The bill amends Chapter 36-13 of the General Laws, which pertains to "Deferred Compensation Plans." It authorizes the state or any political subdivision to enter into contracts with employees to defer compensation and to contract with financial institutions for the purchase of government securities, mutual funds, or insurance products to fund obligations under a deferred compensation program. The bill specifies that after October 1, 1998, the state must engage three companies to administer these plans, with provisions ensuring employees have options for financial products, the right to make changes without penalties, and protection of personal information. If fewer than three companies qualify, the state may engage fewer companies. The bill also includes a severability clause.

Additionally, the bill introduces a new provision effective January 1, 2024, allowing any participating municipality to offer its employees the state's deferred compensation plans, subject to the same rules and regulations as state employees. It also amends sections to reflect that the State Investment Commission selects financial entities for the state plan and that the administration of the program within each state agency or political subdivision is under the direction of the respective director or designated officer. The bill takes effect upon passage.