Revision: Jan. 9, 2018, 8:40 a.m.
SB 532-FN - AS INTRODUCED
2018 SESSION
18-2806
10/08
SENATE BILL 532-FN
AN ACT relative to group II status of certain department of corrections officials.
SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Lasky, Dist 13; Sen. Carson, Dist 14; Rep. Welch, Rock. 13
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill allows certain department of corrections officials to be classified as group II members in the retirement system.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2806
10/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to group II status of certain department of corrections officials.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Department of Corrections; Officials; Status in Retirement System. Amend RSA 21-H by inserting after section 8-a the following new section:
21-H:8-b Status in Retirement System. For purposes of classification under RSA 100-A, the assistant commissioner, any division director, or deputy director of the department of corrections shall be considered permanent policemen under the retirement system if such individuals were group II members for at least 10 years prior to appointment in their respective positions, and continue to be certified under RSA 106-L.
2 Effective Date. This act shall take effect 60 days after its passage.
18-2806
12/19/17
SB 532-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to group II status of certain department of corrections officials.
FISCAL IMPACT: [ X ] State [ ] County [ ] 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 | $220,000 | $220,000 | $230,000 | $240,000 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other |
METHODOLOGY:
This bill allows certain Department of Corrections officials to be classified as Group II members of the New Hampshire Retirement System if such individuals were Group II members for at least 10 years prior to appointment in their respective positions, and continue to be certified under RSA 106-L.
The Department of Corrections states it is not able to determine the fiscal impact of this bill due to the following:
For any individuals that meet the criteria of this bill and remain a Group II member, the fiscal impact to the Department would be the net of the Group II employer rate minus (Group I employer rate plus Social Security portion of FICA rate (6.2%)).
The New Hampshire Retirement System's actuary indicates the following, based on 14 active eligible members and a projected payroll range as of June 30, 2017 of $1,008,061-$1,357,422:
Impact on Employer Pension and Medical Subsidy Rates
Employees Police Increase
2018-1019 Employer Rates 12.15% 29.43% 17.28%
Expected Employer Dollar Increase/(Decrease) Due to Proposal ($Millions)*
FY 2018 $0.07
FY 2019 $0.22
FY 2020 $0.22
FY 2021 $0.23
FY 2022 $0.24
Increase/Decrease in Actuarial Liabilities Due to Proposal
as of June 30, 2015 Increased with Interest to February 15, 2018
Employees Police Total
$(1.2) $3.6 $2.4
* Payroll used was the average of the payroll range provided by staff. The impact for FY 2018 is for the partial year beginning February 15, 2018.
The assumed rate of interest was 7.25 percent, wage inflation is assumed to be 3.25 percent per year and the amortization period is a closed 22-year period beginning in FY 2018.
AGENCIES CONTACTED:
Department of Corrections and New Hampshire Retirement System