Bill Text - SB470 (2010)

Relative to retirement system service credit for employment as a full-time police officer with the university system of New Hampshire.


Revision: April 8, 2010, midnight

SB 470-FN – AS AMENDED BY THE SENATE

03/03/10 0824s

2010 SESSION

10-2814

10/09

SENATE BILL 470-FN

AN ACT relative to retirement system service credit for employment as a full-time police officer with the university system of New Hampshire.

SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Downing, Dist 22; Sen. Houde, Dist 5; Sen. Merrill, Dist 21; Rep. Shurtleff, Merr 10; Rep. D. Sullivan, Hills 8; Rep. R. Holden, Hills 7; Rep. Kaen, Straf 7

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill allows persons with prior service as a full-time police officer with the university system of New Hampshire to purchase such service as creditable service in the retirement system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/03/10 0824s

10-2814

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to retirement system service credit for employment as a full-time police officer with the university system of New Hampshire.

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

1 Retirement System; Membership; Prior 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the case of prior service credit for time served as a member for which the member's accumulated contributions have been withdrawn, the amount of creditable service purchased may be the full length of service relating to the withdrawn contributions or a partial share of such service. The amount determined by the actuary to reinstate full or partial service credit shall be the amount of withdrawn contributions, but not less than one month's contributions multiplied by the ratio of the service credit to be purchased to the full length of service relating to the withdrawn contributions, with this amount adjusted for interest from the date of withdrawal to the date of payment based on the interest rates in effect for each fiscal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 and related to university system of New Hampshire service shall be computed under RSA 100-A:4, VIII and under RSA 100-A:4-d, respectively. 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.

2 New Section; Credit for Certain University System of New Hampshire Prior Group II Service. Amend RSA 100-A by inserting after section 4-c the following new section:

100-A:4-d Credit for University System of New Hampshire Prior Service; Group II Permanent Policeman Members.

I. Notwithstanding any provision of RSA 100-A to the contrary, any group II permanent policeman of the New Hampshire retirement system, in service on or after June 30, 2010, who was formerly a regular full-time police officer for the university system of New Hampshire (USNH) on or after June 30, 2010, and a member of the USNH section 403(b) defined contribution plan and/or USNH police retirement plan shall be allowed to purchase credit for such service as creditable service in the New Hampshire retirement system; provided, however, that creditable service in the New Hampshire retirement system which is purchased under this paragraph shall not be deemed creditable service for the purpose of eligibility for medical and surgical benefits as a retired employee under RSA 21-I:30. For such members, only creditable service performed in the state of New Hampshire as a member of the New Hampshire retirement system shall be counted as creditable service for the purpose of eligibility for medical and surgical benefits as a retired employee under RSA 21-I:30. For the purposes of this section, any military service not otherwise authorized pursuant to RSA 100-A:4, IV, V, or VI shall not be included as creditable service in the USNH section 403(b) defined contribution plan or USNH police retirement plan. The group II permanent policeman member shall meet the following conditions:

(a) The member has terminated regular full-time employment with the university system of New Hampshire and active membership in both the USNH section 403(b) defined contribution plan and the USNH police retirement plan and has become a group II permanent policeman member of the New Hampshire retirement system;

(b) The member applies for university system of New Hampshire service credit, on a form designated by the board;

(c) The member provides such information and certification from the university system of New Hampshire, the USNH section 403(b) defined contribution plan and the USNH police retirement plan as the board may require;

(d) The member pays to the New Hampshire retirement system the full cost for buy-in of creditable service as provided in RSA 100-A:3, VI(b), plus prepayment of any actuarial calculation fee as determined by the board; and

(e) The amount of creditable service purchased shall be either the full length of service rendered in the USNH section 403(b) defined contribution plan and the USNH police retirement plan or a pro-rata portion of such service purchasable with the maximum amount which the member is permitted to withdraw from such plans; and

(f) In no case shall the creditable service purchased exceed the service time rendered in the USNH section 403(b) defined contribution plan and the USNH police retirement plan, or include any service period for which the member remains eligible for benefits in such plans.

II. Credit for university system of New Hampshire service as a regular full-time police officer, in a job which requires full certification as a police officer under the laws of the state of New Hampshire, may be purchased as group II permanent policeman service in the New Hampshire retirement system. Credit for such service may be purchased under this section only if the full certification required as an USNH full-time police officer meets or exceeds the requirements for certification as a group II permanent policeman in the New Hampshire retirement system. Credit for all other university system of New Hampshire service purchased under the provisions of this section by group II permanent policeman members shall become group I creditable service in the New Hampshire retirement system, and upon retirement, death, or termination of service such members shall be entitled to split benefits as provided in RSA 100-A:19-a through RSA 100-A:19-h.

III. Upon certification by the New Hampshire retirement system of eligibility for service credit, and upon payment by the member of the cost of such credit, and with the approval of the board of trustees, the member shall receive credit for such service.

IV. In no case shall service purchased as creditable service in the New Hampshire retirement system under the provisions of this section be deemed to be creditable service for the purposes of eligibility for medical benefits after retirement under the provisions of RSA 100-A:52 through RSA 100-A:55 or RSA 21-I:26 through RSA 21-I:36.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

10-2814

Amended 04/08/10

SB 470 FISCAL NOTE

AN ACT relative to retirement system service credit for employment as a full-time police officer with the university system of New Hampshire.

FISCAL IMPACT:

      The New Hampshire Retirement System states this bill, as amended by the Senate (Amendment #2010-0824s), has no fiscal impact on state, county, and local revenue or expenditures.

METHODOLOGY:

    The New Hampshire Retirement System states this bill allows former University System police officers who join the New Hampshire Retirement System as group II permanent policeman members to purchase this service to the University System as creditable service for Retirement System purposes. The System states these members will be required to pay the full actuarial cost of the service, as well as any associated actuarial calculation fee, so it will not have a direct impact on the calculation of employer contribution rates.