Bill Text - HB342 (2013)

(New Title) relative to reporting of compensation paid to retired members of the retirement system.


Revision: March 15, 2013, midnight

HB 342-FN – AS AMENDED BY THE HOUSE

13Mar2013… 0677h

2013 SESSION

13-0778

10/01

HOUSE BILL 342-FN

AN ACT relative to reporting of compensation paid to retired members of the retirement system.

SPONSORS: Rep. D. Sullivan, Hills 42

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill requires retirement system employers to report quarterly to the retirement system all compensation paid to retired members of the retirement system. The requirement is repealed in 2018.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

13Mar2013… 0677h

13-0778

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Thirteen

AN ACT relative to reporting of compensation paid to 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; Report on Retiree Compensation. Amend RSA 100-A:16 by inserting after paragraph VI the following new paragraph:

VII. Every employer shall report to the retirement system quarterly, in a format provided by the retirement system, all compensation paid by the employer to retired members of the retirement system, including the name of, and the total hours worked, for each retired member of the retirement system.

2 Repeal; 2018. RSA 100-A:16, VII, relative to employer reports on retired member compensation, is repealed.

3 Effective Date.

I. Section 2 of this act shall take effect November 1, 2018.

II. The remainder of this act shall take effect 120 days after its passage.

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.