Amended bill related to RIO incentive compensation program gets do-pass recommendation

Masaki Ova, The Jamestown Sun, N.D.

Mon, Mar 31, 2025, 12:50 PM 9 min read

Mar. 31—BISMARCK — A bill related to an incentive compensation program for the North Dakota Retirement and Investment Office got a do-pass recommendation on a 14-2 vote from the Senate Appropriations Committee on Friday, March 28, after it was amended to have the agency report to the appropriations committees during the next legislative session regarding its plan to internally manage 50% of the investments under control of the State Investment Board.

Sens. Cole Conley, R-Jamestown, and Sean Cleary, R-Bismarck, were opposed.

Before the Senate Appropriations Committee hearing on Friday, its Human Resources Division failed to include an amendment to House Bill 1022 on a 2-3 vote that would have removed Retirement and Investment Office fiscal operations positions from being eligible for the incentive compensation program. The amendment also included a 75% cap on the bonus for the Retirement and Investment Office's incentive compensation program for each eligible full-time-equivalent investment position.

The motion also included adding an amendment that would require the North Dakota Retirement and Investment Office to report to the appropriations committees during the legislative session in 2027 about its plan to internally manage investments.

Cleary and Sen. Jeffery Magrum, R-Hazelton, voted to approve the amendments.

Later during the hearing on HB 1022, the Senate Appropriations-Human Resources Division approved on a 4-1 vote adding the amendment that would require the North Dakota Retirement and Investment Office to report to the appropriations committees during the legislative session in 2027 about its plan to internally manage investments. Magrum was opposed.

The Senate Appropriations-Human Resources Division also gave a do-pass recommendation on HB 1022 on a 3-2 vote, with the amendment requiring RIO staff to report to the Legislature in 2027. Cleary and Magrum were opposed.

The incentive compensation program could allow the top two RIO officials to earn up to 100% of their salaries as incentive compensation, although officials in the office said that might not happen every year. RIO is responsible for coordinating the activities of the State Investment Board and the Teachers' Fund for Retirement, according to RIO's website. The State Investment Board has statutory responsibility for the investment program of several funds, including the Legacy Fund.

The annual salaries for the RIO executive director and chief investment officer are $237,400 and $312,000, respectively.

The documents of the incentive compensation program say it is designed to help attract and retain talented investment professionals. The program is also designed to help RIO earn the highest possible investment returns at a reasonable cost and at controlled levels of risk and to reward long-term investment performance.