CONCORD, N.H. (AP) — Last year, Republican lawmakers shifted more of New Hampshire's public pension costs onto workers to ease employers' expenses. Now, they're proposing a parallel plan for new employees that lacks a guaranteed lifetime benefit.
State Sen. Fenton Groen, a Rochester Republican, is sponsoring legislation to create a mandatory defined contribution plan for public employees hired starting Nov. 1. Such plans are relatively rare in state governments, though more states are looking at them as a way to shift the financial risks of traditional defined benefit plans from employers to employees.
Under Groen's proposal, employees and their employers would have to contribute to a system similar to a 401(k) where their money is invested and their retirement payment depends on their total investments when they retire.
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