Lawmaker asks delay on $1.3M bonuses for state investment staff

Representative Mitch Ostlie (R-Jamestown) asked the North Dakota State Investment Board to postpone action on roughly $1.3 million in proposed incentive payments for Retirement and Investment Office staff until the Attorney General issues a formal opinion on the board’s authority to pay them. The request, delivered Jan. 15, 2026, challenges both the size of several proposed bonuses and whether the payouts require legislative appropriation.

Ostlie flagged that multiple individual awards in the package would exceed $100,000, and expressed concern that benchmarks and eligibility criteria have shifted since legislators were first briefed on the incentive program. Those changes, he argued, raise questions about whether the board is operating within the scope of its statutory authority or stepping into territory that lawmakers must approve.

The State Investment Board previously tabled the matter in November, delaying a final decision while members and staff addressed procedural and policy questions. The incentive plan is intended to retain and reward staff who oversee state investments, including management of retirement assets, but the current dispute centers on governance and accountability rather than the broad goals of talent retention.

The core legal issue is whether the SIB can authorize these bonuses from investment or retirement funds without an explicit appropriation by the Legislature. If the payments exceed the board’s authority, the decision could require legislative action to validate or limit similar incentive structures moving forward. Ostlie’s letter asks the board not to finalize payouts until the Attorney General provides a binding opinion on those legal and fiscal constraints.

For Stutsman County residents, the immediate impact is tied to trust and transparency in the stewardship of retirement assets. Retirees and public employees have a direct interest in how incentive programs affect fund management and administrative costs. The dispute also spotlights the balance between granting agency leaders flexibility to retain skilled staff and ensuring elected officials retain budgetary oversight.

Procedurally, the board will now await the Attorney General’s guidance before advancing the incentive package. That opinion will shape whether the board proceeds, seeks legislative approval, or revises the program’s benchmarks and eligibility rules to align with statutory authority.

The outcome will influence how North Dakota structures pay incentives for investment professionals in the future and whether the Legislature will be prompted to clarify rules governing compensation from retirement and investment funds. Residents should expect further public discussion at future SIB meetings and potential legislative review as the legal question is resolved.