Senate Bill 2038 Summary

• Creates a new defined contribution retirement plan under chapter 54-52.6 for North Dakota state employees, effective January 1, 2016, as an alternative to the existing public employees retirement system.

• Allows employees first employed before January 1, 2016, to make an irrevocable election to transfer from the public employees retirement system to the defined contribution plan, with the board transferring a lump sum of accumulated benefits to the new plan.

• Establishes immediate 100% vesting for employee contributions and a graded vesting schedule for employer contributions (50% after 1 year, 75% after 3 years, 100% after 4 years or at age 65).

• Permits temporary employees to elect participation in the defined contribution plan within 180 days of employment with contributions of 14.12% of monthly salary, plus retiree health benefit fund contributions.

• Modifies eligibility definitions to exclude nonclassified state employees who elect the defined contribution plan, while clarifying that judicial branch employees and board of higher education employees remain eligible for the public employees retirement system.