Sen. Sean Cleary, R-Bismarck, speaks on the Senate floor on March 19, 2025. He has asked for an attorney general's opinion on the scope of authority for the State Investment Board. (Michael Achterling/North Dakota Monitor)
BISMARCK, N.D. (North Dakota Monitor) – Two North Dakota lawmakers have asked Attorney General Drew Wrigley to formally weigh in on whether the State Investment Board has the authority to offer bonuses to staff responsible for managing the Legacy Fund.
Sen. Sean Cleary, R-Bismarck, and Rep. Mitch Ostlie, R-Jamestown, requested the opinion as the board considers $1.3 million in proposed bonuses for 12 employees of the Retirement and Investment Office.
“This is a fairly new program and a unique one,” Cleary said of the bonuses to state employees. “A formal opinion by the attorney general could just provide clarity for everyone, for myself, for the State Investment Board, for RIO.”
Wrigley said he couldn’t comment on the specifics of the request because his office is actively working on the legal opinion.
“I’m prioritizing the matter and I expect to be able to publish my attorney general opinion on that in the relative near term,” the attorney general said Monday.
The incentive program was approved by legislators in 2023 and implemented in 2024 by the State Investment Board, which oversees the Retirement and Investment Office. This would be the first time bonuses would be awarded under the program.
The incentive pay is based on the performance of the state’s investment funds compared to earnings benchmarks that represent standard market performance. But the approval of the bonuses was tabled at the November meeting of the State Investment Board because of questions about whether the board has the legal authority to do so without a specific legislative appropriation.
The Attorney General’s Office later verbally advised that the agency could safely proceed with the approval of the bonuses, Retirement and Investment Office Executive Director Jodi Smith said during a December meeting.
The bonuses are expected to be on the agenda for the State Investment Board’s Jan. 16 meeting. Cleary said “it would be prudent” for the board to delay that decision until the extent of its authority to award the bonuses is clarified by the attorney general.
“There was ambiguity in how the law was interpreted and discussed across multiple meetings. When public dollars are involved, the responsible step is to get clarity in writing so taxpayers have certainty, not confusion, about how their money is spent,” Cleary said.
Seven of the 12 proposed bonuses exceed $100,000 and the largest is $293,000, for the chief investment officer. The agency created the program to encourage investment managers and other staff to focus on bringing in more money for the state, as well as to improve staff recruitment and retention.
The four largest funds managed by the State Investment Board are the Legacy Fund, the Public Employees Retirement System, the Teachers Fund for Retirement and Workforce Safety and Insurance.
Those funds outperformed benchmarks by $191 million between July 1, 2024, and June 30, 2025.
A spokesperson for the Retirement and Investment Office declined to comment at this time, noting any action on the issue must be approved by the full State Investment Board.
Gov. Kelly Armstrong, who chairs the board, declined to comment through a spokesperson, who said he anticipates the topic will be on the Jan. 16 agenda. The governor has previously expressed reservations about the proposed bonuses.
The State Investment Board is composed of the governor, legislative leaders and other state officials.
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