ND HB1285

Permanent state employees receive average compensation increases of 3% in fiscal year 2026 (paid August 2025) and 2% in fiscal year 2027 (paid August 2026), with increases based on documented performance rather than uniform percentages

Probationary employees and those whose performance does not meet standards are not entitled to the increases, though appointing authorities may grant partial or full increases to probationary employees at their discretion

The Office of Management and Budget must develop guidelines for compensation adjustments following the state's compensation philosophy statement

$49.2 million is appropriated from the general fund to transfer to the Teachers' Fund for Retirement for one-time supplemental cost-of-living payments to eligible retirees

The reduced state employee raises (half of the 6%/4% increases from the 2023-25 biennium) generate the savings redirected to teacher retiree benefits