HB569 (2007) Detail

Relative to the retirement age for retirement system group II members.


HB 569-FN – AS INTRODUCED

2007 SESSION

07-0072

10/04

HOUSE BILL 569-FN

AN ACT relative to the retirement age for retirement system group II members.

SPONSORS: Rep. Hawkins, Hills 18

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill increases the retirement age for group II retirement system members who begin employment on or after July 1, 2007.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0072

10/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to the retirement age for retirement system group II members.

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

1 State Employees Group Insurance. Amend RSA 21-I:30, III to read as follows:

III. Any vested deferred state retiree may receive medical and surgical benefits under this section if the vested deferred state retiree is eligible. To be eligible, a vested deferred state retiree shall have at least 10 years of creditable service with the state if the employee’s service began prior to July 1, 2003 or 20 years of creditable service if the employee’s service began on or after July 1, 2003. In addition, if the vested deferred state retiree is a member of group I, such retiree shall be at least 60 years of age to be eligible. If the vested deferred state retiree is a member of group II, such retiree shall not be eligible until 20 years from the date of becoming a member of group II and shall be at least 45 years of age if the employee’s service began prior to July 1, 2007 or 55 years of age if the employee’s service began on or after July 1, 2007.

2 Service Retirement; Group II Age. Amend RSA 100-A:5, II to read as follows:

II. Group II Members.

(a) Any group II member in service who has attained age 45 if the member’s service began prior to July 1, 2007 or 55 years of age if the member’s service began on or after July 1, 2007 and completed 20 years of creditable service, or who has attained age 60 regardless of the number of years of creditable service, may retire on a service retirement allowance upon written application to the board of trustees setting forth at what time not less than 30 days nor more than 90 days subsequent to the filing thereof the member desires to be retired, notwithstanding that during such period of notification the member may have separated from service.

(b) Upon service retirement, a group II member shall receive a service retirement allowance which shall consist of:

(1) A member annuity which shall be the actuarial equivalent of his accumulated contributions at the time of retirement; and

(2) A state annuity which, together with his member annuity, shall be equal to 2 ½ percent of his average final compensation multiplied by the number of years of his creditable service not in excess of 40 years.

(c)(1) Notwithstanding any provision of RSA 100-A to the contrary, any group II member who has retired on or after the effective date of this subparagraph after attaining the age of 45 if the member’s service began prior to July 1, 2007 or 55 years of age if the member’s service began on or after July 1, 2007 with at least 20 years of creditable service shall receive a minimum annual service retirement allowance of $10,000. If such group II member has elected to convert the retirement allowance into an optional allowance for the surviving spouse under RSA 100-A:13, the surviving spouse shall be entitled to a proportional share of the $10,000.

3 Vested Deferred Retirement; Group II Age. Amend RSA 100-A:10, II(b) to read as follows:

(b) Upon the member’s attainment of age 45 if the member’s service began prior to July 1, 2007 or 55 years of age if the member’s service began on or after July 1, 2007, provided the member would then have completed 20 years of creditable service, otherwise the subsequent date on which such 20 years would have been completed, or at any time after age 60, a group II member who meets the requirement of subparagraph (a) may make application on a form prescribed by the board of trustees and receive a vested deferred retirement allowance which shall consist of: (1) A member annuity which shall be the actuarial equivalent of accumulated contributions on the date the member’s retirement allowance commences; and (2) A state annuity which, together with the member annuity, shall be equal to a service retirement allowance based on the member’s average final compensation and creditable service at the time the member’s service is terminated.

4 Split Benefits; Minimum Age. Amend RSA 100-A:19-b, II to read as follows:

II. For a member who has completed 20 or more years of combined creditable service, one year shall be deducted from age 60 for each year of creditable group II service, provided that the age shall not be less than 45 years if the member’s service began prior to July 1, 2007 or 55 years of age if the member’s service began on or after July 1, 2007.

5 Reduced Early Retirement. Amend RSA 100-A:19-d to read as follows:

100-A:19-d Reduced Early Retirement. Notwithstanding any other provision of law, any retirement system member who has creditable service in both group I and group II with at least 10 years combined creditable service, and who has attained an age which is at least 45 if the member’s service began prior to July 1, 2007 or 55 years of age if the member’s service began on or after July 1, 2007 and is within 10 years of the minimum age set forth in RSA 100-A:19-b, may elect to retire and have benefits commence immediately as a reduced split-benefit service retirement allowance. Application shall be as provided in RSA 100-A:5, I(c). The allowance shall be determined as a split-benefit service retirement allowance in accordance with RSA 100-A:19-c, and the total combined split-benefit service allowance shall be reduced by the percentages shown in RSA 100-A:5, I(c), based on the total combined length of creditable service, for each month by which the date on which benefits commence precedes the month after which the member attains the minimum age set forth in RSA 100-A:19-b.

6 Effective Date. This act shall take effect July 1, 2007.

LBAO

07-0072

01/26/07

HB 569-FN - FISCAL NOTE

AN ACT relative to the retirement age for retirement system group II members.

FISCAL IMPACT:

    The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the N.H. Retirement System. When completed, the fiscal note will be forwarded to the House Clerk's Office.