The North Dakota House of Representatives on Thursday approved a bill to increase the state and employee contribution to the state employees’ retirement plan by one percentage point each in 2012 and again in 2013.
Sparb Collins, executive director of the $1.8 billion North Dakota Public Employees Retirement System, Bismarck, said in a telephone interview that the increases will boost the combined state and employee contribution rate to 12.12% from the current 8.12%.
He said the two years of increases would “stop the downward (funded status) trend and stabilize the plan.”
The state retirement system had originally requested that the increases continue into 2014 and 2015, Mr. Collins said. The system is currently about 70% funded, and the four-year plan had aimed to bring the system back to full funding over the next 20 years, he added.
The state Senate approved the bill on Feb. 24. The proposal now goes back to the Senate for approval of any changes from the House version and then to Gov. Jack Dalrymple for final approval.