chapter 54-52.
3. The board shall establish a three-calendar-month election period beginning not later
than February 1, 2016. A participating member who does not make a written election
or who does not file the election with the North Dakota public employees retirement
system office during the period specified in this section continues to be a member of
the defined contribution plan. A participating member who makes and files a written
election with the North Dakota public employees retirement system office under this
section ceases to be a member of the defined contribution plan upon receipt by the
public employees retirement system of the accumulated fund balance of the member's
defined contribution plan under this chapter and waives all rights to that employee's
accumulated fund balance under the defined contribution plan. If the executive director
of the North Dakota public employees retirement system determines a participating
member was not adequately notified of the option to make an election under this
section, the executive director may provide that participating member a reasonable
time, not to exceed three months, within which to make that election.
4. The public employees retirement system shall credit the transferring employee with the
service credit and salary history reflected on the public employees retirement system's
electronic database.
5. The board shall determine the method by which a participating member may make a
written election under this section. If the participating 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 executive director of the North Dakota public employees
retirement system may waive this spousal signature requirement if the spouse's
signature cannot be obtained because of extenuating circumstances.
6. For a participating member who elects to terminate membership in the defined
contribution plan under this section, the board shall transfer that member's
accumulated fund balance, less any rollovers from other plans made into the defined

contribution plan, to the public employees retirement system under chapter 54-52. If
funds are transferred from the defined contribution plan to the defined benefit plan
under an election made under this section, the board shall record this transfer to the
defined benefit plan as employee and employer contributions in the same manner as
transferred by the defined contribution provider. If a participating member has a
separate account attributable to rollover contributions to the defined contribution plan
pursuant to section 54-52.6-09.1, the participating member shall make an election to
receive a distribution of the entire amount held in the rollover account at the time of
transfer.
7. A participating member who elects a transfer under this section is entitled to vested
employer contribution amounts under section 54-52-11.1 prospectively from the date of
transfer. A participating member who elects a transfer under this section must be
assessed and required to pay monthly to the defined benefit plan an additional
employee contribution of an additional two percent of the monthly salary or wages paid
to the member.