Revision: May 25, 2018, 10:43 a.m.
HB 1756-FN-A - VERSION ADOPTED BY BOTH BODIES
04/26/2018 1814s
23May2018... 2082-EBA
2018 SESSION
18-2196
10/04
HOUSE BILL 1756-FN-A
AN ACT relative to a one-time allowance for certain state retirees.
SPONSORS: Rep. Shurtleff, Merr. 11; Rep. Schuett, Merr. 20; Rep. Freitas, Hills. 14
COMMITTEE: Finance
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AMENDED ANALYSIS
This bill grants a one-time additional allowance to retires in the state retirement system. The bill makes a general fund appropriation for the retirement allowances.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
04/26/2018 1814s
23May2018... 2082-EBA 18-2196
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to a one-time allowance for certain state retirees.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Additional Allowance; Appropriation.
I. An additional one-time allowance of $500 shall be paid during state fiscal year 2019 to retired members of the retirement system receiving an allowance who are eligible as follows:
(a) The member retired with at least 20 years of creditable service;
(b) The member retired and has been receiving an allowance for at least 5 years prior to July 1, 2018; and
(c) The annual retirement allowance of the member on June 30, 2018 is not greater than $30,000.
II. The additional allowance shall not become a permanent addition to the member's base retirement allowance.
III. The sum necessary to fund the additional allowances granted under this act is hereby appropriated to the board of trustees of the retirement system. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
2 Effective Date. This act shall take effect July 1, 2018.
18-2196
Amended 5/9/18
HB 1756-FN-A- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2018-1814s)
AN ACT relative to a one-time allowance for certain state retirees.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
|
| |||
| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $3.870,000 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $3,870,000 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
METHODOLOGY:
This bill as amended appropriates funds for additional allowances to the New Hampshire Retirement System Board of Trustees for the purpose of an additional one-time $500 allowance to be paid during FY 2019 to retired members only (not beneficiaries of deceased members in receipt of a benefit) of the retirement system. Retired members of the retirement system receiving an allowance are eligible if such member is retired with at least 20 years of creditable service; the member retired and has been receiving an allowance for at least 5 years prior to July 1, 2018; and the annual retirement allowance for the member on June 30, 2018 is not greater than $30,000. The additional allowance shall not become a permanent addition to the member’s base retirement allowance. The funds shall be drawn out of any money in the Treasury not otherwise appropriated.
The New Hampshire Retirement System (NHRS) took retired member data from the most recent valuation, June 30, 2017 and included only those member meeting the eligibility criteria. There are 7,740 total retirees retired more than 5 years prior to July 1, 2018 (i.e. retired July 1, 2013 or earlier) with 20 years or more of creditable service and an annual retirement allowance not greater than $30,000. The expenditure for this pool of retirees would total approximately $3,870,000.
The NHRS indicates an indeterminable number of eligible retirees will have passed away between July 1, 2017 and June 30, 2018, which could minimally decrease the appropriation. There are fewer than 50 group I retirees with a benefit under $33,000 who turn age 65 between July 1, 2017 and June 30, 2018 and will have their monthly pension benefit recalculated and reduced by approximately 10 percent. NHRS has not conducted an analysis of how many of these retirees will have an annual allowance on June 30, 2018 of not greater than $30,000 as a result of this reduction. This pool of members could minimally increase the appropriation.
If the exclusion of beneficiaries was an oversight, the addition of the following phrase "or any beneficiary of such member who is receiving an allowance" or a similar phrase would be needed. If the beneficiaries were added, the total number of retirees and beneficiaries of deceased members retired more than 5 years prior to July 1, 2018 (i.e. retired July 1, 2013 or earlier) with 20 years or more of creditable service and an annual retirement allowance of not greater than $30,000 is 8,627. The expenditure for this pool of retirees and beneficiaries would total approximately $4,310,000.
AGENCIES CONTACTED:
New Hampshire Retirement System