North Dakota Administrative Code › Title 71 - Retirement Board › Article 71-05 - Highway Patrol Retirement System › Chapter 71-05-04 - Service Credit › Section 71-05-04-09 - Employer purchase of service credit or sick leave program

Current through Supplement No. 393, July, 2024
An employer may elect to purchase up to five years of service
				  credit for an employee and purchase an employee's unused sick leave that meets
				  the requirements of section
				  71-02-03-08. Before offering a
				  purchase program to its employees the employer must create a program and
				  document the program in writing and submit a copy to the public employees
				  retirement system. The governing authority of the employer shall also submit to
				  the executive director of the public employees retirement system a letter
				  indicating:
1. The program meets all
				the requirements of the North Dakota Century Code.
2. The program meets all applicable federal
				requirements.
3. The employer
				agrees to remit to the public employees retirement system a lump sum payment of
				the cost of the purchase upon being billed.
4. The employer has not given the employee
				the option of a cash payment in lieu of the employer purchase.
5. The employer shall clearly specify who is
				eligible for the program and indicate if the program is intended to be
				permanent or will be for a specific time period only.
6. The employer agrees that all purchases for
				service credit will be based upon actuarial cost as determined by the public
				employees retirement system. The employer also agrees that all purchases will
				be completed no later than the fifteenth day of the month following the month
				of the employee's termination or sixty days from the date the employer and
				employee agree to the purchase, whichever comes first.
7. The employer agrees that in offering such
				a program the employer will direct each employee interested in the program to
				first apply to the employer's authorized agent who will then certify the
				eligibility of the member, the amount of service credit to be purchased, and
				send such certification to the public employees retirement system. The employer
				also agrees that the employer's authorized agent will coordinate the program,
				authorize all purchases in writing to the public employees retirement system,
				and be the focal point for communications between the public employees
				retirement system, the employer, and the employee.
8. The employer agrees that for each employee
				certified to be eligible to have service credit purchased, the employer will
				first obtain from the employee authorization for the public employees
				retirement system to share confidential information with the employer.
9. The employer certifies that in
				offering the program, the employer is making it available to all employees or a
				specified class of employees on a nondiscriminatory basis.
10. The employer agrees to provide
				information and policies pertaining to the employer purchase program pursuant
				to North Dakota Century Code section
				39-03.1-28.
When an employer files the above letter with the public
				  employees retirement system, it may offer the program to its employees. An
				  employer may terminate this program at any time upon the governing authority of
				  the employer sending to the executive director of the public employees
				  retirement system a letter indicating when the program is to be canceled.
General Authority: NDCC
					 39-03.1-06
Law
					 Implemented: NDCC
					 39-03.1-10.2