BISMARCK, N.D. (KFYR) – The future is uncertain for pension-style retirement plans for new state employees.
Lawmakers advanced a bill that would transition the state to a 401(k)-style plan from a pension-style plan. It would be the most expensive bill in state history at about $5.5 billion over the next 20 years, and after a lengthy discussion Tuesday, lawmakers voted to approve it.
“Philosophically, I don’t believe that the risk of the market performance for an individual’s retirement should be borne by every North Dakotan and none of that risk borne by the employee,” said Senator Kristin Roers, R-Fargo.
”I have never heard anybody complain about being on a defined benefit plan. I’ve heard a lot of people complain about being on a defined contribution plan,” said Senator Dick Dever, R-Bismarck.
Next, House Bill 1040 goes to the appropriations committee. The final decision on this issue will likely be one of the last made when the session ends later this month.
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