HB 499 – FINAL VERSION
HOUSE BILL 499
This bill makes various changes to the requirements for participation for members of the city of Manchester employees retirement system and the administration of benefits by the board.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [
in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to participation in and administration of the Manchester employees’ contributory retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
40:1 Employees to Whom the Act Applies. Amend 1973, 218:7, I, as amended by 2002, 194:1, to read as follows:
I. All full-time and permanent part-time employees of the city, including elected and appointed officials of the city, shall participate in the retirement system and receive benefits as provided by the act. For purposes of this act, employees of the Manchester school district, Manchester public library, and the Manchester contributory retirement system shall be city employees. Participation in the retirement system shall be a condition of employment with the city. The following employees of the city shall not be eligible to participate in the retirement system:
(a) Temporary employees;
(b) Members of boards and commissions who are not part-time or full-time employees of the city;
(c) Members of the fire and police departments who are eligible to participate in a state-administered retirement system; [
(d) Persons who are eligible to participate in the New Hampshire retirement system[
(e) Trustees of the Manchester contributory retirement system who are not otherwise eligible as a result of employment by the city.
40:2 Service Credit and Service Buyback. Amend 1973, 218:10, I, as amended by 2002, 194:1, to read as follows:
I. Service rendered for the full normal working time in a period of 12 consecutive months shall entitle a member to one year of service credit. Time spent as a member of any of the various city boards, or in any other capacity rendering incidental employment to the city, shall not be counted as service for the purposes of this act. Absence from employment on account of active duty with the armed forces of the United States in time of emergency or war, or as directed by selective service or to meet selective service requirements, or as a member of the national guard, or organized reserves, to meet its requirements, shall be counted as continuous employment with the city, provided, that the employee returns directly to active employment with the city [
within 90 days] after he or she becomes eligible for release from such active duty. Any such period of absence shall not be counted as service unless the employee completes a service buyback.
40:3 Retirement Benefit Calculation. Amend 1973, 218:12, V(a), as amended by 2002, 194:1, to read as follows:
(a) One and 1/2 percent of the member’s final average earnings multiplied by the number of years, including the fractions of years represented by full months, of service completed prior to January 1, 1999, except that any service credit upgraded to the 2 percent rate pursuant to paragraph VI of this section shall be calculated in accordance with subparagraph (b); plus
40:4 Optional Retirement Benefit. Amend 1973, 218:12, VI, as amended by 2002, 194:1 and 2004, 159:1, to read as follows:
VI. Prior to a member’s termination of employment, a member may elect, under rules of the board, to receive a retirement benefit of 2 percent of the member’s average final earnings for all years of service or any portion thereof, provided that the member shall be responsible for payment of 50 percent of the [
actuarially determined cost of the] benefit based on methods and assumptions adopted by the board. The retirement system shall be responsible for the payment of the remaining 50 percent of the [ actuarially determined cost of the benefit] retirement benefit based on methods and assumptions adopted by the board.
40:5 Disability Retirement Benefit Calculation. Amend 1973, 218:15, II(a), as amended by 2002, 194:1 to read as follows:
(a) One and 1/2 percent of the member’s final average earnings multiplied by the number of years, including the fractions of years represented by full months, of service completed prior to January 1, 1999, except that any service credit upgraded to the 2 percent rate pursuant to section 12, paragraph VI shall be calculated in accordance with subparagraph (b); plus
40:6 Disability Benefits; Medical Examination. Amend 1973, 218:15, IV, as amended by 2002, 194:1 to read as follows:
At least once each year] Following the retirement of a member with a disability retirement pension and prior to the member’s normal retirement date, the retirement board may require such retiree to undergo a medical examination to be made by or under the direction of a physician or physicians designated by the retirement board. Should any disabled member refuse to submit to such medical examination [ in any such period of the member’s disability retirement], the disability retirement pension shall be discontinued by the retirement board until the withdrawal of the refusal. If the refusal continues for one year, all the member’s rights in and to a disability retirement pension shall be revoked by the retirement board. If, upon such medical examination, the physician or physicians certify to the retirement board that the disabled member is physically and mentally able and capable of resuming employment [ with the city, the member shall be restored to city employment in either the same position previously held or a position comparable in duties, responsibilities and compensation and the member’s disability retirement pension shall be terminated. If the member, after being declared physically and mentally capable of resuming employment refuses an offer of employment by the city in the member’s previous position or a comparable position] in the capacity in which the member became disabled, the member’s disability benefit shall be terminated.
40:7 Adjustments. Amend 1973, 218:20, as amended by 2002, 194:1, to read as follows:
218:20 Adjustments in Benefits for Retirees to Maintain Financial Parity. In order to maintain the economic value of a member’s retirement income on a parity with the value of the monthly payments at the time of retirement, and to offset the impact of inflation in reducing the real income of the member’s retirement payment, the retirement board may, as deemed necessary, adjust the payments to retirees to maintain their incomes at an approximate level with their real incomes at the time of retirement, provided, however, that payments to retired members shall not be less than the payment to which they were initially entitled at the time of retirement; provided further that sufficient funds are available to fund any additional benefits either through earnings of the retirement fund or through such special appropriation by the city as may be approved by the board of mayor and aldermen. Any adjustment made to a member’s retirement income by the retirement board pursuant to this section shall not apply to the additional retirement allowance or benefit purchased by the member pursuant to section 9, paragraph III.
40:8 Retirement System Employees. Upon the effective date of this section, employees of the Manchester employees’ contributory retirement system in service on the effective date, shall be eligible to purchase prior service credit for continuous time in the service of the Manchester employees contributory retirement system. The cost of such service shall be paid by the member based on methods and assumptions adopted by the board.
40:9 Effective Date. This act shall take effect 60 days after its passage.
(Approved: May 17, 2005)
(Effective Date: July 16, 2005)