HB594 (2005) Detail

(New Title) relative to retirement system classification for department of corrections correctional line personnel.


HB 594-FN – AS AMENDED BY THE HOUSE

30Mar2005… 0722h

2005 SESSION

05-0430

10/01

HOUSE BILL 594-FN

AN ACT relative to retirement system classification for department of corrections correctional line personnel.

SPONSORS: Rep. O'Neil, Rock 15; Rep. Zolla, Rock 5

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill removes department of corrections correctional line personnel from group II classification in the state retirement system. The bill allows persons employed as group II department of corrections correctional line personnel on the effective date of the act to remain group II.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

30Mar2005… 0722h

05-0430

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to retirement system classification for department of corrections correctional line personnel.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Repeal. RSA 100-A:1, VII(b), relative to group II classification of department of corrections correctional line personnel, is repealed.

2 Application of Repeal to Current Personnel. A person employed as department of corrections correctional line personnel and classified as a group II retirement system member as of the effective date of this act may remain a group II member and continue accruing service as group II service, notwithstanding the 5-year service requirement in RSA 100-A:3, II-c, for as long as the person holds that position or a related position reached through normal career-path promotion.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

05-0430

Amended 4/13/05

HB 594 FISCAL NOTE

AN ACT relative to retirement system classification for department of corrections correctional line personnel.

FISCAL IMPACT:

      The Department of Corrections states this bill, as amended by the House (House Amendment # 2005-0722h), will decrease state expenditures by an indeterminable amount in FY 2005 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

    The Department of Corrections states this bill removes correctional line personnel from Group II of the New Hampshire Retirement System (NHRS), and places them in Group I, but allows correctional line personnel in Group II on the effective date of this act, to remain in Group II. The Department states they currently have 243 correctional line positions in Group II of NHRS, and estimates salaries for these positions at $9,476,546. Group II employer contribution rates for police members in FY 2005 and FY 2006 are estimated at 12.11% and 14.90% of salary, respectively. Group I employer contribution rates in FY 2005 and FY 2006 are estimated at 5.90% and 6.81% of salary, respectively. In addition, Group I employers must contribute 6.2% of salary to Social Security. Group II members do not participate in Social Security, and thus no employer contribution is required on their behalf. Assuming a turnover rate of 30 employees per year or 12.35% based on 2004 figures, and no annual salary increase, the estimated fiscal impact is as follows:

                      FY 2005 FY 2006

    Affected Salaries (12.35% x $9,476,546) $1,170,353 $1,170,353

    Group II Employer Contributions $ 141,730 $ 174,383

    Group I Employer Contributions

    Group I NHRS Contributions $ 69,051 $ 79,701

    Social Security Contributions 72,562 72,562

    Total Group I Employer Contributions $ 141,613 $ 152,263

    Difference (Group I minus Group II) ($ 117) ($ 22,120)

    The New Hampshire Retirement System states this bill would remove correctional line personnel from Group II classification, however, current correctional personnel members will remain in Group II. There will be no cost of savings to the System for current members since they will remain in Group II. There are no additional administrative costs associated with this legislation.

    The System’s actuary performed calculations based on the same data, actuarial assumptions, and methods as were used in the June 30, 2004 actuarial valuation of the System including a 9% interest rate.

Links

HB594 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB594 Revision: 9028 Date: Jan. 21, 2010, midnight

Docket