This bill establishes a new Group III defined contribution retirement plan for state employees who begin service on or after July 1, 2025, while allowing existing Group I employees the option to join. It amends RSA 100-A:3, I(a) to clarify that individuals who become employees after this date will be members of the defined benefit retirement system, with exceptions for elected officials and unclassified positions. The bill introduces new sections to RSA 100-A, detailing the defined contribution plan's administration by the Deferred Compensation Commission, which will manage contributions starting July 1, 2025. Key provisions include mandatory contributions of 7% from employees and a minimum of 5% from employers, along with educational resources for participants regarding investment options.

Additionally, the bill outlines that contributions and investment returns will be fully vested upon contribution and specifies conditions for fund withdrawals. It also states that the state general fund will cover the costs of establishing and administering the plan until July 1, 2026, after which participants will incur these costs through assessments against their accounts. The bill deletes certain membership conditions and adds new definitions and administrative procedures to facilitate the implementation of the defined contribution plan, while ensuring that employers are not liable for investment losses incurred by participants. The effective date for the act is set for June 30, 2025.

Statutes affected:
Introduced: 100-A:16