Revision: April 28, 2011, midnight
HB 464-FN – VERSION ADOPTED BY BOTH BODIES
04/13/11 1370s
2011 SESSION
10/09
HOUSE BILL 464-FN
AN ACT requiring the transfer of certain retirement system group II special account funds to the state annuity accumulation fund.
SPONSORS: Rep. Hawkins, Hills 18; Rep. Reagan, Rock 1; Rep. Kurk, Hills 7; Sen. Bradley, Dist 3; Sen. White, Dist 9
COMMITTEE: Special Committee on Public Employee Pensions Reform
This bill requires the state retirement system to transfer $89,000,000 from the group II special account to the state annuity accumulation fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
04/13/11 1370s
11-0368
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT requiring the transfer of certain retirement system group II special account funds to the state annuity accumulation fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Transfer Required; Retirement System. The board of trustees of the retirement system shall forthwith transfer the sum of $89,000,000 from the group II components of the special account established under RSA 100-A:16, II(h) to the state annuity accumulation fund.
2 Effective Date. This act shall take effect upon its passage.
LBAO
11-0368 Amended 04/18/11
HB 464 FISCAL NOTE
AN ACT requiring the transfer of certain retirement system group II special account funds to the state annuity accumulation fund.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill, as amended by the Senate (Amendment #2011-1370s), will decrease state expenditures by $3,280,000 in FY 2014, and $3,430,000 in FY 2015, and will decrease county and local expenditures by $3,720,000 in FY 2014, and $3,880,000 in FY 2015. There will be no fiscal impact on state, county or local revenues.
METHODOLOGY:
The New Hampshire Retirement System states this bill would require the System to transfer $89,000,000 from the group II special account to the state annuity accumulation account for group II. The System states this transfer would decrease the amount held in the special account for funding future group II supplemental allowances or cost of living allowances by $89,000,000, while increasing the amount in the state annuity accumulation fund for group II by the same amount. The System further states since assets held in the special account are not recognized when computing employer contribution rates, but are in the state annuity accumulation fund, the proposed transfer would result in a reduction in employer contribution rates for group II members beginning in FY 2014. The System’s actuary estimates the following reductions in employer contributions to be as follows:
State |
|
Political Subdivisions | ||
FY 2014 |
FY 2014 |
| ||
Police |
$2,280,000 |
Police |
$2,030,000 | |
Fire |
$1,000,000 |
Fire |
$1,690,000 | |
Total |
$3,280,000 |
Total |
$3,720,000 | |
|
| |||
FY 2015 |
FY 2015 |
| ||
Police |
$2,390,000 |
Police |
$2,120,000 | |
Fire |
$1,040,000 |
Fire |
$1,760,000 | |
Total |
$3,430,000 |
|
Total |
$3,880,000 |
The System’s actuaries are unable to separate local and county expenditures from their actuarial valuation within totals for political subdivisions. The System did not provide estimates beyond FY 2015.