CHAPTER 224
SB 405 – FINAL VERSION
05/11/06 2234eba
2006 SESSION
10/01
SENATE BILL 405
AN ACT relative to the acceptance of certain tax-sheltered funds by the Manchester employees’ contributory retirement system.
SPONSORS: Sen. Martel, Dist 18; Sen. D'Allesandro, Dist 20; Sen. Odell, Dist 8; Sen. Roberge, Dist 9; Rep. Pilotte, Hills 16; Rep. Vaillancourt, Hills 15; Rep. Infantine, Hills 13; Rep. Gonzalez, Hills 17; Rep. F. Sullivan, Hills 12
COMMITTEE: Public and Municipal Affairs
This bill allows the Manchester employees’ contributory retirement system to accept certain tax-sheltered funds for service buybacks of members.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05/11/06 2234eba
06-3055
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to the acceptance of certain tax-sheltered funds by the Manchester employees’ contributory retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
224:1 New Section; Manchester Employees’ Contributory Retirement System; Acceptance of Certain Tax Sheltered Funds for Allowable Service Purchases. Amend 1973, 218, as amended by 2002, 194 and 2006, 115, by inserting after section 30 the following new section:
218:31 Acceptance of Certain Tax Sheltered Funds.
I. For the purposes of funding a service buyback in accordance with section 10, paragraphs III and IV, and Administrative Rule 2.6, the Manchester Employees’ Contributory Retirement System may accept a trustee to trustee transfer of funds from a retirement plan that is tax-qualified as described in section 401(k), 403(b), or 457 of the United States Internal Revenue Code of 1986, as amended. Any such transfers shall be limited to the amount necessary for a service buyback as determined by the retirement system in accordance with section 10, paragraph VI.
II. The provisions of this section shall be subject to all provisions of this act, as amended, in conformity with applicable provisions of the United States Internal Revenue Code of 1986, as amended.
III. Service credit purchased under this section shall be creditable service for the purpose of eligibility for retirement and other benefits under this act, as amended.
IV. A service buyback will not be allowed if the service buyback would violate section 415(n) of the Internal Revenue Code of 1986, as amended.
V. Service buybacks made pursuant to this section shall comply with all informational requirements appearing on the “Application for Acceptance of Tax Sheltered Funds for Service Buybacks” which is provided by the retirement system.
224:2 Effective Date. This act shall take effect upon its passage.
Approved: June 1, 2006
Effective: June 1, 2006