AN ACT to amend and reenact subsection 4 of section 15-39.1-10 of the North Dakota Century Code, relating to eligibility for normal retirement benefits.
Summary
HB 1117 amends North Dakota’s Teachers’ Fund for Retirement law to update the timing for required minimum distributions from retirement accounts. The bill changes the state statute governing when a member must begin receiving payments, distinguishing between members who reached age 70½ before January 1, 2020 and those who reached that age after December 31, 2019. For the latter group, the required beginning date is tied to age 72 rather than 70½, or to the year employment ends, whichever is later.
The bill also specifies that payments must be made over a period not exceeding the member’s life expectancy or the joint life expectancy of the member and beneficiary, and it directs that minimum distributions comply with section 401(a)(9) of the Internal Revenue Code and related federal regulations for governmental plans. In practical terms, the measure aligns state retirement distribution rules with federal tax law and clarifies administration of retirement benefits under the Teachers’ Fund for Retirement.
Impact
HB 1117 amends section 15-39.1-10 of the North Dakota Century Code, affecting the Teachers’ Fund for Retirement and the rules governing when retired members must start taking distributions. The change updates state law to reflect federal required minimum distribution standards, which can affect retired teachers, beneficiaries, and plan administrators by clarifying eligibility and payout timing. It does not create a new benefit program, but it adjusts retirement administration and compliance requirements for a public pension plan.
Sentiment
The bill appears to have been noncontroversial and broadly supported. It passed the House 87-0 and the Senate 47-0, indicating unanimous approval in both chambers. No committee transcripts were provided, but the voting history suggests the measure was viewed as a technical or conforming update rather than a disputed policy change.
Contention
There is no visible substantive contention in the available record. The bill’s narrow focus on required minimum distribution timing and conformity with federal tax law likely limited debate. If any concern existed, it would most likely have centered on retirement administration details, compliance with Internal Revenue Code rules, or how the change applies to different cohorts of plan members, but no opposing views are reflected in the votes or provided discussion materials.