HB 1376 Summary

• Establishes defined contribution system for employees first hired on or after November 1, 2015, by participating employers, excluding certain positions (district attorneys, county/city employees, and legislative staff hired for full session).

• Raises minimum employee contribution rate to 4.5% of compensation for the defined contribution plan, with maximum contributions not exceeding Internal Revenue Code Section 415 limits.

• Sets employer match at 6% of compensation, with option to increase to 7% if employee contributes 7% or more, but employer match cannot fall below 6% annually.

• Specifies vesting schedule for employer matching contributions: 20% in year 1, increasing to 100% in year 5, with 100% immediate vesting for employee contributions.

• Establishes requirements for qualified domestic orders including 30-month marriage minimum for marital property payments, specific order specifications, and restrictions on payment timing and beneficiary changes.