# Title 71 — Retirement Board

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

## Chapter 71-04-03 — Employee Responsibilities

### § 71-04-03-01. Enrollment.

Public employees may enroll with up to three providers in the deferred compensation plan by
completing and submitting a participant agreement to the office or the board's designated vendor.
History: Effective April 1, 1989; amended effective April 1, 2014; April 1, 2016; January 1, 2025.
General Authority: NDCC 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03
### § 71-04-03-02. Effective date of deferrals.

All deferrals are effective the payroll period ending in the month following the month in which the
deferral is authorized. Deferrals cannot be requested or authorized for the month in which income is
being earned.
History: Effective April 1, 1989; amended effective July 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03; IRC 457(b)(4)
### § 71-04-03-03. Change in monthly deferral.

A participant may change the amount of deferral at any time, as long as a participant agreement is
completed and submitted to the office or the board's designated vendor as set forth in section
71-04-03-01.
History: Effective April 1, 1989; amended effective April 1, 2016; January 1, 2025.
General Authority: NDCC 54-52-04, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03; IRC 457(b)(4)
### § 71-04-03-04. Change in beneficiary.

The participant may change the primary or contingent beneficiary at any time by contacting the
participant's designated provider representative.
History: Effective April 1, 1989; amended effective May 1, 2004.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 54-52.2-03
### § 71-04-03-05. Unforeseeable emergency.

A participant who, prior to separation from service, experiences an unforeseeable emergency as
defined in section 71-04-01-01 may apply for a distribution of the participant's deferred compensation
account to the extent reasonably needed to satisfy the financial need. The participant may make
application by completing a financial hardship form and delivering it to the retirement board offices.

History: Effective April 1, 1989; amended effective July 1, 1994; April 1, 2002; July 1, 2010.
General Authority: NDCC 28-32-02, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2
### § 71-04-03-06. Termination of participation.

Participation in the plan may be terminated at any time by completion of a participant agreement
indicating a suspension of monthly deferrals.
History: Effective April 1, 1989; amended effective July 1, 1994; April 1, 2002; May 1, 2004; July 1,
2010.
General Authority: NDCC 28-32-02, 54-52.2-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2
### § 71-04-03-07. Distribution of assets.

Distribution of assets may be made only upon separation from service as defined in section
71-04-01-01, or in accordance with section 71-04-03-05 or 71-04-08-01, or as a direct trustee-to-trustee
plan transfer to a tax-qualified governmental defined benefit plan (as defined in Internal Revenue Code
section 414(d)) for the purchase of permissive service credit (as defined in Internal Revenue Code
section 415(n)(3)(A) or a repayment to which Internal Revenue Code section 415 does not apply by
reason of section 415(k)(3), regardless of whether or not the participant has had a severance from
employment, at a time and in a manner prescribed by the board, as set forth in the 457 deferred
compensation plan document, and in a manner consistent with section 457(e)(17) of the Internal
Revenue Code.
History: Effective May 1, 2004; amended effective April 1, 2016.
General Authority: NDCC 28-32-02, 54-52-03.2
Law Implemented: NDCC 54-52.2-03, 54-52.2-03.2
