Revision: March 8, 2012, midnight
HB 1306-FN-LOCAL – AS INTRODUCED
2012 SESSION
10/09
HOUSE BILL 1306-FN-LOCAL
AN ACT requiring retirement system employers to make contributions for part-time employment of retired members of the retirement system.
SPONSORS: Rep. Hawkins, Hills 18
COMMITTEE: Special Committee on Public Employee Pensions Reform
This bill requires retirement system employers to make contributions based on the unfunded accrued liability and medical benefits employer share for retired members employed on a part-time basis.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12-2603
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT requiring retirement system employers to make contributions for 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 New Paragraph; Retirement System; Employer Contributions; Part-time Employment of Retired Member. Amend RSA 100-A:16 by inserting after paragraph II-a the following new paragraph:
II-b. In addition to employer contributions required under paragraph II, an employer who employs a retired member for part-time employment shall make contributions at the percentage rates certified by the board of trustees for the compensation paid to such part-time employee; provided that the percentage rates applied shall only be for the employer’s share of the unfunded accrued liability determined under subparagraph II(e) and the medical benefits contributions under RSA 100-A:50 through 100-A:55 for the member classification of such part-time employee.
2 Effective Date. This act shall take effect July 1, 2012.
LBAO
12-2603
Revised 11/04/11
HB 1306-FN-LOCAL - FISCAL NOTE
AN ACT requiring retirement system employers to make contributions for 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.