AN ACT to create and enact a new section to chapter 54-52.2 of the North Dakota Century Code, relating to payment of administrative expenses for the public employees retirement system deferred compensation plan; and to provide a continuing appropriation.
Summary
HB 1113 creates a new section in North Dakota Century Code chapter 54-52.2 governing how administrative expenses for the Public Employees Retirement System deferred compensation plan are paid. It directs participating members to pay plan administrative expenses in a manner determined by the PERS board and authorizes the board, or a vendor it retains, to charge reasonable administrative fees and deduct them from member accounts.
The bill also allows the board to use vendor fines and fees, and money deducted from member accounts, to fund an administrative expenses account held by the state treasurer. In addition, it permits use of the payroll clearing account and the administrative expenses account to pay consulting expenses needed to administer the chapter. The bill establishes a continuing appropriation of all money in those accounts to the board for retaining a consultant for plan administration.
Impact
HB 1113 affects the administration and funding structure of the state’s deferred compensation plan for public employees by expressly authorizing fee deductions, vendor-related revenue, and continuing appropriations for administrative and consulting costs. It amends state law in chapter 54-52.2 to give the PERS board broader authority over how plan expenses are collected, deposited, and spent, while creating or clarifying the administrative expenses account and its relationship to the payroll clearing account.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 91-2 and the Senate 44-0, indicating strong bipartisan approval and little visible opposition in floor votes. No committee transcripts were provided, but the voting record suggests the measure was viewed as a routine administrative or technical change rather than a major policy dispute.
Contention
The main potential point of contention is who bears the cost of administering the deferred compensation plan: participating members through account deductions, vendors through fines and fees, or the plan’s existing accounts through continuing appropriations. Another possible concern is the breadth of the board’s discretion to determine the manner of payment and to use funds for consulting expenses. However, the near-unanimous votes suggest these issues did not generate significant opposition in the legislative process.