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NDPERS Publication Volume 42 - Issue 3 - November 2020
Upcoming Legislative Assembly
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The NDPERS Board will introduce 7 bills to the 67th Legislative Assembly set to start in January 2021.
The Legislative Employee Benefits Committee reviewed these bills and provided favorable recommendations.
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 Videos on your Benefits
If you were unable to attend the NDPERS Financial Essentials Workshop (FEW) and the Pre-Retirement Education program (PREP), we've got you covered.
Learn about how you can make the most out of your NDPERS Benefits through the FEW and how to prepare for retirement through the PREP.
Visit our website today to watch these presentations at your convenience.
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Changes to 457 Deferred Compensation Providers
The NDPERS Board changed the requirements that companies must follow to become, or to remain, authorized providers for the NDPERS 457 Deferred Compensation plan. Effective January 1, 2021, all participating providers must act as fiduciaries when providing financial advice to NDPERS members.
Four providers – AXA Equitable, Jackson National Life, Mass Mutual, and Valic – declined to sign the amendment to the contract. Therefore, these will not be considered authorized providers for the 457 Deferred Compensation plan.
This change only impacts new participants who join on or after January 1, 2021 or current participants who switch their provider on or after January 1, 2021.
If you have questions about this upcoming change, contact your 457 Deferred Compensation provider.
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Upcoming Interest Rate Change
As a reminder, the interest rate will change on January 1, 2021, to reflect the update to the actuarial rate of return assumption that took place earlier this year.
The upcoming 6.5% interest rate represents the amount NDPERS pays on member retirement accounts and accrues on service purchases with payment plans. This does not impact your future retirement benefit when you retire. It only impacts members or beneficiaries that take a full refund or rollover of their account balance.
Members in existing payment plans on January 1, 2021, will experience a decrease in the interest rate they pay on service purchases.
2021 Contribution Limits
The Internal Revenue Service (IRS) did not change the annual deferral limits for the 457 Deferred Compensation Plan.
In 2021, the general annual contribution limit will remain at $19,500. The NDPERS 457 Deferred Compensation Plan does allow catch-up contributions.
Remember, this plan helps you plan for financial success in retirement by helping you save today.
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