An interim Legislative committee authorized a study of state employee pay and benefits.
The Employee Benefits Programs Committee was chaired by Sen. Sean Cleary (R-Bismarck). He presented the committee report to the Legislative Management Committee.
The study was done by Human Resource Management System and OMB.
Cleary told the committee, the study found that state salaries are approximately two to twelve percent below similar private sector jobs. But Cleary said there was some good news from that study – the rate of turnover among state employees has been reduced.
"It was about 14 percent in 2022," Cleary said. "It's down to 11 percent in 2025."
But Cleary also told the committee, there is another issue worth watching — retirement eligibility.
"Currently, 10 percent of state employees are eligible to retire," Cleary said. "In five years, that figure will be 25 percent. So we will be encountering a situation where we will be facing a lot of retirements among state employees."
State workers were also asked to fill out a survey from HRMS about what they value. Cleary told the committee it reflects what a lot of lawmakers have heard over the years.
"State employees value their health insurance plan, their retirement and competitive pay," Cleary said. "Health insurance and retirement still play an important role in benefits for state employees."
The retirement plan for state employees changed – from a “defined benefit” plan to a “defined contribution” plan, similar to a 401-K plan. Gov. Kelly Armstrong has not yet released what his proposal for raises will be in his executive budget, which will be presented to lawmakers in December.
