# Title 82 — Board of Trustees of the Teachers' Fund for Retirement

## Article 82-02 — Definitions

## Chapter 82-02-01 — Definitions

### § 82-02-01-01. Definitions.

Unless made inappropriate by context, all words used in this title have the meanings given to them
under North Dakota Century Code chapter 15-39.1. The following definitions are not established by
statute and apply for the purpose of this title:
1. "Acceptance of benefit" means the benefit payment date that is the first calendar day of each
month for benefits paid by paper check or electronic funds transfer to a financial institution.
2. "Account balance" or "value of account" means the member's accumulated contributions or
assessments, plus the sum of any member purchase or repurchase payments, plus interest at
an annual rate of six percent compounded monthly.
3. "Administrative" means to manage, direct, or superintend a program, service, or school district
or other participating employer.
4. "Benefit payment date" means the date the member is paid a benefit which is the first day of
the month. Benefits may be paid retroactive to a member's retirement date.
5. "Benefit service credit" means employment service used to determine benefits payable under
the fund.
6. "Bonus" means an amount paid to a member in addition to regular contract salary which does
not increase the member's base rate of pay, is not expected to recur or continue in future
fiscal years, or is not expected to be a permanent salary increase. A bonus is not considered
eligible retirement salary and is not subject to payment of member and employer contributions.
Bonuses include the following:
a. Recruitment or contract signing payments defined in North Dakota Century Code section
15.1-09-33.1.
b. Retention, experience, or service-related payments.
c. Early retirement incentive payments, severance payments, or other payments
conditioned on or made in anticipation of a member's retirement or termination.
d. Payments made to recognize or reward a member's accomplishments or service.
e. Other special or irregular payments which the board determines to be bonuses using
criteria and documentation described in section 82-04-02-01.
7. "Cessation of employment" means severance or termination of employment.
8. "Contributions" means the assessments or payments made to the fund.

9. "Covered employment" means employment as a teacher in a North Dakota state agency, state
institution, school district, special education unit, regional education association, or other
governing body of a school district.
10. "Covered payroll" means all amounts included in payroll, salary, or compensation paid to
active members on which contributions to and benefits from the pension plan are based
according to the definition of salary in subsection 10 of North Dakota Century Code section
15-39.1-04. Covered payroll may also be referred to as pensionable or eligible payroll, salary,
compensation, or earnings.
11. "Dual member" is a member who is also a member of an alternative plan as defined in North
Dakota Century Code section 15-39.1-10.3.
12. "Eligibility service credit" means employment service used to determine vesting and benefit
eligibility for dual members and qualified veterans under the Uniformed Services Employment
and Reemployment Rights Act of 1994. Eligibility service credit is not used for benefit
calculation purposes.
13. "Extracurricular services" means outside of the regular curriculum of a school district or other
participating employer which includes advising, directing, monitoring, or coaching athletics,
music, drama, journalism, and other supplemental programs.
14. "Member" is a teacher as defined in North Dakota Century Code section 15-39.1-04 who is a
participant in the fund.
15. "Participating employer" means the employer of a teacher, including a North Dakota state
agency, state institution, school district, special education unit, area career and technology
center, regional education association, or other governing body of a school district who
contributes to the teachers' fund for retirement.
16. "Performance or merit pay" means an amount paid to a member pursuant to a written
compensation plan or policy that links a member's compensation to attainment of specific
performance goals and duties. The specific goals, duties, and performance measures under
which performance pay is expected to be made must be determined in advance of the
performance period and documented in writing. Performance or merit pay may be in addition
to regular salary or may replace regular salary increases. Performance or merit pay is
considered eligible retirement salary and subject to payment of member and employer
contributions, unless the teachers' fund for retirement board determines the payments are
ineligible salary using criteria and documentation described in section 82-04-02-01.
17. "Plan year" means the twelve consecutive months commencing July first of the calendar year
and ending June thirtieth of the subsequent year.
18. "Referee" means all sporting and nonsporting event judges and officials, including referees,
umpires, line judges, scorekeepers, timekeepers, ticket takers, ushers, and other judges or
officials.
19. "Retirement date" means the date selected by the member to begin retirement benefits. The
benefit is calculated as of the retirement date and can be no earlier than the first day of the
month following eligibility for retirement benefits or the first day of the month following eligibility
for disability or death benefits. Notwithstanding the foregoing a member's retirement will not
be effective until the member accepts the first benefit payment.
20. "Salary reduction or salary deferral amounts under 26 U.S.C. section 125, 132(f), 401(k),
403(b), or 457" means amounts deducted from a member's salary, at the member's option, to
these plans. These reductions or deferrals are part of salary when calculating retirement
contributions. Employer contributions to plans specified in 26 U.S.C. section 125, 132(f),

401(k), 403(b), or 457 which are made for the benefit of the member will not be counted as
retirement salary when calculating retirement contributions. Member contributions paid by the
employer under IRC section 414(h) pursuant to a salary reduction agreement do not reduce
salary when calculating retirement contributions.
21. "Special teachers" include licensed special education teachers, guidance and school
counselors, speech and language pathologists, social workers, school psychologists,
librarians, media specialists, technology coordinators, program coordinators, and other staff
members licensed by the education standards and practices board provided they are under
contract with a school district or other participating employer to provide teaching, supervisory,
administrative, or extracurricular services.
22. "Supervisory" means to have general oversight or authority over students or teachers, or both,
of a school district or other participating employer.
23. "Teaching" means to impart knowledge or skills to students or teachers, or both, by means of
oral or written lessons, instructions, and information.
24. "Vested" means the status attained by a teacher when the teacher has earned three years of
service credit for a tier one member or five years of service credit for a tier two member for
covered employment in this state.
25. "Written agreement" means a teaching contract, school board minutes, or other official
document evidencing a contractual relationship between a teacher and participating employer.
History: Effective September 1, 1990; amended effective May 1, 1992; May 1, 1998; May 1, 2000;
May 1, 2004; July 1, 2008; July 1, 2012; April 1, 2016; April 1, 2024.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1
