CHAPTER 120
HB 1634-FN – FINAL VERSION
15Feb2006… 0816h
2006 SESSION
08/09
HOUSE BILL 1634-FN
COMMITTEE: Executive Departments and Administration
This bill makes various technical changes to the law governing the New Hampshire retirement system.
This bill was requested by the New Hampshire retirement 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15Feb2006… 0816h
06-2484
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT making technical changes to the law governing the New Hampshire retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
120:1 Salary Changes. Amend RSA 94:1-a, I(b) by deleting in Group HH:
HH New Hampshire retirement system director of finance
II New Hampshire retirement system executive director
120:2 Definitions. Amend RSA 100-A:1, IV to read as follows:
IV. “Employer” shall mean (a) the state or any department, commission, institution, or agency of the state government by which an employee is paid through the office of the state treasurer with respect to their employees, (b) the state, the local school district, or other employers of teachers eligible for membership in the system with respect to the teachers in their employ, (c) any police department or police force of the state, or of any county, city, town, village, or precinct in the state with respect to the permanent policemen in their employ, [and] (d) any fire department of the state, or of any county, city, town, village, or precinct in the state with respect to the permanent firemen in their employ, and (e) any political subdivision that has elected to participate under RSA 100-A:20; provided, however, that in no instance shall any employer contribute or participate in the retirement system unless by a reasonable determination of the board of trustees such employer qualifies as a governmental entity, political subdivision, agency, or instrumentality eligible to [maintain] participate in the retirement system as a governmental plan within the meaning of section 414(d) of the United States Internal Revenue Code of 1986, as amended.
120:3 Definitions. Amend RSA 100-A:1, XV to read as follows:
XV. “Prior service” shall mean service rendered prior to the date of membership in the retirement system for which credit was given under the terms of one or more of the predecessor systems, and as set forth [in RSA 100-A:4] under this chapter.
120:4 Definitions. Amend RSA 100-A:1, XIX to read as follows:
XIX. “Accumulated contributions” shall mean the sum of all the amounts deducted from the compensation of a member, any additional contributions, any contributions for purchases under this chapter, together with any amount transferred to the account of the member established pursuant to this system from the respective account of said member under one or more of the predecessor systems, with interest thereon, as provided in RSA 100-A:16, II(g).
120:5 Membership. RSA 100-A:3, VI(c) is repealed and reenacted to read as follows:
(c) Except for service described in subparagraph (d), in no case shall prior service purchased as credible service in the New Hampshire retirement system under the provisions of this section be deemed to be creditable service for the purposes of eligibility for medical benefits after retirement under the provisions of RSA 21-I:30, RSA 100-A:52, RSA 100-A:52-a, or RSA 100-A:52-b.
120:6 Creditable Service. Amend RSA 100-A:4, III(b) to read as follows:
(b) Notwithstanding the provisions of subparagraph (a) or any other law to the contrary, any member who receives a weekly award under the provisions of RSA 281-A from the commissioner of labor, for injury arising out of and in the course of employment, shall be entitled to creditable service for said period not in excess of one year. To receive creditable service, a member shall file a department of labor memo of payment of disability compensation form, with the board of trustees, verifying the first and last payment of disability compensation [not later than one year after the date of] for each new unrelated injury.
120:7 Disability Retirement Benefits. RSA 100-A:6, I(c)(2)(B) is repealed and reenacted to read as follows:
(B) The member did not intend for injury to result from the member’s conduct; and
120:8 Disability Retirement Benefits. Amend RSA 100-A:6, I(c)(2)(C) to read as follows:
(C) The incapacitating accident, trauma, degeneration, or occupational disease has been found to be compensable by the employer, the [employee’s] employer’s insurance carrier, or the commissioner of labor pursuant to RSA 281-A:43.
120:9 Disability Retirement Benefits. RSA 100-A:6, II(c)(2)(B) is repealed and reenacted to read as follows:
(B) The member did not intend for injury to result from the member’s conduct; and
120:10 Disability Retirement Benefits. Amend RSA 100-A:6, II(c)(2)(C) to read as follows:
(C) The incapacitating accident, trauma, degeneration, or occupational disease has been found to be compensable by the employer, the [employee’s] employer’s insurance carrier, or the commissioner of labor pursuant to RSA 281-A:43.
120:11 Administration. Amend RSA 100-A:14, V to read as follows:
V. The board of trustees shall have the full power to employ and compensate such employees on such terms as may be necessary as charges upon the funds of the retirement system, and establish personnel policies without regard to any personnel or civil service law or personnel or civil service rule of the state. The employees of the retirement system shall not be classified employees of the state within the meaning of RSA 21-I:49. Notwithstanding, any individual employed by the retirement system whose employment calls for 30 hours or more work in a normal calendar week, and whose position is anticipated to have a duration of 6 months or more, shall be entitled to elect to receive such health, dental, life insurance, deferred compensation, and retirement benefits as are afforded to classified employees of the state. Upon election by such individual, the retirement system shall pay from its funds the state’s share of such benefits. Any remaining costs of health, dental, and life insurance benefits which an individual elects to receive pursuant to this paragraph, shall be withheld from such individual’s salary as a payroll deduction. Written notice of the availability of these benefit options shall be provided to each individual upon employment by the retirement system. It may also engage such actuarial, medical, and like services as may be required to transact the business of the system. The compensation for such special services, and all other expenses of the board necessary, hereto, shall be paid at such rates and in such amounts as the board shall approve. Service as an employee of the retirement system shall be creditable service for purposes of RSA 21-I:30, II. Any retirement system employee who transfers, without a break in service, to a state classified service position shall transfer all the days of sick leave credit and annual leave credit that the retirement system employee has accumulated pursuant to this section. At the time of such a transfer, the employee shall immediately begin to accrue annual and sick leave as granted at the time of the transfer by the receiving agency according to the employee’s continuous years worked.
120:12 Method of Financing. Amend RSA 100-A:16, II(b) to read as follows:
(b) The contributions of each employer for benefits under the retirement system on account of group II members shall consist of a percentage of the earnable compensation of its members to be known as the “normal contribution”, and an additional amount to be known as the “accrued liability contribution”; provided that any employer, other than the state, shall pay 65 percent of such total contributions, and 35 percent thereof shall be paid by the state; and provided further that, in case of group II members employed by the state, the state shall pay both normal and accrued liability contributions. The rate percent of such normal contribution, including contributions on behalf of group II members whose group II creditable service is in excess of 40 years, in each instance shall be fixed on the basis of the liabilities of the system with respect to the particular members of the various member classifications as shown by actuarial valuations, except as provided in subparagraphs (h) and (i).
120:13 Call Substitute or Volunteer Firemen. Amend RSA 100-A:19, II to read as follows:
II. Upon the application of a call, substitute or volunteer fireman who is eligible for benefits under this section, and who has become totally and permanently incapacitated as the natural and proximate result of an injury received while in the actual performance of fire duty at some definite time and place, without willful negligence on his part, such fireman shall receive an annual allowance not to exceed $1,250; provided he is found to be mentally or physically incapacitated for employment and that such incapacity is likely to be permanent. The fact of such fireman’s permanent disability shall be established in a manner similar to that employed for determining the eligibility of a member for an accidental disability allowance under RSA 100-A:6[, and, after the commencement of such allowance, said fireman shall be subject to the provisions of RSA 100-A:6, III, as if the same were part of this section].
120:14 Payment by Retirement System; Group II. Amend RSA 100-A:52, I to read as follows:
I. The New Hampshire retirement system shall pay the cost for permanent group hospitalization, hospital medical care, surgical care and other medical and surgical benefits, in the employer-sponsored plan provided for active employees of a retiree’s former employer, subject to the provisions of RSA 100-A:55, for the following persons:
(a) Any person retired as a group II member of the New Hampshire retirement system on service or disability retirement, provided that such person shall be entitled to retirement on the basis of group II creditable service without including any credit for service as a group I member of the retirement system, or any person retired on or before July 1, 1991, as a group I member whose service retirement benefit is based upon the provisions of RSA 100-A:19-c and who has a minimum of 10 years of creditable service as a group II member.
(b) [The spouse of such a qualified retiree.
(c)] The surviving spouse of a deceased retired group II member who met the qualifications of subparagraph (a), or of a deceased member who died while in service as a group II member, provided that such surviving spouse was covered as the member’s spouse in the employer-sponsored plan before the member’s death and is entitled to a monthly allowance under RSA 100-A:8, 100-A:9, 100-A:12 or 100-A:13.
[(d)] (c) Any certifiably dependent child with a disability living in the household and being cared for by the qualified retired member, the member’s spouse, or the qualified surviving spouse.
[(e)] (d) The surviving spouse and children of a deceased group II member who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:
(1) Any such child shall be qualified under this subparagraph only if under 18 years of age, or under 23 years of age if attending school on a full-time basis; and
(2) Such surviving spouse shall cease to be qualified upon the remarriage of the surviving spouse; and
(3) No surviving spouse or child shall be qualified or continue to be qualified under this subparagraph while receiving or eligible to receive medical insurance or health care benefits from any employer-sponsored plan.
[(f)] (e) Any person who, prior to July 1, 1988, had completed no less than 20 years of group II creditable service, but who for reasons other than retirement or death ceased to be a group II member prior to attaining the age of 45, and who, as of July 1, 1993, is eligible for vested deferred retirement benefits.
[(g)] (f) Persons who are group II permanent policemen members on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty who become permanent policemen members of group II after June 30, 1988, but before July 1, 1991.
(g) The spouse of a qualified retiree, until death or remarriage.
120:15 Payment by Retirement System; Group II. Amend RSA 100-A:52, IV to read as follows:
IV. In the case of group II members retired from employment by political subdivisions of the state, the amount payable by the retirement system on account of qualified persons shall be paid over to the employer, insurer, or health care administrator and used to pay for all or part of the medical benefits provided through the former employer for qualified persons. If the cost of the premium for any retired group II member or surviving spouse shall exceed the maximum under paragraph II, and the employer does not elect to pay the excess cost, the excess cost shall be paid by the retiree or qualified surviving spouse and may be deducted from retirement benefits as provided in RSA 100-A:51. The employer may require, as a condition for coverage, that the retiree or surviving spouse apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.
120:16 Payment by Retirement System; Group I Teachers and Political Subdivision Employees. Amend RSA 100-A:52-a, I(h) to read as follows:
(h) The spouse of a qualified retiree, until death or remarriage.
120:17 Payment by Retirement System; Group I State Employees. Amend RSA 100-A:52-b, I (h) to read as follows:
(h) The spouse of a qualified retiree, until death or remarriage.
120:18 Payment by Retirement System; Group I State Employees. Amend RSA 100-A:52, I(h) to read as follows:
(h) The spouse of a qualified retiree, until death or remarriage.
120:19 Repeal. RSA 100-A:34, relative to permitted earnings for retired teachers and state employees, is repealed.
120:20 Effective Date. This act shall take effect 60 days after its passage.
Approved: May 15, 2006
Effective: July 14, 2006