A Legislative interim committee is again studying whether pension plans for state employees should be converted from the current “defined benefit” plan – to a “defined contribution” plan, similar to a 401-K.
Bills to do that have been tried in the past several sessions – but all failed.
And that’s one of the issues the new “North Dakota United” union will be watching. The organization was formed by the merger of the North Dakota EDucation Association, representing teachers, and the North Dakota Public Employees Association.
"We can provide all sorts of evidence that defined benefit pensions are actually cheaper than the defined contribution," said ND United president Nick Archuleta. "We will make that case, as we move forward, if there is a challenge to what we believe."
Archuleta says the pension plan helps attract and keep employees.
"It takes a certain amount of sophistication in this day and age to run a retirement fund well," said Archuleta. "I'm not saying that our employees are not capable, or that they lack the intelligence to do that. What I'm saying is -- it's a better deal for public employees to have a pension plan run by professionals."
Archuleta says there is a small group of state legislators that wants to end state pension plans.
