N.D. Cent. Code § 54-52.6-05.1

Current through 2023 Legislative Sessions

Section 54-52.6-05.1 - [Effective on the date which must be before 1/1/2025, identified in a certification by the retirement board, only if the board certifies to the legislative council that the public employees retirement system is prepared to close the main system defined benefit retirement plan on the day before the date identified by the board, and to open the new defined contribution retirement plan on the date identified by the board ] Annuity provider - Qualifications

1. The board shall select one or more annuity providers to provide the annuity options under this chapter.

2. In selecting an annuity provider under this section, the board shall:

a. Determine whether the annuity provider and the provider's subsidiaries and affiliates have appropriate financial strength and stability at the time of selection and during the term of contract with the board.

(1) The board may require the provider to provide the board with written representation:

(a) The provider is in compliance with title 26.1.

(b) The provider at the time of selection is and for each of the preceding seven years was in compliance and good standing with the insurance commissioner of the provider's domiciliary state and the provider is not operating under an order of rehabilitation or liquidation.

(c) The provider maintains and has maintained reserves that satisfy the statutory requirements of each state in which the provider does business.

(2) The board may require a provider selected by the board to provide annuities under this chapter to notify the board of a change of circumstances resulting in the provider failing to meet any of the requirements under paragraph 1.

(3) The board must have determined the provider has a claims paying ability rating that meets standards adopted by the board.

b. Determine whether the annuity provider is able to provide contracted rights and benefits to a participating member.

c. Determine whether the costs, including fees and commissions, of the annuity options in relation to the benefits and product features of the annuity options are reasonable.

d. Determine whether the administrative services to be provided under the annuity option are appropriate. At a minimum the administrative services must include periodic reports to the board.

e. Determine whether the annuity provider is experienced in paying lifetime retirement income through annuities offered to public employee defined contribution retirement plans.

f. Determine whether the annuity provider offers a menu of annuity options that meet the following conditions:

(1) The annuity options are suitable for participating members and beneficiaries.

(2) The contract terms and income benefits are clearly stated, based on reasonable assumptions.

(3) The menu of annuity options offers a range of lifetime income options.

(4) If an annuity is a variable annuity, the annuity offers a fixed account option along with a variable option.

g. Determine whether the annuity provider offers objective and participant-specific education and tools to help a participating member understand the appropriate use of annuities as a long-term retirement savings vehicle.

N.D.C.C. § 54-52.6-05.1

Amended by S.L. 2023SP1, ch. 644 (HB 1548),§ 18, eff. on the date which must be before 1/1/2025, identified in a certification by the retirement board, only if the board certifies to the legislative council that the public employees retirement system is prepared to close the main system defined benefit retirement plan on the day before the date identified by the board, and to open the new defined contribution retirement plan on the date identified by the board.

Added by S.L. 2023, ch. 514 (HB 1040),§ 20, eff. 1/1/2025.