1 Participation by Members; Retirement System; Defined Contribution Plan. Amend the introductory paragraph of RSA 100-A:3, I(a) to read as follows:

I.(a) Any person who becomes an employee, teacher, permanent policeman, or permanent fireman after the date of establishment before July 1, 2019, working in a position for an employer under this chapter as determined by common law standards, shall become a member of the defined benefit retirement system as a condition of employment. In addition, employees appointed to an unclassified position with no fixed term on or after July 1, 2011 and before July 1, 2019 shall become members of the defined benefit retirement system as a condition of employment, if they are receiving benefits from the retirement system. Any retirement benefit allowance collected by such an unclassified employee shall be suspended during the period of employment. Membership in the retirement system shall be optional in the case of elected officials, officials appointed for fixed terms, employees appointed to an unclassified position with no fixed term prior to July 1, 2011, or those employees of the general court who are eligible for membership in the retirement system. Employees, teachers, permanent policemen, and permanent firemen beginning service on or after July 1, 2019 shall as a condition of employment participate in the retirement system defined contribution plan established under RSA 100-A:58 through RSA 100-A:70. Elected officials and officials appointed for fixed terms shall, however, be eligible for membership in the retirement system only under the following conditions:

2 New Subdivision; Retirement System Defined Contribution Plan. Amend RSA 100-A by inserting after section 57 the following new subdivision:

Retirement System Defined Contribution Plan

100-A:58 Definitions. In this subdivision:

I. "Committee" means the benefits advisory committee established in RSA 100-A:61.

II. "Member" means a person employed by the state or a political subdivision who is required to or elects to participate in the plan established in this subdivision.

III. "Plan" means the retirement system defined contribution plan established for members who began service on and after July 1, 2019, and who transfer funds to the defined contribution plan pursuant to procedures adopted by the state treasurer with the advice of the committee. The defined contribution retirement plan is a plan in which savings are accumulated in an individual account for the exclusive benefit of the member or beneficiaries. The plan is established effective July 1, 2019, at which time contributions by members begin.

100-A:59 Defined Contribution Plan Established. There is hereby established a retirement benefit plan for members required to or who voluntarily elect to enroll in the retirement system, who began service on or after July 1, 2019. The defined contribution retirement plan is intended to qualify under 26 U.S.C. section 401(a) and section 414(d), the Internal Revenue Code, as a qualified retirement plan established and maintained by the state for its employees and for the employees of political subdivision employers in the state. All qualifying contributions shall be held and invested by the state treasurer. All such contributions and all investments, reinvestments, interest, or other moneys held by the treasurer shall not be assets of the retirement system administered by the board of trustees or subject to control of the board of trustees of the retirement system. All assets received by the plan shall be held for the exclusive benefit of plan participants and their beneficiaries and applied solely as provided by the plan.

100-A:60 Membership. Any person who is first employed, or reemployed after leaving service, by an employer and entered on the payroll on a full-time or eligible part-time basis on or after July 1, 2019 shall be a member of the retirement system defined contribution plan established in this subdivision; except that membership shall be optional in the case of elected officials, officials appointed for fixed terms, unclassified state employees, or those employees of the general court who are eligible for membership in the retirement system.

100-A:61 Benefits Advisory Committee Established.

I. A retirement benefits advisory committee is hereby established consisting of the following members:

(a) The state treasurer, who shall be a nonvoting member.

(b) The commissioner of administrative services or designee.

(c) The insurance commissioner or designee.

(d) The banking commissioner or designee.

(e) The director of the office of securities regulation, department of state.

(f) The attorney general or designee.

(g) Two members of the New Hampshire retirement system board of trustees, appointed by the board.

II. Five members shall constitute a quorum for the transaction of business and may act on behalf of the committee.

100-A:62 Administration; Rulemaking.

I. The administrator of the plan shall be the state treasurer, who shall have the assistance and services of the department of administrative services for all duties and responsibilities under this subdivision.

II. The state treasurer, with the consent of the committee, shall adopt rules, pursuant to RSA 541-A, relative to the procedure for administration of the investment options of members and beneficiaries, and forms necessary for the administration of this subdivision.

100-A:63 Administration of Plan.

I. The state treasurer may contract with a third-party administrator for the retirement system defined contribution plan for the administration of assets accumulated under each participant's account, subject to the consent of the committee.

II. The committee shall provide advice and give consent to the state treasurer on the provision of investment options and services by an administrator under a plan contract.

100-A:64 Contributions by Member. The member participating under this subdivision shall contribute at a minimum the percentage of earnable compensation as follows:

I. For group I members, 5 percent.

II. For group II members, 9.3 percent.

100-A:65 Limitations on Contributions. Notwithstanding any other provisions of this plan, the annual additions to each member's individual account under this plan may not exceed, for any limitation year, the amount permitted under 26 U.S.C. section 415 at any time. If the amount of a member's defined contribution plan contributions exceeds the limitation of 26 U.S.C. section 415(c) for any limitation year, the administrator shall take any necessary remedial action to correct an excess contribution.

100-A:66 Investment of Individual Accounts.

I. The administrator shall provide a range of investment options and permit a participant to exercise investment control over the participant's assets in the member's individual account as provided in this section. If a participant exercises control over the assets in the individual account, the participant is not considered a fiduciary for any reason on the basis of exercising that control.

II. A participant may direct investment of plan funds held in an account among available investment funds in accordance with rules established by the administrator and approved by the committee.

III. A participant may elect to change or transfer all or a portion of the participant's existing account balance among available investment funds not more often than once each day in accordance with the rules established by the administrator. Only the last election received by the administrator before the transmittal of contributions to the trust fund for allocation to the individual account will be used to direct the investment of the contributions received.

IV. Except to the extent clearly set out in the terms of the investment plans offered by the employer to the employee, the employer is not liable to the participant for investment losses if the prudent investment standard has been met.

V. The employer, administrator, state, or board, or a person or entity who is otherwise a fiduciary, is not liable for any participant's investment loss that results from the participant's directing the investment of plan assets allocated to the participant's account.

100-A:67 Contributions by the State or a Political Subdivision. Employers under the plan may contribute to member accounts as a match to the contributions by the member.

100-A:68 Vesting. Member contributions and investment return attributable to member contributions shall be 100 percent vested as of the date of contribution or accrual. Employer contributions, if any, and investment return attributable to employer contributions held in an account of a member by the administrator shall be vested under this subdivision according to the following schedule:

I. 20 percent of funds in an account after one year of continuous participation by a member.

II. 40 percent of funds in an account after 2 years of continuous participation by a member.

III. 60 percent of funds in an account after 3 years of continuous participation by a member.

IV. 80 percent of funds in an account after 4 years of continuous participation by a member.

V. 100 percent of funds in an account after 5 years of continuous participation by a member.

100-A:69 Withdrawal of Funds. Distributions from an account of a member shall be permitted in the following circumstances, subject to applicable limitations under federal regulations:

I. Termination of employment.

II. Retirement.

III. Upon turning age 59½ and still employed as limited by federal regulations.

IV. If the member becomes disabled.

V. If the member dies.

VI. Based on financial hardship as defined in applicable federal regulations.

100-A:70 Health Insurance Group Insurance Inclusion. Any retired member and his or her beneficiaries shall be eligible to participate in the group hospitalization, hospital medical care, surgical care, and other medical and surgical benefits provided under RSA 100-A:50 through RSA 100-A:55 at his or her own expense unless otherwise provided.

3 Effective Date. This act shall take effect 60 days after its passage

1 Participation by Members; Retirement System; Defined Contribution Plan. Amend the introductory paragraph of RSA 100-A:3, I(a) to read as follows:

I.(a) Any person who becomes an employee, teacher, permanent policeman, or permanent fireman before July 1, 2019, working in a position for an employer under this chapter as determined by common law standards, shall become a member of the defined benefit retirement system as a condition of employment. In addition, employees appointed to an unclassified position with no fixed term on or after July 1, 2011 and before July 1, 2019 shall become members of the defined benefit retirement system as a condition of employment, if they are receiving benefits from the retirement system. Any retirement benefit allowance collected by such an unclassified employee shall be suspended during the period of employment. Membership in the retirement system shall be optional in the case of elected officials, officials appointed for fixed terms, employees appointed to an unclassified position with no fixed term prior to July 1, 2011, or those employees of the general court who are eligible for membership in the retirement system. Employees, teachers, permanent policemen, and permanent firemen beginning service on or after July 1, 2019 shall as a condition of employment participate in the retirement system defined contribution plan established under RSA 100-A:58 through RSA 100-A:70. Elected officials and officials appointed for fixed terms shall, however, be eligible for membership in the retirement system only under the following conditions:

2 New Subdivision; Retirement System Defined Contribution Plan. Amend RSA 100-A by inserting after section 57 the following new subdivision:

Retirement System Defined Contribution Plan

100-A:58 Definitions. In this subdivision:

I. "Committee" means the benefits advisory committee established in RSA 100-A:61.

II. "Member" means a person employed by the state or a political subdivision who is required to or elects to participate in the plan established in this subdivision.

III. "Plan" means the retirement system defined contribution plan established for members who began service on and after July 1, 2019, and who transfer funds to the defined contribution plan pursuant to procedures adopted by the state treasurer with the advice of the committee. The defined contribution retirement plan is a plan in which savings are accumulated in an individual account for the exclusive benefit of the member or beneficiaries. The plan is established effective July 1, 2019, at which time contributions by members begin.

100-A:59 Defined Contribution Plan Established. There is hereby established a retirement benefit plan for members required to or who voluntarily elect to enroll in the retirement system, who began service on or after July 1, 2019. The defined contribution retirement plan is intended to qualify under 26 U.S.C. section 401(a) and section 414(d), the Internal Revenue Code, as a qualified retirement plan established and maintained by the state for its employees and for the employees of political subdivision employers in the state. All qualifying contributions shall be held and invested by the state treasurer. All such contributions and all investments, reinvestments, interest, or other moneys held by the treasurer shall not be assets of the retirement system administered by the board of trustees or subject to control of the board of trustees of the retirement system. All assets received by the plan shall be held for the exclusive benefit of plan participants and their beneficiaries and applied solely as provided by the plan.

100-A:60 Membership. Any person who is first employed, or reemployed after leaving service, by an employer and entered on the payroll on a full-time or eligible part-time basis on or after July 1, 2019 shall be a member of the retirement system defined contribution plan established in this subdivision; except that membership shall be optional in the case of elected officials, officials appointed for fixed terms, unclassified state employees, or those employees of the general court who are eligible for membership in the retirement system.

100-A:61 Benefits Advisory Committee Established.

I. A retirement benefits advisory committee is hereby established consisting of the following members:

(a) The state treasurer, who shall be a nonvoting member.

(b) The commissioner of administrative services or designee.

(c) The insurance commissioner or designee.

(d) The banking commissioner or designee.

(e) The director of the office of securities regulation, department of state.

(f) The attorney general or designee.

(g) Two members of the New Hampshire retirement system board of trustees, appointed by the board.

II. Five members shall constitute a quorum for the transaction of business and may act on behalf of the committee.

100-A:62 Administration; Rulemaking.

I. The administrator of the plan shall be the state treasurer, who shall have the assistance and services of the department of administrative services for all duties and responsibilities under this subdivision.

II. The state treasurer, with the consent of the committee, shall adopt rules, pursuant to RSA 541-A, relative to the procedure for administration of the investment options of members and beneficiaries, and forms necessary for the administration of this subdivision.

100-A:63 Administration of Plan.

I. The state treasurer may contract with a third-party administrator for the retirement system defined contribution plan for the administration of assets accumulated under each participant's account, subject to the consent of the committee.

II. The committee shall provide advice and give consent to the state treasurer on the provision of investment options and services by an administrator under a plan contract.

100-A:64 Contributions by Member. The member participating under this subdivision shall contribute at a minimum the percentage of earnable compensation as follows:

I. For group I members, 5 percent.

II. For group II members, 9.3 percent.

100-A:65 Limitations on Contributions. Notwithstanding any other provisions of this plan, the annual additions to each member's individual account under this plan may not exceed, for any limitation year, the amount permitted under 26 U.S.C. section 415 at any time. If the amount of a member's defined contribution plan contributions exceeds the limitation of 26 U.S.C. section 415(c) for any limitation year, the administrator shall take any necessary remedial action to correct an excess contribution.

100-A:66 Investment of Individual Accounts.

I. The administrator shall provide a range of investment options and permit a participant to exercise investment control over the participant's assets in the member's individual account as provided in this section. If a participant exercises control over the assets in the individual account, the participant is not considered a fiduciary for any reason on the basis of exercising that control.

II. A participant may direct investment of plan funds held in an account among available investment funds in accordance with rules established by the administrator and approved by the committee.

III. A participant may elect to change or transfer all or a portion of the participant's existing account balance among available investment funds not more often than once each day in accordance with the rules established by the administrator. Only the last election received by the administrator before the transmittal of contributions to the trust fund for allocation to the individual account will be used to direct the investment of the contributions received.

IV. Except to the extent clearly set out in the terms of the investment plans offered by the employer to the employee, the employer is not liable to the participant for investment losses if the prudent investment standard has been met.

V. The employer, administrator, state, or board, or a person or entity who is otherwise a fiduciary, is not liable for any participant's investment loss that results from the participant's directing the investment of plan assets allocated to the participant's account.

100-A:67 Contributions by the State or a Political Subdivision. Employers under the plan may contribute to member accounts as a match to the contributions by the member.

100-A:68 Vesting. Member contributions and investment return attributable to member contributions shall be 100 percent vested as of the date of contribution or accrual. Employer contributions, if any, and investment return attributable to employer contributions held in an account of a member by the administrator shall be vested under this subdivision according to the following schedule:

I. 20 percent of funds in an account after one year of continuous participation by a member.

II. 40 percent of funds in an account after 2 years of continuous participation by a member.

III. 60 percent of funds in an account after 3 years of continuous participation by a member.

IV. 80 percent of funds in an account after 4 years of continuous participation by a member.

V. 100 percent of funds in an account after 5 years of continuous participation by a member.

100-A:69 Withdrawal of Funds. Distributions from an account of a member shall be permitted in the following circumstances, subject to applicable limitations under federal regulations:

I. Termination of employment.

II. Retirement.

III. Upon turning age 59½ and still employed as limited by federal regulations.

IV. If the member becomes disabled.

V. If the member dies.

VI. Based on financial hardship as defined in applicable federal regulations.

100-A:70 Health Insurance Group Insurance Inclusion. Any retired member and his or her beneficiaries shall be eligible to participate in the group hospitalization, hospital medical care, surgical care, and other medical and surgical benefits provided under RSA 100-A:50 through RSA 100-A:55 at his or her own expense unless otherwise provided.

3 Effective Date. This act shall take effect 60 days after its passage