The North Dakota Senate Appropriations Committee convened on March 28, 2025, to discuss significant financial strategies regarding the Public Employees Retirement System (PERS). A key focus of the meeting was the proposed use of $90 million in lump sum deposits to address the unfunded liability of the retirement system.

Derek Holbein, Chief Operating and Financial Officer of PERS, explained that the intent behind these deposits is to avoid imposing an additional actuarially determined employer contribution (ADEC) rate on state governmental units during the current biennium. This approach aims to stabilize funding without increasing costs for state agencies, which would have faced a 6.02% contribution increase otherwise.

Holbein clarified that the $90 million would not alter the timeline for achieving full funding of the retirement system, which remains set for 1956. Instead, it serves as a means to manage cash flow and reduce future financial obligations. He noted that while the funding strategy is designed to meet current requirements, there is still a need to confirm with actuaries whether the additional $65 million can be reliably counted as revenue.

Senator Dwyer inquired whether the fund's improved status was the reason for the reduced cash infusion. Holbein responded that the current strategy is consistent with previous legislative commitments and does not indicate a significant change in the fund's overall health.

The committee's discussions highlighted the importance of maintaining fiscal responsibility while ensuring the sustainability of the retirement system for public employees. The proposed amendments will be further evaluated as the committee continues to refine its financial strategies.