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TFFR Employer Guide

General Information

ND Retirement and Investment Office

The Retirement and Investment Office (RIO) administers the State Investment Board (SIB) and Teachers' Fund for Retirement (TFFR) programs.

The office exists in order that:

• SIB clients receive cost-effective investment services directed at meeting their written financial goals under the prudent investor rule.
   
• SIB clients receive investment returns consistent with their written investment policies and market variables.
   
• Potential SIB clients have access to information regarding the investment services provided by the SIB.
   
• TFFR benefit recipients receive their retirement benefits in a cost-effective and timely manner.
   
• TFFR members have access to information, which will allow them to become knowledgeable about the issues and process of retirement.
   
• SIB clients and TFFR benefit recipients receive satisfactory services from the Board and staff of the office.

Teachers' Fund for Retirement (TFFR) Board of Trustees

The TFFR Board of Trustees is responsible for administering the TFFR retirement program. The Board has the authority to establish investment policy; arrange for actuarial and medical consultants; pay benefits and consultant fees; submit proposed legislative changes; and determine appropriate level of services.

The TFFR Board consists of the State Treasurer, State Superintendent of Public Instruction, and five members appointed by the Governor. Members are appointed for five-year terms and include one active school administrator, two active teachers, and two retired members.

Current TFFR Board Members
Michael Gessner (active teacher)
Kim Franz (active teacher)
Bob Toso (administrator)
Lowell Latimer (retired member)
Clarence Corneil (retired member)
Kelly Schmidt, State Treasurer
Wayne Sanstead, State Superintendent

TFFR Mission and Goals

Mission Statement

The mission of TFFR, a trust fund, is to advocate for, develop, and administer a comprehensive retirement program for all trust fund members within the resources available.

Goals:

Investment and Funding Goals:

• Prudently invest assets in a diversified portfolio
• Accumulate sufficient funds to pay obligations
• Improve and maintain adequate funding to ensure the financial integrity of the system
• Build a funding cushion to provide for future benefit improvements

Benefit Goals:

• Provide 2.0% benefit formula for all retirees
• Provide ad hoc retiree benefit adjustments for all retirees to maintain purchasing power.
• Benefit adjustments may be considered when prudent based upon actuarial funding measurements including:
  1. Positive contribution margin
  2. Amortization of UAAL within GASB 30-year funding period
  3. Funded ratio of 90% or greater

Service Goals:

• Administer accurate, prompt, and efficient pension benefits program
• Deliver high quality, friendly service to members and employers
• Provide educational outreach programs including pre-retirement seminars and individual benefits counseling sessions

Type of System

TFFR is a qualified defined benefit public pension plan covered under Section 401(a) of the Internal Revenue Code (IRC). In simpler terms, TFFR is a tax-exempt pension plan where state law determines benefits.

North Dakota Century Code (NDCC) Chapter 15-39.1 contains the actual language governing the Fund. The NDCC, along with Title 82 of the North Dakota Administrative Code (NDAC), are summarized in this Guide. If differences exist between the information in this Guide and state law, the laws shall govern.

The TFFR plan is funded on an actuarial reserve basis. That is, money is invested for future retirement benefits while members are actively teaching. Benefit funding comes from three sources:

• Member contributions
• Employer contributions
• Investment earnings

TFFR serves nearly 10,000 teachers from nearly 231 employer groups and pays benefits to more than 6,000 retirees and beneficiaries.

Employer Services

The RIO staff offers many services as part of the continuing effort to keep employers informed about the retirement program. All services are furnished free of charge. Employers may contact the administrative office to schedule or request any of these services.

• Toll free number
  • 1-800-952-2970
     
• Web site
  • www.nd.gov/rio
  • E-mail us at rio@nd.gov
     
• Member outreach programs
  • One-on-one benefits counseling
  • Preretirement seminars
  • Financial planning programs
  • In-service group presentations
  • Retirement 101
  • Teachers in Transition program
    
    
• Employer outreach programs
  • Spring business manager workshops
  • New business manager workshops
     
• Employer information
  • Briefly newsletter - Quarterly employer newsletter
     
  • Retirement eligibility profile - Thirty year projection of when your employees will reach retirement eligibility (age 65 or the Rule of 85 for Tier 1 members; or the Rule of 90 for Tier 2 members).
     
  • Employer payment plan model change analysis - Analysis compares your current TFFR payment model to another showing effects on retirement salary, TFFR contributions, and taxable salary for purposes of federal/state withholding, FICA and Medicare taxes. This analysis may prove helpful during contract negotiations.

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