1 New Section; Public Employees Deferred Compensation Plan; State Employees Automatic Enrollment and Automatic Escalation. Amend RSA 101-B by inserting after section 8 the following new section:

101-B:9 State Employees; Automatic Enrollment; Automatic Escalation.

I. Each full-time, permanent state employee hired on or after April 1, 2023 shall be automatically enrolled in the public employee deferred compensation plan established under this chapter. Upon beginning employment, the initial contribution under the plan shall be 2 percent of the employee's compensation.

II. When an employee enrolled in the deferred compensation program receives a collectively bargained general raise in salary, his or her contribution rate for the deferred compensation program shall be increased by 0.5 percentage points or by $25 per pay period if contributing a fixed dollar amount. The maximum rate of deferred compensation under automatic enrollment and automatic escalation shall be 7 percent, except where an applicable lower maximum deferral rate applies, as defined in the deferred compensation plan documents. An employee may opt out of automatic escalation at any time, as allowed by the deferred compensation plan documents.

III. Any county, city, town, or other political subdivision participating in the public employees deferred compensation plan under this chapter may elect to implement the automatic enrollment and automatic escalation provisions of this section, notwithstanding RSA 275:48.

IV. Nothing in this section shall limit an employee's right to modify his or her contribution rate, as allowed by the deferred compensation plan documents. If an employee elects to leave the plan within 60 days of enrollment, the plan shall return all contributions within 30 days.

V. Automatic enrollment and automatic escalation shall be subject to the following safe harbor provisions:

(a) The automatic contribution and automatic escalation provisions shall be an eligible automatic contribution arrangement described in 26 U.S.C. section 414(w) of the federal Internal Revenue Code of 1986.

(b) Anything otherwise provided by or under this section is limited or modified as necessary to meet subparagraph (a), and for the plan to be an eligible deferred compensation plan described in 26 U.S.C. section 457(b) of the federal Internal Revenue Code of 1986.

(c) The deferred compensation commission has, and shall have, authority to make rules and procedures, including, but not limited to, forms of notices and instructions to interpret and implement this section.

(d) The legislature declares that an automatic contribution or an automatic escalation contribution made pursuant to this section is required or empowered by state law within the meaning of RSA 275:48, I(a).

2 Effective Date. This act shall take effect April 1, 2023.

1 New Section; Public Employees Deferred Compensation Plan; State Employees Automatic Enrollment and Automatic Escalation. Amend RSA 101-B by inserting after section 8 the following new section:

101-B:9 State Employees; Automatic Enrollment; Automatic Escalation.

I. Each full-time, permanent state employee hired on or after April 1, 2023 shall be automatically enrolled in the public employee deferred compensation plan established under this chapter. Upon beginning employment, the initial contribution under the plan shall be 2 percent of the employee's compensation.

II. When an employee enrolled in the deferred compensation program receives a collectively bargained general raise in salary, his or her contribution rate for the deferred compensation program shall be increased by 0.5 percentage points or by $25 per pay period if contributing a fixed dollar amount. The maximum rate of deferred compensation under automatic enrollment and automatic escalation shall be 7 percent, except where an applicable lower maximum deferral rate applies, as defined in the deferred compensation plan documents. An employee may opt out of automatic escalation at any time, as allowed by the deferred compensation plan documents.

III. Any county, city, town, or other political subdivision participating in the public employees deferred compensation plan under this chapter may elect to implement the automatic enrollment and automatic escalation provisions of this section, notwithstanding RSA 275:48.

IV. Nothing in this section shall limit an employee's right to modify his or her contribution rate, as allowed by the deferred compensation plan documents. If an employee elects to leave the plan within 60 days of enrollment, the plan shall return all contributions within 30 days.

V. Automatic enrollment and automatic escalation shall be subject to the following safe harbor provisions:

(a) The automatic contribution and automatic escalation provisions shall be an eligible automatic contribution arrangement described in 26 U.S.C. section 414(w) of the federal Internal Revenue Code of 1986.

(b) Anything otherwise provided by or under this section is limited or modified as necessary to meet subparagraph (a), and for the plan to be an eligible deferred compensation plan described in 26 U.S.C. section 457(b) of the federal Internal Revenue Code of 1986.

(c) The deferred compensation commission has, and shall have, authority to make rules and procedures, including, but not limited to, forms of notices and instructions to interpret and implement this section.

(d) The legislature declares that an automatic contribution or an automatic escalation contribution made pursuant to this section is required or empowered by state law within the meaning of RSA 275:48, I(a).

2 Effective Date. This act shall take effect April 1, 2023.