HB 1602-FN – AS INTRODUCED
2006 SESSION
10/04
HOUSE BILL 1602-FN
AN ACT eliminating the reduction of a New Hampshire retirement system annuity at age 65.
SPONSORS: Rep. Morrison, Belk 2; Rep. J. Tilton, Merr 6
COMMITTEE: Executive Departments and Administration
This bill removes the provisions requiring the reduction of a group I New Hampshire retirement system annuity when the member reaches the age of 65.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2660
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT eliminating the reduction of a New Hampshire retirement system annuity at age 65.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Group I Service Retirement. 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 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 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 Group I Ordinary Disability Benefit. Amend RSA 100-A:6, I(b)(1) to read as follows:
(b)(1) Upon ordinary disability retirement, the group I member who has attained age 60 shall receive an ordinary disability retirement allowance which shall consist of a member annuity and shall be the actuarial equivalent of the member’s accumulated contributions at the time of his or her ordinary disability retirement, and a state annuity as follows:
(A) [Prior to the member’s attainment of age 65,] The state annuity, together with the member annuity, shall be equal to 1/60 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;
(B) [After attainment of age 65, 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 ordinary disability retirement multiplied by the number of years of creditable service at the time of his ordinary disability retirement;
(C)] Regardless of age at disability, the ordinary disability retirement allowance shall not be less than 25 percent of the member’s average final compensation at the time of his or her disability retirement.
3 Group I Accidental Disability Benefit. Amend RSA 100-A:6, I(d)(1) to read as follows:
(d)(1) Upon accidental disability retirement, the group I member who has attained age 60 shall receive an accidental disability retirement allowance which shall consist of a member annuity and shall be the actuarial equivalent of the member’s accumulated contributions at the time of his or her accidental disability retirement, and a state annuity as follows:
(A) [Prior to the member’s attainment of age 65,] The state annuity, together with the member annuity, shall be equal to 1/60 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;
(B) [After attainment of age 65, 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 accidental disability retirement multiplied by the number of years of creditable service at the time of his accidental disability retirement;
(C)] Regardless of age at disability, such allowance shall not be less than 50 percent of the member’s average final compensation at the time of his or her accidental disability retirement.
4 Effective Date. This act shall take effect January 1, 2008.
LBAO
06-2660
11/15/05
HB 1602-FN - FISCAL NOTE
AN ACT eliminating the reduction of a New Hampshire retirement system annuity at age 65.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill will increase state, county, and local expenditures by an indeterminable amount in FY 2009 and each year thereafter. There will be no fiscal impact on state, county, and local revenue.
METHODOLOGY:
Currently under Group I, the benefit multiplier is reduced from 1/60 to 1/66 when the member attains age 65. This bill would eliminate the reduction. The System assumes this bill would be applicable to active contributing members on or after January 1, 2008, and current retirees and deferred vested members as of January 1, 2008 would not be eligible for the changes proposed in this bill. Using the target funding methodology, the System estimates the employer normal rate would increase by 1.00 % of salary for employee members, and by 1.11% for teacher members. The increased normal rate would result in additional annual employer contributions of $11,346,000 for employee members, and $11,463,000 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. The System states there would also be administrative costs to NHRS for modifications to the System’s mainframe system and PC programs, but such costs cannot be determined at this time.