Section 71-06-01-02 - Calculation of retiree health insurance creditRetiree health insurance credit will be calculated on actual years and months of service, identical to retirement benefits under North Dakota Century Code chapter 54-52.
1. Retiree health insurance credit will be subject to reduction factors in the event of early retirement. For annuitants of the public employees retirement system defined benefit plan and North Dakota public employees retirement system judges, and for members of the defined contribution retirement plan, excluding national guard/law enforcement and highway patrol retirees, who take a periodic distribution:
Age at Retirement | Reduction Factor | Age at Retirement | Reduction Factor |
64 to 65 | 3% | 59 to 60 | 33% |
63 to 64 | 9% | 58 to 59 | 39% |
62 to 63 | 15% | 57 to 58 | 45% |
61 to 62 | 21% | 56 to 57 | 51% |
60 to 61 | 27% | 55 to 56 | 57% |
For annuitants of the job service retirement program: This includes those who retired under a discontinued service annuity but does not include those who retired at a normal or optional date.
Age at Retirement | Reduction Factor | Age at Retirement | Reduction Factor | Age at Retirement | Reduction Factor |
64 to 65 | 3% | 59 to 60 | 33% | 54 to 55 | 63% |
63 to 64 | 9% | 58 to 59 | 39% | 53 to 54 | 69% |
62 to 63 | 15% | 57 to 58 | 45% | 52 to 53 | 75% |
61 to 62 | 21% | 56 to 57 | 51% | 51 to 52 | 81% |
60 to 61 | 27% | 55 to 56 | 57% | 50 to 51 | 87% |
For annuitants of the highway patrol fund and national guard/law enforcement retirees and national guard/law enforcement retirees who transferred to the defined contribution retirement plan:
Age at Retirement | Reduction Factor |
54 to 55 | 3% |
53 to 54 | 9% |
52 to 53 | 15% |
51 to 52 | 21% |
50 to 51 | 27% |
2. Disabled annuitants receiving benefits under subdivision g of subsection 3 of North Dakota Century Code section 54-52-17, subdivision d of subsection 3 of North Dakota Century Code section 39-03.1-11, North Dakota Century Code section 52-11-01, or section 71-02-05-05 will be eligible for full retiree health insurance credit benefits. No age reduction factor will be applied.3. A surviving spouse eligible to receive benefits under paragraph 2 of subdivision a and paragraphs 2 and 3 of subdivision b of subsection 6 of North Dakota Century Code section 54-52-17, subdivision b of subsection 6 of North Dakota Century Code section 39-03.1-11, or North Dakota Century Code section 52-11-01 will receive retiree health insurance credit based on the deceased member's years of service without any age reduction applied.4. A surviving spouse receiving benefits under the provisions of subdivision b, c, d, or e of subsection 9 of North Dakota Century Code section 54-52-17; subdivisions a, b, and c of subsection 5 of North Dakota Century Code section 27-17-01; subsection 9 of North Dakota Century Code section 39-03.1-11; or North Dakota Century Code section 52-11-01 will receive retiree health insurance credit for the duration benefits are paid, based upon the original annuitant's retirement age.N.D. Admin Code 71-06-01-02
Effective April 1, 1992; amended effective June 1, 1996; July 1, 2000; July 1, 2010.Amended by Administrative Rules Supplement 2016-360, April 2016, effective 4/1/2016.Amended by Administrative Rules Supplement 376, April 2020, effective 4/1/2020.General Authority: NDCC 54-52.1-03.2(b)
Law Implemented: NDCC 54-52.1-03.3