Revision: May 23, 2018, 12:45 p.m.
HB 561-FN - VERSION ADOPTED BY BOTH BODIES
8Mar2017... 0611h
01/18/2018 0110s
02/15/2018 0611s
23May2018... 2055-CofC
2017 SESSION
17-0651
10/01
HOUSE BILL 561-FN
AN ACT relative to part-time employment of a retirement system retiree by a participating employer.
SPONSORS: Rep. Kurk, Hills. 2; Rep. L. Turcotte, Straf. 4; Rep. Ohm, Hills. 36; Rep. Azarian, Rock. 8; Sen. Giuda, Dist 2
COMMITTEE: Executive Departments and Administration
-----------------------------------------------------------------
This bill changes the limit on part-time employment of a retirement system retiree to an annual 1,300 hourly limit, or up to 1,600 hours if a surcharge is paid by the retired member and employer, and prohibits part-time employment in the first 28 days after retirement. The bill also establishes a penalty for retired members' exceeding the annual part-time hourly limits.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
8Mar2017... 0611h
01/18/2018 0110s
02/15/2018 0611s
23May2018... 2055-CofC 17-0651
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to part-time employment of a retirement system retiree by a participating employer.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Definition; 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, means employment [during a calendar year] by one or more participating employers of the retired member which shall not exceed [32 hours in each normal calendar week. Employment in some instances may exceed 32 hours in any normal calendar week provided that in such case, the part-time employment of the retired member shall not exceed 1,300 hours 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.] 1,352 hours in a calendar year, except as provided in RSA 100-A:7-b. Notwithstanding the foregoing, no retired member shall be employed on a part-time basis by any participating employer for a period of 28 days from the member's effective date of retirement.
2 Restoration to Service; Working After Retirement. Amend RSA 100-A:7 to read as follows:
100-A:7 [Restoration to Service] Working After Retirement; Exceeding Part-Time Hourly Limit.
I. [If a disability beneficiary or any other beneficiary is] Any retired member returning to work for a participating employer in a position requiring mandatory membership pursuant to RSA 100-A:3 shall be restored to service[,] and the [beneficiary's] retiree's retirement allowance shall cease, the [beneficiary] retiree shall again become a member of the retirement system, and the [beneficiary] retiree shall contribute at the percentage payable pursuant to RSA 100-A:16, I(a). Anything herein to the contrary notwithstanding, any credit for membership service and for any prior service on the basis of which the [beneficiary's] retired member's creditable service was computed at the time of [the beneficiary's] his or her former retirement shall be restored to full force and effect; upon subsequent retirement, the [beneficiary] retiree shall receive a retirement allowance based on [the beneficiary's] his or her combined creditable service and [the member's] average final compensation.
II. Any retired member who, in any calendar year, works part-time for one or more participating employers and exceeds the maximum permitted hours as provided in RSA 100-A:1, XXXIV, shall forfeit the state annuity portion of his or her retirement allowance, and any allocable cost of living adjustments, with such forfeiture commencing as soon as administratively feasible in the next calendar year and continuing for a period of 12 months.
III. The board of trustees of the retirement system shall adopt rules under RSA 541-A as necessary to administer and enforce the provisions of this section.
3 Annual Notice Required. Amend RSA 100-A:7-a to read as follows:
100-A:7-a Certain Part-Time Employment; Notice Required. The retirement system shall annually provide written notice to all retired members of the retirement system of the [hourly] limitations on part-time employment as defined in RSA 100-A:1, XXXIV and the potential effect that exceeding such [hourly] limitations could have on the retired member's retirement benefits, including restoration to service as required in RSA [100-A:7] 100-A:7, I and the forfeiture of the state annuity portion of his or her retirement allowance under RSA 100-A:7, II.
4 Certain Part-Time Employment; Emergency Exception. Amend RSA 100-A:7-b to read as follows:
100-A:7-b Certain Part-Time Employment; Emergency Exception. The [hourly] annual limitations on part-time employment as defined in RSA 100-A:1, XXXIV shall be modified for retired members [who exceed the 32-hour limit while providing assistance] to exclude any hours worked during an emergency under this section. [While providing assistance during an emergency under this section, a retired member may exceed the 32-hour limit in a calendar week provided that the member has not exceeded 1300 hours in the current calendar year.] For purposes of this section, an emergency includes any event declared by the governor or while working under the direction of the director of the division of forests and lands during woodland fire control. Employers shall include hours worked during an emergency as a separate entry in the report required in RSA 100-A:16, VII(a).
5 Retirement System; Employer Reports. Amend RSA 100-A:16, VII(a) to read as follows:
VII.(a) Every employer shall report to the retirement system [monthly] annually, on or before February 15, in a format provided by the retirement system, all compensation paid by, and the total hours worked for, the employer [to retired members] by each retired member of the retirement system, including the name of, and the total hours worked, for each retired member of the retirement system, except that an employer shall not include in the report the compensation and hours worked by a retiree for serving as an elected state official or as an elected official of a political subdivision in either a group I or group II position.
6 Grandfathering of Existing Part-time Positions; Penalty; Reporting.
I. The amendments to the provisions of RSA 100-A made by this act shall not apply to a retired member working in a part-time position for a participating employer for the position in which the retired member is employed on the effective date of this act.
II. Any retired member working under the provisions of paragraph I who exceeds 1,664 hours shall forfeit the state annuity portion of his or her retirement allowance, and any allocable cost of living adjustments, with such forfeiture commencing as soon as administratively feasible in the next calendar year and continuing for a period of 12 months.
III. In order to establish and maintain eligibility for the grandfathering exception provided in paragraph I, on or before February 15, 2019, and annually thereafter, every employer shall provide, in a format provided by the retirement system, the names and part-time position titles of any retired members continuing to be employed by the employer as of the effective date of this act.
7 Effective Date. This act shall take effect January 1, 2019.
17-0651
Amended 2/26/18
HB 561-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2018-0611s)
AN ACT relative to part-time employment of a retirement system retiree by a participating employer.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
|
| |||
| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ X ] Education [ X ] Highway [ X ] Other | |||
|
|
|
|
|
POLITICAL SUBDIVISIONS*: |
|
|
|
|
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
*The New Hampshire Retirement System states it is not able to separate the fiscal impact of this legislation between county and local goverment, therefore the fiscal impact is shown together as political subdivisions.
METHODOLOGY:
This bill changes the part-time retiree limit from 32 hours per week to 1,300 hours in a calendar year for new retirees as of the effective date unless an employer provides prior notice to the New Hampshire Retirement System (NHRS) that the part-time position will exceed 1,300 hours but not more than 1,600 hours in a calendar year. A surcharge of 3 percent shall be charged on the retiree's compensation and the employer shall be charged 5 percent on such compensation for these positions, which shall be credited to the NHRS state annuity accumulation fund with no benefit accrual for the retiree. Retirees exceeding the 1,600 hour annual limit will forfeit the state annuity portion of their benefit allowances and any allocable cost of living adjustments for 12 months. Retirees exceeding the 1,300 hours annual limit whose employers do not provide prior notice that the position will exceed 1,300 hours will forfeit the state annuity portion of their benefit allowances for 12 months. The bill exempts retirees working in a part-time position for a participating employer for the position in which the retired member is employed on the effective date of the act, January 1, 2019.
The NHRS consulting actuary states the data was inconclusive at the time of the analysis. The actual impact is indeterminable, but the actuary believes only a small portion of part-time retirees will exceed the 1,300 hour annual limit. The implementation of penalties may deter some employers from hiring part-time retirees and thus no additional contributions would be collected. The estimated impact on the System and employer contribution rates is estimated at less than 0.01% of payroll, or approximately $270,000.
AGENCIES CONTACTED:
New Hampshire Retirement System