SB 385-FN – AS INTRODUCED
2006 SESSION
10/01
SENATE BILL 385-FN
AN ACT relative to the membership and administration of the board of trustees of the New Hampshire retirement system, and relative to supplemental allowances.
SPONSORS: Sen. Green, Dist 6; Rep. R. Wheeler, Hills 7; Rep. O’Neil, Rock 15
This bill makes changes in the membership and administration of the retirement system board of trustees. The bill also allows for one-time supplemental allowances to retired members and beneficiaries.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2864
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to the membership and administration of the board of trustees of the New Hampshire retirement system, and relative to supplemental allowances.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System Board of Trustees; Membership. RSA 100-A:14, I is repealed and reenacted to read as follows:
I. The administration of this system shall be vested in a board of 13 trustees. Board members shall be as follows:
(a) The state treasurer who shall be an ex officio voting member of the board.
(b) Two public member trustees who shall be qualified persons with business or public administration experience, appointed by the governor and council. The governor shall designate one of the public member trustees to serve as chairperson of the board of trustees.
(c) Two members of the house of representatives, appointed annually by the speaker of the house of representatives, one of whom shall serve on the executive departments and administration committee and one of whom shall serve on the finance committee.
(d) Two members of the senate, appointed annually by the president of the senate, one of whom shall serve on the insurance committee and one of whom shall serve on the finance committee.
(e) One retired member of the retirement system who shall be a beneficiary under this chapter, appointed by the governor and council.
(f) One state employee nominated by the New Hampshire state employees’ association, appointed by the governor and council.
(g) One permanent policeman nominated by the New Hampshire police association, appointed by the governor and council.
(h) One permanent firefighter nominated by the New Hampshire state permanent firemen’s association, appointed by the governor and council.
(i) One teacher nominated by the New Hampshire education association, appointed by the governor and council.
(j) One employee of a political subdivision employer nominated by the New Hampshire Local Government Center, appointed by the governor and council.
2 New Paragraph; Retirement System Board of Trustees. Amend RSA 100-A:14 by inserting after paragraph I the following new paragraph:
I-a.(a) For members designated in subparagraphs I(f) – I(j), the respective organizations shall nominate from their members a panel of 5 persons no later than May 31 of each year, and the panels so named shall be filed with the secretary of state no later than June 10 of each year. From each of the panels the governor and council shall appoint one person.
(b) Board members shall serve until a successor is appointed and qualified.
(c) Whenever a vacancy on the board of trustees occurs, the appointing authority shall fill the vacancy by appointing a member, pursuant to the required nomination procedure, who shall serve for the unexpired term. Members appointed to the board by the governor and council shall serve for a term of 2 years.
3 Applicability; Board of Trustees. Members of the retirement system board of trustees serving immediately prior to the effective date of this act who meet the requirements for membership and appointment under RSA 100-A:14 as amended by this act may serve the remainder of their term. Initial appointments by the governor and council may be for a term of one year to provide for staggered appointments.
4 Board of Trustees; Administration. Amend RSA 100-A:14, II - IV to read as follows:
II. The board of trustees shall establish such rules and regulations as it deems necessary for the proper administration of this chapter. The authority under this chapter is vested in the board and no individual board member is granted any authority except by majority vote of the board.
III. The members of the board of trustees shall serve without compensation but shall be reimbursed for actual and necessary travelling and other expenses and disbursements incurred or made by them in the discharge of their official duties. Members of the board shall participate in a continuing education program as developed by the audit committee of the board of trustees.
IV. Regular meetings of the board shall occur on the second Tuesday of each February, May, August, and November. Special meetings of the board may be convened by a request of at least 7 members. Trustees may participate in board meetings in person, by telephone, or by video conference. Each trustee shall be entitled to one vote in the board of trustees. [Six] Seven trustees shall constitute a quorum for the transaction of any business. [Six votes shall be necessary for any resolution or action by the board at any meeting.]
5 Management of Funds; Committees Established. Amend RSA 100-A:15, II to read as follows:
II. The board of trustees shall:
(a) [Have the authority to] Establish and empower an investment committee of its members to make investments and deposits between meetings of the board. The members of the investment committee shall be the state treasurer, one senate member, one house member, and 2 members selected by the chairperson of the board of trustees. The members of the investment committee shall elect a chair of the audit committee. No person other than the state treasurer may serve on both the investment committee and the audit committee.
(b) Have the further authority to hire investment counsel. The compensation for investment counsel services and the compensation for actuarial services required by the board of trustees in performing the duties required by RSA 100-A:14 shall be a charge upon the funds of the New Hampshire retirement system.
(c) Appoint and employ a custodian of the several funds of the retirement system, and such custodian, as an agent of the board, shall be compensated and such compensation shall be a charge upon the funds of the retirement system.
(d) Have the full power and authority to delegate to any agent, within or without the state, who may or may not be the custodian of stocks and securities, the power and discretion to make decisions with regard to the purchase or sale of any legal object of investment and to take any action necessary to effect decisions by or on behalf of the New Hampshire retirement system with the same legal effect as if performed by the board of trustees of the New Hampshire retirement system. The board of trustees shall have the power to authorize the payment of compensation to an agent or agents for management services.
(e) Establish and empower an audit committee to perform functions as set forth in an audit committee charter adopted by the board of trustees. The members of the audit committee shall be the state treasurer, one senate member, one house member, and 2 members selected by the chairperson of the board of trustees. The members of the audit committee shall elect a chair of the audit committee. No person other than the state treasurer may serve on both the investment committee and the audit committee.
6 Method of Financing; Special Account; Assumed Rate of Return. Amend RSA 100-A:16, II(h)(2) to read as follows:
(2) All of the earnings of the remaining assets of the retirement system which are in excess of the assumed rate of return plus 1/2 of one percent added to such rate shall be allocated to the 4 member classifications. The assumed rate of return shall be determined [by] or adjusted as needed through the enactment of appropriate legislation, pursuant to the recommendation of the board of trustees.
7 Supplemental Allowances; One-Time Amounts. Amend RSA 100-A:41-a, I to read as follows:
I. Any retired member of the New Hampshire retirement system or any of its predecessor systems, who has been retired for at least 12 months, or any beneficiary of such member who is receiving an allowance, shall be entitled to receive supplemental allowances, also known as cost of living adjustments or COLAs, on the retired member’s latest anniversary date. The amount of such supplemental allowances shall be limited to from one percent to 5 percent, with increments of no less than ½ of one percent. Alternatively, retired members and beneficiaries may be granted a one-time stipulated amount, determined by the fiscal committee, as a supplemental allowance.
8 Repeal. RSA 100-A:41-b, relative to one-time supplemental allowance for certain retired group II members, is repealed.
9 Effective Date. This act shall take effect 60 days after its passage.
LBAO
06-2864
Revised 12/20/05
SB 385 FISCAL NOTE
AN ACT relative to the membership and administration of the board of trustees of the New Hampshire retirement system, and relative to supplemental allowances.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill will have no fiscal impact on state, county, and local revenue or expenditures.
METHODOLOGY:
The New Hampshire Retirement System states this bill makes changes in the membership and administration of the Retirement System Board of Trustees, and allows the Fiscal Committee to grant a one-time stipulated amount, as determined by the committee, as a supplemental allowance. This bill will impact the System administratively, but will have no fiscal impact on state, county, and local revenue or expenditures.