ND HB1134

Creates two new member tier definitions: "tier one grandfathered members" (vested as of June 30, 2013, age 55+ or service plus age equals 65+) and "tier one nongrandfathered members" for Teachers' Fund for Retirement eligibility purposes.

Increases member contributions from 7.75% to 9.75% beginning July 1, 2012, then to 11.75% beginning July 1, 2014; increases employer contributions from 8.75% to 10.75% on July 1, 2012, then to 12.75% on July 1, 2014, with reductions back to 7.75% when fund reaches 90% funding ratio.

Modifies normal retirement eligibility for tier one grandfathered members to require service/age combination of 85, while tier one nongrandfathered and tier two members must be age 60+ with service/age combination of 90.

Establishes different early retirement benefit reduction rates: tier one grandfathered members reduced by 6% annually, while tier one nongrandfathered and tier two members reduced by 8% annually.

Changes disability benefits eligibility requirement from one year to five years of service; modifies retired teacher reemployment rules to allow continued benefits within annual hour limits, with contributions required for work exceeding those limits and special provisions for critical shortage areas.