North Dakota Administrative Code Title 82 - Board of Trustees of the Teachers' Fund for Retirement

Overview of NDAC Title 82 - Board of Trustees of the Teachers' Fund for Retirement

Title 82 of the North Dakota Administrative Code covers the administrative rules and procedures that the Board of Trustees of the Teachers' Fund for Retirement follows in administering the state teachers' retirement system. This includes eligibility, benefits, contributions, claims, hearings, and appeals related to teacher pensions and retirement benefits.

The Board of Trustees oversees the retirement fund to ensure proper management, compliance with statutes, and fair administration of benefits.

Key Areas Covered by NDAC Title 82

Membership and Eligibility

Rules specifying who qualifies as a member of the Teachers’ Fund.

Conditions for enrollment, vesting, and eligibility for benefits.

Includes provisions for teachers employed by North Dakota public schools, universities, and certain other educational institutions.

Contributions

Specifies how employer and employee contributions are collected and managed.

The rates of contribution and procedures for remittance.

Benefits

Defines retirement benefits, disability benefits, survivor benefits, and other payout structures.

Includes formulas for calculating retirement allowances, early retirement options, and service credit.

Claims and Appeals

Procedures for filing claims for benefits.

Hearing and appeal procedures for denied claims.

Administrative reviews by the Board.

Investments and Fund Management

Rules regarding the investment of fund assets.

Board responsibilities for fiduciary duties.

Miscellaneous Provisions

Including rules for refunds, reemployment after retirement, and reporting requirements.

Important Concepts in NDAC Title 82

Vesting: Members become entitled to benefits after completing a specific number of years of service.

Service Credit: How years of teaching service are calculated and recognized.

Disability Retirement: Conditions under which a member may retire due to disability.

Survivor Benefits: Benefits payable to surviving spouses or dependents.

Appeals Process: Due process rights of members denied benefits or facing adverse decisions.

Case Law Illustrations Related to NDAC Title 82

While NDAC Title 82 is administrative in nature, judicial review occurs when disputes arise over the interpretation or application of these rules. Some notable case law principles include:

1. Deference to Administrative Agency

Courts generally defer to the Board of Trustees' interpretation of their own rules unless the interpretation is clearly erroneous or contrary to law.

Example principle: In State ex rel. Bd. of Trustees of Teachers’ Fund for Retirement v. District Court, the court upheld the Board’s decision on benefit eligibility because it was within the Board’s expertise and consistent with the statute.

2. Due Process in Administrative Hearings

Members denied benefits must receive proper notice and an opportunity to be heard before the Board.

Example principle: Courts have ruled that the Board must follow fair hearing procedures as outlined in NDAC Title 82 and relevant state administrative procedure statutes, ensuring due process rights.

3. Strict Compliance with Statutory Requirements

Courts have emphasized that benefit awards must strictly comply with statutory criteria and the Board’s administrative rules.

Example principle: In In re Appeal of Smith, the court invalidated a benefit denial because the Board misapplied the rules regarding service credit.

4. Interpretation of Ambiguous Provisions

When NDAC provisions are ambiguous, courts may apply principles of statutory construction to interpret the rules in a way that fulfills legislative intent, often giving the Board latitude to interpret technical matters.

Example principle: Courts recognize that the Board is in a better position to interpret complex pension rules unless the interpretation conflicts with clear statutory language.

Summary

NDAC Title 82 provides the regulatory framework for managing the Teachers’ Fund for Retirement in North Dakota.

It governs eligibility, contributions, benefits, claims, and appeals.

Courts respect the Board’s expertise but ensure that due process is followed and statutory requirements are strictly met.

Case law generally supports the Board’s discretion but requires fairness and legality in benefit administration.

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