HB62 (2005) Detail

Relative to the Social Security offset in the calculation of state retirement system annuities.


HB 62-FN – AS INTRODUCED

2005 SESSION

05-0157

10/09

HOUSE BILL 62-FN

AN ACT relative to the Social Security offset in the calculation of state retirement system annuities.

SPONSORS: Rep. Pilotte, Hills 16; Rep. F. Sullivan, Hills 12; Sen. Martel, Dist. 18

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill provides for the application of the Social Security offset at the retirement system member’s full retirement age under the federal Social Security system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0157

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to the Social Security offset in the calculation of state retirement system annuities.

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

1 Retirement System; Service Retirement Benefits; Social Security Offset. Amend RSA 100-A:5, I(b) to read as follows:

(b) Upon service retirement, an employee member or teacher member of group I shall receive a service retirement allowance which shall consist of a member annuity which shall be the actuarial equivalent of the member’s accumulated contributions at the time of retirement, and a state annuity. Prior to the member’s attainment of [age 65] the member’s full retirement age for Social Security, the state annuity, together with the member annuity, shall be equal to 1/60 of the member’s average final compensation multiplied by the number of years of creditable service. After attainment of [age 65] the member’s full retirement age for Social Security, the state annuity, together with the member annuity, shall be equal to 1/66 of the member’s average final compensation multiplied by the number of years of creditable service.

2 Retirement System; Ordinary Disability Retirement Benefits; Social Security Offset. Amend RSA 100-A:6, I(b)(1)(B) to read as follows:

(B) After attainment of [age 65] the member’s full retirement age for Social Security, the state annuity, together with the member annuity, shall be equal to 1/66 of the member’s average final compensation at the time of his or her ordinary disability retirement multiplied by the number of years of creditable service at the time of his or her ordinary disability retirement;

3 Retirement System; Accidental Disability Retirement Benefits; Social Security Offset. Amend RSA 100-A:6, I(d)(1)(B) to read as follows:

(B) After attainment of [age 65] the member’s full retirement age for Social Security, the state annuity, together with the member annuity, shall be equal to 1/66 of the member’s average final compensation at the time of his or her accidental disability retirement multiplied by the number of years of creditable service at the time of his or her accidental disability retirement;

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

LBAO

05-0157

11/24/04

HB 62-FN - FISCAL NOTE

AN ACT relative to the Social Security offset in the calculation of state retirement system annuities.

FISCAL IMPACT:

The New Hampshire Retirement System states this bill will increase state, county, and local expenditures by an indeterminable amount in FY 2005 and each year thereafter. There will be no fiscal impact on state, county, and local revenue.

METHODOLOGY:

The New Hampshire Retirement System (NHRS) states that currently under Group I, the benefit multiplier decreases from 1/60 to 1/66 when the member attains age 65. This bill would modify the timing of the multiplier change from age 65 to the member’s Social Security Normal Retirement Age. A member’s Social Security Normal Retirement Age would range from age 65 to age 67 depending on the member’s date of birth. Using the target funding methodology, the System estimates the employer normal rate would increase by .10% of salary for Employee members, and by .11% for Teacher members. The increased normal rate would result in increased annual employer contributions of $937,000 for Employee members and $970,000 for Teacher members. State, county, and local governments will experience increased costs to the extent they pay employer contributions on behalf of Group I employees participating in the New Hampshire Retirement System. There will also be an indeterminable administrative cost to the NHRS since the Pension Gold mainframe system would need to be modified in order to accommodate the proposed change in benefit calculation.

The Actuary’s letter is on file in the bill jacket in the House Clerk’s Office.

Links

HB62 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB62 Revision: 9049 Date: Jan. 21, 2010, midnight

Docket