HI SR174

Urges the Department of Human Resources Development (DHRD) and Department of Education (DOE) to establish and offer a qualified Roth contribution program to retirement plan participants by July 1, 2023

Designated Roth contributions allow employees to make after-tax contributions that grow tax-free, with qualified distributions (including capital gains) exempt from taxation upon withdrawal, unlike traditional pre-tax retirement contributions

Identifies that the Employees' Retirement System cannot offer Roth contributions under current IRC section 401(a) requirements, but DHRD and DOE can offer Roth options through their existing deferred compensation programs under IRC sections 457(b) and 403(b)

Notes that 13 states (Alaska, Connecticut, Idaho, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New York, and Ohio) and municipalities already offer qualified Roth contribution programs to employees

Directs certified copies be sent to the Governor, Director of Human Resources Development, Chairperson of the Board of Education, and Superintendent of Education