North Dakota Administrative Code Title 103 - State Retirement and Investment Office
📘 North Dakota Administrative Code Title 103 – State Retirement and Investment Office (SIB)
🔹 Overview
Title 103 of the North Dakota Administrative Code establishes the rules and responsibilities of the State Retirement and Investment Office (SIB) — the agency that oversees the management of public funds and retirement assets in the state.
The main duties include:
Investing and managing state retirement funds (like TFFR and PERS)
Ensuring compliance with fiduciary standards
Supporting long-term financial health of public retirement and insurance programs
⚙️ Key Provisions of Title 103
1. Governance Structure
The State Investment Board (SIB) governs the office.
Board includes public officials (e.g. State Treasurer), representatives from retirement systems, and independent investment experts.
The Board hires an Executive Director to manage day-to-day operations.
2. Fiduciary Responsibilities
All investment decisions must meet the "prudent investor" standard.
The Board and staff must act solely in the interest of plan participants and beneficiaries.
Investments must be diversified to minimize risk and maximize returns.
3. Investment Policy
The Board must adopt a written investment policy statement for each fund it manages.
The policy includes:
Asset allocation targets (e.g. stocks, bonds, real estate)
Risk tolerance and benchmarks
Performance review guidelines
4. Fund Management and Oversight
Funds managed include:
Teachers’ Fund for Retirement (TFFR)
Public Employees Retirement System (PERS)
Other state trust funds (Legacy Fund, etc.)
The Board hires and monitors external investment managers.
Regular audits and performance evaluations are required.
5. Reporting and Transparency
Annual reports must be submitted to the Governor and Legislature.
Reports include:
Asset performance
Manager fees
Compliance with investment policies
Meeting minutes and investment decisions are documented publicly for transparency.
🔍 Hypothetical Case Law Example
Case: Petersen v. State Investment Board (Fictitious)
Facts: A retired public employee filed a claim against the SIB, alleging that mismanagement of funds by an external manager led to unnecessary losses in her pension fund. She claimed the SIB failed its fiduciary duty by not replacing the manager sooner.
Issue: Did the SIB breach its fiduciary duty under Title 103 by not acting swiftly when performance declined?
Holding: The court ruled in favor of the SIB. It found that:
The Board had procedures in place to monitor performance quarterly.
They documented concerns and gave the manager a formal improvement period.
The eventual termination was within a reasonable fiduciary timeline.
Significance: This case reinforced that the SIB’s compliance with internal procedures and ongoing documentation was enough to meet its fiduciary obligation — even if some losses occurred.
🧾 Summary
North Dakota Administrative Code Title 103 establishes the legal and operational framework for the State Retirement and Investment Office. It covers:
Governance by the State Investment Board
Strong fiduciary and ethical standards
Specific investment policy requirements
Oversight of external investment firms
Transparent reporting to the public and legislature
Case law typically focuses on fiduciary performance, and courts give deference when the SIB follows its own rules and documents its decisions.
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