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 employees after the establishment date will join the defined benefit retirement system, while those starting service on or after July 1, 2025, will be part of the new defined contribution plan. Key provisions include the insertion of new legal language defining the Group III plan, outlining membership requirements, and specifying contribution rates, with members contributing 7% of their earnable compensation and employers contributing at least 5%.

The bill also establishes the Deferred Compensation Commission to oversee the plan's administration and investment, ensuring that contributions and investment returns are 100% vested upon contribution. It outlines the initial funding mechanism, stating that costs associated with the plan's establishment and administration will be covered by the state general fund until July 1, 2026, after which participants will bear these costs. Additionally, the bill clarifies that employers are not 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