Text to be removed highlighted in red.
1 New Chapter; State Multiple Employer Public Retirement Plan. Amend RSA by inserting after chapter 11 the following new chapter:
CHAPTER 11-A
STATE MULTIPLE EMPLOYER PUBLIC RETIREMENT PLAN.
11-A:1 Commission Established; Multiple Employer Public Retirement Plan; Membership. There is hereby established the multiple employer public retirement plan commission to develop specific recommendations concerning the design, creation, and implementation of a multiple employer plan (MEP) and to oversee the MEP implementation under RSA 11-A:2.
I. The commission shall be composed of:
(a) The state treasurer, or designee, who shall be the chairperson of the commission.
(b) The commissioner of labor, or designee.
(c) The commissioner of business and economic affairs, or designee.
(d) An individual with private sector experience in the area of providing retirement products and financial services to small businesses, appointed by the speaker of the house of representatives.
(e) An individual with experience or expertise in the area of the financial needs of an aging population, appointed by the governor.
(f) An individual with experience or expertise in the area of the financial needs of youth or young working adults, appointed by the governor.
(g) A representative of employers, appointed by the president of the senate.
(h) A representative of employees who currently lack access to employer-sponsored retirement plans, appointed by the governor.
II. Except for the ex officio members, members shall be appointed for 2-year terms. Members of the commission shall be reimbursed at the state employee rate for mileage for attendance at meetings of the commission.
11-A:2 Duties of the Commission.
I. The commission established in RSA 11-A:1 shall develop specific recommendations concerning the design, creation, and implementation time line of the multiple employer public retirement plan, including the following:
(a) The plan shall be available on a voluntary basis to:
(1) Employers with 50 employees or fewer that do not currently offer a retirement plan to their employees; and
(2) Self-employed individuals.
(b) The plan shall automatically enroll all employees of employers that choose to participate in the MEP.
(c) The plan shall allow employees the option of withdrawing their enrollment and ending their participation in the MEP.
(d) The plan shall be funded by employee contributions with an option for future voluntary employer contributions.
(e) The multiple employer public retirement plan shall be overseen by the commission which shall:
(1) Set program terms;
(2) Prepare and design plan documents; and
(3) Be authorized to appoint an administrator to assist in the
selection of investments, managers, custodians, and other support services.
II. The commission shall oversee the administration of the MEP, and shall study and make specific recommendations concerning:
(a) Options to provide access to retirement plans to individuals who are not eligible to participate in, or choose not to participate in, the multiple employer public retirement plan, including alternative plans and options vetted by the commission and which private sector plans and options shall be provided through a marketplace implemented no earlier than one year after the MEP begins.
(b) Options for paying for the costs of administering the MEP for the period during which program costs may exceed revenues, including allowing financial service providers to subsidize costs in exchange for longer term contracts.
(c) If after 3 years there remain significant numbers of citizens of New Hampshire who are not covered by a retirement plan, methods to increase participation in the MEP.
(d) Any other issue the commission deems relevant.
III. The commission shall:
(a) Continue monitoring United States Department of Labor guidance concerning State Savings Programs for Non-Governmental Employees regarding ERISA rules and other pertinent areas of analysis;
(b) Further analyze the relationship between the role of states and the federal government; and
(c) Continue its collaboration with educational institutions, other states, and national stakeholders.
IV. The commission shall have the assistance of the staff of the department of the treasury, the department of labor, and the department of business and economic affairs.
V. On or before November 1, 2018, the commission shall report its findings and any recommendations for legislative action to the speaker of the house of representatives, the senate president, and the governor. In its report, the commission shall state its findings as to the matters set forth in paragraphs I- III.
11-A:3 Implementation of the MEP.
I. The state of New Hampshire shall, consistent with federal law and regulation, adopt and implement a voluntary multiple employer plan (MEP) public retirement plan, which shall remain in compliance with federal law and regulations once implemented.
II. The plan shall be designed and implemented based upon the following guiding principles:
(a) Simplicity: the plan should be easy for participants to understand.
(b) Affordability: the plan should be administered to maximize cost effectiveness and efficiency.
(c) Ease of access: the plan should be easy to join.
(d) Trustworthy oversight: the plan should be administered by an organization with unimpeachable credentials.
(e) Protection from exploitation: the plan should protect its participants, particularly the elderly, from unscrupulous business practices and individuals.
(f) Portability: the plan should not depend upon employment with a specific firm or organization.
(g) Choice: the plan should provide sufficient investment alternatives to be suitable for individuals with distinct goals, but not too many options to induce analysis paralysis.
(h) Voluntary: the plan should not be mandatory but auto-enrollment should be used to increase participation.
(i) Financial education and financial literacy: the plan should assist the individual in understanding his or her financial situation.
(j) Sufficient savings: the plan should encourage adequate savings in retirement combined with existing pension savings and Social Security.
(k) Additive not duplicative: the plan should not compete with existing private sector solutions.
(l) Use of pretax dollars: contributions to the plan should be made using pretax dollars.
III. The commission shall, beginning on the first January 1 after implementation and every January 1 thereafter, report to the speaker of the house of representatives, the senate president, and the governor concerning the MEP, including:
(a) The number of employers and self-employed individuals participating in the plan;
(b) The total number of individuals participating in the plan;
(c) The number of employers and self-employed individuals who are eligible to participate in the plan but who do not participate;
(d) The number of employers and self-employed individuals, and the number of employees of participating employers who have ended their participation during the preceding 12 months;
(e) The total amount of funds contributed to the plan during the preceding 12 months;
(f) The total amount of funds withdrawn from the plan during the preceding 12 months;
(g) The total funds or assets under management by the plan;
(h) The average return during the preceding 12 months;
(i) The costs of administering the plan;
(j) The commission's assessment concerning whether the plan is sustainable and viable; and
(k) Any other information the commission considers relevant.
IV. Subject to approval by the commission, the date of implementation for the New Hampshire multiple employer public retirement plan shall be on or before January 1, 2020.
2 Effective Date. This act shall take effect 60 days after its passage.
Text to be added highlighted in green.
1 New Chapter; State Multiple Employer Public Retirement Plan. Amend RSA by inserting after chapter 11 the following new chapter:
CHAPTER 11-A
STATE MULTIPLE EMPLOYER PUBLIC RETIREMENT PLAN.
11-A:1 Commission Established; Multiple Employer Public Retirement Plan; Membership. There is hereby established the multiple employer public retirement plan commission to develop specific recommendations concerning the design, creation, and implementation of a multiple employer plan (MEP) and to oversee the MEP implementation under RSA 11-A:2.
I. The commission shall be composed of:
(a) The state treasurer, or designee, who shall be the chairperson of the commission.
(b) The commissioner of labor, or designee.
(c) The commissioner of business and economic affairs, or designee.
(d) An individual with private sector experience in the area of providing retirement products and financial services to small businesses, appointed by the speaker of the house of representatives.
(e) An individual with experience or expertise in the area of the financial needs of an aging population, appointed by the governor.
(f) An individual with experience or expertise in the area of the financial needs of youth or young working adults, appointed by the governor.
(g) A representative of employers, appointed by the president of the senate.
(h) A representative of employees who currently lack access to employer-sponsored retirement plans, appointed by the governor.
II. Except for the ex officio members, members shall be appointed for 2-year terms. Members of the commission shall be reimbursed at the state employee rate for mileage for attendance at meetings of the commission.
11-A:2 Duties of the Commission.
I. The commission established in RSA 11-A:1 shall develop specific recommendations concerning the design, creation, and implementation time line of the multiple employer public retirement plan, including the following:
(a) The plan shall be available on a voluntary basis to:
(1) Employers with 50 employees or fewer that do not currently offer a retirement plan to their employees; and
(2) Self-employed individuals.
(b) The plan shall automatically enroll all employees of employers that choose to participate in the MEP.
(c) The plan shall allow employees the option of withdrawing their enrollment and ending their participation in the MEP.
(d) The plan shall be funded by employee contributions with an option for future voluntary employer contributions.
(e) The multiple employer public retirement plan shall be overseen by the commission which shall:
(1) Set program terms;
(2) Prepare and design plan documents; and
(3) Be authorized to appoint an administrator to assist in the
selection of investments, managers, custodians, and other support services.
II. The commission shall oversee the administration of the MEP, and shall study and make specific recommendations concerning:
(a) Options to provide access to retirement plans to individuals who are not eligible to participate in, or choose not to participate in, the multiple employer public retirement plan, including alternative plans and options vetted by the commission and which private sector plans and options shall be provided through a marketplace implemented no earlier than one year after the MEP begins.
(b) Options for paying for the costs of administering the MEP for the period during which program costs may exceed revenues, including allowing financial service providers to subsidize costs in exchange for longer term contracts.
(c) If after 3 years there remain significant numbers of citizens of New Hampshire who are not covered by a retirement plan, methods to increase participation in the MEP.
(d) Any other issue the commission deems relevant.
III. The commission shall:
(a) Continue monitoring United States Department of Labor guidance concerning State Savings Programs for Non-Governmental Employees regarding ERISA rules and other pertinent areas of analysis;
(b) Further analyze the relationship between the role of states and the federal government; and
(c) Continue its collaboration with educational institutions, other states, and national stakeholders.
IV. The commission shall have the assistance of the staff of the department of the treasury, the department of labor, and the department of business and economic affairs.
V. On or before November 1, 2018, the commission shall report its findings and any recommendations for legislative action to the speaker of the house of representatives, the senate president, and the governor. In its report, the commission shall state its findings as to the matters set forth in paragraphs I- III.
11-A:3 Implementation of the MEP.
I. The state of New Hampshire shall, consistent with federal law and regulation, adopt and implement a voluntary multiple employer plan (MEP) public retirement plan, which shall remain in compliance with federal law and regulations once implemented.
II. The plan shall be designed and implemented based upon the following guiding principles:
(a) Simplicity: the plan should be easy for participants to understand.
(b) Affordability: the plan should be administered to maximize cost effectiveness and efficiency.
(c) Ease of access: the plan should be easy to join.
(d) Trustworthy oversight: the plan should be administered by an organization with unimpeachable credentials.
(e) Protection from exploitation: the plan should protect its participants, particularly the elderly, from unscrupulous business practices and individuals.
(f) Portability: the plan should not depend upon employment with a specific firm or organization.
(g) Choice: the plan should provide sufficient investment alternatives to be suitable for individuals with distinct goals, but not too many options to induce analysis paralysis.
(h) Voluntary: the plan should not be mandatory but auto-enrollment should be used to increase participation.
(i) Financial education and financial literacy: the plan should assist the individual in understanding his or her financial situation.
(j) Sufficient savings: the plan should encourage adequate savings in retirement combined with existing pension savings and Social Security.
(k) Additive not duplicative: the plan should not compete with existing private sector solutions.
(l) Use of pretax dollars: contributions to the plan should be made using pretax dollars.
III. The commission shall, beginning on the first January 1 after implementation and every January 1 thereafter, report to the speaker of the house of representatives, the senate president, and the governor concerning the MEP, including:
(a) The number of employers and self-employed individuals participating in the plan;
(b) The total number of individuals participating in the plan;
(c) The number of employers and self-employed individuals who are eligible to participate in the plan but who do not participate;
(d) The number of employers and self-employed individuals, and the number of employees of participating employers who have ended their participation during the preceding 12 months;
(e) The total amount of funds contributed to the plan during the preceding 12 months;
(f) The total amount of funds withdrawn from the plan during the preceding 12 months;
(g) The total funds or assets under management by the plan;
(h) The average return during the preceding 12 months;
(i) The costs of administering the plan;
(j) The commission's assessment concerning whether the plan is sustainable and viable; and
(k) Any other information the commission considers relevant.
IV. Subject to approval by the commission, the date of implementation for the New Hampshire multiple employer public retirement plan shall be on or before January 1, 2020.
2 Effective Date. This act shall take effect 60 days after its passage.