SB 129-FN - AS INTRODUCED
2015 SESSION
15-0942
10/03
SENATE BILL 129-FN
AN ACT allowing retired members of the retirement system to change an optional allowance election in certain circumstances.
SPONSORS: Sen. Cataldo, Dist 6
COMMITTEE: Executive Departments and Administration
This bill allows a retired member of the retirement system to change an optional allowance after the 120-day grace period and redesignate the nonelection or election of an optional allowance where the executive director finds that circumstances require the change.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0942
10/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT allowing retired members of the retirement system to change an optional allowance election in certain circumstances.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Retirement System; Optional Allowances; Redesignation After Grace Period. Amend RSA 100-A:13, II by inserting after subparagraph (b) the following new subparagraph:
(c) Where a retired member has elected option 2, 3, or 4, and has designated a single beneficiary, and such beneficiary refuses to voluntarily renounce his or her right to any future benefits as provided in subparagraph (b), the retired member may be permitted at any time after the 120-day grace period has ended to make a nonelection, election, or change of retirement option on the form designated by the board, provided that the executive director finds that the retired member’s circumstances require a change. Upon such redesignation, the allowance received under the elected option shall be converted to the retirement allowance elected under this subparagraph. Any supplemental allowance, or COLAs, granted to the retiree and effective before the date of redesignation of the option shall continue in effect and shall not be adjusted as a result of the redesignation. The redesignation shall become effective, and payment of the converted allowance shall commence, on the first day of the month following receipt of the signed form by the board. If the retiree dies after the board’s receipt of such redesignation but before the effective date, the redesignated option shall take effect as of the date of the retiree’s death.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
15-0942
01/15/15
SB 129-FN - FISCAL NOTE
AN ACT allowing retired members of the retirement system to change an optional allowance election in certain circumstances.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill, as introduced, will increase state expenditures by $15,000 in FY 2016, $240,000 in FY 2018, and $250,000 in FY 2019. This bill will increase county and local expenditures by an indeterminable amount in FY 2018 and each year thereafter. There will be no fiscal impact on state, county, and local revenues.
METHODOLOGY:
The New Hampshire Retirement System states this bill allows a retired member of the retirement system to change an optional allowance after the 120 day grace period and redesignate the nonelection or election of an optional allowance where the executive director finds that circumstances require the change. The System states this bill will increase state employer contribution rates and increase the State’s unfunded actuarial accrued liability by $9.4 million. The table below shows an increase in state, county, and local expenditures as a result of increased employer contribution rates according to actuarial estimates. The System was unable to provide county and local expenditure detail separately.
Expected Employer Expenditure Increase (In Millions) | ||
Member Classification |
FY 2018 |
FY 2019 |
Employees: |
||
State |
$ 0.23 |
$ 0.24 |
County & Local |
$ 0.27 |
$ 0.28 |
Teachers |
$ 0.48 |
$ 0.50 |
Police: |
||
State |
$ 0.01 |
$ 0.01 |
County & Local |
$ 0.02 |
$ 0.02 |
Fire: |
||
State |
$ 0.00 |
$ 0.00 |
County & Local |
$ 0.03 |
$ 0.03 |
Total: |
||
State |
$ 0.24 |
$ 0.25 |
County & Local |
$ 0.80 |
$ 0.83 |
The System states this bill will require $15,000 in programming changes to its pension database in FY 2016.