HB250 (2023) Detail

Relative to the accidental death benefit payable to a group II member.


HB 250-FN - AS INTRODUCED

 

 

2023 SESSION

23-0337

10/04

 

HOUSE BILL 250-FN

 

AN ACT relative to the accidental death benefit payable to a group II member.

 

SPONSORS: Rep. Baroody, Hills. 39; Rep. O'Brien, Hills. 10; Rep. Goley, Hills. 21; Rep. DiSilvestro, Hills. 17

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill increases the amount of the state retirement annuity payable upon the accidental death of a group II member to 100 percent of earnable compensation at the member's 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

23-0337

10/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Three

 

AN ACT relative to the accidental death benefit payable to a group II member.

 

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

 

1  Retirement System; Accidental Death Benefits; Annuity Payable Upon Death.  Amend RSA 100-A:8, II (b) to read as follows:

(b) Upon the accidental death of a group II member the amount of the state annuity payable shall be equal to [50] 100 percent of the member's annual rate of earnable compensation at the date of the member's death.

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

 

LBA

23-0337

Revised 1/25/23

 

HB 250-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the accidental death benefit payable to a group II member.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2023

FY 2024

FY 2025

FY 2026

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

$320,000

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

POLITICAL SUBDISVISIONS:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

$0

$0

$1,300,0000

*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 increases the group II accidental death benefit under RSA 100-A:8, II(b) from 50% to 100% of member’s annual rate of earnable compensation at the date of the member’s death.

 

The NHRS actuary (Actuary) states since contributions rates for FY 2024-2025 have been certified they are not subject to change and there will be no fiscal impact in FY 2024-2025. The Actuary states the FY 2026-2027 contribution rates will be set using the June 30, 2023 valuation.  Since the rates for the 2026-2027 biennium are unknown at this time, only the net impact for FY 2026 is shown.  It should be noted the fiscal impact of this bill will go well beyond FY 2026.

 

The NHRS actuary projects an increase in the actuarial accrued liability by $4 million based on the provisions in the bill and will be amortized over a fixed period of no longer than 20-years.

 

 

 

State Impact

Increase (Decrease) in Employer Pension Rates as a Percent of Payroll

 

Net Impact of Proposal

Employees

0.00%

Police

0.29%

Fire

0.32%

 

Expected Employer Dollar Increase (Decrease) Due to Proposal

 

 

FY 2023

FY 2024

FY 2025

FY 2026

Employees

-

-

-

-

Police

-

-

-

$300,000

Fire

-

-

-

$20,000

TOTAL

$0

$0

$0

$320,000

 

Political Subdivision Impact

 

Increase (Decrease) in Employer Pension Rates as a Percent of Payroll

 

Net Impact of Proposal

Employees

0.00%

Teachers

0.00%

Police

0.29%

Fire

0.32%

 

 

Expected Employer Dollar Increase (Decrease) Due to Proposal

 

FY 2023

FY 2024

FY 2025

FY 2026

Employees

-

-

-

-

Teachers

-

-

-

-

Police

-

-

-

$780,000

Fire

-

-

-

$520,000

TOTAL

$0

$0

$0

$1,300,000

 

 

 

The NHRS states the proposed changes in the bill will involve indeterminable administrative costs relating to reprogramming of the pension administration system.  The NHRS also states they are currently in the process of upgrading the pension administration system and the proposed changes would require updates to the current and future systems and procedures increasing administrative costs.  

 

AGENCIES CONTACTED:

New Hampshire Retirement System

 

Links

Action Dates

Date Body Type
Jan. 26, 2023 House Hearing

Bill Text Revisions

HB250 Revision: 37105 Date: Jan. 25, 2023, 3:52 p.m.

Docket


Jan. 26, 2023: Subcommittee Work Session: 02/02/2023 01:00 pm LOB 306-308


Jan. 18, 2023: Public Hearing: 01/26/2023 10:00 am LOB 306-308


Jan. 9, 2023: Introduced (in recess of) 01/05/2023 and referred to Executive Departments and Administration