# Title 71 — Retirement Board

## Article 71-08 — Defined Contribution Retirement Plan

## Chapter 71-08-11 — Contributions

Month Earned
### § 71-08-11-01. Adjustment for bonuses, profit sharing, and contributions paid in a month other

than month earned.
Adjustments for the following must be made for all participating members:
1. Participating employers shall report bonuses or profit-sharing amounts paid when remitting the
contribution associated with the bonus. Recruitment and retention bonuses paid pursuant to
North Dakota Century Code section 54-06-31 are not eligible for consideration as salary and
contributions associated with those bonuses may not be submitted.
2. Bonuses or profit-sharing amounts may not be submitted to the public employees retirement
system for any month other than the month the amount is paid to the participating employer.
History: Effective January 1, 2025.
General Authority: NDCC 54-52-04, 54-52.6-01(8)
Law Implemented: NDCC 54-52.6-01, 54-52.6-02
### § 71-08-11-02. Basis for calculation contributions - Salary reduction - Salary deferral

arrangements.
1. Amounts deducted from a participating member's salary at the participating member's option
to a qualified section 125 cafeteria plan, 401(k) plan, 403(b) plan, or 457 plan are part of
wages or salary when calculating retirement contributions.
2. Employee contributions paid by the employer under IRC 414(h) pursuant to a salary reduction
agreement do not reduce wages or salary when calculating retirement contributions.
3. Amounts contributed to a qualified section 125 cafeteria plan, 401(k) plan, 403(b) plan, or
457 plan by the employer are not part of wages or salary when calculating retirement
contributions.
History: Effective January 1, 2025.
General Authority: NDCC 54-52-04
Law Implemented: NDCC 54-52.6-01, 54-52.6-02
### § 71-08-11-03. Employer payment of employee contributions.

1. A written election submitted under subsection 3 of North Dakota Century Code section
date.
2. An employer may not discriminate in its contributions to eligible employees within the same
plan under North Dakota Century Code section 54-52.6-09.

History: Effective January 1, 2025.
General Authority: NDCC 54-52-04
Law Implemented: NDCC 54-52.6-09
### § 71-08-11-04. Retirement contributions for individuals working less than a forty-hour

workweek.
Retirement contributions must be made on wages paid to a permanent employee who is regularly
scheduled for less than forty hours per week but who works at least twenty hours per week during a
twelve-month period.
History: Effective January 1, 2025.
General Authority: NDCC 54-52-04
Law Implemented: NDCC 54-52.6-09.6
### § 71-08-11-05. Individual employee incentive payments.

Individual employee incentive payments received under North Dakota Century Code section
contributions.
History: Effective January 1, 2025.
General Authority: NDCC 54-52-04, 54-52.6-01(8), 54-52.6-02
Law Implemented: NDCC 54-52.6-01, 54-52.6-02
### § 71-08-11-06. Contributions transferred from defined benefit retirement plan.

1. The lump sum amount to be transferred from the defined benefit retirement plan under North
Dakota Century Code section 54-52.6-02.2 and North Dakota Century Code section
benefit obligation as of January 1, 2025, includes the employee contribution portion and the
employer contribution portion.
2. The employee contribution portion of the actuarial present value of the eligible employee
accumulated benefit obligation means the employee's direct contribution to the defined benefit
retirement plan under North Dakota Century Code chapter 54-52 plus the interest on the
employee's contributions in the defined benefit retirement plan.
3. The employer contribution portion of the actuarial present value of the eligible employee's
accumulated benefit obligation means the lump sum amount transferred minus the employee
share. The employee shall vest in the employer contribution under the provisions found in
North Dakota Century Code section 54-52.6-10.
History: Effective January 1, 2025.
General Authority: NDCC 54-52-04
Law Implemented: NDCC 54-52.6-02.2, 54-52.6-03
### § 71-08-11-07. Employer-paid additional contribution for a transferee.

For an eligible employee who is employed by a state employer who transfers from the defined
benefit plan to the defined contribution plan under North Dakota Century Code chapter 54-52.6, the
eligible employee's state employer, on January 1 of each year an additional contribution is due, will
make the additional contribution under subsection 3 of North Dakota Century Code section
eligible employee who is employed by a state employer at the time each additional contribution is
required must receive the additional contribution.

History: Effective January 1, 2025.
General Authority: NDCC 54-52.6-02
Law Implemented: NDCC 54-52.6-02.2, 54-52.6-03
