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

## Article 82-05 — Retirement Benefits

## Chapter 82-05-04 — Actuarial Factors

### § 82-05-04-01. Actuarial factors - Early retirement.

In determining early retirement benefits under North Dakota Century Code section 15-39.1-12, the
benefits to which a member is entitled shall be reduced 0.5 percent for each month that the early
retirement date precedes the first day of the month coincident with or next following the earlier of the
member's sixty-fifth birthday or the date at which current service plus the member's age will equal
eighty-five for a tier one grandfathered member. Effective July 1, 2013, for members who are either tier
one nongrandfathered or tier two, in determining the early retirement benefit under North Dakota
Century Code section 15-39.1-12, the benefits to which a member is entitled shall be reduced 0.6667
percent for each month that the early retirement date precedes the first day of the month coincident
with or next following the earlier of the member's sixty-fifth birthday or the date at which current service
plus the member's age will equal ninety, with a minimum age of sixty.
History: Effective September 1, 1990; amended effective May 1, 2000; July 1, 2008; April 1, 2016.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-16, 15-39.1-24
### § 82-05-04-02. Actuarial factors - Optional payment forms.

Under the optional joint and survivor, term certain and life, and partial lump sum forms of annuity
payment shall be based on the following actuarial assumptions:
1. Interest rate - 7.25 percent per year, compounded annually.
2. Member's mortality (used for nondisabled members) - A mortality table constructed by
blending thirty percent of the mortality rates under a combination of PubT-2010 employee and
PubT-2010 healthy retiree tables for males, adjusted by one hundred four percent for ages
fifty-five and older, and projected to 2022 using projection scale MP-2019, with seventy
percent of the mortality rates under a combination of PubT-2010 employee and PubT-2010
healthy retiree tables for females, adjusted by one hundred four percent for ages fifty-five and
older, and projected to 2022 using projection scale MP-2019.
3. Beneficiary's mortality - A mortality table constructed by blending seventy percent of the
mortality rates under a combination of PubT-2010 employee and Pub-2010 contingent
survivor tables for males, adjusted by ninety-five percent for ages forty-five and older, and
projected to 2022 using projection scale MP-2019, with thirty percent of the mortality rates
under a combination of PubT-2010 employee and Pub-2010 contingent survivor tables for
females, adjusted by ninety-five percent for ages forty-five and older and projected to 2022
using projection scale MP-2019. Mortality tables for survivors under age eighteen use the
RP-2014 juvenile tables with fifty percent blending of the male/female rates and projected to
2022 using projection scale MP-2019.
4. Disabled member's mortality - A mortality table constructed by blending thirty percent of the
mortality rates under the PubNS-2010 non-safety disabled mortality table for males, projected
to 2022 using projection scale MP-2019, with seventy percent of the mortality rates under the
PubNS-2010 non-safety disabled mortality table for females, projected to 2022 using
projection scale MP-2019.

In addition, the above actuarial assumptions shall be used to determine actuarial equivalence for other
purposes not covered by sections 82-05-04-01, 82-05-04-03, and 82-05-04-04, such as the
determination of the reduction to a member's benefit because of the existence of a qualified domestic
relations order.
History: Effective May 1, 2000; amended effective May 1, 2004; July 1, 2008; April 1, 2016; July 1,
2021; April 1, 2024.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-16, 15-39.1-24
### § 82-05-04-03. Actuarial factors - Maximum benefits under section 415.

In computing the maximum benefits under Internal Revenue Code section 415, as required under
North Dakota Century Code section 15-39.1-10.6, the following actuarial assumptions must be used:
1. Interest rate - the interest rate assumption must be the same as the rate that is used in
computing actuarially equivalent optional payment forms under section 82-05-04-02 except
that:
a. The interest rate assumption may not be less than five percent for the purposes of
converting the maximum retirement income to a form other than a straight life annuity
with no ancillary benefits;
b. The interest rate assumption may not be greater than five percent for the purposes of
adjusting the maximum retirement income payable to a member who is over age
sixty-five so that it is actuarially equivalent to such a retirement income commencing at
age sixty-five; and
c. The factor for adjusting the maximum permissible retirement income to a member who is
less than age sixty-two years so that it is actuarially equivalent to such a retirement
income commencing at age sixty-two years shall be equal to the factor for determining
actuarial equivalence for early retirement under section 82-05-04-01 or an actuarially
computed reduction factor determined using an interest rate assumption of five percent
and the mortality assumptions specified in this section (except that the mortality
decrement must be ignored if a death benefit at least equal to the single-sum value of the
member's accrued benefit would be payable under the fund on behalf of the member if
the member remained in service and the member's service was to be terminated by
reason of the member's death prior to the member's normal retirement date), whichever
factor will provide the greater reduction. The factor for determining actuarial equivalence
for early retirement under the fund for any given age below age sixty-two years must be
determined by dividing the early retirement adjustment factor that applies under section
under the fund at age sixty-two years. The actuarial adjustment provided in this
subdivision does not apply for limitation years beginning after 1994 to income received
as a pension, annuity, or similar allowance as a result of a member's disability due to
personal injuries or sickness, or amounts received as a result of a member's death by the
member's beneficiaries, survivors, or estate.
2. Mortality - the mortality assumptions must be based upon the mortality table prescribed by the
secretary of the treasury of the United States pursuant to Internal Revenue Code
section 415(b)(2)(E).
History: Effective May 1, 2000; amended effective May 1, 2004.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-16, 15-39.1-24

### § 82-05-04-04. Actuarial factors - Purchase of service.

Whenever the North Dakota Century Code permits a member to purchase service on an actuarially
equivalent basis, the following actuarial assumptions shall be used:
1. Interest rate - 7.25 percent per year, compounded annually.
2. Mortality rates - the same table specified in section 82-05-04-02 for nondisabled members.
3. Retirement - the member will be assumed to retire at the age at which the member is first
eligible for an unreduced retirement benefit. Such unreduced retirement date will be
determined taking into account any purchased service and assuming the member continues in
full-time covered service.
4. Salary increase rate - Increases are assumed to occur once each year. The following table
shows the increase rates indexed by the member's service (excluding any service being
purchased):
Percentage
Increase at End of
Years From Hire Year
1 14.80%
2 6.80%
3 6.55%
4-5 6.30%
6-7 5.80%
8-9 5.55%
10-12 5.30%
13-14 5.05%
15-16 4.80%
17-19 4.55%
20-23 4.30%
24-30 4.05%
31 and over 3.80%
History: Effective May 1, 2000; amended effective July 1, 2008; April 1, 2016; July 1, 2021.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-16, 15-39.1-24
