SB 637-FN - AS INTRODUCED
SENATE BILL 637-FN
SPONSORS: Sen. Hennessey, Dist 5; Sen. Cavanaugh, Dist 16
COMMITTEE: Executive Departments and Administration
This bill clarifies the New Hampshire retirement system's protection against fraud and error in its records.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Protection Against Fraud. Amend RSA 100-A:27 to read as follows:
100-A:27 Protection Against Fraud and Error.
I.(a) Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of this retirement system in any attempt to defraud the system as a result of such act, shall be guilty of a class B felony if a natural person, or guilty of a felony if any other person.
(b) Should any change or error in the records caused by any aforementioned fraud result in any member or beneficiary receiving from the system more [or less] than [he] such member or beneficiary would have been entitled to receive had the records been correct, the board of trustees shall have the power to correct such error, and to adjust as far as practicable the payments in such a manner that the actuarial equivalent of the benefit to which such member or beneficiary was [correctly] properly entitled shall be paid.
II. Should any change or error in the records not caused by a member or beneficiary’s fraudulent conduct result in any such member or beneficiary receiving from the system less than he or she would have been entitled to receive had the records been correct, the board of trustees shall have no power to correct such error detrimental to the member or beneficiary, and shall provide the member or beneficiary the actuarial equivalent of the benefit to which he or she reasonably relied upon.
SB 637-FN- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ X ] Education [ X ] Highway [ ] Other
*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 fisal impact is shown together as political subdivisions.
This bill amends RSA 100-A:27 to distinguish between fraud and error and the impact on members or beneficiaries of the New Hampshire Retirement System. The New Hampshire Retirement System interprets the bill to limit the correction of records caused by fraud only if such fraud results in a higher pension. NHRS states the bill also does not address what powers, if any, NHRS will have to correct any error not caused by fraud that results in a member receiving a higher benefit than the member is entitled to receive. NHRS currently receives new or corrected information from participating employers, members and beneficiaries as a result of an audit, administrative reporting or some other source. Corrections are typically made to contribution adjustments, earnable compensation adjustments and service credit adjustments, with a resulting benefit adjustment. The inability to make such adjustments may not be in accordance with fiduciary trust law or Internal Revenue Code provisions requiring a member or beneficiary receive only the amount to which such individual is entitled to receive.
New Hampshire Retirement System
|Jan. 22, 2020||Senate||Hearing|
|March 12, 2020||Senate||Floor Vote|
|March 11, 2020||Senate||Floor Vote|
|March 11, 2020||Senate||Floor Vote|
|Jan. 8, 2020||Introduced 01/08/2020 and Referred to Executive Departments and Administration; SJ 2|
|Jan. 22, 2020||Hearing: 01/22/2020, Room 101, LOB, 09:20 am; SC 3|
|March 12, 2020||Committee Report: Inexpedient to Legislate, 03/12/2020; SC 10|
|March 11, 2020||Committee Report: Inexpedient to Legislate, 03/11/2020; SC 10|
|March 12, 2020||Special Order to 03/12/2020, Without Objection, MA; 03/11/2020 SJ 6|
|March 12, 2020||Inexpedient to Legislate, MA, VV === BILL KILLED ===; 03/12/2020; SJ 7|
|March 12, 2020||Refer to Interim Study, RC 14Y-10N, MA; 03/12/2020; SJ 6|