SB135 (2005) Detail

Relative to retirement system service and benefits for county corrections employees.


SB 135-FN – AS INTRODUCED

2005 SESSION

05-1031

10/03

SENATE BILL 135-FN

AN ACT relative to retirement system service and benefits for county corrections employees.

SPONSORS: Sen. Martel, Dist 18; Sen. Johnson, Dist 2

COMMITTEE: Banks and Insurance

ANALYSIS

This bill allows current county corrections employees to purchase prior group I service as group II creditable service, and allows retiring county corrections employees to combine group I and group II service for eligibility for medical benefits payments.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-1031

10/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to retirement system service and benefits for county corrections employees.

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

1 New Subparagraph; Medical Benefits; Payment by Retirement System; County Corrections. Amend RSA 100-A:52, I by inserting after subparagraph (g) the following new subparagraph:

(h) Any person retiring as a group II member who has at least 25 years of combined service in group II and group I as a county corrections employee.

2 New Hampshire Retirement System; Current County Corrections Personnel; Eligibility for Purchase of Prior Service as Group II Creditable Service. Any current retirement system member employed by a county corrections facility who has prior creditable service as a group I member, may purchase as group II service all or part of the period of the member’s service in a group I position. Any cost of obtaining such prior group I service as group II service, as determined by the board of trustees, shall be the responsibility of the member. An eligible member shall notify the board of trustees of the member’s desire to purchase such time within 2 years of the effective date of this act.

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

LBAO

05-1031

Revised 2/7/05

SB 135 FISCAL NOTE

AN ACT relative to retirement system service and benefits for county corrections employees.

FISCAL IMPACT:

The New Hampshire Retirement System and Association of Counties state this bill would decrease county expenditures, and increase state restricted 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 local expenditures.

The New Hampshire Retirement System’s Special Account would decrease by $900,000 in FY 2005.

METHODOLOGY:

The New Hampshire Retirement System (NHRS) states this bill would provide the postretirement medical subsidy to county correction employees who retire as Group II members and have at least 25 years of combined service in Group II and Group I as a county correction employee, and would allow current county correction employees to purchase all or part of their prior Group I creditable service as Group II creditable service. The System states the cost to terminally fund the postretirement medical subsidy for certain county correction employees as of June 30, 2005 would total $900,000. The Special Account balance as of June 30, 2004 was $30.1 million for Political Subdivision Police members. There would be no cost to the System for the purchase of Group I service as Group II service since the member pays the entire cost. State restricted expenditures would increase by an indeterminable amount due to additional administrative costs resulting from the need of NHRS staff to process the service purchase requests. 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, and an 8% increase per year on medical premiums. The System assumed that 50% of the members are married and of those who are married, 20% have coverage elsewhere and will not receive the subsidy. The System also assumed that all retirees are members of an employee sponsored health plan.

The Association of Counties states they are unable to determine the exact fiscal impact at this time. County expenditures would decrease by an indeterminable amount dependent on the number of employees that qualify for the postretirement medical subsidy from NHRS.

Links

SB135 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

SB135 Revision: 9194 Date: Jan. 21, 2010, midnight

Docket