# Title 71 — Retirement Board

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

## Chapter 71-04-01 — Definitions

### § 71-04-01-01. Definitions.

The terms used throughout this title have the same meaning as in North Dakota Century Code
section 54-52.2-04, except:
1. "Beneficiary" means an individual designated by the participant to receive benefits under the
plan in the event the participant dies.
2. "Compensation" means the total annual remuneration for employment or contracted services
received by the participant from the employer.
3. "Deferred compensation" means the amount of compensation not yet earned which the
participant and the employer shall mutually agree shall be deferred from current monthly
salary in accordance with the provisions of the plan.
4. "Eligible state deferred compensation plan" means a plan established and maintained by this
state that complies with the Internal Revenue Code (IRC) 457(b).
5. "Employer" means the state of North Dakota or any of its political subdivisions, institutions,
departments, or agencies.
6. "Participant" is any employee of a participating employer who executes a participant
agreement.
7. "Participant agreement" means an agreement between the employer and a participant setting
forth certain provisions and elections relative to the plan, incorporating the terms of the plan
and establishing the deferral and participation in the plan.
8. "Provider" means any insurance company, federally insured financial institutions, Bank of
North Dakota, or registered dealer under North Dakota Century Code chapter 10-04
authorized by the retirement board to provide investment vehicles to employees.
9. "Retirement" means separation from service with the employer on a date coincidental with the
normal, postponed, early, or disability retirement dates as described in North Dakota Century
Code chapter 54-52-17.3.

10. "Retirement board" or "board" means the eleven persons described in North Dakota Century
Code chapter 54-52-03.
11. "Separation from service" means that term as defined under Internal Revenue Code section
402(d)(4)(A)(3i) and includes termination of employment with the employer by reason of
death, disability, retirement, resignation, or discharge.
12. "State" means the state of North Dakota, or any department, institution, or separate agency
thereof acting as an employer of the participant.
13. "Unforeseeable emergency" means a severe financial hardship to the participant resulting
from a sudden and unexpected illness or accident of the participant, the participant's spouse
or dependent of the participant, loss of the participant's property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the participant.
14. "Wages" and "salaries" means earnings in eligible employment under this chapter reported as
salary on a federal income tax withholding statement plus any salary reduction or salary
deferral amounts under 26 U.S.C. 125, 401(k), 403(b), 414(h), or 457. "Salary" does not
include fringe benefits such as payments for unused sick leave, personal leave, vacation
leave paid in a lump sum, overtime, housing allowances, transportation expenses, early
retirement, incentive pay, severance pay, medical insurance, workforce safety and insurance
benefits, disability insurance premiums or benefits, or salary received by a member in lieu of
previously employer-provided fringe benefits under an agreement between an employee and
a participating employer. Bonuses may be considered as salary under this section if reported
pursuant to section 71-08-11-01.
History: Effective April 1, 1989; amended effective July 1, 1994; April 1, 2002; May 1, 2004; July 1,
2010; April 1, 2016; April 1, 2020; January 1, 2025.
General Authority: NDCC 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2, 54-52.2-04
