| Chapter 180 |
| 2023 -- S 0714 Enacted 06/20/2023 |
| A N A C T |
| RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- DEFERRED COMPENSATION PLANS |
Introduced By: Senators Britto, F. Lombardi, Lawson, Ciccone, DiPalma, DiMario, and Tikoian |
| Date Introduced: March 22, 2023 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 36-13-6 of the General Laws in Chapter 36-13 entitled "Deferred |
| Compensation Plans" is hereby amended to read as follows: |
| 36-13-6. Other benefits unaffected. |
| 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. However, any |
| sum deferred under the deferred compensation program shall not be subject to taxation until |
| distribution is actually made to the employee. |
| SECTION 2. Chapter 36-13 of the General Laws entitled "Deferred Compensation Plans" |
| is hereby amended by adding thereto the following section: |
| 36-13-6.1. Sums subject to taxation. |
| (a) Except as designated in this section, any sum deferred under the deferred compensation |
| program shall not be subject to taxation until distribution is actually made to the employee. |
| (b) Subsection (a) of this section shall not apply where the deferred compensation program |
| includes a qualified Roth contribution program and the sums have been deferred as a designated |
| Roth contribution. Where the employee has elected that sums be deferred as a designated Roth |
| contribution, the sums shall be deferred post tax. |
| (c) For the purposes of this section, the term "qualified Roth contribution program" means |
| a program under which an employee may elect to make designated Roth contributions in lieu of all |
| or a portion of elective deferrals the employee is otherwise eligible to make under the deferred |
| compensation program. A program shall not be treated as a qualified Roth contribution program |
| unless the deferred compensation program: |
| (1) Establishes separate accounts for the designated Roth contributions of each employee |
| and any earnings properly allocable to the contributions; and |
| (2) Maintains separate recordkeeping with respect to each account. |
| (d) For the purposes of this section, the term "designated Roth contribution" means any |
| elective deferral which that is excludable from gross income of an employee with regard to |
| subsection (a) of this section and the employee designates as not being so excludable. |
| SECTION 3. This act shall take effect upon passage. |
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| LC001572 |
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