This bill introduces a new Group III defined contribution retirement plan specifically for state employees who commence service on or after July 1, 2025. All new state employees will be mandated to participate in this plan, while existing Group I employees will have the option to join. The bill amends RSA 100-A:3, I(a) to clarify that new employees, including those in political subdivisions, will be members of the defined benefit retirement system unless they start service after the specified date. Additionally, a new subdivision is added to RSA 100-A to define the membership requirements and administrative structure of the Group III plan, which will be managed by the deferred compensation commission.

Key provisions of the bill include the requirement for members to contribute 7% of their earnable compensation, with employers contributing at least 5%. The bill also clarifies that employers, administrators, and fiduciaries are not liable for investment losses from participant-directed investments and ensures that contributions and investment returns are fully vested upon contribution. It outlines withdrawal circumstances for members and includes provisions for retiree participation in group insurance programs at their own expense. The initial costs of establishing and administering the plan will be covered by the state general fund until July 1, 2026, after which costs will be borne by participants through assessments on their investment accounts. The bill is set to take effect on June 30, 2025.

Statutes affected:
Introduced: 653:8, 654:32, 654:34, 655:14, 655:21, 655:26