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To:

North Dakota Public Employees Retirement System

400 East Broadway, Suite 505 PO Box 1657
Bismarck, North Dakota 58502-1657 FAX: (701) 328-3920 EMAIL: NDPERS-INFO(OD.GOV www.nd.gov/ndpers

Sparb Collins Executive Director

(701) 328-3900
1-800-803-7377

Memorandum
From: Date: Subject:

PERS Retirement Plan Members NDPERS December 2012 Retirement Contribution Increase

Senate Bill 2108 was passed by the 2011 Legislature and signed by the Governor. The bill provides for both the employer and the employee contribution to be increased by 1 0/0 each for the Public Employees Retirement System(Main System), Judges Retirement System, Highway Patrol Retirement System, and the Defined Contribution Retirement Plan effective January 2012 and again in January 2013. The Law Enforcement Retirement System was approved for an increase of 0.5% each for both the employer and employee contribution. This increase is to address the funding challenge facing the PERS retirement plans as a result of the downturn in the financial markets. For a full review of that challenge, refer to the PERS Retirement Plan Financial Update articles in the fall 2009, spring 2010, fall 2010, spring 2011, winter 2011 and spring 2012 PERSpectives newsletters on the PERS web site at http://www.nd.gov/ndpers/forms-andpublications/perspectives-archive.html. The following shows the contribution increases as they apply to both employers and employees effective January 1, 2013:

Plan

Employer Contribution

Employee Contribution

Highway Patrol

1% increase 2013

1% increase 2013

Main System

1% increase 2013

1% increase 2013

Main System Temporary Employees

2% increase 2013

Judges

1% increase in 2013

1% increase in 2013

Law Enforcement -. Political Subdivision

.5% increase in 2013

.5% increase in 2013

BCI Law Enforcement - State Employees

1% increase in 2013

1% increase in 2013

Defined Contribution Plan Defined Contribution Plan - Temporary Employees

1% increase in 2013

1% increase in 2013 2% increase in 2013

Retirement contributions are collected by your employer through the payroll process. The above increase will be added to the existing contributions for wages reported to PERS for January. You will notice the additional employee contribution being deducted from your pay unless your employer has indicated to you that they will be picking it up. If you have specific questions how this may impact your net pay and when, please contact your payroll office.

The actions of the Legislature and the Governor in approving SB 2108, as amended, accomplished two of the goals for the systems: 1) the downward trend has been stopped, and 2) the plans have been stabilized. Looking forward to the next session we will still need to address the third goal, putting the plans on a positive trend to improve their funded status over time. In order to achieve this goal NDPERS is proposing a new bill in the upcoming legislative session which includes a 2% increase in employee and a 2% increase in employer contributions phased in over 2 years effective for January 2014 and January 2015. NDPERS will have a web video posted on our website by January 1, 2013 that discusses the challenges facing the retirement plan and proposed legislation to face these challenges.