BISMARCK, N.D. (KFGO/PRAIRIE PUBLIC) – An interim Legislative committee has voted to send two bill drafts to the North Dakota Legislative Management Committee to change the state employee retirement plan to a “defined contribution” plan.
It is currently a “defined benefit” plan.
The change would not affect the employees already on the plan. It would start with new employees hired after either Jan. 1, 2024 or 2025.
The committee was tasked to come up with legislation to move to a defined contribution plan.
West Fargo Republican Representative Austen Schauer said in 2013, the unfunded liability for the current retirement program reached $1 billion. He said now, it’s $1.7 billion.
“This is a failure on the part of our team and our state and we have to get this figured out,” Schauer said. “Nobody likes change. Nobody likes the idea of moving from one plan to the other plan. The pension plan has worked out well for those who’ve worked many, many years. We need to honor and respect that, but at the same time, we have a major issue. So, yes, it may be historic rethinking, but we have no other choice.”
House Minority Leader Josh Boschee of Fargo said he cannot support the change.
“With us limited in the ability to explore other options or find ways to fix the current plan and – as was referred to by Representative Schauer, it’s our own undoing by the legislature’s failure to act previously,” Boschee said.
The committee vote was 9 – 3 in favor of the bill drafts.
If the Legislative Management Committee approves them, they will be introduced into the 2023 Legislative session.
