State Investment Board Questions
What is the North Dakota State Investment Board
The State Investment Board (SIB) is responsible for the investment of the assets of funds identified in state law including the Legacy Fund and the Public Employees Retirement System and Teachers’ Fund for Retirement. The SIB may also provide investment management services to, and manage the money of, any agency, institution, or political subdivision of the state, subject to agreement with the Industrial Commission. The SIB ensures the prudent investment of the funds to achieve the best returns possible while appropriately managing risks. North Dakota’s Retirement and Investment Office is overseen by the SIB and administers the investment program on its behalf.
More information about the SIB is available on the board’s webpage.
What is the North Dakota Legacy Fund
A sovereign wealth fund, the Legacy Fund was created by a constitutional amendment that was initiated by the state legislature and approved by voters in November 2010. It was established to manage and invest a portion of North Dakota’s tax revenue from oil and gas production to ensure long-term financial stability and wealth for the state. At the end of each biennium, fund earnings, as defined by North Dakota Century Code, are transferred to the state's general fund where they are used to finance state projects and provide tax relief.
More information about the Legacy Fund is available on the fund’s webpage.
What is the In-State Investment Program
Established by state legislation in 2021, North Dakota’s in-state investment program requires a portion of Legacy Fund assets be invested in the state. The program is administered by the Retirement and Investment Office on behalf of the State Investment Board (SIB), with guidance from the Legacy and Budget Stabilization Fund Advisory Board. Currently, the program consists of private-market and fixed-income investments.
To implement a portion of the program, the SIB created the North Dakota Growth Fund (NDGF). The NDGF focuses on driving innovation and supporting private-market investments that deliver strong risk-adjusted returns while bolstering the state’s entrepreneurial ecosystem. These investments help North Dakota attract and retain talent, encourage cutting-edge research and development, and create high-quality jobs.
In addition, fixed-income investments supported by the program are designed to attract financially robust companies to the state. This is achieved through a match loan program administered by the Bank of North Dakota. The program also supports the bank’s infrastructure loan initiatives, supporting community growth by providing affordable financing for critical infrastructure improvements.
More information about the In-state Investment Program is available on the program’s webpage.
How are the Legacy Fund and other client funds overseen by the State Investment Board managed
Per state law, the State Investment Board applies the “prudent investor rule” when investing for funds under its supervision. The prudent investor rule means that in making investments the fiduciaries shall exercise the judgment and care, under the circumstances then prevailing, that an institutional investor of ordinary prudence, discretion, and intelligence exercises in the management of large investments entrusted to it, not in regard to speculation but in regard to the permanent disposition of funds, considering probable safety of capital as well as probable income.
More information about the SIB is available on the board’s webpage.
Who oversees the Legacy Fund and where can I find its financial reports
Each State Investment Board (SIB) client, including the Legacy Fund, has a board or staff that is responsible for establishing a fund’s asset allocation and investment policies. The Legacy Fund’s client fund board is the Legacy and Budget Stabilization Fund Advisory Board. Each fund’s asset allocation and the investment policies are established in an Investment Policy Statement that is approved by both the client and the SIB.
Overseen by the SIB, the Retirement and Investment Office (RIO) manages the investment program. RIO posts monthly performance reports on its website for all the SIB’s clients including the Legacy Fund. These reports include each fund’s market value and investment returns.
More information about the Legacy Fund is available on the fund’s webpage.
TFFR Employer Questions
What types of salary are reportable to TFFR
Reportable Teachers’ Fund for Retirement (TFFR) salary is a member's earnings in eligible employment for teaching, supervisory, administrative, and extracurricular services during a school year reported as salary on the member's federal income tax withholding statements plus any salary reduction or salary deferral amounts under 26 U.S.C. 125, 132(f), 401(k), 403(b), 414(h), or 457.
More information about reportable salaries is available in the Teachers’ Fund for Retirement Employer Guide.
Our school is paying all staff a one-time $1,000 payment due to a budget surplus. Is this "bonus" payment reportable to TFFR
No. The Teachers’ Fund for Retirement (TFFR) defines a "bonus" as an amount paid in addition to regular contract salary which does not increase the base rate of pay, is not expected to recur, or is not expected to be a permanent salary increase. Bonus payments are not eligible retirement salary.
More information about reportable salaries is available in the Teachers’ Fund for Retirement Employer Guide.
If a TFFR member leaves halfway through the year, when do I report the last date worked and compensated hours
If a Teachers’ Fund for Retirement (TFFR) member resigns, retires or dies before the end of the school year, the member's total compensated hours and last date worked must be reported on the monthly report following termination.
Example: a member signs a contract for 182 days for 8 hours per day. The member terminates employment after 75 days on December 15. The compensated hours and last date worked are reportable on the December report filed January 15.
If a TFFR member terminates employment during the school year, how many compensated hours do I report
Compensated hours are the total number of hours a Teachers’ Fund for Retirement (TFFR) member is employed and compensated for in a school year (not to exceed 700 hours). To calculate a member’s compensated hours, multiply the total days worked during the fiscal year × hours worked each day.
Example: a member signs a contract for 182 days for 8 hours per day. The member terminates employment after 75 days on December 15, calculate as 75 days x 8 hours = 600 compensated hours.
Can we hire a retired teacher
After satisfying the required waiting period, retired Teachers’ Fund for Retirement (TFFR) members may return to TFFR-covered employment as long as they adhere to the program's employment hourly limitations, TFFR employer and employee contributions are paid, and RIO is notified within 30 days of a retiree’s employment.
Retirees performing in-staff subbing, extracurricular duties or professional development are not subject to the employment hourly limits. Their hours do not need to be reported, and contributions do not need to be paid.
More information about employing a retired teacher is available in the Teachers’ Fund for Retirement Employer Guide.
Do we report substitute teachers to TFFR
The general rule is that substitute teachers are not reportable to TFFR since they are not contracted teachers.
The only time a substitute teacher is reportable is if the teacher, including re-employed retirees, is under a contract (i.e., a written agreement) to perform the substitute teaching services.
Substitute teaching is also reportable if the teacher is already under a contract to perform teaching services, including time certain contracts and while under the contract, performs substitute teaching duties (i.e., in-staff subbing).
If the teacher performs noncontracted substitute teaching duties outside of the time certain contract, the substitute teaching compensation is not reportable.
What is an employer payment plan model
Each Teachers’ Fund for Retirement (TFFR) business partner selects, at its opinion, to pay all or a portion of member contributions to the fund.
Payment plan models include Model 1: member contributions are paid by the member through a salary reduction and remitted to TFFR by the business partner as tax deferred contributions; Model 2 All: member contributions are paid by the business partner as a salary supplement and remitted to TFFR as tax deferred contributions; and Model 2 Partial: a fixed percentage of the member contributions are paid by the business partner as a salary supplement and remitted to TFFR as tax deferred contributions while the remaining member contributions are paid by the member and remitted by the business partner as tax deferred contributions.
Business partners who do not select one of the above models must report member contributions paid by the member and remitted by the business partner as taxed contributions. Payment of member contributions cannot be made on a tax deferred basis unless one of the approved models is selected.
More information about payment plan models is available in the Teachers’ Fund for Retirement Employer Guide.
TFFR Member Questions
What is the Teachers' Fund for Retirement
The Teachers’ Fund for Retirement (TFFR) is a defined benefit pension plan administered by the Retirement and Investment Office that is designed to provide licensed public school educators with retirement, disability, and death benefits.
What interest rate is my account earning with TFFR
TFFR accounts earn interest at an annual rate of 6% compounded monthly. This interest rate is set by law and has been in place since 1983. It is not related to the investment return rate earned by the TFFR pension trust fund. When a member retires, their account no longer earns interest.
How can I find out the value of my retirement account
Your current account value and your last annual statement can be viewed by logging into your MyTFFR account using a link found on the Retirement and Investment Office’s (RIO) website. If you don’t have an account login, you may need to create one using your personal information. If you need assistance, contact RIO at 701-328-9885 or rio@nd.gov.
How do I update my TFFR account information (i.e., mailing address, bank information, tax withholding, etc.)
To update Teacher’s Fund for Retirement (TFFR) account information, login into your MyTFFR account using a link found on the Retirement and Investment Office’s (RIO) website. If you don’t have an account login, you may need to create one using your personal information. If you need assistance, contact RIO at 701-328-9885 or rio@nd.gov.
Should the salary I earn from extracurricular activities be included in the amount reported to TFFR
Once a member is contracted to perform teaching, supervisory, administrative, or extracurricular services, additional payments for performance of duties of a teacher are considered eligible retirement salary unless conditioned on or made in anticipation of retirement or termination.
More information about Eligible Retirement Salary (Reportable) and Ineligible Retirement Salary (Non-Reportable) is available in the Teachers’ Fund for Retirement Member Handbook.
Can I purchase service credit with TFFR
Yes. Current law allows an active member to purchase various types of service credit to use toward retirement eligibility and benefits once certain eligibility requirements have been satisfied.
More information about purchasing service credit is available in the Teachers’ Fund for Retirement Member Handbook.
How do I apply for retirement through TFFR
To receive a retirement benefit from the Teachers’ Fund for Retirement, a member must apply to the Retirement and Investment Office (RIO). The agency verifies eligibility and calculates the benefit based on the member’s years of service and final average salary. Once the application is approved, the member begins receiving monthly benefit payments.
To begin the application process, login into your MyTFFR account using a link found on RIO’s website. If you don’t have an account login, you may need to create one using your personal information. If you need assistance, contact RIO at 701-328-9885 or rio@nd.gov.
Will my retirement benefits be taxable
If you have already paid taxes on the member contributions that were paid to TFFR, you will recover the total amount of previously taxed member contributions by way of a monthly exclusion to income. The recovery period is set by the IRS and can be as long as 35 years. The balance of your benefit is taxable income under both federal and state law. See the Taxation of Retirement Benefits fact sheet. A 1099-R tax form is mailed in January.
I have been drawing TFFR benefits for several years and have recently been asked to return to teach part-time. Can I accept this teaching position
After you retire, you may return to TFFR covered employment under certain employment limitations. Because of the impact returning to work could have on your TFFR retirement benefit, we strongly encourage you to contact the Retirement and Investment Office at 701-328-9885 or rio@nd.gov to discuss this option.
More information about Employment after Retirement is available in the Teachers’ Fund for Retirement Member Handbook.
I am no longer teaching in North Dakota. What are my options with my retirement account
If you are a vested member, you have two options: 1) Take a refund of your account value. A refund can either be paid to you or rolled over to an eligible retirement plan. 2) Leave your money in TFFR and defer drawing retirement benefits until you are eligible for retirement. Deferred benefit estimates may be included on your annual statement or can be obtained by contacting the Retirement and Investment Office (RIO) at 701-328-9885 or rio@nd.gov.
If you are not vested, you have two options: 1) Take a refund of your account value. A refund can either be paid to you or rolled over to an eligible retirement plan. 2) Leave your money in TFFR and take a refund at a later date.
More information about TFFR account refunds is available in the Teachers’ Fund for Retirement Member Handbook.
How can I apply for a refund of my TFFR account
To receive a refund of a TFFR account, login into your MyTFFR account using the link found on the Retirement and Investment Office’s (RIO) website to complete and submit a Withdrawal Application. The refund may either be paid in a direct rollover to an IRA or another qualified plan or paid to the member. If you don’t have an account login, you may need to create one using your personal information. If you need assistance, contact RIO at 701-328-9885 or rio@nd.gov.