This bill establishes a new Group III defined contribution retirement plan for state employees who begin service on or after July 1, 2025. It mandates participation for all new state employees while allowing existing Group I employees the option to join. The bill amends RSA 100-A:3, I(a) to clarify that individuals who become political subdivision employees or state employees after the establishment date will be members of the defined benefit retirement system, with specific provisions for unclassified positions. New sections are added to RSA 100-A to outline the defined contribution plan, which will start contributions on July 1, 2025, and detail the roles of the commission and executive director in its administration.

Key provisions include a requirement for members to contribute 7% of their earnable compensation, with employers contributing at least 5%. The Deferred Compensation Commission will administer the plan, while the New Hampshire Retirement System will only assess and collect contributions. The bill ensures that all contributions and investment returns are 100% vested immediately and outlines conditions for fund withdrawals. It also states that initial funding will be covered by the state general fund until July 1, 2026, after which participants will bear the costs through assessments against their accounts. Importantly, the employer will not be liable for any investment losses incurred by participants who manage their own investments. The effective date for the act is set for June 30, 2025.

Statutes affected:
Introduced: 100-A:16