401(k) Plans Not in the Forecast for New Hampshire

With Democrats now controlling the New Hampshire legislature, the Granite State’s move toward DC plans and away from DB plans for new government workers seems to be dead. States and local government entities around the country have been very active in this arena, with many moving to DC plans for new workers for the same reasons that private employers have eschewed DB plans. Additionally, some are proposing state-sponsored and, in the case of California, state mandated DC-like plans for private sector employers that don’t offer retirement plans. Though New Hampshire’s proposed DC plan would help with the state’s underfunded liabilities, there was concern about the risks associated with employees selecting their own investments as well as the cost of implementing it. So much for the state motto of “Live Free or Die” – at least for now.