Section 71-02-08-02 - WithdrawalAny political subdivision may discontinue participation in the fund if the following requirements are met:
1. The political subdivision must provide the board with a copy of a resolution adopted by the governing authority authorizing the termination of participation in the fund.2. Upon receiving a copy of the written resolution, an actuarial study must be done by the plan's actuary to determine the accrued benefit of all vested employees minus allocated assets from the date of participation. The interest assumption used must be two hundred basis points less than the plan's interest assumption used for funding purposes. The withdrawal liability must include an administrative expense assessment of five percent.3. Any costs incurred by the fund, resulting from a political subdivision ceasing participation, including the actuarial fee study and the withdrawal liability, must be assessed against the political subdivision and paid in full before a political subdivision terminates its participation.4. All employees of a political subdivision that has terminated participation in the fund must not be eligible for future benefit accruals or improvements granted to employees or former employees of participating governmental units after the date the employer's participation ceases.5. An employee who is not vested at the time an employer ceases participation has the option of taking a refund or rollover of the employee's contribution plus interest.N.D. Admin Code 71-02-08-02
Effective September 1, 1982; amended effective June 1, 1996.Amended by Administrative Rules Supplement 372, April 2019, effective 4/1/2019.Amended by Administrative Rules Supplement 373, July 2019, effective 4/1/2019.General Authority: NDCC 54-52-04
Law Implemented: NDCC 54-52-02.1