Revision: Jan. 15, 2013, midnight
HB 124-FN – AS INTRODUCED
2013 SESSION
10/01
HOUSE BILL 124-FN
AN ACT relative to the determination of gainful occupation for a group II member receiving an accidental disability retirement allowance from the retirement system.
SPONSORS: Rep. Major, Rock 14; Rep. Weyler, Rock 13
COMMITTEE: Executive Departments and Administration
This bill reinserts a provision which removes the application of the gainful occupation reductions to retirement allowances of group II accidental disability beneficiaries who have years of service plus years of accidental disability retirement which total at least 20 and who have attained the age of 45.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0181
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to the determination of gainful occupation for a group II member receiving an accidental disability retirement allowance from the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Retirement System; Disability Benefits; Gainful Occupation. Amend RSA 100-A:6, III(b) by inserting after subparagraph (3) the following new subparagraph:
(4) The provisions of subparagraph (b)(1) shall not apply to a group II accidental disability beneficiary whose total of years of service as a member in group II plus years of accidental disability retirement is at least 20 years, as determined by the board, and who has attained the age of 45. Any such accidental disability beneficiary shall receive retirement allowance benefits under this section without reduction for gainful occupation.
2 Effective Date. This act shall take effect July 1, 2013.
LBAO
13-0181
12/14/12
HB 124-FN - FISCAL NOTE
AN ACT relative to the determination of gainful occupation for a group II member receiving an accidental disability retirement allowance from the retirement system.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill, as introduced, will increase state expenditures by $24,900 in FY 2016, and $25,800 in FY 2017, and increase county and local expenditures by $105,100 in FY 2016, and $109,200 in FY 2017. There will be no fiscal impact on state, county, or local revenue.
METHODOLOGY:
The New Hampshire Retirement System states this bill amends RSA 100-A:6 III(b) to remove the application of the gainful occupation reductions to retirement allowances of Group II accidental disability beneficiaries who have years of service plus years of accidental disability retirement which total at least 20 and who have attained the age of 45. As rates for FY 2014 through FY 2015 have already been certified, employer contribution rates would not be subject to change until FY 2016. The System states its actuaries calculated the following expenditure increases for FY 2016 and 2017:
Political
FY State Subdivisions Total
2016 $24,900 $105,100 $130,000
2017 25,800 109,200 135,000
Total $50,700 $214,300 $265,000
The actuaries calculated the bill will increase the employer contribution rate for Group II Police and Group II Fire by 0.03 percentage points, assuming an interest rate of 7.75%, wage inflation of 3.75% per year, and used the Entry Age Actuarial Cost Method valuation method. The System did not provide estimates beyond FY 2017.