Revision: March 9, 2010, midnight
HB 1668-FN – AS AMENDED BY THE HOUSE
10Feb2010… 0401h
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10Feb2010… 0401h
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 RSA 21-I:30, II and III to read as follows:
II. For the purposes of this section, “retired employee” means [each group II state employee who retires. “Retired employee” also means] each group I state employee who:
(a) Has at least 10 years of creditable service for 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, and who also is at least 60 years of age at the time of retirement; or
(b) Has at least 30 years of creditable service for the state at the time of retirement, regardless of the employee’s age; or
(c) Is but for the provisions of 1989, 376:10, otherwise eligible to receive medical and surgical benefits under this section notwithstanding subparagraphs (a) and (b), and paragraph IV, on June 30, 1989, and who retires between July 1, 1989, and June 30, 1994; or
(d) Dies or retires and is eligible for accidental death or accidental disability retirement benefits, regardless of the state employee’s age or number of years of creditable service; or
(e) Retires and is eligible for ordinary disability retirement benefits, regardless of the state employee’s age; or
(f) Dies and is eligible for ordinary death retirement benefits, if the state employee was eligible for service retirement at the time of his death, if the state employee had at least 10 years of creditable service for 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.
II-a. For the purposes of this section, “retired employee” also means each group II state employee who:
(a) Retires if the employee’s state service began prior to July 1, 2010 or who retires with at least 20 years of creditable service for the state if the employee’s state service began on or after July 1, 2010; or
(b) Dies or retires and is eligible for accidental death or accidental disability retirement benefits, regardless of the state employee’s age or number of years of creditable service; or
(c) Retires and is eligible for ordinary disability retirement benefits, regardless of the state employee’s age; or
(d) Dies and is eligible for ordinary death retirement benefits, if the state employee was eligible for service retirement at the time of his or her death, if the state employee had at least 20 years of creditable service for the state if the employee’s state service began on or after July 1, 2010.
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 group I 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 with the state if the employee’s service began on or after July 1, 2003 and a group II vested deferred state retiree shall have at least 20 years of creditable service with the state if the employee’s service with the state began on or after July 1, 2010. 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.
2 Effective Date. This act shall take effect July 1, 2010.
LBAO
10-2495
Amended 03/01/10
Revised 03/09/10
HB 1668 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, as amended by the House (Amendment #2010-0401h), will decrease state expenditures by an indeterminable amount in 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. With this assumption, 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 reduce expenditures by 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.
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 System.