Bill Text - HB124 (2013)

(New Title) relative to the determination of gainful occupation for a group II member receiving an accidental disability retirement allowance from the retirement system, and relative to the director and assistant director of the division of homeland security and emergency management in the department of safety.


Revision: June 26, 2013, midnight

HB 124-FN – AS AMENDED BY THE SENATE

05/23/13 1618s

2013 SESSION

13-0181

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, and relative to the director and assistant director of the division of homeland security and emergency management in the department of safety.

SPONSORS: Rep. Major, Rock 14; Rep. Weyler, Rock 13

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill:

I. 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.

II. Allows the director of homeland security and emergency management in the department of safety the option to rejoin the retirement system as a member and to continue group II retirement status based on prior service and group II membership, and allows the assistant director of homeland security and emergency management to continue group II retirement status based on prior service and group II membership.

III. Provides for the appointment of the director of the division of homeland security and emergency management for terms of 3 years.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05/23/13 1618s

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, and relative to the director and assistant director of the division of homeland security and emergency management in the department of safety.

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 Application; Exemption from Gainful Occupation Requirements. The provisions of RSA 100-A:6, III(b)(4) as inserted by section 1 of this act shall apply to qualifying disability beneficiaries for any tax year beginning after December 31, 2011.

3 New Paragraph; Director of Homeland Security and Emergency Management; Retirement System. Amend RSA 21-P:5-a by inserting after paragraph IV the following new paragraph:

V. During service as director, the director of the division of homeland security and emergency management may elect not to become a member of the retirement system, however if he or she becomes a member he or she shall be eligible to be a group II member if he or she was a group II member or receiving a group II retirement allowance prior to appointment.

4 New Paragraph; Assistant Director of Homeland Security and Emergency Management; Retirement System. Amend RSA 21-P:36 by inserting after paragraph III the following new paragraph:

IV. During service as assistant director, the assistant director of the division of homeland security and emergency management shall be eligible to be a group II member if he or she was a group II member or receiving a group II retirement allowance prior to appointment.

5 Department of Safety; Appointment of Director of Homeland Security and Emergency Management. Amend RSA 21-P:5-a, I to read as follows:

I. Notwithstanding the provisions of RSA 21-G and RSA 21-P:3, the commissioner, after consultation with the governor, shall nominate for appointment by the governor and council, a director of homeland security and emergency management, who shall serve [at the pleasure of the governor] for a term of 3 years. The director of homeland security and emergency management shall be qualified by education and experience and shall receive the salary provided in RSA 94:1-a.

6 Effective Date.

I. Section 1 of this act shall take effect July 1, 2013.

II. The remainder of this act shall take effect upon its passage.

LBAO

13-0181

Revised 06/12/13

Amended 05/30/13

HB 124 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, and relative to the director and assistant director of the division of homeland security and emergency management in the department of safety.

FISCAL IMPACT:

      The New Hampshire Retirement System and the Department of Safety state this bill, as amended by the Senate (Amendment #2013-1618s), will have an indeterminable impact on state expenditures in FY 2014 and each year thereafter. There will be no fiscal impact on state, county, and local revenues, or county and local expenditures.

METHODOLOGY:

    The New Hampshire Retirement System states 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 years 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 as amended 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.

    The Department of Safety states this bill provides two options for participation in the group II retirement plan to the Director of the Division of Homeland Security and Emergency Management. If the director is already retired from group II, he or she may choose to remain retired or the director can choose to suspend his or her retirement allowance and rejoin group II for the tenure of his or her service in the position to which he or she has been appointed. The Department states it is unknown what options would be chosen by the director and therefore the fiscal impact of the proposed legislation is indeterminable.