# Title 71 — Retirement Board

## Article 71-04 — Deferred Compensation Plan for Public Employees

## Chapter 71-04-06 — Provider Responsibilities

### § 71-04-06-01. Application.

Those firms desiring to offer investment services for the deferred compensation plan shall first
notify the board, in writing, of the firms' willingness to become a provider.
History: Effective April 1, 1989; amended effective July 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03
### § 71-04-06-02. Administrative agreement.

Firms expressing a desire to become a provider of investment services under the deferred
compensation plan must agree to all provisions and sign the board's administrative agreement. The
administrative agreement sets forth the responsibilities of the provider to the plan, the board, and the
employee and stipulates that the provider abide by the plan and rules and regulations adopted by the
board for the administration of the plan.
History: Effective April 1, 1989; amended effective July 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03
### § 71-04-06-03. Sales representatives.

All sales representatives of the provider approved by the board to solicit employees must be fully
trained to explain the various investment options available through the provider, be able to explain what
the deferred compensation program is as found under section 457 of the Internal Revenue Code, and
be licensed with the North Dakota state securities commissioner for the sale of registered or
unregistered securities or the North Dakota state insurance commissioner for the sale of insurance
contracts or policies, or both.
History: Effective April 1, 1989; amended effective July 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03
### § 71-04-06-04. Listing of investment options.

Each provider shall provide a listing of the investment options offered to employees. The listing
must be attached to the administrative agreement.

History: Effective April 1, 1989.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03
### § 71-04-06-05. Employee statements.

Participants in the provider's investment options shall receive, at least quarterly, account
statements, sent to their home address, detailing each participant's activity and account balance.
History: Effective April 1, 1989; amended effective July 1, 1994.
General Authority: NDCC 28-32-02, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2
### § 71-04-06-06. Retirement board report.

The provider shall deliver quarterly reports, in an approved electronic format, to the board detailing
the activity of each participant's account. The quarterly report must be delivered within thirty days of the
end of each calendar quarter and must include an alphabetical listing of the participants, social security
numbers of the participants, the provider's contract number for the participants (if any), type of account
for each participant, beginning account balance forwarded from the previous reporting period,
contributions made by the participants for the current reporting period, transfers and rollovers from
other eligible plans during the reporting period, investment earnings or losses added to the account (if
any for the reporting period), any withdrawals made during the reporting period, administrative charges
assessed against the account during the reporting period, transfers and direct rollovers to other eligible
plans during the reporting period, and the account balance at the end of the reporting period. The
report columns must be totaled. The quarterly report must include active, inactive, and accounts in
payout status, with the exception of accounts which have been annuitized, and be for all payroll
divisions for the plan.
History: Effective April 1, 1989; amended effective November 1, 1990; July 1, 1994; May 1, 2004;
July 1, 2006; July 1, 2010.
General Authority: NDCC 28-32-02, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2
### § 71-04-06-07. Account transfer.

The provider shall allow any participant who so requests, the ability to transfer the participant's
account to another provider on a tax-free basis. The request to the provider must be made in writing by
the board or its designated representative. The transfer must be made within thirty days of the
provider's receipt of the transfer request.
History: Effective April 1, 1989; amended effective July 1, 1994; July 1, 2010.
General Authority: NDCC 28-32-02, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03
### § 71-04-06-08. Benefit requests.

The provider shall honor all requests for benefit or refund payments made upon notification of the
employee's separation from service by the board.
History: Effective April 1, 1989; amended effective May 1, 2004; July 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03

### § 71-04-06-09. Benefit payments.

The provider shall make benefit payments to the participant in the manner designated by the
participant.
History: Effective April 1, 1989; amended effective July 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03
### § 71-04-06-10. Income tax withholding.

The provider shall allow for the withholding of federal and state income taxes from the benefit
payments and file the required reports of the withholdings with the appropriate federal and state
agencies.
History: Effective April 1, 1989; amended effective July 1, 1998; April 1, 2002.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03
### § 71-04-06-11. Provider reporting failure - Penalty.

Should the provider fail to deliver the required report within a thirty-day period beyond the end of
the reporting period, notice must be given by certified mail of the provider's failure to comply. The
provider shall then have thirty days from the date of the certified letter to comply with the reporting
requirement. If the provider fails to deliver the required report within the thirty-day period, the provider is
in violation of the administrative agreement and shall lose active provider status as described under
subsection 1 of section 71-04-04-09. If the provider has not filed the report within ninety days after the
end of the reporting period, the provider shall lose provider status as described under subsection 2 of
section 71-04-04-09. Loss of provider status results in all current contributions of active participants
being suspended effective in the next payroll cycle. The board will notify all participants of the
company's failure to deliver the required reports. Current participants will be required to either select a
new provider for future contributions, or have their account go into a dormant status with the company
losing provider status. The board will then terminate the agreement with the provider.
History: Effective April 1, 1989; amended effective November 1, 1990; July 1, 1994; May 1, 2004;
July 1, 2010.
General Authority: NDCC 28-32-02, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2
### § 71-04-06-12. Provider suspension - Employee account transfers.

Should the provider be in violation of the administrative agreement, employees shall have the
option of transferring their individual accounts to another qualified provider. The employee shall also
have the option of leaving the account with the provider until the employee is eligible for a distributable
event.
History: Effective April 1, 1989; amended effective July 1, 1994; July 1, 2010.
General Authority: NDCC 28-32-02, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2
### § 71-04-06-13. Dormant accounts.

The employee may elect to leave the employee's account with the provider after separation from
service.
History: Effective April 1, 1989; amended effective July 1, 1994.
General Authority: NDCC 28-32-02, 54-52.2-03.2

Law Implemented: NDCC 54-52.2-03
### § 71-04-06-14. Product disclosure.

The provider shall report annually in a form and manner specified by the board such information the
board may require related to the provider's investment products. Should the provider fail to deliver the
required report within a sixty-day period following the date of request, the provider is in violation of the
administrative agreement and subject to the action set forth in section 71-04-04-09.
History: Effective July 1, 1994.
General Authority: NDCC 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03.2
