Retired North Dakota county officials to keep pensions under temporary fix

BISMARCK — Nearly two dozen retired county employees across North Dakota will keep receiving their pensions, following a decision by the North Dakota Public Employees Retirement System Board on Tuesday, May 13.

Some retirees serving as elected county officials had their pension payments suspended earlier this year after federal regulators flagged a tax oversight. The issue involved officials who returned to county service after retirement and were allowed to opt out of contributing to the pension system — a violation of a 2007 change in federal tax code.

Among those affected was Grand Forks County Commissioner Bob Rost, who initially resigned when his pension was halted, saying he couldn’t live on his $22,000 annual salary as a commissioner.

“To me this is a no-brainer,” said Mike Seminary, NDPERS board chairman.

So far, 20 officials self-reported the conflict. In April, the Grand Forks County Commission reluctantly wrote a $20,000 check to PERS, covering the county and employee contributions that should have been made since Rost was elected six years ago. That payment will now be refunded.

“This would allow current elected county officials who are receiving retirement benefits to not have to repay the overpayment of benefits and this would eliminate the need for employers to make retroactive contributions back,” Seminary said.

The board has established a sunset clause for this decision, effective through Aug. 1, 2027. Until then, PERS staff and lawmakers are expected to develop a permanent solution.

“You can’t make a salary based on your elected earnings, so we count on those retired people to come over to county government and participate as a county commissioner,” said Aaron Birst, executive director of the North Dakota Association of Counties.

The PERS board plans to hold a special meeting next week to begin outlining future changes.

Matt Henson is an Emmy award-winning reporter/photographer/editor for WDAY. Prior to joining WDAY in 2019, Matt was the main anchor at WDAZ in Grand Forks for four years.