SB 119-FN - AS INTRODUCED
2021 SESSION
21-1035
08/10
SENATE BILL 119-FN
AN ACT relative to the ordinary death benefit in the retirement system.
SPONSORS: Sen. Cavanaugh, Dist 16
COMMITTEE: Finance
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ANALYSIS
This bill allows the spouse of a deceased group I or II retirement member to receive benefits for an member who would have been eligible for a service retirement but for his or her death.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
21-1035
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to the ordinary death benefit in the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Ordinary Death Benefit; Group I and II Members. Amend RSA 100-A:9, II to read as follows:
II. If the member has at least 10 years combined creditable service [or was eligible for service retirement] at the time of the member's death, there shall be payable to the member's surviving spouse an allowance, continuing until the spouse's death, equal to 50 percent of the service retirement allowance that would have been payable to the member had the member retired immediately prior to death, or if the member has attained the age and years of creditable service to be eligible for a service retirement as defined under RSA 100-A:5, the surviving spouse shall receive the maximum benefit that would have been payable to the member had the member retired immediately prior to death, based on average final compensation and creditable service at the time of death. In lieu of an allowance, the surviving spouse may elect a lump sum benefit equal to the deceased member's annual earnable compensation, in addition to the amount payable under RSA 100-A:11.
2 Effective Date. This act shall take effect July 1, 2021.
21-1035
1/28/21
SB 119-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the ordinary death benefit in the retirement system.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
|
| |||
| Estimated Increase / (Decrease) | |||
STATE: | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | $0 | $0 | $443,000 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
POLITICAL SUBDIVISIONS: |
|
|
|
|
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | $0 | $0 | $1,348,000 |
*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 stipulates that if a member of the New Hampshire Retireent System has attained the age and years of creditable service to be eligible for a service retirement as defined under RSA 100-A:5, the surviving spouse shall receive the maximum benefit that would have been payable to the member had the member retired immediately prior to death, compared to the current 50% spousal death benefit,
This supplemental actuarial valuation for the proposed system change was based upon data furnished by NHRS for the June 30, 2019 contribution rate setting actuarial valuation. Actuarial methods and assumptions were the same as those used in the annual actuarial valuation as of June 30, 2019. In particular:
The New Hampshire Retirement System’s actuary determined the following increases:
Employer Pension Rates as a Percent of Payroll - State | |||
| Current 2024-2025 Rates | Impact of Proposal | Proposed 2024-2025 Rates |
Employees | 13.75% | 0.06% | 13.81% |
Police | 30.67% | 0.05% | 30.72% |
Fire | 29.78% | 0.08% | 29.86% |
State Total | 16.05% | 0.06% | 16.11% |
State Estimated Employer Increase/(Decrease) Due to Proposal | ||
| FY 2024 | FY 2025 |
Employees | $390,000 | $401,000 |
Police | $49,000 | $50,000 |
Fire | $4,000 | $4,000 |
State Total | $443,000 | $455,000 |
Employer Pension Rates as a Percent of Payroll - Political Subdivisions | |||
| Current 2024-2025 Rates | Impact of Proposal | Proposed 2024-2025 Rates |
Employees | 13.75% | 0.06% | 13.81% |
Teachers | 19.48% | 0.05% | 19.53% |
Police | 30.67% | 0.05% | 30.72% |
Fire | 29.78% | 0.08% | 29.86% |
Political Subdivisions Total |
19.48% |
0.05% |
19.53% |
Political Subdivisions Estimated Employer Increase/(Decrease) Due to Proposal | ||
| FY 2024 | FY 2025 |
Employees | $466,000 | $478,000 |
Teachers | $635,000 | $649,000 |
Police | $130,000 | $134,000 |
Fire | $117,000 | $120,000 |
Political Subdivisions Total |
$1,348,000 |
$1,381,000 |
AGENCIES CONTACTED:
New Hampshire Retirement System
| Date | Body | Type |
|---|---|---|
| Feb. 9, 2021 | Senate | Hearing |
| March 25, 2021 | Senate | Floor Vote |
| Feb. 9, 2021 | Senate | Hearing |
| March 25, 2021 | Senate | Floor Vote |
Jan. 5, 2022: Inexpedient to Legislate, Senate Rule 3-23, Adjournment 06/24/2021; SJ 20
March 25, 2021: Pending Motion Inexpedient to Legislate; 03/25/2021; SJ 9
March 25, 2021: Pending Motion Inexpedient to Legislate; 03/25/2021; SJ 9
March 25, 2021: Sen. Bradley Moved Laid on Table, RC 24Y-0N, MA; 03/25/2021; SJ 9
March 25, 2021: Sen. Bradley Moved Laid on Table, RC 24Y-0N, MA; 03/25/2021; SJ 9
March 16, 2021: Committee Report: Inexpedient to Legislate, 03/25/2021; SC 16
March 25, 2021: Committee Report: Inexpedient to Legislate, 03/25/2021; SC 16
Feb. 5, 2021: Remote Hearing: 02/09/2021, 01:00 pm; Links to join the hearing can be found in the Senate Calendar; SC 10
Feb. 9, 2021: Remote Hearing: 02/09/2021, 01:00 pm; Links to join the hearing can be found in the Senate Calendar; SC 10
Jan. 29, 2021: Introduced 01/06/2021 and Referred to Finance; SJ 3
Jan. 6, 2021: Introduced 01/06/2021 and Referred to Finance; SJ 3