FOR ACTIVEMEMBERS

OF THENORTH DAKOTA

PUBLICEMPLOYEESRETIREMENT

SYSTEM

FALL 2006 • VOLUME 29, NUMBER 3

This newsletter is published bythe North Dakota Public

Employees Retirement SystemBox 1657, Bismarck, ND 58502

701-328-3900Toll free: 1-800-803-7377

nd.gov/ndpersBoard Members:

Jon StrindenChairman

VacantAttorney General Appointee

Arvy SmithState Health Officer Designee

Members Elected:Rosey Sand, Howard G. Sage,Joan Ehrhardt, Ron Leingang

Sparb CollinsExecutive Director

Kathy M. AllenEditor

pectivesPersIn this issue…•New Dental Provider•New Service for FlexComp

Plan Participants•Annual Enrollment Season•Building Your Future

Financial Security•New Investment Options Added•NDPERS Online Services•EPO Participants

Out of Area Waivers•Smoking Cessation Program•How’s Your Health?•Deferred Compensation Limits

NDPERS Welcomes CIGNA HealthCareas Our New Dental Provider

New Service forFlexComp Plan Participants

Effective January 1, 2007 CIGNAHealthCare will provide dental plan bene-fits to NDPERS members. The dental planis available only to active state and univer-sity system employees and eligibleretirees. CIGNA HealthCare is providingdental coverage with lower premiums,they have eliminated the $10 per visitcopayment, all waiting periods, and haveincreased the coverage level to pay at the90th percentile of ‘reasonable and custom-ary’ charges. WOW!

If you are on the PeopleSoft PayrollSystem, your account status is nowavailable online.

If you are enrolled in the State of NorthDakota FlexComp plan, you can nowview your account activity for the medicaland dependent care spending accounts byusing the PeopleSoft portal. As a result,effective October 1, 2006 NDPERS is nolonger printing or mailing quarterly

statements. To access the Portal, click onthe link on the OMB Home Page athttp://nd.gov/omb. Then enter your net-work (NDGOV) sign on ID and(NDGOV) password in the PeopleSoftScreen. The My Benefits link on theEnterprise Menu provides you with infor-mation about the State sponsored benefitsthat you are enrolled in and links thosebenefits to sources of further information.

If you are currently participating in theNDPERS dental plan (ING EmployeeBenefits) your plan participation will auto-matically transfer to CIGNA HealthCareon January 1, 2007. You will receive anew dental plan handbook and ID card(s)before January 1, 2007. You will alsoreceive additional information via postalmail regarding ‘work in progress’ and howit will be handled at the time of thetransition.

Annual Enrollment Season – 2007 Plan YearThe Annual Enrollment Season will run from Monday, October 23 through Monday,November 13, 2006. You will receive an Annual Enrollment Season postcard scheduledto be mailed the week prior to the start of the enrollment season. The postcard willdirect you to the NDPERS website to obtain enrollment information. The NDPERSAnnual Enrollment Season gives you the opportunity to:• enroll in insurance plans that you do not currently participate in• add dependents• increase coverage levels• enroll in the NDPERS Flexcomp plan for 2007

NDPERS Annual Enrollment contains information regarding the NDPERS Flexcomp,health, life, dental, vision and long term care insurance plans. Enrollment forms willneed to be accessed via the PERS website or your payroll office.

Continued on page 3

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The link to your Flexible SpendingAccount information will provide youwith your FlexComp account summaryincluding your Annual Pledge, AccountBalance, Claims Activity, Claims Historyand Payment History.

We encourage you to become familiarwith this new service by using thePeopleSoft portal to view your FlexCompaccount information. If you do not haveinternet access, you may contact theNDPERS office for assistance.

New Service for FlexComp Plan ParticipantsContinued from cover…

Building Your Future Financial SecurityA Message from North Dakota Securities Commissioner Karen Tyler

In the last issue of PERSpectives readerswere provided several excellent reasons tocontribute to the state sponsored deferredcompensation plan: deferral of income tax,paying yourself first, automatic deduc-tions, and automatic enrollment in thePortability Enhancement Provision. In thisissue I submit, from a regulator’s perspec-tive, another important (if not critical) rea-son to contribute: securing the ability tomake significant personal financial deci-sions, as you approach and enter retire-ment, from a position of financial strengthversus financial vulnerability.

The Senior segment of our population isincreasingly targeted with fraudulentinvestments and unsuitable securitiessales. As Seniors enter into and managetheir retirement, many face the most diffi-cult personal financial decisions of theirlifetime. Results of a recent survey of statesecurities regulators across the countryidentified that 45% of investor complaintsreceived by securities regulators camefrom Seniors. While investment scams canbe emotionally and financially devastatingfor victims of all ages, Seniors are particu-larly hard hit. Investment scams can wipeout a lifetime of savings and Seniors mayhave few or no working years ahead torecover from their losses.

Following close on the heels of Seniorsare the Baby Boomers, the first of whomturned 60 this year. Over the next 20 yearsan estimated 77 million Americans willreach this milestone. They currently con-trol 8.5 trillion dollars of investible assets,

and are expected to inherit 7 trillion more.To be sure, this wealth is not evenly dis-tributed, and they stand in varying degreesof retirement preparedness – the majorityof them at present ill-prepared.

Deficiencies in retirement preparednesscan lead to decision making from a per-spective of desperation, anxiety over theneed to “catch up”, and a willingness toset aside skepticism and believe the too-good-to-be-true sales pitches promisingsky high investment returns with little orno risk. Financial con criminals andunscrupulous salespeople stand ready tocapitalize on the retiree’s fear of outlivingretirement assets.

No matter your age or career stage, youcan take action to build your future finan-cial security. Maximize the benefit of theretirement savings alternatives providedby your employer, such as the deferredcompensation plan, arm yourself withfinancial education, and always check thebackground of anyone offering financialadvice or making investment recommen-dations BEFORE you do business.

The North Dakota Securities Departmentprotects North Dakotan’s who purchaseinvestment advice and securities. Contactthe Department to check the licensing sta-tus and background of an investment pro-fessional or investment firm.

701-328-2910800-297-5124ndsecurities@nd.gov

NewInvestment Options

AddedThe NDPERS Board has approved theaddition of two new Fidelity FreedomFunds® to the core funds lineup for the457 Companion Plan and 401(a)Defined Contribution Plan.

• Fidelity Freedom 2045 FundSM

• Fidelity Freedom 2050 FundSM

The Fidelity Freedom Funds are invest-ment options that allow the investor toselect the fund that best matches his orher expected retirement year. They aredesigned for investors who want a sim-ple yet diversified approach to investingfor their retirement. The goal of thefunds is to seek high total returns untilthe target retirement date. Thereafter,each fund’s goal will be to seek highcurrent income and, as a secondaryobjective, capital appreciation.

If you would like more information onthe Fidelity Freedom Funds® or any ofthe investment options available in your457 Companion Plan or 401(a) definedcontribution plan, contact Fidelity at1-800-343-0860 or visit FidelityNetBenefits® atwww.fidelity.com/atwork

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SCOPE OF SERVICESIf you participate in the NDPERS groupretirement plan, you may access the fol-lowing account information:

• Retirement Benefit Estimates• Disability Benefit Estimates• Member Account Balance• Current Annual Statement

Accessing Your AccountPrior to accessing NDPERS On-lineServices, you must have a North DakotaLogon ID. The North Dakota Logon IDwill allow you to access various services.Registration is a ONE-TIME PROCESSto ensure the security and privacy ofNDPERS member information.

How To RegisterGo to www.nd.gov/ndpers and select“Register for Logon “ID” under ONLINESERVICES. If you need assistance, con-tact NDPERS at ndpers-info@nd.gov.

If You are Already RegisteredIf you are already registered and haveobtained your North Dakota Logon ID,you do not need to register again. Toaccess your individual retirement account,please go to www.nd.gov/ndpers andselect “Log On” under ONLINE SER-VICES.

If you have forgotten your Logon ID orpassword, just follow the on-screeninstructions.

ON-LINE OPTIONSCalculate Retirement & DisabilityBenefits:This feature allows you to calculate andprint your future retirement and long-termdisability benefits by using your demo-graphics retrieved from your NDPERSaccount. This feature allows you to setretirement or disability variables based onyour individual needs.

Account Balance:This allows you to view and print yourcurrent member account balance. This alsofeatures the taxable and non-taxable por-tion of your account balance

Annual Statements:This allows you to view and print your“Annual Statement of Accounts” for thecurrent fiscal year.

View Retirement Plan:This provides a link to your retirementplan handbook.

View Portability EnhancementProvision (PEP) Brochure:This is an educational piece on theNDPERS PEP program.

Other On-Line Features:Most of the on-line services contain pop-ups and links to provide you with direc-tion and explanation of the different com-ponents of your benefits.

OTHER WEBSITE FEATURESYou also have access to plan informationon all NDPERS benefits, PerspectivesNewsletters, News Flashes, Forms andPublications, and Contact Information.

NDPERS Online Services

Continued from cover…

New Dental ProviderIf you do not currently participate in thedental plan, you will have the opportunityto enroll during the NDPERS AnnualEnrollment Season which begins onMonday, October 23 and ends on Monday,November 13, 2006.

If you are currently participating in theNDPERS dental plan (ING Employee

Benefits) your plan participation will auto-matically transfer to CIGNA HealthCareon January 1, 2007. You will receive newdental plan handbook and ID card(s)before January 1, 2007. You will alsoreceive additional information via postalmail regarding ‘work in progress’ and howit will be handled at the time of thetransition.

Out of Area WaiversPlease remember to fill out the HealthBenefit Plan Affiliation and Out-of-Area Waiver form if you have signedup for the EPO (Exclusive ProviderOrganization). You or your living,covered spouse's eligible dependantchildren are eligible for this waiver if:

• They are residing at a facility forchildren with disabilities or other spe-cial needs (Anne Carlson School.etc.);• They reside outside the NetworkService Area and you or your living,covered spouse are required by courtorder to provide health coverage forthem; or• They are full-time students residingoutside the Network Service Area andare financially dependant on you oryour living, covered spouse.

The waiver form is availableon the NDPERS web site at

www.nd.gov/ndpers

EPO PA RTICIPA NTS

www.nd.gov/ndpers

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Want to Quit?Consider the NDPERSSmoking Cessation ProgramIf you are a smoker or tobacco user and want to quit, this program is for you.

The North Dakota Public Employees Retirement Systemreceived a grant to help state employees and their dependentsage 18 and older quit smoking or chewing tobacco. The grantwill help pay for participating in one of more than 20approved smoking cessation programs. Most of these pro-grams are available through public health departments acrossthe state of North Dakota. This project is administered by BlueCross Blue Shield of North Dakota.

Who is eligible?All current state employees and their dependents age 18 andolder, have NDPERS health coverage, who smoke or chewtobacco and want to quit are eligible to participate. County,city and other members of the NDPERS group are not eligiblethrough this project; however, smoking cessation funds maybe available at the local level.

What will be provided?An initial assessment will determine how ready you are toquit, your smoking or chewing triggers and what type of nico-tine replacement therapy, such as patches or gum, and/or pre-scription medication you may need. If prescription medicationis recommended, you will need to visit your doctor.In addition, individual, group or telephone counseling will beprovided. Your program provider will call you on a quarterlybasis to monitor your progress the first year after you quit.

How long do the programs take?Most of the approved programs are eight weeks.

How do I get started?You may start anytime during the enrollment period:September 1, 2005 to April 30, 2007.

Grant money will reimburse the smoking cessation provider$200 after you complete the eight-week program. This coversthe initial assessment, counseling and follow-up. If you decideto try the North Dakota Quitline, the program will reimburseyou for the office visit, if you need to make one, and your pre-scription and over-the-counter medications.

The program will pay 100 percent of your out-of-pocketexpenses for your office visit and prescription and over-the-counter medication up to $500, for a total benefit of $700 (seechart below). The program will end April 30, 2007. The program provider may charge additional fees for counsel-ing services. Ask your program provider for details prior toenrolling.

Who do I contact to enroll or if I have questions?Contact BCBSND at 1-800-223-1704 or (701) 282-1400 ifcalling from the Fargo area.

How do I enroll?Find a provider in your area. This information is available onthe NDPERS web site home page at www.nd.gov/ndpers andclick on the Quit poster on our home page. When you makeyour initial visit to the cessation program in your area, pleasecontact BCBSND with your enrollment information at thephone number listed above. Once eligibility is verified, youwill then receive a smoking cessation program identificationcard to use when you visit your doctor and when you buymedications. Be sure to show this identification card to yourhealth care professional.

• Your doctor should submit the office visit claim to theaddress shown on the back of the identification card. • Prescription and over-the-counter medications will requirepayment at the pharmacy. Keep your receipts and sendthem to BCBSND for reimbursement of your claims.

If you choose to enroll in the Quitline cessation program,please call BCBSND at the phone number listed above.Eligibility for the program will be verified and a smoking ces-sation identification card will be sent to you. Use the identifi-cation card when you purchase medications.

• Prescription and over-the-counter medications will requirepayment at the pharmacy. Keep your receipts and sendthem to BCBSND at the address shown on the back of theidentification card for reimbursement of your claims.

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Smoking cessation counseling: $ 200.00

Office visit, RX and over the counter medications: 100% up to $500.00

Total: $700.00

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North Dakota Public Employees Retirement SystemBox 1657Bismarck, ND 58502-1657

The articles and opinions in this publication are for general information only and are not intended toprovide specific advice or recommendations for any individual. We suggest that you consult your attor-ney, accountant, financial or tax advisor with regard to your individual situation. This newsletter is available in alternate formats upon request. Printed on recycled paper.

PRESORTEDSTANDARD

US POSTAGE

PAIDPERMITNO. 37BISMARCK, ND

58501

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Deferred Compensation Limits for 2007Effective January 1, 2007, the annual maximum allowable limit for the deferredcompensation plan will increase from $15,000 to $15,500. The age 50 or olderannual catch up will remain at $5,000. If you are eligible for the age 50+ catch up,the annual maximum allowable limit is $20,500.

If you wish to take advantage of the new limit, please remember you must com-plete a Participation Agreement for Salary Reduction SFN 3803 and submit it nolater than December 15, 2006 to be effective for the January payroll.

If You Plan to VisitThe NDPERS Office…Please make an appointment for counsel-ing services if you want to meet with aPERS staff member to discuss your retire-ment options and or any of the benefitprograms administered by this office.Although staff will accommodate walk-ins when possible, an appointment willensure that someone is available to assistyou at the time you arrive. An appoint-ment also allows staff to prepare theappropriate benefit information to respondto your individual needs and to ensurethat the time spent is productive.