# Title 54 — State Government

## Chapter 54-52.3 — Pretax Benefits Program

### § 54-52.3-01. Pretax benefits program for public employees.

The public employees retirement system board may establish a pretax benefits program for
all state employees and employees of district health units, including members of the legislative
assembly, under which an employee may reduce the employee's salary and elect benefits to the
extent of the reduction. A participating district health unit shall comply with the program
conditions and pay all fees established by the board.
### § 54-52.3-02. Authority of board.

The board shall determine benefits to be offered under the pretax benefits program, accept
proposals from qualified providers, retain consultants, and do all things necessary to administer
the pretax benefits program and preserve its tax-exempt status.
### § 54-52.3-03. Employer savings used to defray expenses of administering program -

Continuing appropriation.
The office of management and budget shall transfer funds from the savings accruing to the
agencies' salaries and wages line item, as a result of the diminution of the state's employer
contribution for the Federal Insurance Contribution Act tax, to a payroll clearing account. The
office of management and budget shall transfer funds from the payroll clearing account to the
board as necessary to defray the reasonable expenses of administering the pretax benefits
program established under this chapter, including expenses associated with the program's
medical spending account. Any revenue collected by the board from participating district health
units must be used, and is hereby appropriated, to defray the expenses of administering the
program. The amount necessary to pay consultants retained by the board, vendors retained by
the board to provide claims administration services, any insurance costs associated with the
medical spending account, and medical reimbursements for the medical spending account if
funds are insufficient to pay claims are hereby appropriated from the savings and revenue
generated by the program. All other expenses of administering the program must be paid in
accordance with the agency's appropriation authority as established by the legislative assembly.
The director of the office of management and budget may decrease or suspend the transfer of
the savings accruing to the agencies' salaries and wages line item to the payroll clearing
account upon determination that the funds deposited under this section are sufficient to offset
anticipated obligations. Notwithstanding other provisions in this section, the public employees
retirement system board, or any successor state agency, may not establish, enroll, or administer
any pretax benefits program for a political subdivision or any other public or private business or
entity, except for any program established specifically for employees of the state and employees
of district health units.
### § 54-52.3-04. Effect of participation on other state-administered employee benefits

programs.
For all purposes under any state-administered retirement program, disability program, life
insurance program, or other employee benefits program, the compensation or gross
compensation of any employee participating in any pretax benefits program is deemed to be the
compensation or gross compensation which the employee would have received if the employee
was not participating in the pretax benefits program.
### § 54-52.3-05. Confidentiality of program records.

Any records and information pertaining to a public employee's medical and dependent care
reimbursement under the pretax benefits program are confidential and are not public records
subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota. The
records and information may be disclosed, under rules adopted by the board, only to:
1. A person to whom the employee has given written authorization to have the
information disclosed.

2. A person legally representing the employee, upon proper proof of representation.
3. A person authorized by a court order.
4. A person or entity to which the board is required to disclose information pursuant to
federal or state statutes or regulations.
5. Any person or entity if the purpose of the disclosure is for health care treatment,
payment, or operations.
### § 54-52.3-06. Deposit of program moneys - Appropriation.

All moneys collected pursuant to elections made by public employees under the pretax
benefits program for the medical spending account and the dependent care account must be
deposited in an account with the Bank of North Dakota. All moneys deposited in the account,
not otherwise appropriated, are hereby appropriated for the purpose of making payments to
employees participating in the program. The board shall transfer any surplus in the pretax
benefits account at the end of the plan year to the payroll clearing account.
