Bill Text - HB342 (2013)

Relative to part-time employment of retired members of the retirement system.


Revision: Feb. 5, 2013, midnight

HB 342-FN – AS INTRODUCED

2013 SESSION

13-0778

10/01

HOUSE BILL 342-FN

AN ACT relative to part-time employment of retired members of the retirement system.

SPONSORS: Rep. D. Sullivan, Hills 42

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill changes the definition of part-time employment of retired members of the retirement system when employed by an employer in the retirement system, requires notice of the rules of such part-time employment to prospective hires, and requires employers to make contributions for unfunded accrued liability if the part-time employee exceeds the hours for part-time service.

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

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

13-0778

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Thirteen

AN ACT relative to 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; Definition of Part-time. Amend RSA 100-A:1, XXXIV to read as follows:

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, who retired on or after July 1, 2013, means employment during a calendar year by one or more employers of the retired member which shall not exceed [32] 24 hours in each normal calendar week. Employment in some instances may exceed [32] 24 hours in any normal calendar week provided that in such case, the part-time employment of the retired member shall not exceed [1,300] 1,000 hours worked 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] and the retired member shall not exceed 24 hours worked per week outside of a 5-consecutive-month period in a calendar year commencing with the first normal calendar week that he or she exceeded 24 hours worked.

2 New Section; Retirement System; Part Time Employment; Notice to Prospective Employee. Amend RSA 100-A by inserting after section 7 the following new section:

100-A:7-a Retired Members; Part-time Employment; Notice by Employer Required. An employer shall provide written notice to a prospective employee who is a retired member of the retirement system of the rules and requirements for the hourly limitations on part-time employment as defined in RSA 100-A:1, XXXIV. The prospective employee shall acknowledge receipt of the written notice on a form provided by the retirement system.

3 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, for members who retired on or after July 1, 2013 an employer who employs such a retired member for part-time employment, but where the retired member’s total hours exceed the definition of part-time in RSA 100-A:1, XXXIV but who do not meet the requirements for membership, shall make contributions at the percentage rates certified by the board of trustees for the total 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).

4 Effective Date. This act shall take effect July 1, 2013.

LBAO

13-0778

Revised 02/05/13

HB 342 FISCAL NOTE

AN ACT relative to part-time employment of retired members of the retirement system.

FISCAL IMPACT:

      The New Hampshire Retirement System, Department of Administrative Services, New Hampshire Association of Counties, and New Hampshire Municipal Association state this bill, as introduced, may increase state, county, and local expenditures by an indeterminable amount in FY 2014 and each year thereafter. There will be no fiscal impact on state, county, or local revenue.

METHODOLOGY:

      The New Hampshire Retirement System (NHRS) states this bill changes the definition of part-time employment for retired members employed by an employer participating in the NHRS, requires notice of the part-time employment rules to prospective hires, and requires employers to make contributions for the unfunded actuarial accrued liability (UAAL) on the “total compensation paid” to part-time employees who exceed the hours for part-time service. The NHRS states the fiscal impact of this bill is indeterminable because NHRS does not maintain data on retired members who have been rehired as part-time employees by NHRS participating employers, nor does it maintain data on how many such rehired employees would exceed the part-time hours caps specified in the bill. The NHRS states it could develop a written form within its current budget for prospective part-time hires to acknowledge the employee receipt of the part-time employment rules.

      The Department of Administrative Services (DAS) states the NHRS currently has a limit on how many hours a retiree may work for a NHRS participating employer and this bill would reduce those hours. DAS states this bill may increase state expenditures by an indeterminable amount to the extent retired workers exceed the limit, triggering state payment of the employer’s share of the UAAL.

      The New Hampshire Association of Counties (NHAC) states the counties often employ system pensioners on a part-time basis, often working more than the hours specified in this bill. The NHAC states if counties are required to limit hours worked, county expenditures may increase if counties cannot find appropriately experienced employees willing to work for the reduced part-time hours. In such cases the counties may be required to hire full-time employees with full-time benefits to perform required county functions. County expenditures may also increase if counties continued to employ part-time employees at hours exceeding the limit proposed in this bill and would be required to contribute the employer share toward the UAAL.

    The New Hampshire Municipal Association states this bill will result in increased expenditures for municipal employers, but the Association does not have the data to estimate the fiscal impact of this bill.