# Title 39 — Motor Vehicles

## Chapter 39-03.1 — Highway Patrol Troopers' Retirement System

### § 39-03.1-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:
1. "Accumulated deductions" means the total of the amounts deducted from the salary of
a contributor and paid into the fund, and standing to the contributor's credit in the fund,
and interest credited on those amounts at a rate established by the board.
2. "Board" means the North Dakota public employees retirement board.
3. "Contributor" means any person who is a member of the North Dakota highway patrol,
is subject to salary deductions to support the fund, and is employed on or after July 1,
1981.
4. "Fund" means the North Dakota highway patrol troopers' retirement fund.
5. "Patrol" means the North Dakota highway patrol.
6. "Salary" means the actual dollar compensation, excluding any bonus, overtime, or
expense allowance, paid to or for a contributor for the contributor's services.
7. "Surviving spouse" means that person lawfully married to the contributor at the time of
the contributor's death.
### § 39-03.1-02. North Dakota highway patrol troopers' retirement system.

A retirement system is hereby established for the members of the North Dakota highway
patrol.
### § 39-03.1-03. North Dakota highway patrolmen's retirement board.

Repealed by S.L. 1983, ch. 419, § 4.
### § 39-03.1-04. Administrative expenses.

The expense of the administration of this chapter, exclusive of the payment of retirement
allowances and other benefits, must be paid by the state of North Dakota, by appropriation out
of the highway patrol fund, made on the basis of budgets submitted by the board.
### § 39-03.1-05. Deposit of contributions - Appropriation.

All moneys of the fund, including employers' contributions, contributors' contributions,
grants, donations, legacies, and devises for the benefit of the fund, must be deposited in the
public employees retirement fund account with the Bank of North Dakota. All of these moneys,
not otherwise appropriated, are appropriated for the purpose of making investments for the fund
and to make payments to beneficiaries under the program.
### § 39-03.1-06. Rules and regulations - Actuarial data.

The board shall, from time to time, establish such rules and regulations for the
administration of this chapter as may be deemed necessary. It shall cause to be made periodic
actuarial investigations into the mortality and service experience of the contributors to and the
beneficiaries of the fund.
### § 39-03.1-07. Membership.

Except as otherwise provided, each member of the patrol, including the superintendent and
assistant superintendent, shall contribute to the fund, and is eligible to nominate and vote for
members of the board. Personnel of the truck regulatory division of the state highway
department transferred to the highway patrol after July 1, 1983, are not required to contribute to
the fund. They are members of the public employees retirement system and social security
system.
### § 39-03.1-08. Service allowance.

Repealed by S.L. 1987, ch. 444, § 8.

### § 39-03.1-08.1. Purchase of legislative service credit.

A contributor may, prior to retirement, purchase service credit for the time during each
legislative session spent serving as a member of the legislative assembly while a member of the
fund. The contributor shall pay for the service credit an amount equal to the required member
contributions and the state contributions for that period of time plus interest as established by
the board. Service credit for legislative sessions prior to July 1, 1985, must be purchased before
January 1, 1986. Service credit for each later legislative session must be purchased within one
year after the adjournment of that legislative session.
### § 39-03.1-08.2. Purchase of additional service credit.

1. The fund may accept rollovers from other eligible plans under rules adopted by the
board for the purchase of additional service credit, but only to the extent the transfer is
a rollover contribution that meets the requirement of section 408 of the Internal
Revenue Code [26 U.S.C. 408].
2. The board may accept trustee-to-trustee transfers as permitted by Internal Revenue
Code section 403(b)(13) and section 457(e)(17) from an Internal Revenue Code
section 403(b) annuity or Internal Revenue Code section 457 deferred compensation
plan for the purchase of permissive service credit, as defined in Internal Revenue
Code section 415(n)(3)(A), or as repayment of a cashout from a governmental plan
under Internal Revenue Code section 415(k)(3).
3. A contributor may elect to purchase credit for years of service and prior service for
which the contributor is not presently receiving credit. A contributor is entitled to
purchase additional credit under this section for the following service or prior service,
except this service is not eligible for credit if the years claimed also qualify for
retirement benefits from another retirement system:
a. Except as provided in subsection 3 of section 39-03.1-10.1, up to four years of
credit for active employment in the armed forces of the United States.
b. Employment as a permanent employee by a public employer either within or
outside the state.
c. Employment as a permanent employee by the federal government.
4. A contributor may elect to purchase credit for the following absences for which the
participating contributor is not receiving service credit:
a. Employer-approved leave of absence; and
b. Months away from work while participating as a seasonal employee.
5. The contributor may purchase credit under this section by paying to the board an
amount equal to the actuarial cost to the fund of providing the credit. The board shall
adopt rules governing the purchase of additional credit under this section.
6. The board may establish individual retirement accounts and individual retirement
annuities as permitted under section 408(q) of the Internal Revenue Code to allow
employees to make voluntary employee contributions. The board may adopt
appropriate rules as may be necessary to implement and administer the accounts and
annuities under this section.
7. In addition to service credit identified in this section, a vested contributor may
purchase up to five years of service credit.
8. Pursuant to rules adopted by the board, the board may allow a contributor to purchase
service credit with either pretax or aftertax moneys, at the board's discretion. If a
contributor elects to purchase service credit using pretax moneys, the requirements
and restrictions in subsection 2 of section 39-03.1-09 apply to the purchase
arrangement.
### § 39-03.1-09. Payments by contributors - Employer payment of employee contribution.

1. Every member, except as provided in section 39-03.1-07, shall contribute into the fund
ten and thirty-hundredths percent of the member's monthly salary, which sum must be
deducted from the member's salary and credited to the member's account in the fund.
Member contributions increase by one percent of the member's monthly salary
beginning with the monthly reporting period of January 2012; with an additional

increase of one percent, beginning with the monthly reporting period of January 2013;
with an additional increase of one percent, beginning with the monthly reporting period
of January 2014; with an additional increase of one-half of one percent, beginning with
the monthly reporting period of January 2022; with an additional increase of one-half of
one percent, beginning with the monthly reporting period of January 2023; with an
additional increase of one-half of one percent, beginning with the monthly reporting
period of January 2024; and with an additional increase of one-half of one percent,
beginning with the monthly reporting period of January 2025.
2. The state of North Dakota, at its option, may pay the member contributions required by
subsection 1 for all compensation earned after June 30, 1983, and may pay the
member contributions required to purchase service credit on a pretax basis pursuant
to subsection 8 of section 39-03.1-08.2. The amount paid must be paid by the state in
lieu of contributions by the member. A member may not receive the contributed
amounts directly once the employer has elected to pay the member contributions. If
the state decides not to pay the contributions, the amount that would have been paid
will continue to be deducted from compensation. If contributions are paid by the state,
they must be treated as employer contributions in determining tax treatment under this
code and the federal Internal Revenue Code. If contributions are paid by the state,
they must not be included as gross income of the member in determining tax treatment
under this code and the Internal Revenue Code until they are distributed or made
available. The state shall pay these member contributions from the same source of
funds used in paying compensation to the members. The state shall pay these
contributions by effecting an equal cash reduction in the gross salary of the employee
or by an offset against future salary increases or by a combination of a reduction in
gross salary and offset against future salary increases. If member contributions are
paid by the state, they must be treated for the purposes of this chapter in the same
manner and to the same extent as member contributions made prior to the date the
contributions were assumed by the state. The option given employers by this
subsection must be exercised in accordance with rules adopted by the board.
3. For compensation earned after August 1, 2009, all employee contributions required
under subsection 1, and not otherwise paid under subsection 2, must be paid by the
state in lieu of contributions by the member. All contributions paid by the state under
this subsection must be treated as employer contributions in determining tax treatment
under this code and the federal Internal Revenue Code. Contributions paid by the
state under this subsection may not be included as gross income of the member in
determining tax treatment under this code and the Internal Revenue Code until the
contributions are distributed or made available. Contributions paid by the state in
accordance with this subsection must be treated for the purposes of this chapter in the
same manner and to the same extent as member contributions made before the date
the contributions were assumed by the state. The state shall pay these member
contributions from the same source of funds used in paying compensation to the
members. The state shall pay these contributions by effecting an equal cash reduction
in the gross salary of the employee. The state shall continue making payments under
this section unless otherwise specifically provided for under the agency's biennial
appropriation or by law.
### § 39-03.1-10. Contributions by the state.

The state shall contribute to the fund a sum equal to sixteen and seventy-hundredths
percent of the monthly salary or wage of a participating member. State contributions increase by
one percent of the monthly salary or wage of a participating member beginning with the monthly
reporting period of January 2012; with an additional increase of one percent, beginning with the
reporting period of January 2013; with an additional increase of one percent, beginning with the
monthly reporting period of January 2014; with an additional increase of one-half of one percent,
beginning with the monthly reporting period of January 2022; with an additional increase of
one-half of one percent, beginning with the monthly reporting period of January 2023; with an
additional increase of one-half of one percent, beginning with the monthly reporting period of

January 2024; and with an additional increase of one-half of one percent, beginning with the
monthly reporting period of January 2025. If the member's contribution is paid by the state
under subsection 2 of section 39-03.1-09, the state shall contribute, in addition, an amount
equal to the required member's contribution. The state shall pay the associated employer
contribution for those members who elect to exercise their rights under section 39-03.1-10.3.
### § 39-03.1-10.1. Refund and repurchase of contributions.

Except as provided in section 39-03.1-10.3, a contributor whose employment has been
terminated for at least thirty days is entitled to a refund of or to repurchase contributions as
follows:
1. a. If the contributor has less than ten years of service at termination of employment,
the refund is payable either on application of the contributor or is automatically
payable if within thirty days after termination the contributor has not provided a
written statement to the board waiving the refund and requesting the contributor's
account remain in the fund and the contributor has an account balance of less
than one thousand dollars.
b. If the contributor has at least ten years of service at the date of termination, the
contributor may apply for a refund of accumulated deductions instead of
retirement benefits. By receiving the refund of accumulated deductions under this
subdivision, the contributor forfeits all months of service to the date of refund and
cannot use those months for any future benefit calculations.
2. A contributor who was paid a refund under subdivision a of subsection 1 may, upon
re-employment, elect to repurchase the forfeited past service for the retirement
program and the retiree health benefits program in accordance with the rules adopted
by the board.
### § 39-03.1-10.2. Employer service purchases.

An employer may purchase additional service credit on behalf of a contributor under the
following conditions:
1. The contributor may not be given the option to choose between an employer service
purchase and an equivalent amount paid in cash.
2. The contributor must meet one of the following conditions at the time the purchase is
made:
a. The contributor's age plus service credit must be equal to or greater than
seventy; or
b. The contributor's age must be at least fifty and the contributor must have at least
ten years of service credit.
3. The board must determine the purchase price on an actuarially equivalent basis.
4. The purchase must be completed before the contributor's retirement.
5. The employer may purchase a maximum of five years of service credit on behalf of the
contributor.
6. The employer must pay the purchase price for the service credit purchased under this
section in a lump sum.
### § 39-03.1-10.3. Military service under the Uniformed Services Employment and

Re-employment Rights Act - Member retirement credit.
A member re-employed under the Uniformed Services Employment and Re-employment
Rights Act of 1994, as amended [Pub. L. 103-353; 108 Stat. 3150; 38 U.S.C. 4301-4333], is
entitled to receive retirement credit for the period of qualified military service. The required
contribution for the credit, including payment for retiree health benefits, must be made in the
same manner and by the same party as would have been made had the employee been
continuously employed. If the salary the member would have received during the period of
service is not reasonably certain, the member's average rate of compensation during the
twelve-month period immediately preceding the member's period of service or, if shorter, the
period of employment immediately preceding that period, times the number of months of credit

being purchased must be used. Employees must be allowed up to three times the period of
military service or five years, whichever is less, to make any required payments. This provision
applies to all qualifying periods of military service since October 1, 1994. Effective for years after
December 31, 2008, compensation for purposes of Internal Revenue Code section 415 [26
U.S.C. 415], as amended, includes military differential wage payments, as defined in Internal
Revenue Code section 3401(h) [26 U.S.C. 3401(h)], as amended. Any payments made by the
member to receive qualifying credit inconsistent with this provision must be refunded.
Employees shall make application to the employer for credit and provide a DD Form 214 to
verify service. After December 31, 2006, if a participating member dies while performing
qualified military service, as defined in section 414(u)(5) of the Internal Revenue Code
[26 U.S.C. 414(u)(5)], as amended, the deceased member's beneficiaries are entitled to any
death benefits, other than credit for years of service for purposes of benefits, which would have
been provided under the plan if the participating member had resumed employment and then
terminated employment on account of death. The period of that member's qualified military
service is treated as vesting service under the plan.
### § 39-03.1-10.4. Reduction in member and employer contributions.

The required increase in the amount of member and employer contributions under sections
the July first that follows the first valuation of the highway patrol troopers' retirement plan
showing a ratio of the actuarial value of assets to the actuarial accrued liability of the highway
patrol troopers' retirement plan that is equal to or greater than one hundred percent.
### § 39-03.1-11. Retirement benefit.

Each contributor whose employment with the highway patrol has been terminated may
apply to the board for retirement benefits according to this section and rules adopted by the
board consistent with this chapter. The following procedures apply:
1. A contributor is entitled to credit for permanent employment or its equivalent from the
date eligibility is attained until normal or postponed retirement date, as described in
subsection 3.
2. Retirement benefits are based on the contributor's final average salary. Final average
salary is the average of the highest salary received by the contributor for any thirty-six
months employed during the last one hundred twenty months of employment. For
contributors who terminate employment on or after August 1, 2010, final average
salary is the average of the highest salary received by the contributor for any thirty-six
months employed during the last one hundred eighty months of employment. For
contributors who terminate employment between July 31, 2005, and August 1, 2010,
final average salary is the average of the highest salary received by the member for
any thirty-six months employed during the period for which the board has appropriate
and accurate salary records on its electronic database, but that period may not be
more than the last one hundred eighty months of employment. For members who
terminate employment after December 31, 2019, final average salary is the higher of
the final average salary calculated on December 31, 2019, or the average salary
earned in the three highest periods of twelve consecutive months employed during the
last one hundred eighty months of employment. Months without earnings are excluded
for the purpose of computing an average. If the contributor has worked for less than
thirty-six months at the postponed retirement date, the final average salary is the
average salary for all months of employment.
3. Retirement dates are as follows:
a. Early retirement date is the first day of the month next following the month in
which the contributor attains the age of fifty years and has completed at least ten
years of eligible employment.
b. Normal retirement date is:
(1) The first day of the month next following the month in which the contributor
attains the age of fifty-five years and has completed at least ten years of
eligible employment; or

(2) When the contributor has a combined total of years of service credit and
years of age equal to eighty and has not received a retirement benefit under
this chapter.
c. Postponed retirement date is the first day of the month next following the month
in which the contributor attains the age of sixty years.
d. Disability retirement date is the first day of the month after a contributor becomes
permanently and totally disabled, according to medical evidence called for under
the rules of the board, and has completed at least one hundred eighty days of
employment.
4. The board shall calculate retirement benefits as follows:
a. Normal retirement benefits for all contributors reaching the normal retirement date
are payable monthly, and are:
(1) The first twenty-five years of credited service multiplied by three and sixty
hundredths percent of final average salary.
(2) All years in excess of twenty-five years of credited service multiplied by one
and three-fourths percent of final average salary.
(3) All contributors who retired before August 1, 2001, or their beneficiaries, are
entitled to receive benefits equal to three and sixty hundredths percent of
final average salary multiplied by the first twenty-five years of credited
service, plus one and three-fourths percent of final average salary multiplied
by credited service in excess of twenty-five years, with the increased
benefits payable beginning August 1, 2001.
b. Early retirement benefits are normal retirement benefits accrued to the date of
termination of employment, but actuarially reduced to account for benefit
payments beginning before the normal retirement date.
c. Postponed retirement benefits, for all contributors reaching the postponed
retirement date, are calculated in the same manner as normal retirement benefits.
d. Disability retirement benefits are payable monthly and are:
(1) Seventy percent of the contributor's final average salary, reduced by any
workforce safety and insurance benefits paid. The minimum monthly
disability retirement benefit under this subsection is one hundred dollars.
(2) An individual or that person's beneficiary who, on July 31, 2001, is receiving
a disability retirement benefit is entitled to receive an increase in benefits
equal to six percent of the individual's present benefits, with the increase
payable beginning August 1, 2001.
5. On termination of employment after completing ten years of eligible employment but
before the normal retirement date, a contributor who does not elect to receive early
retirement benefits is eligible to receive deferred vested retirement benefits. The
deferred benefits are payable beginning on the contributor's normal retirement date in
one of the forms provided in this section. Contributors who have delayed or
inadvertently failed to apply for retirement benefits to commence on their normal
retirement date may choose to receive either a lump sum payment equal to the
amount of missed payments, or an actuarial increase to the form of benefit the
member has selected, which increase must reflect the missed payments. The final
average salary used for calculating deferred vested retirement benefits must be
increased annually, from the later of the date of termination of employment or July 1,
1991, until the date the contributor begins to receive retirement benefits from the fund,
at a rate as determined by the board not to exceed a rate that would be approximately
equal to annual salary increases provided state employees pursuant to action by the
legislative assembly.
6. If before retiring a contributor dies after completing ten years of eligible employment,
the board shall pay the contributor's accumulated deductions to the contributor's
designated beneficiary as provided in this subsection. If the contributor has designated
an alternate beneficiary with the surviving spouse's written consent, the board shall
pay the contributor's account balance to the named beneficiary. If the contributor has
named more than one primary beneficiary, the board shall pay the contributor's

account balance to the named primary beneficiaries in the percentages designated by
the contributor or, if the contributor has not designated a percentage for the
beneficiaries, in equal percentages. If one or more of the primary beneficiaries has
predeceased the contributor, the board shall pay the predeceased beneficiary's share
to the remaining primary beneficiaries. If there are no remaining primary beneficiaries,
the board shall pay the contributor's account balance to the contingent beneficiaries in
the same manner. If there are no remaining designated beneficiaries, the board shall
pay the contributor's account balance to the contributor's estate. If the contributor has
not designated an alternate beneficiary under this section or the surviving spouse is
the beneficiary, the surviving spouse of the contributor may select one of the following
optional forms of payment:
a. A lump sum payment of the contributor's accumulated deductions as of the date
of death.
b. Payment of a monthly retirement benefit equal to fifty percent of the deceased
contributor's accrued normal retirement benefits until the spouse dies.
7. If a contributor not eligible for the benefits of subsection 6 terminates employment for
any reason before retirement, the contributor or the contributor's designated
beneficiary is entitled to the contributor's accumulated deductions at termination.
8. The surviving spouse of a member receiving retirement benefits must be the member's
primary beneficiary unless there is no surviving spouse or the surviving spouse
designates an alternate beneficiary in writing. If a contributor receiving retirement
benefits, or a contributor's surviving spouse receiving retirement benefits, dies before
the total amount of benefits paid to them equals the amount of the contributor's
accumulated deductions at retirement, the difference must be paid to the named
beneficiary of the recipient or, if there is no named beneficiary, to the recipient's estate.
9. The board shall adopt rules providing for the receipt of retirement benefits in the
following optional forms:
a. An actuarially equivalent joint and survivor one hundred percent option.
b. An actuarially equivalent life with ten-year or twenty-year certain options.
c. An actuarially equivalent partial lump sum distribution option with a twelve-month
maximum lump sum distribution.
d. An actuarially equivalent graduated benefit option with either a one percent or two
percent increase to be applied the first day of January of each year.
Unless a contributor requests that the contributor receive benefits according to one of
these options at the time of applying for retirement, all retirement benefits must be in
the form of a lifetime monthly pension, with a fifty percent option to the surviving
spouse.
### § 39-03.1-11.1. Benefit limitations.

Repealed by S.L. 2003, ch. 308, § 7.
### § 39-03.1-11.2. Internal Revenue Code compliance.

The board shall administer the plan in compliance with the following sections of the Internal
Revenue Code, as amended, as it applies for governmental plans.
1. Section 415, including the defined benefit dollar limitation under section 415(b)(1)(A) of
the Internal Revenue Code.
a. The defined benefit dollar limitation under section 415(b)(1)(A) of the Internal
Revenue Code, as approved by the legislative assembly, must be adjusted under
section 415(d) of the Internal Revenue Code, effective January first of each year
following a regular legislative session. The adjustment of the defined benefit
dollar limitation under section 415(d) applies to participating members who have
had a separation from employment, but that member's benefit payments may not
reflect the adjusted limit prior to January first of the calendar year in which the
adjustment applies.
b. If a participating member's benefit is increased by plan amendment after the
commencement of benefit payments, the member's annual benefit may not

exceed the defined benefit dollar limitation under section 415(b)(1)(A) of the
Internal Revenue Code, as adjusted under section 415(d) for the calendar year in
which the increased benefit is payable.
c. If a participating member is, or ever has been, a participant in another defined
benefit plan maintained by the employer, the sum of the participant's annual
benefits from all the plans may not exceed the defined benefit dollar limitation
under section 415(b)(1)(A) of the Internal Revenue Code. If the participating
member's employer-provided benefits under all such defined benefit plans would
exceed the defined benefit dollar limitation, the benefit must be reduced to
comply with section 415 of the Internal Revenue Code. This reduction must be
made pro rata between the plans, in proportion to the participating member's
service in each plan.
2. The minimum distribution rules under section 401(a)(9) of the Internal Revenue Code,
including the incidental death benefit requirements under section 401(a)(9)(G), and the
regulations issued under that provision to the extent applicable to governmental plans.
Accordingly, benefits must be distributed or begin to be distributed no later than a
member's required beginning date, and the required minimum distribution rules
override any inconsistent provision of this chapter. For a member who attains age
seventy and one-half before January 1, 2020, the member's required beginning date is
April first of the calendar year following the later of the calendar year in which the
member attains age seventy and one-half or terminates employment. For a member
who attains age seventy and one-half after December 31, 2019, the member's
required beginning date is April first of the calendar year following the later of the
calendar year in which the member attains age seventy-two or terminates
employment.
3. The annual compensation limitation under section 401(a)(17) of the Internal Revenue
Code, as adjusted for cost-of-living increases under section 401(a)(17)(B).
4. The rollover rules under section 401(a)(31) of the Internal Revenue Code. Accordingly,
a distributee may elect to have an eligible rollover distribution, as defined in
section 402(c)(4) of the Internal Revenue Code, paid in a direct rollover to an eligible
retirement plan, as defined in section 402(c)(8)(B) of the Internal Revenue Code,
specified by the distributee. For purposes of this section, "distributee" includes a
beneficiary, other than a spouse, of a deceased member, provided however, in the
case of a beneficiary other than a spouse, the direct rollover may be made only to an
individual retirement account or individual retirement annuity described in section 408
or 408A of the Internal Revenue Code which is established on behalf of the beneficiary
and will be treated as an inherited individual retirement account or individual retirement
annuity under section 402(c)(11) of the Internal Revenue Code.
5. If the plan of retirement benefits set forth in this chapter is terminated or discontinued,
the rights of all affected participating members to accrued retirement benefits under
this chapter as of the date of termination or discontinuance is nonforfeitable, to the
extent then funded.
### § 39-03.1-11.3. Supplemental retiree benefit payment.

If the board determines that the fund has obtained a total return on investments of nine and
six hundredths percent or higher for the fiscal year ending June 30, 2007, or June 30, 2008, the
board shall authorize an additional payment equal to seventy-five percent of the January
retirement allowance following the fiscal yearend to each eligible retiree in pay status as of that
January, including joint and survivor and term certain beneficiaries, under this chapter. The
board may only make one payment under this section.
### § 39-03.1-12. Retirement allowance.

Repealed by S.L. 1987, ch. 444, § 8.

### § 39-03.1-13. Optional retirement.

Repealed by S.L. 1987, ch. 444, § 8.
### § 39-03.1-14. Optional retirement allowance.

Repealed by S.L. 1987, ch. 444, § 8.
### § 39-03.1-14.1. Multiple plan membership - Eligibility for benefits - Amount of benefits.

1. For the purpose of determining eligibility for benefits under this chapter, a member's
years of service is the total of the years of service earned under this chapter and the
years of service employment or years of service credit earned in any number of the
following, the total of which may not exceed twelve months of credit per year:
a. The public employees retirement system.
b. The teachers' fund for retirement.
c. The teachers' insurance and annuity association of America - college retirement
equities fund (TIAA-CREF), for service credit earned while employed by North
Dakota institutions of higher education.
2. If a member terminates eligible employment under this chapter, if that member has not
received a refund of the member's accumulated deductions, and if that member begins
eligible employment in a plan described in subdivision a or b of subsection 1, that
member may elect to remain an inactive member of the system without refund of the
member's accumulated deductions. The election must be made within ninety days
after beginning the eligible employment. The board shall terminate the inactive status
of a member under this subsection if the member gains eligible employment under this
chapter or if the member terminates eligible employment under a plan described in
subdivision a or b of subsection 1.
3. Pursuant to rules adopted by the board, a member who has service credit in the
system and in any of the alternate plans described in subdivision a or b of
subsection 1 is entitled to benefits under this chapter. The employee may elect to have
benefits calculated using the benefit formula in section 39-03.1-11 under either of the
following calculation methods:
a. By using the final average salary as calculated in section 39-03.1-11. If the
participating member has worked for less than thirty-six months at retirement, the
final average salary is the average salary for the total months of employment.
b. Using the final average salary as calculated in section 39-03.1-11, with service
credit not to exceed one month in any month when combined with the service
credit earned in the alternate retirement system.
The board shall calculate benefits for an employee under this subsection by using only
those years of service employment earned under this chapter.
### § 39-03.1-14.2. Benefit payments to alternate payee under qualified domestic relations

order.
1. The board shall pay retirement benefits in accordance with the applicable
requirements of any qualified domestic relations order. The board shall review a
domestic relations order submitted to it to determine if the domestic relations order is
qualified under this section and under rules established by the board for determining
the qualified status of domestic relations orders and administering distributions under
the qualified orders. Upon determination that a domestic relations order is qualified,
the board shall notify the contributor and the named alternate payee of its receipt of
the qualified domestic relations order.
2. A "qualified domestic relations order" for purposes of this section means any judgment,
decree, or order, including approval of a property settlement agreement, which relates
to the provision of child support, spousal support, or marital property rights to a
spouse, former spouse, child, or other dependent of a contributor, is made pursuant to
a North Dakota domestic relations law, and which creates or recognizes the existence
of an alternate payee's right to, or assigns to an alternate payee the right to, receive all

or a part of the benefits payable to the contributor. A qualified domestic relations order
may not require the board to provide any type or form of benefit, or any option, not
otherwise provided under the retirement system, or to provide increased benefits as
determined on the basis of actuarial value. However, a qualified domestic relations
order may require the payment of benefits at the early retirement date notwithstanding
that the contributor has not terminated eligible employment. A qualified domestic
relations order must specify:
a. The name and the last-known mailing address of the contributor and the name
and mailing address of each alternate payee covered by the order;
b. The amount or percentage of the contributor's benefits to be paid by the plan to
each alternate payee;
c. The number of payments or period to which the order applies; and
d. Each retirement plan to which the order applies.
### § 39-03.1-15. Disability retirement.

Repealed by S.L. 1981, ch. 380, § 8.
### § 39-03.1-16. Disability retirement allowance.

Repealed by S.L. 1981, ch. 380, § 8.
### § 39-03.1-17. Severance allowance.

Repealed by S.L. 1987, ch. 444, § 8.
### § 39-03.1-18. Compulsory termination of employment.

A contributor who is at least the age of sixty years may not continue employment with the
patrol. The superintendent shall terminate the employment of such a member. The termination is
effective no later than the member's sixtieth birthday.
### § 39-03.1-19. Refunds in case of resignation or discharge.

Repealed by S.L. 1965, ch. 269, § 9.
### § 39-03.1-20. Payments upon death.

Repealed by S.L. 1965, ch. 269, § 9.
### § 39-03.1-21. Payments in case of death.

Repealed by S.L. 1987, ch. 444, § 8.
### § 39-03.1-21.1. Children's benefit - Limitation.

Repealed by S.L. 1981, ch. 380, § 8.
### § 39-03.1-22. Payments of allowances.

The allowances granted under the provisions of this chapter may not be increased,
decreased, revoked, or repealed except as provided by law.
### § 39-03.1-23. Exemptions from taxes and executions.

Repealed by S.L. 1987, ch. 386, § 2.
### § 39-03.1-24. Service in the armed forces of the United States.

Repealed by S.L. 1993, ch. 377, § 2.
### § 39-03.1-25. Fraud - Correction of errors.

No person may knowingly make any false statement, or may falsify or permit to be falsified
any record or records of the retirement system herein established in any attempt to defraud
such system. Should any such change in records fraudulently made or any mistake in records

inadvertently made result in any contributor or other beneficiary receiving more or less than the
person would have been entitled to had the records been correct, then, on the discovery of such
error, the board shall correct such error and shall adjust the payments which shall be made to
the contributor in such manner that the benefit to which the contributor was correctly entitled
shall be paid.
### § 39-03.1-26. Payments under other laws.

All payments provided for in this chapter are in addition to any other benefits now or
hereafter provided for under the workforce safety and insurance laws of this state.
### § 39-03.1-27. Legislative intent.

The legislative assembly in recognition of the value of good employer-employee
relationships and the need to recruit and retain qualified highway patrol troopers in this state,
hereby declares its intent that the state should provide the comparable contribution for
retirement of highway patrol troopers' retirement system members as it provides for other state
employees. It is the further intent of the legislative assembly that because of the increase in
state contributions to the North Dakota highway patrol troopers' retirement system, the
members of such system shall not obligate the state to additional payments for federal social
security benefits for such members.
### § 39-03.1-28. Confidentiality of records.

All records relating to the retirement benefits of a member or a beneficiary under this
chapter are confidential and are not public records. The information and records may be
disclosed, under rules adopted by the board only to:
1. A person to whom the member has given written consent to have the information
disclosed.
2. A person legally representing the member, upon proper proof of representation, and
unless the member specifically withholds consent.
3. A person authorized by a court order.
4. A member's participating employer, limited to information concerning the member's
years of service credit and years of age. The board may share other types of
information as needed by the employer to validate the employer's compliance with
existing state or federal laws. Any information provided to the member's participating
employer under this subsection must remain confidential except as provided under
subsection 6.
5. The administrative staff of the retirement and investment office for purposes relating to
membership and benefits determination.
6. State or federal agencies for purposes of reporting on a service provider's provision of
services or when the employer must supply information to an agency to validate the
employer's compliance with existing state or federal laws.
7. Member interest groups approved by the board on a third-party blind list basis, limited
to information concerning the member's participation, name, and address.
8. The member's spouse or former spouse, that individual's legal representative, and the
judge presiding over the member's dissolution proceeding for purposes of aiding the
parties in drafting a qualified domestic relations order under section 39-03.1-14.2. The
information disclosed under this subsection must be limited to information necessary
for drafting the order.
9. Beneficiaries designated by a participating member or a former participating member
to receive benefits after the member's death, but only after the member's death.
Information relating to beneficiaries may be disclosed to other beneficiaries of the
same member.
10. Any person if the board determines disclosure is necessary for treatment, operational,
or payment purposes, including the completion of necessary documents.

11. The general public, but only after the board has been unable to locate the member for
a period in excess of two years, and limited to the member's name and the fact that
the board has been unable to locate the member.
12. A government child support enforcement agency for purposes of establishing paternity
or establishing, modifying, or enforcing a child support obligation of the member.
13. A person if the information relates to an employer service purchase under section
39-03.1-10.2, but the information must be limited to the member's name and employer,
the retirement program in which the member participates, the amount of service credit
purchased by the employer, and the total amount expended by the employer for that
service credit purchase, and that information may only be obtained from the member's
employer.
### § 39-03.1-29. Savings clause - Plan modifications.

If the board determines that any section of this chapter does not comply with applicable
federal statutes or rules, the board shall adopt appropriate terminology with respect to that
section as will comply with those federal statutes or rules, subject to the approval of the
employee benefits programs committee. Any plan modifications made by the board pursuant to
this section are effective until the effective date of any measure enacted by the legislative
assembly providing the necessary amendments to this chapter to ensure compliance with the
federal statutes or rules.
### § 39-03.1-30. Conversion of sick leave.

A member is entitled to credit in the retirement system for each month of unused sick leave,
as certified by the employer, if the member or the member's employer pays an amount equal to
the member's final average salary, times the number of months of sick leave converted, times
the employer and employee contribution, plus the required contribution for the retiree health
benefits program. Hours of sick leave equal to a fraction of a month are deemed to be a full
month for purposes of conversion to service credit. A member may convert all of the member's
certified sick leave or a part of that person's certified sick leave.
