Revision: Jan. 22, 2018, 11:06 a.m.
SB 324-FN - AS AMENDED BY THE SENATE
01/18/2018 0090s
2018 SESSION
18-2737
10/05
SENATE BILL 324-FN
AN ACT allowing an optional retirement system allowance to include a subsequent remarriage of a divorced retiree.
SPONSORS: Sen. D'Allesandro, Dist 20
COMMITTEE: Executive Departments and Administration
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AMENDED ANALYSIS
This bill allows a retiree who terminated a retirement system optional allowance following divorce, or whose spouse renounced an election, to nominate a current spouse after remarriage for a new optional allowance..
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01/18/2018 0090s 18-2737
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Optional Allowances; Retiree Subsequent Remarriage. Amend RSA 100-A:13, II(a)(2) to read as follows:
(2) [Due to the death of a former spouse and] Following the retiree's subsequent remarriage, elect to nominate the current spouse as beneficiary under one of the options named in paragraph III, due to either the death of a former spouse, the termination of an elected option under subparagraph (1), or the termination of an elected option by a former spouse under subparagraph II(b). The notice of election shall be on a form designated by the board. The optional allowance shall be effective the first of the month following receipt of the notice. If a retiree dies after filing such notice but before the effective date, the change shall be effective as of the date of death. The optional allowance shall be of equivalent actuarial value. Any supplemental allowances, or COLAs, granted to the retiree before the effective date of the election shall terminate on such effective date, but the value of such COLA's shall be included in the actuarial determination of the amount of the allowance payable under the elected option.
2 Effective Date. This act shall take effect 60 days after its passage.
18-2737
Amended 1/22/18
SB 324-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2018-0090s)
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ X ] Education [ X ] Highway [ X ] Other | |||
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POLITICAL SUBDIVISONS: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
* The New Hampshire Retirement System states it is not able to separate the fiscal impact of this legislation between county and local government, therefore, the fiscal impact is shown together as political subdivisions.
METHODOLOGY:
This bill allows an optional retirement system allowance to include a subsequent remarriage of a divorced retiree. The New Hampshire Retirement System states sufficient data was unavailable at this time. However, the changes to post-retirement elections may influence member behavior and increase costs, which are indeterminable. Assuming a closed 22-year amortization period beginning in FY 2018, an annual rate of interest at 7.25 percent, and wage inflation of 3.25 percent a year (3.0 percent for teachers), the NHRS estimates a small impact on the actuarial state of the System and employer contribution rates of less than .01 percent of payroll, or approximately $270,000.
AGENCIES CONTACTED:
New Hampshire Retirement System