# Title 71 — Retirement Board

## Article 71-02 — Public Employees Retirement System

## Chapter 71-02-08 — Participation by Governmental Units

### § 71-02-08-01. Participation.

Repealed effective January 1, 2025.
### § 71-02-08-02. Withdrawal.

Any political subdivision may discontinue participation in the fund if the following requirements are
met:
1. The political subdivision must provide the board with a copy of a resolution adopted by the
governing authority authorizing the termination of participation in the fund.
2. Upon receiving a copy of the written resolution, an actuarial study must be done by the plan's
actuary to determine the accrued benefit of all vested employees minus allocated assets from
the date of participation. The interest assumption used must be two hundred basis points less
than the plan's interest assumption used for funding purposes. The withdrawal liability must
include an administrative expense assessment of five percent.
3. Any costs incurred by the fund, resulting from a political subdivision ceasing participation,
including the actuarial fee study and the withdrawal liability, must be assessed against the
political subdivision and paid in full before a political subdivision terminates its participation.
4. All employees of a political subdivision that has terminated participation in the fund must not
be eligible for future benefit accruals or improvements granted to employees or former
employees of participating governmental units after the date the employer's participation
ceases.
5. An employee who is not vested at the time an employer ceases participation has the option of
taking a refund or rollover of the employee's contribution plus interest.
History: Effective September 1, 1982; amended effective June 1, 1996; April 1, 2019.
General Authority: NDCC 54-52-04
Law Implemented: NDCC 54-52-02.1
### § 71-02-08-03. Transfer of funds.

Repealed effective April 1, 2012.
### § 71-02-08-04. Transfer date.

Repealed effective April 1, 2012.
### § 71-02-08-05. Merger of eligible employer groups.

If a merger between two or more eligible employer groups occurs, the following requirements apply:

1. Written notification must be provided to the office no later than sixty days before the merger is
final.
2. When two or more employer groups merge into one, and all do not presently participate in the
public employees retirement system, the units merging must decide upon one of the following:
a. The participating employer or employers may elect to cease participation as of the date
of the merger, subject to payment of any actuarial liabilities accrued. An actuarial study
must be conducted at the cost of the exiting employer upon providing the public
employees retirement system with written notice of the employer's election to cease
participation.
b. Subject to executing a revised participation agreement, eligible employees who have not
previously participated shall be given the opportunity to participate or waive participation
effective the date of the merger. Any person hired in an eligible position after the
consolidation date must participate.
History: Effective June 1, 1996.
General Authority: NDCC 54-52-04
Law Implemented: NDCC 15-10-17, 54-52-02.1
