Revision: May 5, 2011, midnight
SB 75-FN – AS AMENDED BY THE HOUSE
03/30/11 1240s
4May2011… 1577h
2011 SESSION
10/09
SENATE BILL 75-FN
AN ACT relative to clarification of part-time service in the state retirement system.
SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Gallus, Dist 1; Sen. Odell, Dist 8; Sen. Larsen, Dist 15; Rep. Goley, Hills 8; Rep. D. Sullivan, Hills 8
COMMITTEE: Executive Departments and Administration
This bill defines part time employment for purposes of the New Hampshire retirement system and prohibits members in retirement from returning to full-time employment. The bill also modifies optional membership 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/30/11 1240s
4May2011… 1577h
11-0525
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to clarification of part-time service in the state retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Participation Standards; Classified State Employees. Amend RSA 100-A by inserting after section 28-b the following new section:
100-A:28-c Participation Standards; Classified State Employees.
I. In order to be eligible for participation in the retirement system, an employee as defined in RSA 100-A:1, V who is a classified employee of the state or of any department, commission, institution, or agency of the state government, must be employed in a full-time position with the state or a department, commission, institution, or agency of the state government, as defined by the department of administrative services, division of personnel. Employment by a classified employee in one or more part-time positions, as defined by the department of administrative services, division of personnel, shall not result in such employee’s participation in the system, regardless of the number of hours worked in one or more part-time positions, regardless of whether the part-time position or positions may in some instances qualify for vacation pay, sick pay, or other benefits, and regardless of whether positions are held within one or more departments, commissions, institutions, or agencies.
II. Employment by a full-time classified employee of any department, commission, institution, or agency of the state government in a part-time position with a different department, commission, institution, or agency of the state government shall not result in retirement contributions being made in regard to the part-time position, nor shall that position be considered for the purposes of the member’s participation in the retirement system.
III. Solely part-time state employment by a classified employee shall not entitle the person to benefits under this chapter or under RSA 21-I:30, RSA 21-I:30-a, or RSA 21-I:32.
IV. To the extent that any administrative rule of the New Hampshire retirement system is inconsistent with the provisions contained this section, the operation of that rule is hereby suspended.
2 New Paragraph; Definition Added; Part-time Employment. Amend RSA 100-A:1 by inserting after paragraph XXXIII the following new paragraph:
XXXIV. “Part-time,” for purposes of employment of a member, means employment by an employer depending on the group classification of the employment as follows:
(a) For group I in no instance shall part-time employment of the member exceed 1,300 hours in a calendar year.
(b) For group II in no instance shall part-time employment of the member exceed 1,300 hours in a calendar year.
3 Membership; Optional. Amend the introductory paragraph of RSA 100-A:3, I(a) to read as follows:
I.(a) Any person who becomes an employee, teacher, permanent policeman, or permanent fireman after the date of establishment, working in a position for an employer under this chapter as determined by common law standards, shall become a member of the retirement system as a condition of employment; except that membership shall be optional in the case of persons who commenced service prior to July 1, 2008 who are elected officials, officials appointed for fixed terms, [unclassified state employees,] or those employees of the general court who are eligible for membership in the retirement system. Elected officials and officials appointed for fixed terms shall, however, be eligible for membership in the retirement system only under the following conditions:
4 Restoration to Service; Limited to Part-time. RSA 100-A:7 is repealed and reenacted to read as follows:
100-A:7 Service After Retirement; Part-time. No employer shall employ a member in other than a part-time position after the member’s retirement pursuant to this chapter.
5 Effective Date.
I. Sections 2-4 of this act shall take effect July 1, 2011.
II. The remainder of this act shall take effect upon its passage
LBAO
11-0525
Amended 04/28/11
SB 75 FISCAL NOTE
AN ACT relative to clarification of part-time service in the state retirement system.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill, as amended by the Senate (Amendment #2011-1240s), will have an indeterminable fiscal impact on state general fund and restricted revenues in FY 2012 and each year thereafter. The Department of Administrative Services states this bill will have no fiscal impact in FY 2012 and each year thereafter.
METHODOLOGY:
The New Hampshire Retirement System (NHRS) states this bill provides that part-time classified state employees cannot participate in the NHRS on the basis of part-time employment. Additionally, this bill establishes that for employees holding both full-time and part-time positions no retirement contributions will be made in regards to the part-time position. The NHRS states restricting participation in the Retirement System should have the effect of reducing state contributions to the system. However, because the exact number of employees who qualify for retirement benefits on the basis of part-time employment is unknown, the exact fiscal impact cannot be determined at this time.
The Department of Administrative Services states in practice, eligible part-time state employees are not currently participating in NHRS or receiving retirement health benefits; therefore there will be no fiscal impact on state general or restricted funds in FY 2012, and each year thereafter. The Department notes under current New Hampshire Retirement System rules, part-time state employees may be eligible; were practice changed to align with these rules, state expenditures for retiree health benefits could increase by an indeterminable amount in FY 2012 and each year thereafter.