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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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