Revision: June 1, 2016, midnight
\t \t\tSB 129-FN - VERSION ADOPTED BY BOTH BODIES
01/14/2016 3067s
6Apr2016... 1109h
06/01/2016 2003CofC
2015 SESSION
\t15-0942
\t10/03
SENATE BILL\t\t129-FN
SPONSORS:\tSen. Cataldo, Dist 6
COMMITTEE:\tExecutive Departments and Administration
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AMENDED ANALYSIS
\tThis bill allows a retired member of the retirement system to terminate the designation of a single, non-spouse beneficiary to receive an optional allowance. The bill also allows for the termination of an optional allowance in accordance with a final divorce decree or final settlement agreement.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01/14/2016 3067s
6Apr2016... 1109h\t15-0942
06/01/2016 2003CofC\t10/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT\tallowing 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:
\t1 New Subparagraph; Retirement System; Optional Allowances; Termination. Amend RSA 100-A:13, II by inserting after subparagraph (b) the following new subparagraph:
\t\t\t(c) Any retired member who has elected option 2, 3, or 4, and has designated a single, non-spouse beneficiary, may at any time prior to the death of the beneficiary terminate such elected option without the consent of the beneficiary by signing and filing with the board a form designated by the board. Upon termination, the allowance received under the elected option shall be converted to the retirement allowance that would have been payable in the absence of such election. Any supplemental allowance, or COLAs, granted to the retiree and effective before the date of termination of the option shall continue in effect and shall not be adjusted as a result of the termination. Such termination shall become effective, and payment of the converted allowance shall commence, on the first day of the month following receipt of such form by the board. If the retiree dies after giving notice of such termination but before the effective date, the notice shall be deemed valid, the previously elected option shall terminate as of the date of the retiree's death, and no survivor annuity shall be paid pursuant to the previously elected option.
\t2 Retirement System; Optional Allowances; Divorce. Amend RSA 100-A:13, II(a)(1) to read as follows:
\t\t\t\t(1) Terminate such elected option upon the issuance of a divorce decree and subsequent remarriage of the former spouse, or in accordance with the terms of the final divorce decree or final settlement agreement which provides that the former spouse shall renounce any claim to a retirement allowance under RSA 100-A. Upon termination, the allowance received under the elected option shall be converted to the retirement allowance that would have been payable in the absence of such election. Any supplemental allowance, or COLAs, granted to the retiree and effective before the date of termination of the option shall continue in effect and shall not be adjusted as a result of the termination. Notice of such termination shall be given by the retiree on a form designated by the board. Payment of the converted allowance shall commence on the first day of the month following receipt of termination by the board. For any retiree whose divorce and the subsequent remarriage of the former spouse occurred on or before July 1, 1990, the notice shall be given to the board on or before October 1, 1990. Said termination action shall become effective on the first day of the month following receipt of such notice by the board. If the retiree dies after giving valid notice of such termination but before the effective date, the option shall terminate as of the date of the retiree's death.
\t3 Effective Date. This act shall take effect 60 days after its passage.
\t\t\t\t\t\t\t\t\t\t\t\t\tLBAO
\t\t\t\t\t\t\t\t\t\t\t15-0942
\t\t\t\t\t\t\t\t\t\t\tAmended 4/19/16
SB 129-FN- FISCAL NOTE
AN ACT\tallowing 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 amended by the House (Amendment #2016-1109h), will increase state expenditures by an indeterminable amount in FY 2017, and increase state, 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 revenue.
METHODOLOGY:
The New Hampshire Retirement System states this bill allows a retired member of the retirement system to terminate the designation of a living single, non-spouse beneficiary to receive an optional allowance. This bill also allows the termination of an optional allowance in accordance with a final divorce decree or final settlement agreement. The Retirement System states this bill will increase state, county, and local employer contribution rates by a minimal amount based on an independent actuarial analysis. The expected cost to make the necessary changes provided for in this bill to the NHRS pension database software Pension Gold is expected to be $10,000 to $15,000.