Investment committee adopts hybrid defined‑contribution plan document with revised hardship provisions

The investment committee approved final adoption of the hybrid defined‑contribution plan document, concluding a period of interagency coordination that staff said resolved earlier implementation issues with the Department of Finance and Administration and other statewide agencies.

Staff told the committee the package includes three categories of edits: two administrative housekeeping corrections, and a substantive change to the language governing participant emergency withdrawals. The draft replaces prior 'unforeseeable emergency' terminology with revised 'hardship provisions' that staff and outside counsel (Ice Miller) and plan administrator (Empower) drafted to expand flexibility and include safe‑harbor language the presenters said better serves participants.

In discussion, board members asked clarifying questions about the redline edits and whether the hardship language constituted a material policy change; staff characterized most edits as cleanup and described the hardship revisions as participant‑facing clarifications recommended by Empower and drafted by counsel. A motion for final adoption was moved, seconded and approved by voice vote without recorded opposition.

Staff will incorporate the approved document into implementation planning with DFA and Treasury and return to the committee with any administrative follow‑up needed to operationalize the hardship provisions and participant communications.