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Active Member News
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March 2024
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Actuarial valuation shows funded ratio improvement
 In November, the TFFR board of trustees received a report of the fund’s annual pension valuation results from GRS, its actuarial consultant. The report provides a detailed look into the financial health of the fund as of July 1, 2023.
TFFR’s investment return is a primary factor in the financial health of the plan. The plan assumes it will earn a 7.25% return over the long-term. When returns are above this figure, TFFR has an actuarial gain. When returns are below 7.25%, the plan experiences an actuarial loss.
The most common way to express TFFR’s financial condition is its funded status. This measurement is shown as a ratio, which represents the value of plan assets compared to liabilities (i.e., benefits earned by members of the plan). The 2023 valuation shows TFFR’s funded ratio improved from 67.5% in 2022 to 69.3% in 2023.
Funding a retirement program is a long-term commitment, and it’s important to remember that all the benefits are not payable and due at once. Currently, the funding period, the time needed to pay off the unfunded liability under current assumptions and benefit levels, is 20 years.
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After a certain age, TFFR members may be required to withdraw their account balance to avoid a Required Minimum Distribution (RMD) federal tax penalty. As of 2022, the RMD age is as follow:
- If you were born before July 1, 1949, your RMD age is 70 ½.
- If you were born between July 1, 1949, and Dec. 31, 1950, your RMD age is 72.
- If you were born Jan. 1, 1951, or later, your RMD age is 73.
TFFR members who are approaching or who are beyond their RMD age and are no longer, or who will soon no longer be, in a reportable position should contact RIO to apply for a retirement benefit or withdrawal. Members who remain employed in a reportable position aren't subject to the withdrawal requirement.
The Rule of 85 and the Rule of 90 are provisions that allow qualifying TFFR members to retire with full retirement benefits when their age and years of service add up to 85 or 90 years or more, respectively. To qualify using the Rule of 85, you must be a Tier 1 Grandfathered Member, someone who was vested and was at least age 55 or whose age plus service equaled 65 or greater on 06/30/2013. All other TFFR members must meet the Rule of 90 to qualify for unreduced retirement at minimum age 60.
Updated TFFR member handbook available online
Have questions or need more information about your TFFR pension? An updated member handbook is available on the TFFR member webpage.
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RIO thanks Willgohs for service; announces board opening
RIO wishes to thank Mr. Jordan Willgohs for his service on the TFFR Board of Trustees. At the January 2024 board meeting, Mr. Willgohs informed the Board that he would be stepping down from the board on June 30, 2024, at the end of his appointed term. Mr. Willgohs, a social studies teacher at West Fargo Public Schools, has been a representative on the TFFR Board of Trustees of active members since he assumed the role in 2021.
The position being vacated by Mr. Willgohs will be filled by an active teacher appointed by the Governor upon recommendation by ND United. Any active teachers interested in serving in this position are encouraged to contact ND United for more information.
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TFFR's pension program provides ND educators with the foundation for a secure and stable retirement. Curious about the status of the fund, how many members RIO serves or how much was distributed to retirees in FY2023, TFFR's Fast Facts provides the answers.
In case you missed it . . .
"Registration is open for Governor's Summit on Innovative Education," Governor's ofc news
"Candidates sought for oversight board for k-12, career and tech ed," DPI news release
"Baesler seeks candidates for superintendent's student cabinet," DPI news release
"Applications being accepted for governor's band and chorus," Governor's office news
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New member self-service portal set to launch this fall
RIO is counting down to the launch of a new pension administration system for the TFFR program. Called MyTFFR, the new system will provide members with a new level of transparency into their pension accounts as well as automate nearly every process from applying for retirement to updating your beneficiaries.
The new system is very similar to what members likely see from their banks and other investment funds. The system is cloud based, accessible from any web browser, and very secure built on the latest technology. Giving members access to real time account transactions, balances, retirement calculators, automated processing of account changes and many more features RIO has worked diligently to improve the experience of our customers. Additionally, through automation and self-service capabilities RIO is working to keep the operating costs of the fund down and deliver better value to the members.
MyTFFR is expected to launch in late 2024. Members should expect to see emails and other communications from RIO leading up to that date providing more information and self-service training.
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RIO's 2023 Annual Comprehensive Financial Report is a complete review of the financial, investment, and actuarial conditions of the agency's programs.
Pension program and agency receive performance awards
TFFR’s pension program earned the 2023 Public Pension Standards Awards for Plan Funding and for Plan Administration from the Public Pension Coordinating Council. The award standards serve as a benchmark to measure public defined benefit plans, reflecting the expectations for public retirement system management, administration, and funding.
RIO also earned the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada for its FY 2022 annual comprehensive financial report (ACFR). To be recognized, a government agency must publish an easily readable and efficiently organized ACFR that satisfies both generally accepted accounting principles and the applicable legal requirements.
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Want to retire by summer? Submit your application asap
TFFR’s pension program provides a lifetime monthly benefit when members meet the eligible retirement requirements. If you want to begin receiving a retirement benefit this summer, after alerting your employer, submit the required Retirement Application and applicable documents to the Retirement and Investment Office as soon as possible. It currently can take up to 120 days to process an application.
Map to a secure retirement; attend TFFR's workshop
Although it may seem far away, it's important to plan for retirement to ensure your future is secure. Save the date for TFFR's annual summer workshop, July 18, in Bismarck.
TFFR's Retirement Education Workshop help members map to their eventual retirement by providing information on their benefit, estate and financial planning presentations, and a discussion of current health insurance options.
The event is free and TFFR members are welcome to bring their spouse. Workshop registration will open in mid-April. If the 2024 event date doesn't work for you, recordings of past workshop presentations are available on RIO's YouTube channel.
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TFFR's administrative staff
Jan Murtha, executive director
Chad Roberts, deputy executive director/
chief retirement officer
Denise Weeks, retirement program mgr.
Jayme Heick, retirement specialist
Denise Leingang-Sargeant, retirement
specialist
Rachelle Smith, administrative assistant
Mensah Anyide-Ocloo, member specialist
Derrick Levey, administrative support
Sarah Mudder, communications and
outreach director
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TFFR board of trustees
Dr. Robert Lech, president, active
Mike Burton, vice president, retired
Jordan Willgohs, trustee, active
Cody Mickelson, trustee, active
Scott Evanoff, trustee, retired
Kirsten Baesler, state superintendent
Thomas Beadle, state treasurer
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Other forms of this newsletter are available upon request.
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Our Mission: "To provide prudent and transparent investment services for our client funds and support North Dakota public school educators with responsible benefit administration." |
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