§ 54-52.6-09 — Contributions - Penalty

North Dakota § 54-52.6-09

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

Text

1. a. A participating member who first joined the defined contribution retirement plan
before January 1, 2025, and an employee who elects to participate in the defined
contribution plan under section 54-52.6-02.2, shall contribute monthly seven
percent of the monthly salary or wage paid to the participant.
b. A participating member who first joined the defined contribution retirement plan
after December 31, 2024, except for an employee who elects to participate in the
defined contribution plan under section 54-52.6-02.2, shall contribute monthly
four percent of the monthly salary or wage paid to the participant. In addition, the
participating member may elect to contribute monthly up to an additional three
percent of the monthly salary or wage paid to the participant.
c. This assessment must be deducted from the participant's salary in equal monthly
installments commencing with the first month of participation in the defined
contribution retirement plan established under this chapter.
2. a. For a participating member who first joined the defined contribution retirement
plan before January 1, 2025, and for an employee who elects to participate in the
defined contribution plan under section 54-52.6-02.2, the employer shall
contribute an amount equal to seven and twelve-hundredths percent of the
monthly salary or wage of the participating member.
b. For a participating member who first joined the defined contribution retirement
plan after December 31, 2024, except for an employee who elects to participate
in the defined contribution plan under section 54-52.6-02.2, the employer shall
contribute an amount equal to four and twelve-hundredths percent of the monthly
salary or wage of a participating member, plus up to an additional three percent
as an employer matching contribution calculated based on the participating
member's election under subdivision b of subsection 1.
c. For a participating member first enrolled after December 31, 2019, the employer
contribution includes an additional increase of one and fourteen-hundredths
percent.
d. If the employee's contribution is paid by the employer under subsection 3, the
employer shall contribute, in addition, an amount equal to the required
employee's contribution. Monthly, the employer shall pay such contribution into
the participating member's account from the employer's funds appropriated for
payroll and salary or any other funds available for such purposes.
e. If the employer fails to pay the contributions monthly, or fails to otherwise comply
with the board's established wage reporting or payroll reporting process
requirements, the employer is subject to a civil penalty of fifty dollars and, as
interest, one percent of the amount due for each month of delay or fraction of a
month after the payment became due. In lieu of assessing a civil penalty or one
percent per month, or both, interest at the actuarial rate of return may be
assessed for each month the contributions are delinquent. If contributions are
paid within ninety days of the date the contributions became due, penalty and
interest to be paid on delinquent contributions may be waived.
3. Each employer, at its option, may pay the employee contributions required by this
section for all compensation earned after December 31, 1999. The amount paid must
be paid by the employer in lieu of contributions by the employee. If the employer
decides not to pay the contributions, the amount that would have been paid will
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. Contributions paid

by the employer may not be included as gross income of the employee in determining
tax treatment under this code and the federal 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
combination of a reduction in gross salary and offset against future salary increases.
Employee contributions paid by the employer must be treated for the purposes of this
chapter in the same manner and to the same extent as employee contributions made
before the date on which employee contributions were assumed by the employer. An
employer shall exercise its option under this subsection by reporting its choice to the
board in writing.