CHAPTER 233
HB 1520-FN – FINAL VERSION
05Mar2008… 0350h
05/01/08 1452s
05/01/08 1633s
2008 SESSION
10/01
HOUSE BILL 1520-FN
AN ACT allowing service in the Peace Corps and AmeriCorps to be purchased as creditable service in the retirement system.
SPONSORS: Rep. Benn, Graf 9; Rep. Graham, Hills 18; Rep. Emerton, Hills 7; Rep. Kurk, Hills 7; Sen. Fuller Clark, Dist 24; Sen. Janeway, Dist 7; Sen. Hassan, Dist 23
COMMITTEE: Executive Departments and Administration
This bill allows members of the retirement system who terminate employment and join the Peace Corps or AmeriCorps to purchase up to 2 years of such service as creditable service.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05Mar2008… 0350h
05/01/08 1452s
05/01/08 1633s
08-2206
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT allowing service in the Peace Corps and AmeriCorps to be purchased as creditable service in the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
233:1 New Paragraph; Retirement; Creditable Service; Peace Corps; AmeriCorps. Amend RSA 100-A:4 by inserting after paragraph VII the following new paragraph:
VIII. Any employee, teacher, permanent policeman, or permanent fireman who has completed at least 5 years of membership service and who terminates his or her employment in order to enter directly into the Peace Corps or AmeriCorps, shall be entitled to service credit for the period of such Peace Corps or AmeriCorps service, provided he or she again becomes employed within a year after the termination of such service and provided further that he or she elects to make, and makes while in active service and within a period of time equal to 3 times the length of time of such service, but not more than 5 years, all payments of the full actuarial cost to the system. The full actuarial cost of service credit purchases under this paragraph shall be determined by the actuary based on methods and assumptions recommended by the actuary and approved by the board of trustees. The member may be required to prepay all or part of the actuarial calculation fee, as determined by the board. Credit shall not be granted until the active member has fully paid for such service credit in a lump sum or by installment payments as permitted by the board. The member’s payment shall be credited to the member annuity savings fund. The amount of service credit purchased under this paragraph shall not exceed the least of (a) 2 years or (b) the member’s actual period of Peace Corps and AmeriCorps service or (c) 5 years minus the period of nonqualified service credit purchased by the member pursuant to former RSA 100-A:4, VII. Creditable service purchased under this paragraph shall not be used for the purpose of eligibility for medical and surgical benefits as a retired employee under RSA 21-I:30, RSA 100-A:52, RSA 100-A:52-a, or RSA 100-A:52-b.
233:2 Membership; Peace Corps or AmeriCorps Service Credit. Amend RSA 100-A:3, VI(b) to read as follows:
(b) In the case of prior service credit for time served as a member for which the member’s accumulated contributions have been withdrawn, the amount of creditable service purchased may be the full length of service relating to the withdrawn contributions or a partial share of such service. The amount determined by the actuary to reinstate full or partial service credit shall be the amount of withdrawn contributions, but not less than one month’s contributions multiplied by the ratio of the service credit to be purchased to the full length of service relating to the withdrawn contributions, with this amount adjusted for interest from the date of withdrawal to the date of payment based on the interest rates in effect for each fiscal year. The amount determined by the actuary to purchase prior service credit related to Peace Corps and AmeriCorps service shall be computed under RSA 100-A:4, VIII. For all other prior service credit the amount determined by the actuary shall be the product of the member’s annual rate of compensation at the time of buy-in, multiplied by the sum of the member and employer contribution rates in effect with respect to the member at the time of buy-in, multiplied by the number of years of prior service credit bought.
233:3 Effective Date. This act shall take effect 60 days after its passage.
Approved: June 20, 2008
Effective Date: August 19, 2008