Legislative Action
Pace Protects Pensions
UPDATE!
Watch the new TFFR video on the Legislative Proposals
Welcome to the Pace Protects Pensions (PPP) Website. This website will provide you with updated information about the ongoing pension discussions and encourage you to get involved to protect your pension. The easiest and quickest way to do this to donate the the NDEA PACE Fund today!
The NDEA Political Action Committee for Education (PACE) Fund spends money supporting candidates who support your professional and economic well being. Specifically, your PACE fund Protects your Pension. As you may know, or will soon learn, educators' pensions in ND are experiencing some hard times. The economic downturn of the last couple of years has severely damaged the funding of our defined benefit pension plans that we will rely on when we retire.
As a result of the forecasted funding shortfalls, the North Dakota Legislative Assembly, the Teachers' Fund for Retirement (TFFR) Board of Directors, and the ND Public Employees' Retirement System (NDPERS) Board of directors each have begun exploring ways to provide a retirement benefit to North Dakota public educators. The NDEA, through its advocacy at meetings, screening of legislative candidates, and outreach to members, is actively engaged in the discussions to ensure that this promise to North Dakota's educators' pensions are protected and strengthened. One of the easiest ways you can help is to Protect your Pension through PACE! Find out how you can donate here today!
On April 10, 2010, the NDEA Representative Assembly adopted the following two (2) resolutions in regards to the TFFR and NDPERS proposals (Click here for TFFR or here for NDPERS).
The NDEA Representative Assembly also passed four (4) principles in the NDEA Legislative Agenda. These four (4) NDEA Principles that are being advocated during TFFR and/or NDPERS discussions to find acceptable solutions.
1) Preserve the defined benefit for current and future members.
2) Avoid drastic benefit changes
3) Minimize member contribution increases.
4) Maintain the current multiplier.
Frequently asked Questions
What can I do to help?
-Donate to PACE or
-Click here to sign up as a Pension Protector!
Who can fix this problem?
-Currently the Legislative Interim Employee Benefits Program Committee is discussing options. To see what the latest discussion is click here for its minutes.
-Ultimately the North Dakota Legislative Assembly will have to make the changes through the 2011 Legislative Session. You are encouraged to tell your legislators that you support maintaining a defined benefit plan for TFFR and NDPERS.
What is a defined benefit plan?
-Click here to find out what a defined benefit plan means for you and how it is better than defined contribution plans (401k like plans).
Why does my pension matter?
-Click here to find valuable information about pensions from the National Institute on Retirement Security.
I have questions about the status of the State Investment Board where can I find the answers?
- your best bet is to check the Frequently Asked Questions Link on the SIB Website. (Click here)
TFFR Specific:
Watch the TFFR videos on the process of "Exploring Options" and the second video on "Legislative Proposals"
What is TFFR's proposal?
The NDEA adopted a new business item in support of the TFFR Board Proposal at the April 10, 2010 NDEA Representative Assembly. (Read the Business Item here).
The TFFR Board met on March 25, 2010 to put together its proposal to forward to the Legislative Interim Employee Benefits Committee. To see the specific bill drafts and summaries click here.
The TFFR Board proposal includes six changes to the current plan. Once we have the actual bill draft and explanation we will post it here. The six changes are:
1) It protects members within ten (10) years of retirement as of July 1, 2013. These individuals will not be affected by the unreduced and reduced retirement benefit eligibility changes outlined in sections 3 and 6 below.
2) The proposal increases all member and employer contributions by two (2) percent each starting July 1, 2012 and than another two (2) percent each starting July 1, 2014. This constitutes a total increase of eight (8) percent in increased contributions.
-A visual representation of the increases looks like this:
7/1/2010 7/1/2012 7/1/2014
Employer 8.75% 10.75% 12.75%
Member 7.75% 9.75% 11.75%
3) It changes all members from the Rule of 85 (Tier 1) or the Rule of 90 (Tier 2) to a new calculation. The new calculation requires all members (except those protected due to being within 10 years of retirement) to reach age 60 and obtain the rule of 90 to retire without an unreduced benefit.
4)It amends the disability provisions of the TFFR statute. The new proposal requires members to have five (5) years of service credit and can only draw the number of years they have worked in an approved employment position to calculate the disability benefit.
5) It requires all retirees who go back to work to pay the required TFFR contributions.
6) Finally, it adjusts the early retirement reduction. Current reduction is at six (6) percent for every year an individual retires early. The new proposal reduces benefit payments by eight (8) percent for every year an individual retires early.
Finally, TFFR has suggested a second bill. The second bill makes all of the same changes listed above, but it also asks for a one time contribution of $75 million from the general fund.
As soon as we have more details we will post it here!
What is happening with TFFR funding ratios?
-See Fay Kopp's latest presentation to the NDEA Representative Assembly on April 10, 2010.
-Want to know what the TFFR Board is discussing? Read Fay Kopp's presentation to the NDEA Ambassadors on February 27, 2010 here.
-This is a presenation from Fay Kopp at TFFR about TFFR funding and the potential crisis if we do nothing.
How does TFFR work?
-What is TFFR and how does it operate?
NDPERS Specific:
The NDEA adopted a new business item in opposition to the NDPERS Proposal that incurs all of the costs on the employees at the April 10, 2010 NDEA Representative Assembly. (Read the Business Item here).
What is NDPERS Proposal?
The NDPERS Board met on March 25, 2010 to finalize its proposals for the Legislative Interim Employee Benefits Committee. The NDPERS Board has forwarded three (3) legislative proposals to the committee. No proposal makes any adjustment to the benefit structure of NDPERS. View the Bill drafts and explanations by clicking here (Bill Drafts and Explanations are on pages 2-54 of the PDF).
The three proposals are:
1. An eight percent (8%) increase in employer contributions phased in over four (4) years beginning in January of 2012.
2. An eight percent (8%) increase in employee contributions phased in over four (4) years beginning in January of 2012. The bill provides that the employee contribution increase would be pre-taxed pursuant to section 404(h). (The NDEA RA passed a resolution in opposition to this proposal, see above for explanation).
3. A four percent (4%) increase in employee contributions and a 4% increase in employer contributions phased in equally over 4 years beginning in January of 2012. Similar to #2, the state employee contribution increase would be pre-taxed pursuant to section 404(h).
What did the market crash do to NDPERS funded ratios?
-Click here to read the latest NDPERS newsletter about NDPERS funding.
Where can I find out more information about NDPERS?
-NDPERS has a great system of webcast video recordings posted on the website. These can be found by clicking here.
Want to see the Proposals?
Click here for TFFR draft bills and explanations.
Click here for NDPERS draft bills and explanations.
Downloads
» Defined benefit vs defined contribution.pdf - Learn about the difference between defined benefit and defined contribution plans.» ndpers nbi ra.pdf - NDPERS NBI NDEA RA 2010
» NDPERS_Fall_2009_newsletter.pdf - What did the market crash do to PERS funding levels?
» PERS Summary Proposals.pdf - A summary and explanation of the NDPERS Proposals.
» tffr ra nbi.pdf - TFFR NBI at NDEA RA 2010
» TFFR_4_10_10_RA_presentation.pdf - Fay Kopp's presentation to the NDEA RA on April 10, 2010.
» TFFR_How_does_it_work.pdf - What is TFFR and how does it operate?
» TFFR_presentation_to_NDEA_BOD_Jan_2010.pdf - This is the TFFR presentation to the NDEA Board of Directors from January 2010.
