HB1306 (2012) Detail

(New Title) requiring a report on part-time employment of retired members of the retirement system.


HB 1306-FN-LOCAL – AS AMENDED BY THE HOUSE

7Mar2012… 0986h

2012 SESSION

12-2603

10/09

HOUSE BILL 1306-FN-LOCAL

AN ACT requiring a report on part-time employment of retired members of the retirement system.

SPONSORS: Rep. Hawkins, Hills 18

COMMITTEE: Special Committee on Public Employee Pensions Reform

AMENDED ANALYSIS

The bill requires retirement system employers to provide information on the wages of part-time employees who are retired members of the retirement system and for the department of revenue administration to report to the house special committee on public employee pensions reform.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

7Mar2012… 0986h

12-2603

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT requiring a report on part-time employment of retired members of the retirement system.

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

1 Retirement System Employers; Report on Part-time Wages of Retirees; Revenue Administration Report.

I. Each employer in the retirement system, as defined in RSA 100-A:1, IV, shall compile from its employee’s W-2 information the total dollars paid for each part-time employee who is a retired member of the New Hampshire retirement system, and shall submit to the department of revenue administration on or before September 1, 2012 the names of such part-time employees, the amount paid in wages to the employee in the previous state fiscal year, and the retirement system group and classification from which the employee is retired.

II. The department of revenue administration shall provide a report to the chairperson of the house special committee on public employee pensions reform on or before November 1, 2012 compiling and detailing the information received under paragraph I.

2 Effective Date. This act shall take effect upon its passage.

LBAO

12-2603

Revised 11/04/11

HB 1306-FN-LOCAL - FISCAL NOTE

AN ACT requiring a report on part-time employment of retired members of the retirement system.

FISCAL IMPACT:

      The New Hampshire Retirement System states this bill will have an indeterminable impact on state, county, and local expenditures in FY 2013 and each year thereafter. There will be no impact on state, county, and local revenues.

METHODOLOGY:

      The New Hampshire Retirement System states this bill would require participating employers to make employer contributions, at percentage rates certified by the board of trustees, on wages paid to retired members of the retirement system employed on a part-time basis. The System further states such percentage rates would only be for the employer’s unfunded actuarial accrued liability (UAAL) and the medical subsidy benefit and the retirees working part-time would not contribute nor would they accrue any additional retirement benefits. The System states under this bill employer contributions received for the UAAL would be greater than otherwise expected resulting in a more rapid amortization and ultimately reducing employer contributions for the UAAL amortization. The System states under RSA 100-A, the annual funding for the medical subsidy is limited to the lesser of 25% of the total employer contributions or the solvency rate and at the present time and for the foreseeable future, the limiting factor for determining the maximum contributions for the medical subsidy benefit is the solvency rate. Therefore, any contributions received for the medical subsidy as a result of this bill would reduce the amount of employer contributions paid for active members. The System states participating employers employing retired rehired members for part-time employment may pay more in terms of dollars contributed than those employer who do not employ such individuals, but in the aggregate, the contributions toward the medical subsidy would not be changed as a result of this bill. Ultimately, the System states as it does not have any data with respect to retired members who are working part-time for participating employers, it is unable to estimate the fiscal impact resulting from this bill.

    The System further states it estimates it would incur an indeterminable amount in administrative costs in FY 2013 to implement the changes in this bill.