SB191 (2005) Detail

Allowing retirement system members to make additional contributions to their accounts.


SB 191-FN – AS INTRODUCED

2005 SESSION

05-1013

10/09

SENATE BILL 191-FN

AN ACT allowing retirement system members to make additional contributions to their accounts.

SPONSORS: Sen. Odell, Dist 8; Sen. D'Allesandro, Dist 20; Rep. Parkhurst, Ches 4

COMMITTEE: Banks and Insurance

ANALYSIS

This bill allows members of the retirement system to make additional contributions to their account in the retirement system. This bill reinstates the provision repealed effective December 31, 2004.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-1013

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT allowing retirement system members to make additional contributions to their accounts.

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

1 New Subparagraph; Retirement System; Additional Contributions. Amend RSA 100-A:16, I by inserting after subparagraph (e) the following new subparagraph:

(f)(1) In addition to the contributions deducted from the compensation of members as hereinbefore provided, and subject to the approval of the board of trustees and to such rules as the board may make with respect to the crediting of interest thereon, any member may provide an additional retirement allowance by making contributions at an additional rate not in excess of the rate computed to be sufficient to provide an additional retirement allowance which, together with his or her regular retirement allowance, will result in a total retirement allowance not in excess of 50 percent of his or her average final compensation. Such additional contributions shall become part of accumulated contributions except in the case of retirement, when they shall be treated as excess contributions returnable to the member in cash or as a member annuity of equivalent actuarial value.

(2)(A) Any member, or a member’s employer, may make additional contributions on behalf of a member at an additional rate as determined by the actuary and approved by the board of trustees or its designee. Any additional contributions made by a member who intends to retire pursuant to RSA 100-A:5, I(c), or additional contributions of the employer, may be used to offset the reduction, or a portion thereof, in retirement benefits for early retirement as provided in RSA¬†100-A:5, I(c). Any actuarial fees incurred in determining the amount of additional contributions required for early retirement as provided by this subparagraph shall be paid by the member.

(B) Any additional contributions made under this subparagraph shall become part of the member’s accumulated contributions including interest, and may be withdrawn, in cash, upon the member’s retirement in lieu of the provisions in subparagraph (f)(2)(A).

(C) If the member is not covered by the provisions of a collective bargaining agreement pursuant to RSA 273-A, the appropriation for such early retirement shall be expressly approved by the legislative body, provided however that in political subdivisions using the town meeting form of government such approval shall be by separate warrant article.

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

LBAO

05-1013

1/12/05

SB 191-FN - FISCAL NOTE

AN ACT allowing retirement system members to make additional contributions to their accounts.

FISCAL IMPACT:

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

METHODOLOGY:

The New Hampshire Retirement System (NHRS) states this bill would allow members to make additional contributions to purchase a supplemental annuity. The supplemental annuity would either be used to offset the early retirement reduction, or provide an annuity, which when added to the regular annuity, would equal 50% of the average final compensation. The System states this bill would have no cost on the System since the member would pay the cost for the supplemental annuity.

The System states there would be administrative costs associated with this legislation since NHRS will need to process the requests.

Links

SB191 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

SB191 Revision: 9244 Date: Jan. 21, 2010, midnight

Docket