N.D. Admin. Code tit. 82 | N.D. Admin. Code Title 82 — Board of Trustees of the Teachers' Fund for Retirement

Article 82-01 General Administration

Chapter 82-01-01 Organization of the Teachers' Fund for Retirement

N.D. Admin. Code 82-01-01-01 Organization of the teachers' fund for retirement

1.Organization and administration.

a.History. The 1913 legislative assembly created the teachers' insurance and retirement fund by legislation codified as North Dakota Century Code chapter 15-39. This chapter provided a retirement program for public, nonpublic, and certain college teachers. In 1971, the legislative assembly repealed North Dakota Century Code chapter 15-39 and enacted North Dakota Century Code chapter 15-39.1 which created the present teachers' fund for retirement. The 1973 legislative assembly provided for teacher retirement options by enacting North Dakota Century Code chapter 15-39.2. The primary objective of the teachers' fund for retirement is to provide income security to retired teachers.

b.Board of trustees. A seven-member board of trustees, as established by North Dakota Century Code section 15-39.1-05.1, is responsible for managing the fund.

c.Qualified tax status of fund.

(1)Qualified plan. The fund is a qualified employee pension plan under sections 401 and 501 of the Internal Revenue Code of 1986, as amended [U.S.C. title 26].

(2)Exclusive benefit and purpose. As a qualified employee pension plan, all assets of the fund are held in trust for the exclusive benefit of members and their beneficiaries. Fund assets may not be diverted or used for any purpose other than to provide pension benefits and other incidental benefits allowed by law.

d.Investment of the fund. The assets of the fund are invested and managed by the North Dakota state investment board. The state investment board invests the fund's assets in accordance with the "prudent investor" rule.

e.Accrued benefits nonforfeitable. Upon plan termination or complete discontinuance of contributions under the fund, the rights of all participants to benefits accrued to the date of such termination or discontinuance will become nonforfeitable to the extent funded.

2.Description of portion of organization and functions subject to North Dakota Century Code chapter 28-32.

a.Overview. The teachers' fund for retirement is an "administrative agency" within the definition of that term under subsection 1 of North Dakota Century Code section 28-32-01.

b.Rulemaking. North Dakota Century Code section 15-39.1-07 authorizes the board of trustees to adopt rules as may be necessary to fulfill the responsibilities of the board. The board follows the procedures established in North Dakota Century Code chapter 28-32 in adopting rules. The rules adopted by the board implement various statutory provisions set forth in North Dakota Century Code chapter 15-39.1.

c.Administration. Administration rules for the state retirement and investment office as they pertain to the teachers' fund for retirement are contained in North Dakota Administrative Code title 103.

3.Inquiries. General inquiries and questions relating to policies of the board may be sent to the address listed on the funds website at www.rio.nd.gov.

History

History: Amended effective August 1, 1983; November 1, 1985; September 1, 1990; November 1, 1994; January 1, 1998; May 1, 1998; May 1, 2000; April 1, 2024.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-05.2, 54-52.5-02

Article 82-02 Definitions

Chapter 82-02-01 Definitions

N.D. Admin. Code 82-02-01-01 Definitions

Unless made inappropriate by context, all words used in this title have the meanings given to them under North Dakota Century Code chapter 15-39.1. The following definitions are not established by statute and apply for the purpose of this title:

1."Acceptance of benefit" means the benefit payment date that is the first calendar day of each month for benefits paid by paper check or electronic funds transfer to a financial institution.

2."Account balance" or "value of account" means the member's accumulated contributions or assessments, plus the sum of any member purchase or repurchase payments, plus interest at an annual rate of six percent compounded monthly.

3."Administrative" means to manage, direct, or superintend a program, service, or school district or other participating employer.

4."Benefit payment date" means the date the member is paid a benefit which is the first day of the month. Benefits may be paid retroactive to a member's retirement date.

5."Benefit service credit" means employment service used to determine benefits payable under the fund.

6."Bonus" means an amount paid to a member in addition to regular contract salary which does not increase the member's base rate of pay, is not expected to recur or continue in future fiscal years, or is not expected to be a permanent salary increase. A bonus is not considered eligible retirement salary and is not subject to payment of member and employer contributions.

Bonuses include the following:

a.Recruitment or contract signing payments defined in North Dakota Century Code section 15.1-09-33.1.

b.Retention, experience, or service-related payments.

c.Early retirement incentive payments, severance payments, or other payments conditioned on or made in anticipation of a member's retirement or termination.

d.Payments made to recognize or reward a member's accomplishments or service.

e.Other special or irregular payments which the board determines to be bonuses using criteria and documentation described in section 82-04-02-01.

7."Cessation of employment" means severance or termination of employment.

8."Contributions" means the assessments or payments made to the fund.

9."Covered employment" means employment as a teacher in a North Dakota state agency, state institution, school district, special education unit, regional education association, or other governing body of a school district.

10."Covered payroll" means all amounts included in payroll, salary, or compensation paid to active members on which contributions to and benefits from the pension plan are based according to the definition of salary in subsection 10 of North Dakota Century Code section 15-39.1-04. Covered payroll may also be referred to as pensionable or eligible payroll, salary, compensation, or earnings.

11."Dual member" is a member who is also a member of an alternative plan as defined in North Dakota Century Code section 15-39.1-10.3.

12."Eligibility service credit" means employment service used to determine vesting and benefit eligibility for dual members and qualified veterans under the Uniformed Services Employment and Reemployment Rights Act of 1994. Eligibility service credit is not used for benefit calculation purposes.

13."Extracurricular services" means outside of the regular curriculum of a school district or other participating employer which includes advising, directing, monitoring, or coaching athletics, music, drama, journalism, and other supplemental programs.

14."Member" is a teacher as defined in North Dakota Century Code section 15-39.1-04 who is a participant in the fund.

15."Participating employer" means the employer of a teacher, including a North Dakota state agency, state institution, school district, special education unit, area career and technology center, regional education association, or other governing body of a school district who contributes to the teachers' fund for retirement.

16."Performance or merit pay" means an amount paid to a member pursuant to a written compensation plan or policy that links a member's compensation to attainment of specific performance goals and duties. The specific goals, duties, and performance measures under which performance pay is expected to be made must be determined in advance of the performance period and documented in writing. Performance or merit pay may be in addition to regular salary or may replace regular salary increases. Performance or merit pay is considered eligible retirement salary and subject to payment of member and employer contributions, unless the teachers' fund for retirement board determines the payments are ineligible salary using criteria and documentation described in section 82-04-02-01.

17."Plan year" means the twelve consecutive months commencing July first of the calendar year and ending June thirtieth of the subsequent year.

18."Referee" means all sporting and nonsporting event judges and officials, including referees, umpires, line judges, scorekeepers, timekeepers, ticket takers, ushers, and other judges or officials.

19."Retirement date" means the date selected by the member to begin retirement benefits. The benefit is calculated as of the retirement date and can be no earlier than the first day of the month following eligibility for retirement benefits or the first day of the month following eligibility for disability or death benefits. Notwithstanding the foregoing a member's retirement will not be effective until the member accepts the first benefit payment.

20."Salary reduction or salary deferral amounts under 26 U.S.C. section 125, 132(f), 401(k), 403(b), or 457" means amounts deducted from a member's salary, at the member's option, to these plans. These reductions or deferrals are part of salary when calculating retirement contributions. Employer contributions to plans specified in 26 U.S.C. section 125, 132(f), 401(k), 403(b), or 457 which are made for the benefit of the member will not be counted as retirement salary when calculating retirement contributions. Member contributions paid by the employer under IRC section 414(h) pursuant to a salary reduction agreement do not reduce salary when calculating retirement contributions.

21."Special teachers" include licensed special education teachers, guidance and school counselors, speech and language pathologists, social workers, school psychologists, librarians, media specialists, technology coordinators, program coordinators, and other staff members licensed by the education standards and practices board provided they are under contract with a school district or other participating employer to provide teaching, supervisory, administrative, or extracurricular services.

22."Supervisory" means to have general oversight or authority over students or teachers, or both, of a school district or other participating employer.

23."Teaching" means to impart knowledge or skills to students or teachers, or both, by means of oral or written lessons, instructions, and information.

24."Vested" means the status attained by a teacher when the teacher has earned three years of service credit for a tier one member or five years of service credit for a tier two member for covered employment in this state.

25."Written agreement" means a teaching contract, school board minutes, or other official document evidencing a contractual relationship between a teacher and participating employer.

May 1, 2004; July 1, 2008; July 1, 2012; April 1, 2016; April 1, 2024.

History

History: Effective September 1, 1990; amended effective May 1, 1992; May 1, 1998; May 1, 2000;
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1

Article 82-03 Participation

Chapter 82-03-01 Membership in the Fund

N.D. Admin. Code 82-03-01-01 Teachers' withdrawal from fund - Refund

When a teacher terminates covered employment, the teacher may claim a refund of assessments paid to the fund during membership. A teacher wishing to claim a refund of assessments must request an application from the administrative office, complete the form, and return it for processing. Once the application has been processed, the refund will be paid the first day of the month following the expiration of one hundred twenty calendar days from the last date of covered employment.

The waiting period may be waived by the board if the teacher produces evidence that the teacher will not be returning to covered employment in North Dakota. The following written evidence is required before the board will grant a waiver:

1.Proof of resignation or nonrenewal of contract;

2.Proof that the teacher's employer has accepted the resignation, i.e., letter or copy of official school board minutes; and

3.Proof that the individual has either accepted noncovered employment or permanently relocated out of state, or a medical statement from a medical provider attesting to nonemployment during the upcoming school year for medical reasons.

No refund can be issued to a teacher who has terminated a teaching position only for the summer months or for a leave of absence.

April 1, 2024.

History

History: Effective September 1, 1990; amended effective April 1, 1994; May 1, 1998; May 1, 2000;
Law Implemented: NDCC 15-39.1-20

N.D. Admin. Code 82-03-01-02 Nonvested teachers' withdrawal from fund - Refund

Repealed effective July 1, 2008.

N.D. Admin. Code 82-03-01-03 Termination of participation

A teacher who terminates covered employment and receives a refund of the teacher's account balance forfeits all benefit service credit under the fund.

History

History: Effective September 1, 1990.
Law Implemented: NDCC 15-39.1-20

N.D. Admin. Code 82-03-01-04 Repurchase of forfeited service credit

An individual who has forfeited service credit under section 82-03-01-03 may repurchase such service upon returning to teach or becoming an active dual member in accordance with the following:

1.An active teacher may immediately repurchase forfeited service credit upon returning to TFFR-covered employment.

2.A dual member may repurchase withdrawn service credit from the fund.

3.The cost of the repurchased service credit will be calculated on an actuarial equivalent basis.

4.The cost may be paid in a lump sum or in installments. Installments may be made monthly, quarterly, semiannually, or annually for up to five years. Interest is charged on the unpaid balance based on the actuarially assumed investment return rate in effect at the time the member signs the installment agreement.

5.If a teacher retires prior to full payment of the repurchase amount, service credit will be granted in proportion to the actual principal payments made or the teacher may elect to make a lump sum payment to complete the purchase or elect to have the payments included in a refund of the account balance.

6.If a teacher passes away prior to full payment of the repurchase amount, service credit will be granted in proportion to the actual principal payments made or the designated beneficiary may elect to make a lump sum payment to complete the purchase or elect to have the payments included in a refund of the account balance.

April 1, 2024.

History

History: Effective September 1, 1990; amended effective May 1, 1992; April 1, 1994; May 1, 1998;
Law Implemented: NDCC 15-39.1-10.3, 15-39.1-15, 15-39.1-24

N.D. Admin. Code 82-03-01-05 Purchase of benefit service credit

A teacher may purchase additional eligible benefit service credit in accordance with the following:

1.Out-of-state teaching service at a public, private, or parochial school must be verified by the out-of-state employer or retirement system, or both, where the service was earned.

2.Military service must be verified by submitting military service discharge documents.

3.Professional education organization service must be certified by the teacher's participating employer.

4.Legislative service must be certified by the teacher's participating employer and must indicate the number of uncompensated days and salary information as required by the fund.

5.Government agency service as an administrator or teacher must be verified by the federal agency which employed the teacher.

6.Leave of absence from teaching service must be verified by the employer who granted such leave.

7.Nonpublic teaching service at a North Dakota private or parochial school must be verified by the employer or the retirement system, or both, where the service was earned.

In all cases, the purchase cost must be on an actuarial equivalent basis determined by applying the actuarial factors adopted by the board.

The cost may be paid in a lump sum or in installments. Installments may be made monthly, quarterly, semiannually, or annually for up to five years. Interest is charged on the unpaid balance at the actuarial assumption rate for investment earnings.

If a teacher retires prior to full payment of the purchase amount, service credit will be granted in proportion to the actual principal payments made, or the teacher may elect to make a lump sum payment to complete the purchase or elect to have the payments included in a refund of the account balance.

If a teacher passes away prior to full payment of the purchase amount, service credit will be granted in proportion to the actual principal payments made or the designated beneficiary may elect to make a lump sum payment to complete the purchase or elect to have the payments included in a refund of the account balance.

May 1, 2000.

History

History: Effective September 1, 1990; amended effective May 1, 1992; April 1, 1994; May 1, 1998;
Law Implemented: NDCC 15-39.1-24

N.D. Admin. Code 82-03-01-06 Veterans' rights

A member may be entitled to eligibility service credit for military service under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) [Pub. L. 103-353; 108 Stat. 3150; 38 U.S.C. 4301 et seq.] provided that the member received an honorable discharge and had the member's North Dakota teaching service interrupted by military duty after December 31, 1994.

Interruption of service requires the member to enter military service within ninety days of leaving covered teaching employment and reenter covered employment within ninety days of the member's honorable discharge. Notwithstanding the preceding sentence, effective for deaths occurring on or after January 1, 2007, if a member dies while performing qualified military service (as defined in the Internal Revenue Code section 414(u)(5)), the fund shall provide all applicable benefits required in accordance with Internal Revenue Code section 401(a)(37), as if the member had resumed covered employment on the day preceding death and terminated employment as of the actual date of death. For benefit calculation purposes, the fund will treat a member who dies or becomes disabled (as defined under the terms of the fund) while performing qualified military service as if the member resumed employment in accordance with the member's reemployment rights under USERRA on the day preceding death or disability and terminated employment on the actual date of death or disablitity. A member eligible to receive military credit under USERRA will have the service credit recognized for vesting and benefit eligibility purposes.

In addition to having the service credit recognized for vesting and benefit eligibility purposes, at the member's option, a member eligible to receive military credit under USERRA may pay an amount calculated by the fund to allow the credit to be used for benefit calculation purposes. A member may purchase up to five years of military credit and must apply for and complete the purchase prior to retirement. The member must provide a copy of the member's military discharge papers (DD214) as proof of eligibility. The time frame to purchase military service under USERRA begins with reemployment and is equal to three times the length of the military service but may not exceed five years.

The cost to purchase USERRA military credit for benefit calculation purposes is the member and employer contributions required under North Dakota Century Code section 15-39.1-09 had the member's employment not been interrupted by military service. The member contributions must be applied to the member's annual salary at the time of the military leave. The member contributions must be paid by the member if the employer is withholding contributions under a salary reduction plan. If the employer is paying all of the member contributions as a salary supplement, the employer is responsible for payment of any member contributions owed. If the employer is paying a portion of the member contributions as a salary supplement, both the member and employer are responsible for payment of the member contributions. The employer is required to pay the employer contributions. No interest is charged if the credit is purchased within the time frame allowed under USERRA.

Effective January 1, 2009, compensation shall include military differential wage payments, as defined in Internal Revenue Code section 3401(h), for purposes of calculation of contributions and benefits.

If the credit is not purchased within the USERRA time frame, the cost becomes the responsibility of the member and six percent interest is charged beginning with the date the USERRA time frame elapsed.

History

History: Effective May 1, 1992; amended effective May 1, 1998; May 1, 2000; July 1, 2012; April 1, 2016.
Law Implemented: NDCC 15-39.1-24, 15-39.2-01.2; 26 USC 401(a)(37), 26 USC 414(u)(12)(A)

N.D. Admin. Code 82-03-01-07 Nonrecognition of waived service credit

The teachers' fund for retirement will not recognize for any purpose service credit from another retirement system that the member waived as a result of the member's participation in the public employees retirement system's defined contribution retirement plan.

History

History: Effective May 1, 2000.
Law Implemented: NDCC 15-39.1-24

N.D. Admin. Code 82-03-01-08 Dual membership - Receipt of retirement benefits while contributing to the public employees retirement system or the highway patrolmen's retirement system

1.Dual members may select one of the following options at retirement eligibility:

a.Begin receiving retirement benefits from one plan prior to ceasing employment covered by the alternate plan, unless the continued employment is with the same employer.

b.Begin receiving retirement benefits from one plan and begin work in a job covered by the alternate plan if for a different employer.

c.Continue participating as a dual member and begin receiving retirement benefits from both plans after ceasing employment.

2.The following limitations apply when a member elects an option under subsection 1:

a.Eligible service credit may be used for vesting purposes and determining when the dual member may begin drawing normal retirement benefits. A member may begin drawing retirement benefits from one fund and use the same years, and any additional years, for reaching retirement from the alternate fund so long as service credit does not exceed one year in any fiscal year.

b.If a dual member elects to receive retirement benefits as provided in subdivision a or b of subsection 1, the final average salary, service credit, and member's age used to calculate the benefit that is applicable at the time retirement benefits begin may not be adjusted after the benefit effective date.

c.The salary used in calculating the retirement benefit must be provided in writing by the alternate retirement system.

History

History: Effective May 1, 2004; amended effective April 1, 2016.
Law Implemented: NDCC 15-39.1-10.3

N.D. Admin. Code 82-03-01-09 Employer service purchase

An employer may elect to purchase up to three years of service credit for an active employee. In order to make the purchase, an employer must develop an employer service purchase program as outlined below:

1.The program must be in writing and meet all the conditions and member eligibility requirements in North Dakota Century Code section 15-39.1-33.

2.The program must be in compliance with the federal Age Discrimination in Employment Act and other federal and state laws.

3.The program must include specific guidelines for determining for whom the employer will purchase service credit.

4.The employer must not give the employee the option of a cash payment in lieu of the employer service purchase.

5.The employer must certify in writing that the program meets the necessary legal requirements prior to making the employer service purchase.

6.The teachers' fund for retirement will provide the purchase price amount to the employer.

7.If the service is purchased, the teachers' fund for retirement will credit the service to the member.

History

History: Effective May 1, 2004.
Law Implemented: NDCC 15-39.1-33

N.D. Admin. Code 82-03-01-10 Veteran's exemption - Proof of qualified military retirement

A teacher applying for an exemption to membership in the teachers' fund for retirement for retired military personnel shall provide proof of at least twenty years of service in any branch of the armed forces of the United States on full-time active duty and proof of retirement with full military retirement benefits. The following documents are accepted as proof of service and proof of military retirement benefits: military record of service, commonly referred to as DD214.

History

History: Effective April 1, 2024.
Law Implemented: NDCC 15-39.1-19.3

Article 82-04 Contributions

Chapter 82-04-01 Contributions

N.D. Admin. Code 82-04-01-01 Employer contributions and member contributions

Employer and member contributions must be paid to the fund administrative office by the fifteenth day of the month following collection of the member contributions.

History

History: Effective September 1, 1990; amended effective July 1, 2012.
Law Implemented: NDCC 15-39.1-09

N.D. Admin. Code 82-04-01-02 Employer payment of member contributions

Section 414(h) of the Internal Revenue Code of 1986, as amended, allows the employer to pay its employees' contributions to a retirement plan. A participating employer that elects to pay the member contributions may reduce the members' current salaries or offset future salary increases by an amount equal to the member contributions paid by the employer. Employer payment of member contributions to the fund is allowed only if the following conditions are satisfied:

1.The participating employer must specify in writing that the contributions are being paid by the employer in lieu of contributions paid by the member.

2.Members must not have the option of choosing to receive the contributed amounts directly instead of having them paid by the participating employer to the retirement fund.

3.All members of a participating employer must be covered by the plan for employer payment of member contributions.

4.All members covered under such a plan must be treated equally.

5.The participating employer's plan to pay member contributions must comply with the fund's "plan for employer payment of member contributions to the fund" or other instructions prepared by the fund.

6.Eligible salary and member and employer contributions paid by the participating employer must be certified by the disbursing official on the required fund reports.

7.Participating employers implementing the plan must report the payment of member contributions to the fund on forms provided by the fund. The employer payment plan must be implemented at the beginning of the fiscal year. The employer payment plan will remain in effect until a notice of cancellation or a new form is filed with the fund.

8.Participating employers must file a new employer payment plan form if:

a.The employer changes the model or amount of member contributions paid.

b.The legislative assembly approves a change to the contribution rate.

c.The teachers' fund for retirement board changes the models.

History

History: Effective September 1, 1990; amended effective July 1, 2012.
Law Implemented: NDCC 15-39.1-09

N.D. Admin. Code 82-04-01-03 Taxation of contributions and benefits

Contributions to the fund by participating employers are not subject to taxation as income or wages under state or federal law. Benefits paid by the fund to a member are subject to taxation as income under state and federal law when distributed.

History

History: Effective September 1, 1990.
Law Implemented: NDCC 15-39.1-07, 15-39.1-09(2), 21-10-07

N.D. Admin. Code 82-04-01-04 Rollover contributions permitted for service purchases

Teachers are permitted to roll over or transfer to the fund any tax-deferred moneys from other eligible retirement plans that meet the requirements of IRC section 402(c) to repurchase refunded service credit and to purchase additional service credit.

The amount rolled over or transferred to TFFR cannot exceed the cost of the credit to be purchased. The transferring trustee or custodian and the teacher must complete authorization forms provided by the fund prior to transfer or rollover. Copies of the original distribution paperwork must be submitted with rollover funds received from a member.

History

History: Effective September 1, 1990; amended effective May 1, 1998; May 1, 2004.
Law Implemented: NDCC 15-39.1-24(11)

Chapter 82-04-02 Eligible Salary Determinations

N.D. Admin. Code 82-04-02-01 Criteria for eligible salary determinations

The teachers' fund for retirement board will consider the following criteria and documentation to determine whether benefits or payments made to a teachers' fund for retirement member is eligible retirement salary as authorized in subsection 9 of North Dakota Century Code section 15-39.1-04:

1.Written authorization made in advance of payment. Examples include:

a.Master contract or negotiated agreement.

b.Individual employment contract.

c.Written agreement between employee and employer.

d.Minutes of school board or participating employer.

e.Policy of school board or participating employer.

f.Other information the board deems relevant.

2.Written documentation describing payment details, including:

a.Duration of payment or whether payment is recurring or nonrecurring in future years.

b.Frequency and date of payment.

c.Relation of payment to base or contract salary.

d.Reason or intent of payment.

e.Description of duties or services to be performed.

f.Description of employees who are eligible for payment.

g.Amount of payment expressed as either a fixed dollar amount or percentage of known contract amount (not fixed percent of unknown amount).

h.Funding source for payment.

3.Other pertinent information the board deems relevant. Examples include:

a.Employee salary history.

b.Retirement eligibility.

c.Other information the board deems relevant.

History

History: Effective July 1, 2012.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-04

Article 82-05 Retirement Benefits

Chapter 82-05-01 Procedural Requirements

N.D. Admin. Code 82-05-01-01 Application for benefits

A member or beneficiary must make written application for benefits on enrollment forms provided by the fund before benefits can be paid. The enrollment form must be signed by the member or beneficiary and notarized or witnessed by a plan representative. The form of payment option selected may not be changed after the first benefit payment has been accepted by the member or beneficiary except as allowed under sections 82-05-01-03 and 82-05-02-02. If the member dies before accepting the first benefit payment, the member's beneficiary is eligible for death benefits the first day of the month following the member's death.

Retirement benefits may not be issued to a member who has terminated a teaching position only for the summer months or for a leave of absence.

April 1, 2024.

History

History: Effective September 1, 1990; amended effective April 1, 1994; May 1, 2000; July 1, 2012;
Law Implemented: NDCC 15-39.1-10, 15-39.1-17

N.D. Admin. Code 82-05-01-02 Proof of age

A teacher applying for a retirement benefit and each beneficiary entitled to a continuing annuity under the joint and survivor option must provide proof of age. The following documents will be accepted as proof of age: REAL ID, birth certificate, baptismal certificate, passport, or official military record.

History

History: Effective September 1, 1990; amended effective July 1, 2021.
Law Implemented: NDCC 15-39.1-10; The REAL ID act of 2005 [Pub. L. 109-13; 119 Stat. 311; 49 U.S.C. § 30301 note]

N.D. Admin. Code 82-05-01-03 Designation of beneficiary

A member may designate a beneficiary in writing on forms provided by the fund prior to the beginning of benefit payments.

After benefit payments have begun, the member may not change the designated beneficiary, except under the following circumstances:

1.Members who select the single life, five-year term certain and life (option no longer available to new retirees), twenty-year term certain and life, or ten-year term certain and life annuity plans may change their beneficiary at any time.

2.Members who select the one hundred percent joint and survivor or fifty percent joint and survivor annuity plans may only name one beneficiary and may not change their beneficiary after retirement, except under the following circumstances:

a.If the member's designated beneficiary precedes the member in death; or

b.If the marriage of a member and the designated beneficiary is dissolved and the divorce decree provides for sole retention of the retirement benefits by the member.

In these cases, the form of benefits shall automatically revert to the standard form of benefit payment under section 82-05-02-01 and a new beneficiary may be designated. The member, upon remarriage, may designate the new spouse as the primary beneficiary and may elect a joint and survivor benefit option under section 82-05-02-02.

May 1, 2004; July 1, 2012.

History

History: Effective September 1, 1990; amended effective April 1, 1994; May 1, 2000; May 1, 2002;
Law Implemented: NDCC 15-39.1-04, 15-39.1-16, 15-39.1-17

N.D. Admin. Code 82-05-01-04 Proof of marriage

Repealed effective May 1, 2000.

N.D. Admin. Code 82-05-01-05 Benefit eligibility calculation

In determining eligibility for benefits under North Dakota Century Code chapter 15-39.1, the calculations for age and service credit are rounded to the nearest one thousandth (.000).

History

History: Effective July 1, 2012.
Law Implemented: NDCC 15-39.1-10, 15-39.1-27

Chapter 82-05-02 Forms of Benefit Payments

N.D. Admin. Code 82-05-02-01 Standard form of benefit payments

The standard form of benefit payments under article 82-05 is an annuity payable for the life of the teacher with no survivor annuity.

History

History: Effective September 1, 1990.
Law Implemented: NDCC 15-39.1-10

N.D. Admin. Code 82-05-02-02 Optional forms of benefit payments

1.A teacher may elect to receive benefits under article 82-05 in any one of the following forms:

a.A one hundred percent joint and survivor annuity.

b.A fifty percent joint and survivor annuity.

c.An annuity payable to the teacher or the teacher's designated beneficiary for the life of the teacher or two hundred forty months, whichever is longer.

d.An annuity payable to the teacher or the teacher's designated beneficiary for the life of the teacher or one hundred twenty months, whichever is longer.

2.A married member's spouse, if designated as beneficiary, must consent in writing to the form of payment option elected by the member at retirement. If spousal consent is not obtained, the form of benefit payment option will be the fifty percent joint and survivor option.

3.Benefits under the optional forms of payment must be determined on an actuarially equivalent

basis. The teacher's choice of benefit under this section is irrevocable once the teacher has begun receiving benefits except under the following circumstances:

a.Under the single life, five-year term certain and life (option no longer available to new retirees), twenty-year term certain and life, and ten-year term certain and life annuity options, if a retired teacher marries, that teacher may change that teacher's beneficiary under section 82-05-01-03 and form of benefit payment to a joint and survivor option.

b.Under the one hundred percent joint and survivor and fifty percent joint and survivor annuity options, if a retired teacher's designated beneficiary precedes the teacher in death, or if the marriage of a teacher and the designated beneficiary is dissolved and the divorce decree provides for sole retention of the retirement benefits by the teacher, the form of benefits shall automatically revert to the standard form of benefit payment under

section 82-05-02-01 and a new beneficiary may be designated under section

N.D. Admin. Code 82-05-01-03 The teacher, upon remarriage, may designate the new spouse as the primary beneficiary and may elect a joint and survivor option

4.The teacher must provide proof of the teacher's good health before the board can permit a change in the designated beneficiary under the joint and survivor options. A medical examination conducted by a licensed medical doctor is required.

5.The teacher is required to provide proof of age for the new beneficiary. The board must adjust the monthly retirement benefit to the actuarially equivalent amount based on the new designated beneficiary's age.

May 1, 2004.

History

History: Effective September 1, 1990; amended effective April 1, 1994; May 1, 2000; May 1, 2002;
Law Implemented: NDCC 15-39.1-16

N.D. Admin. Code 82-05-02-03 Level income option

Repealed effective April 1, 2024.

N.D. Admin. Code 82-05-02-04 Retroactive retirement eligibility

Upon application, a teacher is entitled to receive benefits retroactive to the date of initial eligibility in accordance with the benefit option selected. Teachers may not collect interest on retroactive back benefits.

History

History: Effective September 1, 1990; amended effective April 1, 1994.
Law Implemented: NDCC 15-39.1-10, 15-39.1-16

N.D. Admin. Code 82-05-02-05 Partial lump sum distribution option

A member who is eligible for an unreduced service retirement annuity may receive a portion of the retirement annuity paid in a lump sum distribution as provided in North Dakota Century Code section 15-39.1-16. The lump sum distribution may be paid in a direct rollover as outlined in North Dakota Century Code section 15-39.1-20.

History

History: Effective May 1, 2004.
Law Implemented: NDCC 15-39.1-16

Chapter 82-05-03 Payment of Benefits

N.D. Admin. Code 82-05-03-01 When benefit payments begin - Direct deposit

If the teacher terminates covered employment and becomes eligible for retirement benefits, retirement benefits are paid on the first day of the month following the official date of retirement. If a teacher terminates covered employment or becomes eligible for retirement benefits after the first fifteen days of the month, retirement benefits are paid beginning the first day of the following month.

Annuity payments will be directly deposited to a teacher's account in a bank, credit union, savings and loan, or other financial institution provided that the financial institution is an automated clearing house (ACH) financial participant. The teacher must complete the official direct deposit form provided by the fund.

History

History: Effective September 1, 1990; amended effective May 1, 1998; April 1, 2024.
Law Implemented: NDCC 15-39.1-10

N.D. Admin. Code 82-05-03-02 Death benefits - Proof of death

Death benefits will be paid after proof of the member's death is submitted to the fund office. Proof of death includes a death certificate or other documentation approved by the executive director. If death benefits are required to be paid to the member's estate, documentation naming the administrator or personal representative of the estate must also be submitted to the fund office prior to payment.

History

History: Effective September 1, 1990; amended effective April 1, 1994; May 1,1998; July 1, 2012.

N.D. Admin. Code 82-05-03-03 Overpayment of retirement benefits - Write-offs

All overpayments must be collected using the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like gains. If the cost of recovering the amount of the overpayment of retirement benefits is estimated to exceed the overpayment, the teachers' fund for retirement may consider the repayment to be unrecoverable and written off.

History

History: Effective April 1, 2016; amended effective April 1, 2024.
Law Implemented: NDCC 15-39.1-29, 15-39.1-31

N.D. Admin. Code 82-05-03-04 Interest payments - Interest accrual on account - Preretirement death

The preretirement death benefit paid to any beneficiary shall be equal to the account value included accumulated interest up to the date of death. No interest shall continue to accrue to the account beyond the time of death of the member.

N.D. Admin. Code 82-05-03-05 Erroneous payment of benefits - Overpayments

1.An "overpayment" means a payment of money by the teachers' fund for retirement that results in a person receiving a higher payment than the person is entitled to under the provision of the retirement plan of membership.

2.A person who receives an overpayment is liable to refund those payments upon receiving a written explanation and request for the amount to be refunded.

3.If the overpayment of benefits was not the result of any wrongdoing, negligence, misrepresentation, or omission by the recipient, the recipient may make repayment arrangements subject to the executive director's approval within sixty days of the written notice of overpayment with the minimum repayment amount no less than fifty dollars per month. If repayment arrangements are not in place within sixty days of the date of the written notice of overpayment, the executive director shall offset the amount of the overpayment from the amount of future retirement benefit payments so that the actuarial equivalent of the overpayment is spread over the benefit payment period.

4.If the overpayment of benefits was the result, in whole or in part, of the wrongdoing, negligence, misrepresentation, or omission of the recipient, the recipient is liable to pay simple interest charges at the rate of six percent on the outstanding balance to compensate the fund for lost earnings, from the time the erroneous benefit was paid through the time it has been refunded in full. Recovered funds are first applied to interest and, if any amount is left over, that amount is applied to principal. The recipient may make repayment arrangements, subject to the executive director's approval, within sixty days of the written request for refund with the minimum repayment amount no less than fifty dollars per month. If repayment arrangements are not in place within sixty days of the date of the written notice of overpayment, the executive director shall offset the amount of the overpayment from the amount of future retirement benefit payments so that the actuarial equivalent of the overpayment is spread over the benefit payment period.

5.If an individual dies prior to fully refunding an erroneous overpayment of benefits, the teachers' fund for retirement may make application to the estate of the deceased to recover the remaining balance.

N.D. Admin. Code 82-05-03-06 Erroneous payment of benefits - Underpayments

1.An "underpayment" means a payment of money by the teachers' fund for retirement that results in a person receiving a lower payment than the person is entitled to under the provisions of the retirement plan of membership.

2.If an underpayment occurs, the amount of the lump sum payment must be paid within sixty days of the discovery of the error.

3.If the underpayment of benefits was not the result of any wrongdoing, negligence, misrepresentation, or omission by the employer or recipient, the underpayment of benefits is to include simple interest at the rate of six percent from the time the underpayment occurred.

4.If the underpayment of benefits was the result, in whole or in part, of the wrongdoing, negligence, misrepresentation, or omission of the employer or recipient, the underpayment of benefits will not include simple interest.

5.If an individual dies prior to receiving the underpayment of benefits, the teachers' fund for retirement shall pay the designated beneficiary on record or, in the absence of a designation of beneficiary, to the estate.

N.D. Admin. Code 82-05-03-07 Erroneous payment of benefits - Appeals

1.A person not satisfied with repayment arrangements made under section 82-05-03-05 may appeal the executive director's decision in writing to the board. The written request must explain the basis of the appeal and must be received in the office within sixty days of the executive director's written decision.

2.The board may release a person from liability to refund an overpayment, in whole or in part, if it determines:

a.The receipt of overpayment is not the fault of the recipient.

b.It would be contrary to equity and good conscience to collect the refund.

Chapter 82-05-04 Actuarial Factors

N.D. Admin. Code 82-05-04-01 Actuarial factors - Early retirement

In determining early retirement benefits under North Dakota Century Code section 15-39.1-12, the benefits to which a member is entitled shall be reduced 0.5 percent for each month that the early retirement date precedes the first day of the month coincident with or next following the earlier of the member's sixty-fifth birthday or the date at which current service plus the member's age will equal eighty-five for a tier one grandfathered member. Effective July 1, 2013, for members who are either tier one nongrandfathered or tier two, in determining the early retirement benefit under North Dakota Century Code section 15-39.1-12, the benefits to which a member is entitled shall be reduced 0.6667 percent for each month that the early retirement date precedes the first day of the month coincident with or next following the earlier of the member's sixty-fifth birthday or the date at which current service plus the member's age will equal ninety, with a minimum age of sixty.

History

History: Effective September 1, 1990; amended effective May 1, 2000; July 1, 2008; April 1, 2016.

N.D. Admin. Code 82-05-04-02 Actuarial factors - Optional payment forms

Under the optional joint and survivor, term certain and life, and partial lump sum forms of annuity payment shall be based on the following actuarial assumptions:

1.Interest rate - 7.25 percent per year, compounded annually.

2.Member's mortality (used for nondisabled members) - A mortality table constructed by blending thirty percent of the mortality rates under a combination of PubT-2010 employee and PubT-2010 healthy retiree tables for males, adjusted by one hundred four percent for ages fifty-five and older, and projected to 2022 using projection scale MP-2019, with seventy percent of the mortality rates under a combination of PubT-2010 employee and PubT-2010 healthy retiree tables for females, adjusted by one hundred four percent for ages fifty-five and older, and projected to 2022 using projection scale MP-2019.

3.Beneficiary's mortality - A mortality table constructed by blending seventy percent of the mortality rates under a combination of PubT-2010 employee and Pub-2010 contingent survivor tables for males, adjusted by ninety-five percent for ages forty-five and older, and projected to 2022 using projection scale MP-2019, with thirty percent of the mortality rates under a combination of PubT-2010 employee and Pub-2010 contingent survivor tables for females, adjusted by ninety-five percent for ages forty-five and older and projected to 2022 using projection scale MP-2019. Mortality tables for survivors under age eighteen use the RP-2014 juvenile tables with fifty percent blending of the male/female rates and projected to 2022 using projection scale MP-2019.

4.Disabled member's mortality - A mortality table constructed by blending thirty percent of the mortality rates under the PubNS-2010 non-safety disabled mortality table for males, projected to 2022 using projection scale MP-2019, with seventy percent of the mortality rates under the PubNS-2010 non-safety disabled mortality table for females, projected to 2022 using projection scale MP-2019.

In addition, the above actuarial assumptions shall be used to determine actuarial equivalence for other purposes not covered by sections 82-05-04-01, 82-05-04-03, and 82-05-04-04, such as the determination of the reduction to a member's benefit because of the existence of a qualified domestic relations order.

History

History: Effective May 1, 2000; amended effective May 1, 2004; July 1, 2008; April 1, 2016; July 1, 2021; April 1, 2024.

N.D. Admin. Code 82-05-04-03 Actuarial factors - Maximum benefits under section 415

In computing the maximum benefits under Internal Revenue Code section 415, as required under North Dakota Century Code section 15-39.1-10.6, the following actuarial assumptions must be used:

1.Interest rate - the interest rate assumption must be the same as the rate that is used in computing actuarially equivalent optional payment forms under section 82-05-04-02 except that:

a.The interest rate assumption may not be less than five percent for the purposes of converting the maximum retirement income to a form other than a straight life annuity with no ancillary benefits;

b.The interest rate assumption may not be greater than five percent for the purposes of adjusting the maximum retirement income payable to a member who is over age sixty-five so that it is actuarially equivalent to such a retirement income commencing at age sixty-five; and

c.The factor for adjusting the maximum permissible retirement income to a member who is less than age sixty-two years so that it is actuarially equivalent to such a retirement income commencing at age sixty-two years shall be equal to the factor for determining actuarial equivalence for early retirement under section 82-05-04-01 or an actuarially computed reduction factor determined using an interest rate assumption of five percent and the mortality assumptions specified in this section (except that the mortality decrement must be ignored if a death benefit at least equal to the single-sum value of the member's accrued benefit would be payable under the fund on behalf of the member if the member remained in service and the member's service was to be terminated by reason of the member's death prior to the member's normal retirement date), whichever factor will provide the greater reduction. The factor for determining actuarial equivalence for early retirement under the fund for any given age below age sixty-two years must be determined by dividing the early retirement adjustment factor that applies under section 82-05-04-01 at such given age by the early retirement adjustment factor that applies under the fund at age sixty-two years. The actuarial adjustment provided in this subdivision does not apply for limitation years beginning after 1994 to income received as a pension, annuity, or similar allowance as a result of a member's disability due to personal injuries or sickness, or amounts received as a result of a member's death by the member's beneficiaries, survivors, or estate.

2.Mortality - the mortality assumptions must be based upon the mortality table prescribed by the secretary of the treasury of the United States pursuant to Internal Revenue Code

section 415(b)(2)(E).

History

History: Effective May 1, 2000; amended effective May 1, 2004.

N.D. Admin. Code 82-05-04-04 Actuarial factors - Purchase of service

Whenever the North Dakota Century Code permits a member to purchase service on an actuarially equivalent basis, the following actuarial assumptions shall be used:

1.Interest rate - 7.25 percent per year, compounded annually.

2.Mortality rates - the same table specified in section 82-05-04-02 for nondisabled members.

3.Retirement - the member will be assumed to retire at the age at which the member is first eligible for an unreduced retirement benefit. Such unreduced retirement date will be determined taking into account any purchased service and assuming the member continues in full-time covered service.

4.Salary increase rate - Increases are assumed to occur once each year. The following table shows the increase rates indexed by the member's service (excluding any service being purchased):

Years From Hire Percentage Increase at End of Year 114.80% 26.80% 36.55% 4-56.30% 6-75.80% 8-95.55% 10-125.30% 13-145.05% 15-164.80% 17-194.55% 20-234.30% 24-304.05% 31 and over3.80%

History

History: Effective May 1, 2000; amended effective July 1, 2008; April 1, 2016; July 1, 2021.

Chapter 82-05-05 Deferred Retirement Eligibility

N.D. Admin. Code 82-05-05-01 Deferred retirement eligibility

A teacher who is vested and terminates covered employment must apply for deferred retirement benefits on an official agency form.

History

History: Effective September 1, 1990.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-10, 15-39.1-11

Chapter 82-05-06 Retiree Return to Work Program

N.D. Admin. Code 82-05-06-01 Retiree reemployment reporting requirements

Participating employers and retirees must complete and submit a form required by the fund and a copy of the employment contract within thirty days of the retired member's return to covered employment.

Time spent performing extracurricular duties and attending professional development sessions is excluded from the annual hour limit.

History

History: Effective July 1, 2008; amended effective July 1, 2012; April 1, 2024.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-19.1, 15-39.1-19.2

Article 82-06 Suspension of Benefits

Chapter 82-06-01 Suspension of Benefits

N.D. Admin. Code 82-06-01-01 Suspension of benefits

Repealed effective May 1, 1998.

N.D. Admin. Code 82-06-01-02 Participation upon suspension - Prior elections frozen

A teacher who subsequently retires following suspension of benefits is entitled to resume receiving the suspended annuity in accordance with the retirement benefit option previously selected. The retirement option previously selected cannot be modified at the subsequent retirement.

History

History: Effective September 1, 1990.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-19.1

Article 82-07 Disability Benefits

Chapter 82-07-01 Disability Retirement Eligibility

N.D. Admin. Code 82-07-01-01 Definitions

The following definitions govern the determination of disability benefits under the fund:

1."Medical examination" means an examination conducted by a licensed medical provider or a psychologist that includes a diagnosis of the disability, the treatment being provided for the disability, the prognosis and classification of the disability, and a statement indicating how the disability prevents the individual from performing the duties of a teacher.

2."Permanent and total disability" means the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than twelve months and results in the individual's inability to perform the duties of a teacher.

3."Temporary disability" means a condition of "total disability" that is expected to last at least twelve months, but is not considered permanent.

History

History: Effective September 1, 1990; amended effective May 1, 1998; July 1, 2008; April 1, 2024.

N.D. Admin. Code 82-07-01-02 (Effective through June 30, 2013) Disability retirement eligibility

A member, with at least one year of service credit, who has a "total disability" is eligible for disability retirement benefits if the member became totally disabled while employed as a teacher and otherwise complies with the requirements of article 82-07.

(Effective after June 30, 2013) Disability retirement eligibility. A member, with at least five years of service credit, who has a "total disability" is eligible for disability retirement benefits if the member became totally disabled while employed as a teacher and otherwise complies with the requirements of

article 82-07.

History

History: Effective September 1, 1990; amended effective May 1, 1998; July 1, 2012.

N.D. Admin. Code 82-07-01-03 Determination of disability - Procedures

The following procedures govern the determination of disability benefits under the fund:

1.Application process.

a.Application for disability benefits must be made within thirty-six months from the last date of covered employment on the form provided by the fund. On a case-by-case basis, the board may extend the thirty-six month period.

b.If the fund member is unable or unwilling to file an application, the member's employer or legal representative may file the member's disability application.

c.The application must describe the disability, explain the cause of the disability, the limitations caused by the disability, the treatment being followed, the efforts by the employer and the member to implement reasonable accommodations, and the effect of the disability on the individual's ability to perform as a teacher.

d.The employer's statement of disability must provide information about the member's sick leave benefits, explain how the disability affects the performance of the teaching duties, include a detailed listing of job duties, and describe efforts to provide reasonable accommodation for the member.

2.Medical examination process.

a.The applicant for disability retirement must provide the fund with medical examination reports.

b.An initial medical examination should be completed by the member's medical provider on the medical examination form provided by the fund. If deemed necessary by the fund's medical consultant, an additional examination must be completed by a specialist in the disability involved. Available medical or hospital reports may be accepted in lieu of a medical examination report if deemed acceptable by the fund's medical consultant.

c.The fund is not liable for any costs incurred by the applicant in undergoing medical examinations and completing and submitting the necessary medical examination reports, medical reports, and hospital reports.

d.A medical examination report is not necessary if the applicant provides written proof documenting eligibility for disability benefits under the Social Security Act. In such cases, the applicant is eligible for disability benefits under North Dakota Century Code section 15-39.1-18 without submitting further medical information to the fund but is subject to recertification requirements specified in this chapter.

3.Medical consultant review.

a.The fund shall retain a medical provider to act as its consultant and evaluate and make recommendations on disability retirement applications.

b.The medical consultant shall review all medical information provided by the applicant.

c.The medical consultant shall advise the board regarding the medical diagnosis and whether the condition is a "permanent and total disability" or "temporary disability".

4.Decision.

a.The board shall consider applications for disability retirement at regularly scheduled board meetings. The discussion concerning disability applications must be confidential and closed to the general public.

b.The applicant must be notified of the time and date of the meeting and may attend or be represented.

c.The executive director or designee shall provide to the board for its consideration a case

history brief that includes membership history, medical examination summary, and the medical consultant's conclusions and recommendations.

d.The board shall make the determination for eligibility at the meeting unless additional evidence or information is needed.

e.The executive director or designee may make an interim determination concerning eligibility for disability retirement benefits when the medical consultant's report verifies that a permanent and total or temporary disability exists. However, the board must review the interim determination and make a final determination at its next regularly scheduled board meeting unless additional evidence or information is needed.

f.The applicant shall be notified in writing of the decision.

g.If the applicant is determined to be eligible for disability benefits, the disability annuity is payable on, or retroactive to, the first day of the month following the member's last day of paid employment.

h.If the applicant is determined not to be eligible for disability benefits, the executive director or designee shall advise the applicant of the appeal procedure.

5.Redetermination and recertification.

a.A disabled annuitant is subject to redetermination and recertification to maintain eligibility.

The schedule for redetermination and recertification must be as follows:

(1)Temporary disability. Following the first anniversary date of disability retirement, and every two years thereafter (unless normal retirement is reached). No further recertification is required after the fourth recertification of temporary disability has been filed and accepted. Basis recovery will begin when the member reaches normal retirement age.

(2)Permanent and total disability. Following the second anniversary date of disability retirement, and five years thereafter unless normal retirement is reached. No further recertification is required after the second recertification of permanent disability has been filed and accepted. Basis recovery will begin when the member reaches normal retirement age.

b.The fund may require additional recertifications, or waive the necessity for a recertification, if the facts warrant this action.

When a member who is drawing disability benefits is also eligible for normal retirement benefits at the time disability benefits commence, recertification will cease according to the following schedule:

Before age 60Age 65 At or after age 60, before age 65 5 years At or after age 65, before age 69 Age 70 At or after age 69 1 year

Basis recovery will also begin according to the above schedule.

c.The fund will send a recertification form to the disabled annuitant to be completed and sent back to the fund.

d.The fund may require the disabled annuitant to be reexamined by a medical provider at the annuitant's own expense. The submission of medical reports by the member, and the review of those reports by the fund's medical consultant, may satisfy the reexamination requirement.

e.The executive director must make the redetermination and recertification decision and bring the matter to the board only if warranted. The disability annuitant may appeal an adverse recertification decision to the board in the same manner as the initial determination.

f.If it is determined that the disability annuitant was not eligible for benefits during any time period when benefits were provided, the executive director may do all things necessary to recover the erroneously paid benefits.

July 1, 2012; April 1, 2024.

History

History: Effective September 1, 1990; amended effective April 1, 1994; May 1, 1998; May 1, 2000;

Chapter 82-07-02 Right to Formal Hearing and Appeal [Repealed]

N.D. Admin. Code 82-07-02 Right to Formal Hearing and Appeal [Repealed]

CHAPTER 82-07-02

RIGHT TO FORMAL HEARING AND APPEAL [Repealed effective May 1, 2002]

Chapter 82-07-03 Forms of Disability Benefits

N.D. Admin. Code 82-07-03-01 Forms of disability benefits

Except for the partial lump sum distribution option, all optional forms of retirement benefits are available to members entitled to disability retirement annuities.

History

History: Effective September 1, 1990; amended effective May 1, 1998; July 1, 2012; April 1, 2024.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-18

Chapter 82-07-04 Suspension of Disability Benefits

N.D. Admin. Code 82-07-04-01 Suspension of disability benefits

1.When a member receiving disability retirement benefits is not recertified as eligible for continued benefits, the board shall presume the member does not have a "total disability" and the disability benefits must cease on the first day of the month following the date the member is not recertified eligible for continued benefits.

2.When a member receiving disability retirement benefits returns to active teaching in North Dakota or out of state, the board shall do one of the following:

a.Presume the member does not have a "total disability" and, pursuant to subsection 3 of North Dakota Century Code section 15-39.1-18, suspend the member's disability benefits on the first day of the month following the date the member returns to active teaching.

b.If the member consents, allow continued payment of the disability benefit for up to six months to permit a member who has partially recovered from the disability to return to active teaching on a trial basis. If the member terminates employment prior to the end of the trial period as set by the board, the board shall not deem the member recovered under North Dakota Century Code section 15-39.1-18, and the member's benefits must continue as permitted under North Dakota Century Code chapter 15-39.1 and this title. If, at the end of the trial period, the member has not terminated employment, the board shall presume the member does not have a qualified disability and shall suspend the member's disability benefits on the first day of the month following the date the member's trial period ends pursuant to North Dakota Century Code section 15-39.1-18. A member who has had the member's disability benefit terminated under this section shall reapply to receive any future disability benefit after the conclusion of any trial period.

History

History: Effective September 1, 1990; amended effective May 1, 1998; July 1, 2008; April 1, 2024.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-18, 15-39.1-19.1

Article 82-08 Qualified Domestic Relations Orders

Chapter 82-08-01 Qualified Domestic Relations Orders

N.D. Admin. Code 82-08-01-01 Payment in accordance with qualified domestic relations orders

Repealed effective May 1, 2000.

N.D. Admin. Code 82-08-01-02 Qualified domestic relations order procedures

Upon receipt of a domestic relations order, the plan shall:

1.Send an initial notice to each person named therein, together with an explanation of the procedures followed by the fund.

2.If the teacher or alternate payee receives any distribution that should not have been paid per the order, the teacher or alternate payee is designated a constructive trustee for the amount received and shall immediately notify the retirement and investment office and comply with written instructions as to the distribution of the amount received.

3.Review the domestic relations order to determine if it follows the model language format in

section 82-08-01-03.

4.Forward the domestic relations order to the fund's legal counsel and actuarial consultant for their review and recommendation to the board.

5.The board shall review the domestic relations order and make the final determination of a qualified order.

6.The domestic relations order must be considered a qualified order when the plan notifies the parties the order is approved by the board and a certified copy of the court order has been submitted to the fund office.

7.If the order is determined to be qualified within eighteen months of receipt:

a.Send notice to all persons named in the order and any representatives designated in writing by such person that a determination has been made that the order is a qualified domestic relations order.

b.Comply with the terms of the order.

c.Distribute the amounts as outlined in the order.

8.In the event that the order is determined not to be a qualified domestic relations order or a determination cannot be made as to whether the order is qualified or not qualified within eighteen months of receipt of such order:

a.Send written notification of such to all parties.

b.Apply the qualified domestic relations order prospectively only if determined after the expiration of the eighteen-month period the order as modified, if applicable, is a qualified domestic relations order.

May 1, 2004.

History

History: Effective September 1, 1990; amended effective May 1, 1992; April 1, 1994; May 1, 1998;
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-12.2

N.D. Admin. Code 82-08-01-03 Format for a qualified domestic relations order

A qualified domestic relations order must be substantially in the following form:

ACTIVE OR INACTIVE MEMBERS

STATE OF NORTH DAKOTAIN DISTRICT COURT

COUNTY OF __________________________JUDICIAL DISTRICT ____________________,) )

Plaintiff,)

)QUALIFIED DOMESTIC

)RELATIONS ORDER -vs-) )Case No. _________ ) ____________________,)

Defendant.) .....................................................................................................................................................

This Order is intended to meet the requirements of a "Qualified Domestic Relations Order" relating to the North Dakota Teachers' Fund for Retirement, hereafter referred to as the "Plan". The Order is made pursuant to North Dakota Century Code section 15-39.1-12.2. The Order is an integral part of the judgment entered on [DATE OF DIVORCE] granting a divorce to the above-entitled parties. [This Order is also drawn pursuant to the laws of the state of North Dakota relating to the equitable distribution of marital property between spouses and former spouses in actions for dissolution of a marriage.] or [This Order is drawn pursuant to the laws of the state of North Dakota relating to the provision of child support to a minor child in actions for dissolution of a marriage.]

BACKGROUND INFORMATION [MEMBER'S NAME AND SOCIAL SECURITY NUMBER] is the participating member whose last-known address is [MEMBER'S ADDRESS]. The member's date of birth is [MEMBER'S D.O.B.]. [ALTERNATE PAYEE'S NAME AND SOCIAL SECURITY NUMBER] is the alternate payee whose last-known address is [ALTERNATE PAYEE'S ADDRESS]. The alternate payee's date of birth is [ALTERNATE PAYEE'S D.O.B.].

The participating member and the alternate payee were married on [DATE OF MARRIAGE].

IT IS HEREBY ORDERED THAT:

I. BENEFITS

Benefits under the plan are distributed as follows: (Choose one)

1.The alternate payee is awarded [______%] of the member's accrued monthly annuity benefit as of [DATE OF DIVORCE]; (OR)

2.The alternate payee is awarded [$______ ] of the member's accrued monthly annuity benefit as of [DATE OF DIVORCE].

If payments to the alternate payee begin prior to the member's sixty-fifth birthday, such benefits shall be reduced actuarially, except that if the member retires or dies prior to the member's sixty-fifth birthday, the alternate payee shall receive a commensurate share of any early retirement subsidy, beginning as of the date of the member's retirement or death. Such increase shall be determined actuarially.

II. TIME OF BENEFIT RECEIPT

Benefit payments to the alternate payee will begin: (Choose one)

1.When the participating member qualifies for normal retirement benefits under the plan. (OR)

2.When the participating member qualifies for early retirement. (OR)

3.When the alternate payee reaches [DATE OR EVENT]. The date or event must be after the date participating member would qualify for early retirement. (OR)

4.When the participating member retires and begins receiving retirement benefits from the plan.

Benefits to the alternate payee are payable even if the member has not separated from covered employment. In all cases, the payment will not begin later than when the participating member retires.

If the participating member begins receiving disability retirement benefits, the alternate payee will also begin receiving the benefits awarded in section I of this Order. The alternate payee's benefit will begin when the member's benefits begin and will be actuarially reduced to reflect the earlier disability payment start date.

III. DURATION OF PAYMENTS TO ALTERNATE PAYEE OVER THE LIFE OF THE ALTERNATE

PAYEE (Choose one)

1.The payments shall be made to the alternate payee on a monthly basis over the life of the alternate payee and shall cease upon the alternate payee's death and will not revert back to the member. The payment shall be calculated on the basis of a single life annuity and will be actuarially adjusted based upon the plan's assumptions to reflect the life expectancy of the alternate payee.

(OR)

2.The payments shall be made to the alternate payee on a monthly basis over the life of the alternate payee and calculated on the basis of:

(Choose one)

(a)a 20-year term certain and life option; (OR)

(b)a 10-year term certain and life option.

The payment will be actuarially adjusted based upon the plan's assumptions to reflect the life expectancy of the alternate payee.

Upon the alternate payee's death, payments will not revert back to the member, but will continue to the alternate payee's designated beneficiary under the term certain and life option identified above.

IV. MEMBER WITHDRAWS FROM RETIREMENT SYSTEM (Choose one)

A.If the participating member discontinues employment and withdraws the member account in a lump sum, the alternate payee shall receive [___%] of the member's account balance as of [DATE OF DIVORCE] accumulated with interest as required by the Plan from the divorce date until the refund is paid; (OR)

B.If the participating member discontinues employment and withdraws the member account in a lump sum, the alternate payee shall receive [$___] from the member's account balance accumulated with interest as required by the Plan from [DATE OF DIVORCE] until the refund is paid. [Note: The dollar amount in this option cannot exceed the member's account balance.]

V. LIMITATIONS OF THIS ORDER (Order must reflect all provisions of this section.)

A.This Order recognizes the existence of the right of the alternate payee to receive all OR a portion of the benefits payable to the participating members as indicated above.

B.Nothing contained in this Order shall be construed to require any Plan or Plan administrator:

1.To provide to the alternate payee any type or form of benefit or any option not otherwise available to the participating member under the Plan.

2.To provide the alternate payee benefits, as determined on the basis of actuarial value, not available to the participating member.

3.To pay any benefits to the alternate payee which are required to be paid to another alternate payee under another order previously determined by the Plan administrator to be a qualified domestic relations order.

4.To provide to the alternate payee any increased benefit due to the participating member under the disability provisions of this plan.

C.If the alternate payee dies prior to beginning receipt of benefits under this Order, the entire amount that may be due to the alternate payee reverts to the participating member.

D.If the participating member dies prior to retirement and before the alternate payee begins benefits, the alternate payee will receive [___%] share of the member's survivor benefits based on service as of [DATE OF DIVORCE]. The alternate payee and any other beneficiaries will each select their own form of survivor benefit.

If the alternate payee is already in payment, the benefits will continue and the value of the benefits to the alternate payee will reduce any survivor payment to other beneficiaries.

E.The benefit enhancements provided by the North Dakota legislature for service during the marital relationship which are adopted after the end of the marital relationship apply to the alternate payee's portion of benefits under this Order.

F.If participant or alternate payee receives any distribution that should not have been paid per this Order, the participant or alternate payee is designated a constructive trustee for the amount received and shall immediately notify RIO and comply with written instructions as to the distribution of the amount received.

G.Alternate payee is ORDERED to report any payments received on any applicable income tax return in accordance with Internal Revenue Code provisions or regulations in effect at the time any payments are issued by RIO. The plan is authorized to issue Form 1099R, or other applicable form on any direct payment made to alternate payee. Plan participant and alternate payee must comply with Internal Revenue Code and any applicable regulations.

H.Alternate payee is ORDERED to provide the plan prompt written notification of any changes in alternate payee's mailing address. RIO shall not be liable for failing to make payments to alternate payee if RIO does not have current mailing address for alternate payee at time of payment.

I.Alternate payee shall furnish a certified copy of this Order to RIO.

J.The Court retains jurisdiction to amend this Order so that it will constitute a qualified domestic relations order under the plan even though all other matters incident to this action or proceeding have been fully and finally adjudicated. If RIO determines at any time that changes in the law, the administration of the plan, or any other circumstances make it impossible to calculate the portion of a distribution awarded to alternate payee by this Order and so notifies the parties, either or both parties shall immediately petition the Court for reformation of the Order.

Signed this ________________ day of ___________________, 20. ____________________________________________ (Judge Presiding)

OR RETIRED MEMBERS

The participating member and the alternate payee were married on [DATE OF MARRIAGE].

IT IS HEREBY ORDERED THAT:

I. BENEFITS

Benefits to the participating member under the plan are distributed as follows: (Choose one)

1.The alternate payee is awarded [___%] of the monthly retirement benefit as of [DATE OF DIVORCE]; (OR)

2.The alternate payee is awarded [$___] of the monthly retirement benefit as of [DATE OF DIVORCE].

II. TIME OF BENEFIT RECEIPT.

The benefits are payable to the alternate payee in the month following receipt of this signed Order by the plan or plan administrator as the participating member is currently retired and receiving benefits under the Plan.

III. DURATION OF BENEFITS TO ALTERNATE PAYEE OVER THE LIFE OF THE PARTICIPATING

MEMBER

The payments shall be made to the alternate payee on a monthly basis over the life of the participating member and, if applicable, a continuing monthly annuity will be payable to the surviving alternate payee after the member's death. The amount of the payments to the alternate payee will be calculated on the basis of: (Choose the annuity option in existence at the time of the divorce or legal separation.)

(1)Single life annuity option (OR)

(2)100% joint and survivor option (OR)

(3)50% joint and survivor option (OR)

(4)20-year term certain and life option (OR)

(5)10-year term certain and life option.

If the alternate payee is the designated beneficiary, the alternate payee must remain as the beneficiary under the joint and survivor options.

IV. LIMITATIONS OF THIS ORDER (Order must reflect all provisions of this section.)

A.This Order recognizes the existence of the right of the alternate payee to receive all OR a portion of the benefits payable to the participating members as indicated above.

B.Nothing contained in this Order shall be construed to require any Plan or Plan administrator:

1.To provide to the alternate payee any type or form of benefit or any option not otherwise available to the participating member under the Plan.

2.To provide the alternate payee benefits, as determined on the basis of actuarial value, not available to the participating member.

C.If the provisions of this Order are applied to disability benefits, the benefits will cease to all parties upon the member's recovery. The parties will then need to submit a new order to allow for the equitable distribution of any future benefits payable from the plan.

D.Upon the alternate payee's death, if the member is still surviving, the entire amount that may be due to the alternate payee reverts to the participating member. Upon the member's death, if the alternate payee is still surviving, the entire benefit will cease under a single life option.

Under a joint and survivor option, the alternate payee will receive the one hundred percent or fifty percent survivor benefit for the remainder of the alternate payee's life, since the alternate payee is the joint annuitant. If a term certain option was selected, and the member passes away before the term certain period has expired while the alternate payee is still living, then the benefit to the alternate payee will continue and the member's portion will continue to the member's designated beneficiary to complete the term certain period. If in the last case, the alternate payee dies before all payments due under the certain period have been made, the alternate payee's share will continue to the alternate payee's designated beneficiary.

F.If the participant or alternate payee receives any distribution that should not have been paid per this Order, the participant or alternate payee is designated a constructive trustee for the amount received and shall immediately notify RIO and comply with written instructions as to the distribution of the amount received.

G.Alternate payee is ORDERED to report any payments received on any applicable income tax return in accordance with Internal Revenue Code provisions or regulations in effect at the time any payments are issued by RIO. The plan is authorized to issue Form 1099R, or other applicable form on any direct payment made to alternate payee. Plan participant and alternate payee must comply with the Internal Revenue Code and any applicable regulations.

I.Alternate payee shall furnish a certified copy of this Order to RIO.

Signed this ____________ day of ____________________, 20 _____. ________________________________________ (Judge Presiding)

History

History: Effective April 1, 1994; amended effective January 1, 1998; May 1, 1998; May 1, 2002; May 1, 2004; April 1, 2024.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-12.2

Article 82-10 Right to Formal Hearing and Appeal

Chapter 82-10-01 Right to Formal Hearing and Appeal

N.D. Admin. Code 82-10-01-01 Right to formal hearing and appeal

Any applicant aggrieved by a decision of the board may initiate a formal administrative action against the board in accordance with North Dakota Century Code chapter 28-32. The applicant must file a request for a formal hearing within thirty days after notice of the initial decision has been mailed. If an appeal is not filed within the thirty-day period, the initial decision of the board is final. If a request for a formal hearing is timely filed, notice of the hearing must be served at least thirty days before the date set for the hearing. The board shall request appointment of an administrative law judge from the office of administrative hearings to conduct the hearing and make recommended findings of fact, conclusions of law, and order. The board shall either accept the administrative law judge's recommended findings of fact, conclusions of law, and order or adopt its own findings of fact, conclusions of law, and order. The applicant may appeal the final decision resulting from this procedure to the district court in accordance with North Dakota Century Code chapter 28-32.

History

History: Effective May 1, 2002; amended effective July 1, 2008.
General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-07

Chapter 82-09

N.D. Admin. Code 82-09

ARTICLE 82-09

CONFIDENTIALITY OF RECORDS [Repealed effective May 1, 1998]