Chapter 101-B: Public Employees Deferred Compensation Plan

In this chapter, "employee" means any person whether appointed, elected or under contract, providing services for the state, county, city, town or other political subdivision, for which compensation is paid.

I. A deferred compensation commission is hereby established consisting of the following members:

(a) The state treasurer or designee;

(b) The commissioner of administrative services or designee;

(c) The insurance commissioner or designee;

(d) The attorney general or designee;

(e) The secretary of state, or designee;

(f) One member who shall be an unclassified state employee and a member of the deferred compensation plan, and who shall have knowledge of defined contribution plans, appointed by the governor with the advice and consent of the council, for a term of 3 years;

(g) One member who shall be a public employee at-large, and who shall have knowledge of defined contribution plans, appointed by the governor with the advice and consent of the council, for a term of 3 years;

(h) One member who shall be a nonclassified legislative employee and a member of the deferred compensation plan, and who shall have knowledge of defined contribution plans, appointed by the speaker of the house and the president of the senate, for a term of 3 years; and

(i) One member who shall be a nonclassified judicial employee and a member of the deferred compensation plan, and who shall have knowledge of defined contribution plans, appointed by the chief justice of the supreme court, for a term of 3 years.

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

The commission may contract with an administrator or custodian of deferred compensation plans for the administration of assets accumulated under each employee participant's account. The commission may also appoint a trustee for the plan. The commission shall appoint the administrator, custodian, or trustee through competitive bidding. The commission shall issue requests for proposals at such times as it deems appropriate but in no case shall any contract with an administrator, custodian, or trustee exceed 10 years without approval of the governor and council.

The administrator or custodian appointed pursuant to RSA 101-B:3, shall assist the commission as directed by the commission. He shall maintain a separate account for each employee participant and provide periodic reports of the status of each account to the commission. The administrator or custodian is authorized to impose a reasonable fee to cover recordkeeping and other administrative costs associated with his duties as administrator or custodian. The amount of such fee shall be subject to the approval of the commission.

Investment permitted under this plan may include fixed annuities, variable annuities, life insurance, mutual funds, bank accounts, and such other investments as the commission may approve. Such investments shall be underwritten and offered in compliance with applicable federal and state laws and regulations by persons who are duly authorized by the commission in accordance with the provisions of this chapter.

The state or any political subdivision may, by contract, agree with any employee or independent contractor thereto, to defer compensation, in whole or in part.

The deferred compensation program established by this chapter shall exist and serve in addition to retirement, pension or benefit systems established by the state, county, city, town or other political subdivision, and no deferral of income under the deferred compensation program shall affect a reduction of any retirement, pension or other benefit provided by law. Any sum deferred under the deferred compensation program shall not be subject to state taxation until distribution is actually made to the employee.

The financial liability of the state, county, city, town or other political subdivision under a deferred compensation program shall be limited to the value of the particular fixed or variable life insurance or annuity contract or contracts purchased on behalf of any employee.

The deferred compensation plan shall operate without cost to any political subdivision, any of their departments or agencies, or any of their wholly owned institutions and instrumentalities, except for the incidental expense of administering the deduction of the deferred funds from the employee's compensation and the remittance thereof to the program as established by this chapter. The deferred compensation commission may expend funds of the state not otherwise appropriated, with the approval of governor and council, for consulting or auditing services, which shall not exceed $10,000 per year. The governor shall draw a warrant for such funds out of any sums in the general fund not otherwise appropriated.