Revision: Feb. 11, 2011, midnight
HB 299-FN – AS INTRODUCED
2011 SESSION
10/05
HOUSE BILL 299-FN
AN ACT relative to the method of financing for the judicial retirement plan.
SPONSORS: Rep. G. Richardson, Merr 4; Sen. Houde, Dist 5
COMMITTEE: Special Committee on Public Employee Pensions Reform
This bill allows the annual contribution for unfunded accrued liability of the judicial retirement plan to be calculated over a 30-year period or the maximum period allowed, whichever is less.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0919
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to the method of financing for the judicial retirement plan.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Method of Financing; Unfunded Accrued Liability. Amend RSA 100-C:16, III(d) to read as follows:
(d) Immediately following the actuarial valuation prepared under paragraph I, the board shall have an actuary determine the amount of the unfunded accrued liability as the amount of the total liabilities of the state annuity accumulation fund which is not dischargeable by the total of the funds in hand to the credit of the state annuity accumulation fund, and the normal contributions to be made on account of the members during the remainder of their active service. The amount so determined shall be known as the “unfunded accrued liability”. On the basis of the unfunded accrued liability, the board shall have an actuary determine the level annual contribution required to discharge such amount over a period of [20 years from the date of implementation of this chapter] 30 years or the maximum period allowed by standards adopted by the Government Accounting Standards Board, whichever is less.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
11-0919
Revised 02/10/11
HB 299 FISCAL NOTE
AN ACT relative to the method of financing for the judicial retirement plan.
FISCAL IMPACT:
The New Hampshire Judicial Retirement Plan and the Judicial Branch state this bill will decrease state general fund expenditures by $409,967 in FY 2014 and FY 2015. There will be no fiscal impact on state revenues, or county and local revenues or expenditures.
METHODOLOGY:
The New Hampshire Judicial Retirement Plan and the Judicial Branch state this bill would amend RSA 100-C:16, III(d) to allow the unfunded liability of the Judicial Retirement Plan to be calculated over a 30 year period, as is applicable to the New Hampshire Retirement System per RSA 100-A:16, II(e). The NH Judicial Retirement Plan and the Judicial Branch state the when the Plan was created, RSA 100-C provided that the unfunded liability would be calculated over a period of 20 years from the date of implementation (approximately January 1, 2005). The New Hampshire Judicial Retirement Plan and the Judicial Branch state actuarial estimates for January 1, 2010, project an employer contribution rate of 46.31% for 15 years (amortization period remaining under current statute) and 41.03% for 30 years (amortization period effective upon passage of this bill), or a reduction of 5.28%. As the state contribution rate has already been certified by the NH Judicial Retirement Plan’s board of trustees for FY 2012 and FY 2013 under RSA 100-C, IV, it could not be revised until FY 2014 and beyond without legislative action enabling the board of trustees to do so. The NH Judicial Retirement Plan’s actuary projects if the state contribution rate were to be reduced to 41.03% it would reduce state general fund expenditures by $409,967 in each fiscal year 2014 and 2015.