Retirement Information

North Dakota Public Employees Retirement System

NDPERS is a defined benefit plan.

NDPERS Contributions

A total of 15.26% is contributed to NDPERS. UND contributes the majority of the NDPERS contributions. The amount contributed is a percent of gross wages. If you were to terminate employment and take a lump sum withdrawal of the account you would receive the employee portion, including the employee portion paid by UND plus interest.

Members hired on or after January 1, 2020

• 4.0% Employee Contribution paid by UND
• 3.0% Employee Contribution paid by Employee
• 8.26% Institution Matching

Members hired prior to January 1, 2020

• 4.0% Employee Contribution Paid by UND
• 3.0% Employee Contribution Paid by Employee
• 7.12% Institution Matching
• 1.14% Institution for Prefunding of Health insurance

NDPERS Benefit at Retirement

The Public Employees Retirement System is a “defined benefit” plan, which allows members to compute their future retirement benefits from a mathematical formula as set forth in N.D.C.C. 54-52-17(4).

Your NDPERS defined benefit is based on the following calculation:

Final Average Salary X Benefit Multiplier X Years of Service Credit = Monthly Single Life Retirement Benefit

Final Average Salary is calculated as the higher of one of the following:

• Average of your highest 36 salaries of the last 180 months worked calculated on December 31, 2019
• Average of your highest three 12-month consecutive periods of the last 180 months employed

Benefit Multiplier is the rate established by the legislature, at which you earn benefits.

• The benefit multiplier for members first enrolled before January 1, 2020 is 2.00%.
• The benefit multiplier for members first enrolled on or after January 1, 2020 is 1.75%.

To receive a monthly benefit you must meet any of the following requirements.

If you were hired on or before December 31, 2015:

• You must be vested – which is to have a minimum of 3 years of service
• At least 55 years old and there is one half of a percent reduction in your payment for each month you are under age 65
• Or a full benefit at the Rule of 85 or age 65

If you were hired on or after January 1, 2016:

• You must be vested – which is to have a minimum of 3 years of service
• Must be 60 years old and there is a two thirds percent reduction in your monthly payment for each month you are under age 65
• Or a full benefit at the Rule of 90 or age 65

Portability Enhancement Provision

NDPERS will convert a percentage of the contributions you make to a supplemental retirement account, from the NDPERS employer portion to the employee portion. For example, in your first year of employment, if you contribute at least 1% of your salary to a supplemental retirement account, NDPERS will convert 1% of the employer money sent in for you to the employee side. It continues at 2% for the second year, 3% for the third and a maximum of 4 % for the fourth year and more.  There are no matching funds.  This is a transfer of employer contributions, which have already been contributed, to the employee accumulations.

You do not sign up for PEP, enrollment is automatic when you contribute to any 403(b) or 457(b) plan as a payroll deduction.

NDPERS Retirement After UND

You may leave your money in for later withdrawal. You may take a refund of the employee portion of contributions. This would be subject to 20% federal income tax before you receive the money. There is a 10% IRS penalty for early withdrawal if you are younger than 59 1/2 years old, this is assessed when you do your taxes for the year you received the refund.

You may take a retirement benefit if you meet the criteria for a benefit:

• Have at least three years of service and be at least 55 years old. Payment is reduced for every month under age 65 of the retiree. If you began employment after January 1, 2016, you must be at least 60 years old to take a retirement benefit.
• Qualify for the Rule of 85. (Years of service and age add up to 85 or more) If you began employment after January 1, 2016 it is the Rule of 90.
• Be 65 years of age or older

NDPERS Credit from Previous Position

If you have worked for another ND State Agency and have not taken a refund of your retirement money you should notify UND and your previous agency and a transfer form will be completed for you.

NDPERS Website