Revision: June 23, 2011, midnight
SB 75-FN – VERSION ADOPTED BY BOTH BODIES
03/30/11 1240s
4May2011… 1577h
06/22/11 2390CofC
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. The bill also modifies the definition of part-time employment under the retirement system inserted by SB 3-FN-A-LOCAL of the 2011 legislative session.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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
06/22/11 2390CofC
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; Retirement System; Part Time; Group I and Group II. Amend RSA 100-A:1 by inserting after paragraph XXXIII the following new paragraph:
XXXIV. “Part-time,” for purposes of employment of a retired member of the New Hampshire retirement system, but excepting per diem court security officers and court bailiffs, means employment by an employer depending on the group classification of the employment as follows:
(a) For group I, part-time employment of the retired member shall not exceed 32 hours in a normal calendar week; except for group I employment which in some instances may exceed 32 hours in any normal calendar week. In such case the part-time employment of the retired member shall not exceed 1,300 hours in a calendar year, so long as such part-time employment does not occur outside of a 5-consecutive-month period in any 12-month period.
(b) For group II, part-time employment of the retired member shall not exceed 32 hours in a normal calendar week; except for group II employment which in some instances may exceed 32 hours in any normal calendar week. In such case the part-time employment of the retired member shall not exceed 1,300 hours in a calendar year, so long as such part-time employment does not occur outside of a 5-consecutive-month period in any 12-month period.
3 Contingency. If SB 3-FN-A-LOCAL of the 2011 regular legislative session becomes law, then section 20 of SB 3-FN-A-LOCAL shall not take effect.
4 Effective Date. This act shall take effect upon its passage.
LBAO
11-0525
Amended 05/24/11
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 and the Department of Administrative Services state this bill, as amended by the House (Amendment #2011-1577h), will have an indeterminable fiscal impact on state, county, and local expenditures in FY 2012 and each year thereafter. The Legislative Branch states this bill will increase state general fund expenditures by an indeterminable amount in FY 2012 and each fiscal year thereafter. There will be no fiscal impact on county and local revenues.
METHODOLOGY:
The New Hampshire Retirement System (NHRS) states this bill clarifies the definition of “part time” for purposes of state employment; limits optional NHRS membership to persons who commenced service prior to July 1, 2008 who are elected officials, officials appointed for fixed terms, or employees of the general court eligible for participation in the NHRS; eliminates optional membership in the NHRS for unclassified state employees; and restricts NHRS employers from employing a member in anything other than a “part time” capacity after the member’s retirement. The NHRS states although the clarification of the definition of “part time” employment and the limitation on the re-hiring of retired employees by NHRS employers is likely to decrease required employer contributions, the corresponding limitation on which employees are eligible to opt out of the NHRS is likely to increase employer contributions. The NHRS does not have sufficient information to estimate to what extent the proposed legislation will increase or decrease required employer contributions.
The Department of Administrative Services states the proposed legislation is unclear as to the disposition of state employees working more than 1300 hours in conjunction with the proposed legislation’s definition of “part time” employment but less than “full time” as defined by the Department’s Division of Personnel. Without clarification of the disposition of such employees, the Department is unable to estimate the impact the proposed legislation will have on required employer contributions to the NHRS.
The Legislative Branch states the proposed legislation will require at least nine employees hired after July 1, 2008, who have opted out of the NHRS, to become NHRS members. Based on current salaries, the Branch estimates the required employer contributions for these nine employees to increase state general fund expenditures by $46,744 in FY 2012 and each fiscal year thereafter. Although the Branch can positively identify nine employees that would be required to become NHRS members if the proposed legislation were enacted, they are unable to determine the total number of general court employees that would be effected by the proposed legislation and is therefore unable to determine to what extent the proposed legislation would impact general fund expenditures.
The Office of Legislative Budget Assistant is unable to provide information regarding the proposed legislation’s fiscal impact on the Judicial Branch as it is awaiting information from the Judicial Branch. When received, the fiscal note will be updated accordingly and forwarded to the House Clerk's Office.