North Dakota Administrative Code › Title 71 - Retirement Board › Article 71-02 - Public Employees Retirement System › Chapter 71-02-03 - Service Credit › Section 71-02-03-02.5 - Costs

Current through Supplement No. 393, July, 2024
If purchasing under North Dakota Century Code section
				  54-52-02.6 or subdivision d of subsection 1 of North Dakota Century Code
				  section 54-52-17.4, the cost will be the higher of the amount refunded to the
				  member plus interest at the actuarial rate of return or the actuarial cost to
				  provide the credit. All other types of service purchases must be actuarially
				  determined. An actuarial cost must be calculated by applying actuarial factors
				  to the amount of retirement and retiree health insurance credit being purchased
				  by the member. The member's current age, average salary, current credited
				  service, and actuarial factors on record and in effect with the North Dakota
				  public employees retirement system in the month in which the member's written
				  request is processed by the office must be used in the cost calculation. A
				  member's written request must be processed by the office within sixty days of
				  receipt. The amount of retirement and retiree health insurance credit being
				  purchased must be calculated using the benefit formulas in place at the time
				  the written request from the member is processed by the office. When
				  calculating the cost, enhancements to the benefit formula must be considered to
				  be in place at the time the law is signed by the governor.
The member's average salary shall be calculated as
				  follows:
1. For members working full
				time with more than twelve months of service credit, by using the calculation
				found in subsection 2 of North Dakota Century Code section 54-52-17.
2. For members working full time with less
				than twelve months of service credit, by using the calculation found in
				subsection 2 of North Dakota Century Code section 54-52-17, but disregarding
				any month in which the member was paid less than a full-month salary. A
				full-month salary is the compensation the member and the member's employer
				agreed the member would be paid for working a full month.
3. For members who have not yet received a
				full-month salary, the member's average salary shall equal the member's
				full-month salary, as defined in subsection 2.
4. For members working part time, by using
				the applicable calculations found in subsections 1 and 2, but using a monthly
				salary equal to the equivalent of the salary the member would have received if
				the member was working full time.
The retirement board must adopt actuarial assumptions
				  necessary to determine the actuarial factors for the cost calculation. The
				  assumptions must be reviewed concurrently with the assumptions for the
				  retirement program.
Upon receipt of the written request from the member, and all
				  required documentation, a written cost confirmation must be prepared and mailed
				  to the member. The cost stated in the confirmation letter is valid for a period
				  of ninety days from the date of the letter unless the contributor terminates
				  employment with a participating employer. If the contributor terminates
				  employment, then the cost stated in the confirmation letter is valid only until
				  the earlier of the end of the ninety-day period or the fifteenth day of the
				  month following the month of termination.
General Authority:
NDCC 54-52-02.6, 54-52-04,
					 54-52-17, 54-52-17.2, 54-52-17.4
Law Implemented:
NDCC 54-52-02.6, 54-52-17,
					 54-52-17.2, 54-52-17.4