Bill Details - HB468 (2019)

HB 468-FN-LOCAL - AS AMENDED BY THE SENATE

 

19Mar2019... 0888h

05/23/2019   2040s

2019 SESSION

19-0733

10/04

 

HOUSE BILL 468-FN-LOCAL

 

AN ACT relative to the inclusion of attendance stipends and certain additional pay for instructional activities as earnable compensation in the retirement system.

 

SPONSORS: Rep. P. Schmidt, Straf. 19

 

COMMITTEE: Executive Departments and Administration

 

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AMENDED ANALYSIS

 

This bill includes attendance stipends or bonuses paid as earnable compensation in the New Hampshire retirement system.  The bill also provides that certain additional pay for full-time faculty of the community college system shall be included as earnable compensation 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19Mar2019... 0888h

05/23/2019   2040s 19-0733

10/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to the inclusion of attendance stipends and certain additional pay for instructional activities as earnable compensation in the retirement system.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

  1  Intent.  The general court intends that this act revise the definition of earnable compensation for the New Hampshire retirement system to include annual cash payments in the form of an attendance stipend or bonus paid pursuant to a collective bargaining agreement, personnel policy, or other agreement applicable to substantially all employees, the amount of which is determined by reference to the amount of sick days an employee used in the calendar or fiscal year, and to include  certain additional pay for instructional activities of full-time community college system faculty.

2  Retirement System; Earnable Compensation; Annual Attendance Stipend or Bonus; Community College System Faculty.  Amend RSA 100-A:1, XVII(a) and (b)(1) to read as follows:

(a)  For members who have attained vested status prior to January 1, 2012 the full base rate of compensation paid, as determined by the employer, plus any overtime pay, holiday and vacation pay, sick pay, longevity or severance pay, cost of living bonus, annual attendance stipend or bonus, additional pay for extracurricular and instructional activities for full-time teachers and full-time employees who are employed in paraprofessional or support position, additional pay for instructional activities of full-time faculty of the community college system, and any military differential pay, plus the fair market value of non-cash compensation paid to, or on behalf of, the member for meals or living quarters if subject to federal income tax, but excluding other compensation except cash incentives paid by an employer to encourage members to retire, supplemental pay paid by the employer while the member is receiving workers' compensation, and teacher development pay that is not part of the contracted annual salary.  Compensation for extra and special duty, as reported by the employer, shall be included but limited during the highest 3 years of creditable service as provided in paragraph XVIII.  However, earnable compensation in the final 12 months of creditable service prior to termination of employment shall be limited to 1-1/2 times the higher of the earnable compensation in the 12-month period preceding the final 12 months or the highest compensation year as determined for the purpose of calculating average final compensation, but excluding the final 12 months.  Any compensation received in the final 12 months of employment in excess of such limit shall not be subject to member or employer contributions to the retirement system and shall not be considered in the computation of average final compensation.  Provided that, the annual compensation limit for members of governmental defined benefit pension plans under section 401(a)(17) of the United States Internal Revenue Code of 1986, as amended, shall apply to earnable compensation for all employees, teachers, permanent firemen, and permanent policemen who first become eligible for membership in the system on or after July 1, 1996.  Earnable compensation shall not include compensation in any form paid later than 120 days after the member's termination of employment from a retirement eligible position, with the limited exceptions of disability related severance pay paid to a member or retiree no later than 120 days after a decision by the board of trustees granting the member or retiree disability retirement benefits pursuant to RSA 100-A:6 and of severance pay which a member was entitled to be paid within 120 days after termination but which, without the consent of the member and not through any fault of the member, was paid more than 120 days after the member's termination.  The member shall have the burden of proving to the board of trustees that any severance payment paid later than 120 days after the member's termination of employment is earnable compensation and meets the requirements of an asserted exception to the 120-day post-termination payment requirement.

(b)(1)  For members who have not attained vested status prior to January 1, 2012, the full base rate of compensation paid, as determined by the employer, plus compensation over base pay.  Compensation over base pay shall include as applicable, subject to subparagraphs (2), (3), and (4), any overtime pay, cost of living bonus, annual attendance stipend or bonus, annual longevity pay, additional pay for extracurricular and instructional activities for full-time teachers and full-time employees who are employed in paraprofessional or support position, additional pay for instructional activities of full-time faculty of the community college system, compensation for extra and special duty, and any military differential pay, plus the fair market value of non-cash compensation paid to, or on behalf of, the member for meals or living quarters if subject to federal income tax, but excluding other compensation except supplemental pay paid by the employer while the member is receiving workers' compensation and teacher development pay that is not part of the contracted annual salary.

3  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

19-0733

Amended 3/25/19

 

HB 468-FN-LOCAL- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2019-0888h)

 

AN ACT relative to the inclusion of attendance stipends as earnable compensation in the retirement system.

 

FISCAL IMPACT:      [    ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

LOCAL:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill adds annual attendance stipends or bonus paid to full-time teachers and full-time paraprofessionals or educational support personnel as a type of earnable compensation to be included for New Hampshire Retirement System reporting purposes.  The New Hampshire Retirement System is unable determine the scope of impacted employers, members, and dollars impacted by this bill.  Therefore, this bill will increase local government employer retirement expenditures by an indeterminable amount.

 

AGENCIES CONTACTED:

New Hampshire Retirement System

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Executive Departments and Administration HJ 3 P. 15
Jan. 22, 2019 Public Hearing: 01/22/2019 01:00 pm LOB 306
March 13, 2019 Executive Session: 03/13/2019 10:30 am LOB 306
March 19, 2019 Committee Report: Ought to Pass with Amendment # 2019-0888h for 03/19/2019 (Vote 19-0; CC) HC 16 P. 9
Committee Report: Ought to Pass with Amendment # 2019-0888h (Vote 19-0; CC)
March 19, 2019 Amendment # 2019-0888h: AA VV 03/19/2019 HJ 10 P. 24
March 19, 2019 Ought to Pass with Amendment 2019-0888h: MA VV 03/19/2019 HJ 10 P. 24
March 28, 2019 Introduced 03/28/2019 and Referred to Executive Departments and Administration; SJ 12
April 10, 2019 Hearing: 04/10/2019, Room 101, LOB, 09:15 am; SC 17
May 23, 2019 Committee Report: Ought to Pass with Amendment # 2019-2040s, 05/23/2019; SC 23
May 23, 2019 Special Order to the beginning of the regular calendar, Without Objection, MA; 05/23/2019; SJ 17
May 23, 2019 Committee Amendment # 2019-2040s, RC 13Y-10N, AA; 05/23/2019; SJ 17
May 23, 2019 Ought to Pass with Amendment 2019-2040s, RC 13Y-10N, MA; OT3rdg; 05/23/2019; SJ 17

Action Dates

Date Body Type
Jan. 22, 2019 House Hearing
March 13, 2019 House Exec Session
House Floor Vote
March 19, 2019 House Floor Vote
April 10, 2019 Senate Hearing
May 23, 2019 Senate Floor Vote
May 23, 2019 Senate Floor Vote

Bill Text Revisions

HB468 Revision: 4691 Date: Jan. 10, 2019, 3:21 p.m.
HB468 Revision: 5583 Date: March 27, 2019, 9:59 a.m.
HB468 Revision: 6033 Date: May 23, 2019, 12:50 p.m.