HB461 (2023) Detail

(New Title) relative to elimination by political subdivision employers of a retirement system position.


HB 461-FN - AS AMENDED BY THE HOUSE

 

22Mar2023... 0782h

2023 SESSION

23-0473

02/10

 

HOUSE BILL 461-FN

 

AN ACT relative to elimination by political subdivision employers of a retirement system position.

 

SPONSORS: Rep. S. Pearson, Rock. 13; Rep. Bordes, Belk. 5; Rep. Trottier, Belk. 8; Rep. Pratt, Rock. 4; Rep. Proulx, Hills. 15

 

COMMITTEE: Executive Departments and Administration

 

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AMENDED ANALYSIS

 

This bill requires political subdivision employers to obtain an analysis from the retirement system and continue to pay unfunded accrued liability contributions when eliminating or transferring an employment position from full time to part time.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22Mar2023... 0782h 23-0473

02/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Three

 

AN ACT relative to elimination by political subdivision employers of a retirement system position.

 

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

 

1  New Paragraph; Participation by Certain Employees of Political Subdivisions; Contributions.  Amend RSA 100-A:24 by inserting after paragraph IV the following new paragraph:

V.(a)  For positions listed in subparagraph (b), no political subdivision employer shall eliminate a retirement system eligible employment position or transfer a retirement system eligible employment position into a part-time position without an analysis from the retirement system as to the unfunded liability for that position.  The salary used for this analysis will be the greatest salary going back 5 years.  The employer unfunded accrued liability portion of the contributions determined under RSA 100-A:16 shall continue to be charged to the political subdivision employer, plus a 20 percent penalty.  The duration of the penalty shall be 15 years unless the position is restored to a retirement system contributing position, then the penalty shall be terminated and the normal calculation for retirement system contributions shall be restored.  

(b)  Subparagraph (a) shall apply to superintendent, principal, police chief, fire chief, director, administrator, and the like.

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

 

LBA

23-0473

1/5/23

 

HB 461-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to elimination by political subdivision employers of a group II retirement position.

 

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

 

 

 

Estimated Increase / (Decrease)

POLITICAL SUBDIVISIONS:

FY 2023

FY 2024

FY 2025

FY 2026

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

*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 requires political subdivision employers to obtain an analysis from the New Hampshire Retirement System (NHRS) when eliminating or transferring a group II position from full time to part time.  It also requires the employer to continue to make contributions to the NHRS based on the highest compensation paid for the position in the prior 5 years.  Lastly, it imposes a penalty equal to 20% of such contribution on the employer and both the contribution and penalty are required in perpetuity unless the position is restored to full-time status.

 

The New Hampshire Retirement System states they are unable to estimate how many employers would be subject to the proposed assessment.  The NHRS states there would be a significant indeterminable increase in administrative costs relating to reprogramming of the NHRS pension administration system to accommodate the receipt of employer contributions and penalties.  Lastly, the NHRS states there could be a modest beneficial economic impact on NHRS funding.  The affect of this bill is an indeterminable impact to political subdivisions with an assumption the impact will start in FY 2024 and forward.   

 

AGENCIES CONTACTED:

New Hampshire Retirement System

 

Links

Action Dates

Date Body Type
Feb. 15, 2023 House Hearing
March 8, 2023 House Exec Session
March 8, 2023 House Exec Session
March 8, 2023 House Floor Vote

Bill Text Revisions

HB461 Revision: 38358 Date: March 22, 2023, 2:51 p.m.
HB461 Revision: 38175 Date: March 9, 2023, 2:51 p.m.
HB461 Revision: 37332 Date: Jan. 11, 2023, 10:26 a.m.

Docket


March 24, 2023: Introduced 03/23/2023 and Referred to Executive Departments and Administration; SJ 12


March 22, 2023: Ought to Pass with Amendment 2023-0782h: MA VV 03/22/2023 HJ 10


March 22, 2023: Amendment # 2023-0782h: AA VV 03/22/2023 HJ 10


March 13, 2023: Committee Report: Ought to Pass with Amendment # 2023-0782h (NT) 03/08/2023 (Vote 20-0; RC) HC 16 P. 28


March 7, 2023: Subcommittee Work Session: 03/10/2023 11:00 am LOB 306-308


Feb. 21, 2023: Executive Session: 03/08/2023 01:30 pm LOB 306-308


Feb. 23, 2023: Subcommittee Work Session: 02/24/2023 09:00 am LOB306-308


Feb. 21, 2023: Executive Session: 03/08/2023 01:30 pm LOB 306-308


Feb. 8, 2023: Public Hearing: 02/15/2023 11:15 am LOB 306-308


Jan. 11, 2023: Introduced (in recess of) 01/05/2023 and referred to Executive Departments and Administration