Revision: June 8, 2022, 10:05 a.m.
CHAPTER 171
SB 363-FN - FINAL VERSION
03/17/2022 1112s
03/31/2022 1265s
2022 SESSION
22-2868
10/04
SENATE BILL 363-FN
AN ACT relative to service credit for certain group II retirement eligibility.
SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3; Sen. Cavanaugh, Dist 16; Rep. Goley, Hills. 8; Rep. Umberger, Carr. 2; Rep. Wall, Straf. 6
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill allows certain retirement system members to purchase nonqualified service time as group II creditable service in order to reduce certain transition provision requirements for retirement.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/17/2022 1112s
03/31/2022 1265s 22-2868
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Two
AN ACT relative to service credit for certain group II retirement eligibility.
Be it Enacted by the Senate and House of Representatives in General Court convened:
171:1 New Paragraph; Retirement System; Creditable Service. Amend RSA 100-A:4 by inserting after paragraph VIII the following new paragraph:
IX. Notwithstanding any provision of this section, a member in active service in the retirement system who commenced group II service between January 1, 2002 and June 30, 2011, shall be entitled to receive credit for not less than one year nor more than 4 years of nonqualified service credit within the meaning of section 415 of the United States Internal Revenue Code of 1986, as amended, upon payment by the member of the full actuarial costs of such credit and upon approval of the board, subject to the following:
(a) Credit shall not be granted until the active member has fully paid for the nonqualified service in a lump sum or by installment payments as permitted by the board. The member’s payment shall be credited to the member annuity savings fund. The actuary's statement shall be the full actuarial cost of service credit determined by the actuary based on methods and assumptions recommended by the actuary and approved by the board of trustees.
(b) "Nonqualified service credit” means time that is not otherwise purchasable under this chapter.
(c) Requests concerning the purchase of nonqualified service credit pursuant to this paragraph shall be limited to 2 such requests per member per calendar year.
(d) Members may only purchase as many years as designated for them under RSA 100-A:5, II(d), which will reduce the minimum age or creditable service for a regular service retirement to the previous minimum age of 45 with a minimum of 20 years of creditable service, but only reduced based on the number of years purchased.
(e) Additional creditable service purchased under this paragraph shall not be used as creditable service for the purpose determining eligibility for medical and surgical benefits as a retired employee under RSA 21-I:30, RSA 100-A:52, RSA 100-A:52-a, or RSA 100-A:52-b.
171:2 New Subparagraph; Service Retirement Benefits; Group II Transition Provisions. Amend RSA 100-A:5, II by inserting after subparagraph (d) the following new subparagraph:
(e) Notwithstanding the transition provisions of subparagraph (d), the member may replace the additional years of service required for minimum retirement age with the years of service that are purchased under RSA 100-A:4, IX. Therefore, allowing the member to retire between the age of 45 and 49 depending upon the years of service purchased. The purchased years under RSA 100-A:4, IX shall have an annual multiplier of 2.5 percent regardless of the percentage listed in subparagraph (d).
171:3 Effective Date. This act shall take effect 60 days after its passage.
Approved: June 07, 2022
Effective Date: August 06, 2022