ND HB1044

Amends section 15-39.1-34 of the North Dakota Century Code to require the retirement plan board to administer the plan in compliance with sections 415, 401(a)(9), 401(a)(17), and 401(a)(31) of the Internal Revenue Code as applied to governmental plans.

Allows plan distributees to elect direct rollovers of eligible rollover distributions to eligible retirement plans specified by the distributee, pursuant to Internal Revenue Code section 401(a)(31) rollover rules.

Permits direct rollovers to alternate payees under qualified domestic relations orders and restricts after-tax employee contributions to transfers only to individual retirement accounts, IRAs, or qualified plans that separately account for after-tax and pre-tax portions.

Expands the definition of "distributee" to include nonspouse beneficiaries of deceased members, who may only receive direct rollovers to inherited individual retirement accounts or inherited individual retirement annuities as defined under Internal Revenue Code section 402(c)(11).

Passed the House 92-0 with 2 absent and the Senate 42-0 with 5 absent at the request of the Teachers' Fund for Retirement.