Revision: Dec. 10, 2009, midnight
HB 1428-FN – AS INTRODUCED
2010 SESSION
10/04
HOUSE BILL 1428-FN
AN ACT relative to death benefits for surviving spouses of a New Hampshire retirement system member.
SPONSORS: Rep. P. McMahon, Merr 3
COMMITTEE: Executive Departments and Administration
This bill removes the requirement in the retirement system for the termination of benefits for a surviving spouse when the surviving spouse remarries.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2669
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to death benefits for surviving spouses of a New Hampshire retirement system member.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Death Benefits; Group II. Amend RSA 100-A:12 to read as follows:
100-A:12 Benefits Upon Member’s Death After Retirement--Group II Members.
I. Upon the death of a retired group II member who retired before April 1, 1987, after the member’s retirement allowance payments have commenced, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member’s estate, in addition to the amount payable under RSA 100-A:11 a lump sum of $3,600; provided, however, that if said retired member was, prior to the member’s death, in receipt of an accidental disability retirement allowance there shall be paid to the person’s spouse, if surviving, in lieu of such lump sum payment, an allowance to continue until the spouse’s death [or remarriage] equal to 50 percent of the accidental disability retirement allowance payable to the retired member prior to the member’s death.
I-a. In addition to any other provision of this section, upon the death of a retired group II member of the New Hampshire retirement system or any predecessor system, who retired pursuant to RSA 100-A:5, II with at least 20 years of creditable service or pursuant to RSA 100-A:6, II(a) prior to April 1, 1987, there shall be paid to the member’s spouse at the time of retirement, if surviving, an allowance to continue until the spouse’s death [or remarriage] equal to 50 percent of the service or ordinary disability retirement allowance payable to the retired member prior to the member’s death. The total cost of terminally funding the benefits provided by this paragraph shall be funded from the special account established under RSA 100-A:16, II(h).
II. Upon the death of a group II member who has retired on or after April 1, 1987, or upon the death of a group II member who has filed an application for retirement benefits with the board of trustees after January 1, 1991, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member’s estate, in addition to the amount payable under RSA 100-A:11 a lump sum of $3,600 if the member retired before July 1, 1988, and if the member is married on the date of such member’s retirement, there shall be paid to such surviving spouse an allowance to continue until the spouse’s death [or remarriage] equal to 50 percent of the member’s service, ordinary disability, or accidental disability retirement allowance payments. For any person who is a group II member as of June 30, 1988, and who retires on or after July 1, 1988, the lump sum payment shall be $10,000. For any person who becomes a member of group II on or after July 1, 1988, and on or prior to July 1, 1993, the lump sum payment shall be $3,600. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be funded by reimbursement from the special account established under RSA 100-A:16, II(h).
2 Board of Trustees’ Authority; Remarriage. Amend RSA 100-A:14, XIV to read as follows:
XIV. The board of trustees shall have the authority to recover for the retirement system any benefits deemed not payable under this chapter including as a result of a death of any retiree or beneficiary[, or as the result of the remarriage of a surviving spouse in receipt of benefits].
3 Medical Benefit Subsidy; Group II. Amend RSA 100-A:52, I(d) to read as follows:
(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.
4 Medical Benefit Subsidy; Group II. Amend RSA 100-A:52, I(g) to read as follows:
(g) The spouse of a qualified retiree, until the spouse’s death [or remarriage].
5 Medical Benefit Subsidy; Group I Teachers and Political Subdivision Employees. Amend RSA 100-A:52-a, I(f) to read as follows:
(f) The surviving spouse and children of a deceased teacher or group I political subdivision employee 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’s sponsored plan.
6 Medical Benefit Subsidy; 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 the spouse’s death [or remarriage].
7 Medical Benefit Subsidy; Group I. Amend RSA 100-A:52-b, I(f) to read as follows:
(f) The surviving spouse and children of a deceased group I 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’s sponsored plan.
8 Medical Benefit Subsidy; Group I. Amend RSA 100-A:52-b, I(h) to read as follows:
(h) The spouse of a qualified retiree, until the spouse’s death [or remarriage].
9 Effective Date. This act shall take effect 60 days after its passage.
LBAO
10-2669
11/16/09
HB 1428-FN - FISCAL NOTE
AN ACT relative to death benefits for surviving spouses of a New Hampshire retirement system member.
FISCAL IMPACT:
The New Hampshire Retirement System states that this bill should have no fiscal impact.
METHODOLOGY:
The New Hampshire Retirement System states this bill removes the provisions in several sections of current law (RSA 100-A:12; RSA 100-A:52; RSA 100-A:52-a; RSA 100-A:52-b) that discontinue death benefits (certain Group II members), medical subsidy payments (certain Group I or II members), or both, to surviving spouses upon remarriage. These benefits or payments will continue to cease upon the death of the surviving spouse. The System assumes these amendments will be applied prospectively only to remarriages after the effective date of this proposed bill and that cessations due to remarriages before the effective date of this act would not be reversed. Presently, the System actuary’s valuation calculations include the assumption that spouses will not remarry, so under current law, when a surviving spouse does remarry, the System realizes a small actuarial gain. However, the System states the incidence of remarriage and its effect on contribution rates is immaterial. The System states the proposed legislation will eliminate these small actuarial gains due to remarriage, but the scale of these gains would not be significant enough to affect contribution rates.