Revision: Dec. 21, 2009, midnight
HB 1668-FN – AS INTRODUCED
2010 SESSION
10/01
HOUSE BILL 1668-FN
AN ACT requiring state creditable service for group II retirees to receive state employee medical benefits.
SPONSORS: Rep. P. McMahon, Merr 3
COMMITTEE: Executive Departments and Administration
This bill requires beginning July 1, 2010 that group II state employees have 20 years of creditable service with the state in order to receive state paid medical and surgical benefits for retired state employees.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2495
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT requiring state creditable service for group II retirees to receive state employee medical benefits.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retired State Employees; Medical and Surgical Benefits; Group II Creditable Service. Amend the introductory paragraph of RSA 21-I:30, II to read as follows:
II. For the purposes of this section, “retired employee” means each group II state employee who retires, and who has at least 20 years of creditable service with the state if the group II employee’s state service began on or after July 1, 2010. “Retired employee” also means each group I state employee who:
2 Effective Date. This act shall take effect July 1, 2010.
LBAO
10-2495
12/18/09
HB 1668-FN - FISCAL NOTE
AN ACT requiring state creditable service for group II retirees to receive state employee medical benefits.
FISCAL IMPACT:
The Department of Administrative Services states this bill will decrease state expenditures by an indeterminable amount in FY 2011 and each year thereafter. There is no fiscal impact on state, county, and local revenue or on county and local expenditures.
METHODOLOGY:
The Department of Administrative Services states this bill increases the Group II state service eligibility requirement for retiree health coverage. The Department states under current law, Group II retirees must only be eligible to retire to receive state-paid retiree health coverage, and this bill requires Group II retirees to have 20 years of creditable service with the state in order to be eligible for the state’s retiree health insurance. The Department states the change brought on by the proposed bill will create savings for the state’s retiree health insurance program, but it cannot quantify the amount of the impact without an actuarial analysis. The Department does state, by way of illustration, if this proposed eligibility rule had been in effect in 2009, 53% of the 2009 retirees would not be eligible for the state-paid insurance. Assuming that were the case, based on 2010 working rates and also assuming the retirees were under 65 and making the $65 monthly payment, the Department estimates the state would save approximately $353,372 in calendar year 2010 on behalf of these 23 Group II employees who retired with less than 20 years of state service, and who would not have been eligible for the insurance.
The New Hampshire Retirement System states this proposed change in eligibility for state retiree health insurance would not impact any of the retirees eligible for the medical subsidy payment, so this bill would not impact the Retirement System.