The head of North Dakota’s Public Employees Retirement System says the 2013 Legislature will be asked to implement the second half of a pension recovery plan.
Sparb Collins says the 2008 downturn in the financial markets meant that 30 years out, the system would be out of money. Collins says PERS proposed a recovery plan to the 2011 Legislature.
"The four year recovery plan had an increase in contributions of two percent each year, split between the employer and the employes," said Collins. "One percent each for the years 2012, 2013, 2014 and 2015. The '12 and '13 increases were approved."
Collins says lawmakers decided to wait for more information before approving the second half of the plan. He says the pension funds have recovered – so they will now cover about 60 percent of the obligations in the out years.
"So, a lot was accomplished last session," Collins said. "Those increases have helped stabilize the funding status. The next two years will help put it on a course for 100 percent."
North Dakota state and local government employees are on a "defined benefit" plan.