HB 1602 North Dakota House · 69th Legislative Assembly (2025-26)

AN ACT to amend and reenact section 54-52-02.15 of the North Dakota Century Code, relating to political subdivision participation in the public employees retirement system defined contribution retirement plan.

HB 1602 changes North Dakota's public employee retirement system by closing the traditional defined benefit plan to new hires starting January 1, 2025. Instead, new permanent employees (excluding those in specific exception roles like teachers, law enforcement, or university staff) must join a defined contribution retirement plan. Existing members who joined before 2025 remain in the defined benefit plan, and political subdivisions (like cities or counties) may choose whether to participate in the new defined contribution plan. The bill clarifies that local governments are not required to offer either retirement plan, and no fees apply if they withdraw from the defined contribution system.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

House Passage

Feb 2025

Senate Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Jan 20, 2025 Signed Apr 4, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

FIRST ENGROSSMENT → Enrollment · 5 edits

MODERATE

This bill closes North Dakota's public employees defined benefit retirement plan to new hires starting January 1, 2025, shifting them to a defined contribution plan instead. It clarifies eligibility rules, protects existing employees from losing their defined benefit coverage, and removes mandatory participation requirements for political subdivisions, making retirement plan enrollment optional for them.

Scope change

The bill expands the scope by explicitly exempting political subdivisions from mandatory participation in the retirement system and clarifies that existing employees retain defined benefit coverage even if rehired after the plan closure date.

TIMELINE

Defined benefit retirement plan closure to new eligible employees set to take effect January 1, 2025, with new hires joining the defined contribution plan instead.

ELIGIBILITY

New definition of 'eligible employee' includes specific criteria such as age (18+), permanent employment status, and exclusion of those eligible for specialized retirement plans.

EXEMPTIONS

Political subdivisions are no longer required to participate in the retirement plan, and the board cannot charge fees for withdrawing from the defined contribution plan.

PROTECTIONS

Employees who joined the defined benefit plan before January 1, 2025, retain their coverage even if rehired after that date.

DEFINITION

Clarified rules for employees switching between defined benefit and defined contribution plans based on their enrollment dates and current plan participation.

Floor votes · Senate Mar 25, 2025 · House Feb 19, 2025

How they voted

46–0

Passed · 1 other

Total votes 47

Mar 25, 2025

D Democratic5

5 Yea

100% Yea

R Republican42

41 Yea 1

97% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 7, 2025

Introduced

Filed with Secretary Of State 04/03

legislature

Apr 4, 2025

Signed into law

Signed by Governor 04/02

lower

Mar 25, 2025

Upper · Passed

Second reading, passed, yeas 46 nays 0

upper

Mar 21, 2025

Upper · Passed

Reported back, do pass, place on calendar 4 0 2

upper

Mar 20, 2025

Upper · Passed

Committee Hearing 02:30

upper

Feb 20, 2025

Introduced

Introduced, first reading, referred State and Local Government Committee

upper

Feb 19, 2025

Lower · Passed

Second reading, passed, yeas 72 nays 18

lower

Feb 18, 2025

Lower · Passed

Amendment adopted, placed on calendar

lower

Feb 17, 2025

Lower · Passed

Reported back amended, do pass, amendment placed on calendar 8 2 4

lower

Jan 30, 2025

Lower · Passed

Committee Hearing 10:00

lower

Jan 20, 2025

Introduced

Introduced, first reading, referred Government and Veterans Affairs Committee

lower

1 primary · 10 co-sponsors