NORTH DAKOTA PUBLIC EMPLOYEES RETIREMENT SYSTEM

457(b) Deferred Compensation Companion Plan

These are important details regarding this plan. Please call the NDPERS Benefits Office at 800 803-7377 for more information or visit www.nd.gov/ndpers for the full plan details.

ELIGIBILITY

Employees of the State of North Dakota and employees of participating political subdivisions are eligible to participate in the plan.

To be eligible, you must be a permanent employee working a minimum of 20 hours per week for 20 or more weeks of the year, are at least eighteen years of age, filling a permanent position that is regularly funded and not of limited duration. Legislators are eligible to participate in the plan. Temporary or part-time employees and independent contractors are not eligible to participate in the plan.

CONTRIBUTIONS

Employee contributions only.

Your employer does not contribute to this plan.

EMPLOYER MATCHING

North Dakota Public Employees Retirement System does not make matching contributions with this plan.

VESTING

"Vesting" refers to an employee's right, usually earned over time, to receive some retirement benefits regardless of whether or not they remain with the employer. Your contribution to this account will be 100% vested immediately.

INVESTMENTS

Your employer offers you a variety of investment choices from an array of asset classes. You can see a list of the investment choices under this plan on the Investment Choices page.

EXPENSES

Expenses vary from investment to investment. To learn about expenses associated with an investment, see a list of the investment choices under this plan on the Investment Choices page, and read the Fact Sheet or the prospectus for that investment.

DISTRIBUTIONS

You have a variety of options1 when it’s time to take income from your North Dakota Public Employees Retirement System 457(b) Deferred Compensation Companion Plan:

  • Hardship Distribution

    • Please contact the NDPERS Benefits Office at 800 803-7377 for more information.
       
  • Single-Sum Death Benefit

    • Please contact the NDPERS Benefits Office at 800 803-7377 for more information.
       
  • Systematic Withdrawals

    • Please contact the NDPERS Benefits Office at 800 803-7377 for more information.
       
  • Lump Sum
     
    • Please contact the NDPERS Benefits Office at 800 803-7377 for more information.
       
  • DeMinimus Distributions
     
    • Only available to participants with less than $5,000 in their account, who have not contributed to the plan in the previous 24 months, and have not previously received a deminimus distribution from the plan. Please contact the NDPERS Benefits Office at 800 803-7377 for more information.

TAXATION

Because you make contributions with pretax dollars, federal income taxes are deferred on supplemental plans until you begin taking withdrawals later on.

No taxes are due on contributions and earnings until the money is withdrawn, but because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment (subject to plan rules).

For additional information and guidance, contact your tax advisor.

LOANS

This plan does not offer a loan feature.


1 The availability of certain distributions may depend on the type of contract underlying your plan. Also, if you're married, your right to choose an option may be subject to your spouse's right to survivor benefits. Talk to your benefits office for details.

C10279