# Title 54 — State Government

## Chapter 54-52.5 — State Retirement and Investment Office

### § 54-52.5-01. North Dakota state retirement and investment office.

The state retirement and investment office is created to coordinate the activities of the state
investment board and teachers' fund for retirement.
### § 54-52.5-02. Governing authority.

The state investment board shall govern the state retirement and investment office. The
state investment board is responsible for overseeing and operating the agency and may do all
things necessary to coordinate the activities of the state investment board and the teachers'
fund for retirement. The board of trustees of the teachers' fund for retirement and the state
investment board shall maintain their legal identities and authority as otherwise provided by law.
### § 54-52.5-03. State retirement and investment fund - Cost of operation of agency.

A special fund known as the "state retirement and investment fund" is established for the
purpose of defraying administrative expenses of the state retirement and investment office. The
actual amount of administrative expenses incurred by the state retirement and investment office
must be paid from the respective funds listed under section 21-10-06 and are hereby
appropriated to the state retirement and investment fund in proportion to the services rendered
for each fund as estimated by the state investment board. The amount necessary to pay all
administrative expenses of the state retirement and investment office must be paid from the
state retirement and investment fund in accordance with the agency's appropriation authority
and earnings lawfully available for such purposes. Any interest income earned on the state
retirement and investment fund must be credited to the fund.
### § 54-52.5-04. Incentive compensation program - Report to legislative management.

The state retirement and investment office may develop an incentive compensation program
for full-time equivalent investment and fiscal operations positions necessary for the
management of the investment of funds under the control of the state investment board. The
program must promote profitability, productivity, and responsible fund management. The
provisions of the program must be approved annually by the state investment board. The
provisions must ensure that the payouts do not occur unless the risk-based performance of the
investments that are internally managed exceed the risk-based performance of policy
benchmarks. Any amounts paid under this program must be considered compensation and not
personal profit on behalf of the employee. Each interim, the state retirement and investment
office shall provide at least one report to the legislative management regarding the status of the
program, including the provisions of the program; the total amount of incentives paid out to
employees each year; and the minimum, maximum, and average payout per eligible full-time
equivalent position.
