SB 134-FN - AS AMENDED BY THE SENATE
01/03/2024 2476s
04/11/2024 1467s
2023 SESSION
23-0908
10/05
SENATE BILL 134-FN
AN ACT relative to disability pensions for public safety employees who are victims of violence.
SPONSORS: Sen. Birdsell, Dist 19; Sen. Carson, Dist 14; Sen. Abbas, Dist 22; Sen. Soucy, Dist 18; Sen. Prentiss, Dist 5; Rep. Soucy, Merr. 21; Rep. Moffett, Merr. 4
COMMITTEE: Executive Departments and Administration
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ANALYSIS
The bill establishes a retirement system benefit for group II members who retire due to a violent act injury.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01/03/2024 2476s
04/11/2024 1467s 23-0908
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to disability pensions for public safety employees who are victims of violence.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraphs; Violent Accidental Disability Retirement Allowance. Amend RSA 100-A:6, II by inserting after subparagraph (d) the following new subparagraphs:
(e)(1) Upon the application of a group II member in service or of the member's employer, any member shall be retired by the board of trustees on a violent accidental disability retirement allowance where the member has been totally and permanently incapacitated for duty as the result of a purposeful, hostile, and violent attack upon such member in the line of duty. In this section, a "purposeful, hostile, and violent attack" means a physical attack with a deadly weapon, as defined in RSA 625:11, V, and done with conscious intent and with such force that it results in the infliction of serious bodily injury, as defined in RSA 625:11, VI.
(2) The provisions of subparagraph (e)(1) shall apply provided that:
(A) The member is found to be mentally or physically incapacitated for the further performance of duty and that such incapacity is likely to be permanent;
(B) The member did not intend for injury to result from the member's conduct; and
(C) The incapacitating event has been determined by the commissioner of safety to meet the criteria of a violent attack under this section and certified to the retirement system on a form approved by the board of trustees. Solely for the purpose of making this determination and notwithstanding any other law to the contrary, the commissioner of safety may obtain any records held by any state or municipal official regarding the circumstances, cause, or manner of violent injury disability. The commissioner of safety may consult with the labor commissioner and may disclose any information or records obtained in the course of his or her inquiry. Any records held by the commissioner of safety pursuant to this section shall not be subject to the right-to-know law, RSA 91-A, and shall not be subject to disclosure in any civil action.
(D) The injury has been found to be compensable by the employer, the employer's insurance carrier, or the commissioner of labor pursuant to RSA 281-A:43.
(3) If the board of trustees is unable to grant violent accidental disability retirement benefits after review of medical and factual information submitted by the member and by a physician designated by the board, then the member shall be entitled to a hearing before the board in order to determine whether the member qualifies for disability retirement benefits. The hearing before the board may be designated to a presiding officer. The presiding officer designated by the board shall not be the same person who made an initial disability determination and recommendation to the board based on the medical and factual information submitted by the member and physician as stated above.
(f) Upon violent accidental disability retirement, the group II member shall receive a violent accidental disability retirement allowance equal to the member's earnable compensation during their last 12 months of active service at the date of the member's disability or an annual allowance of $75,000, whichever is greater.
2 Retrospective Application for Benefit. Members who retired under accidental disability on or after July 1, 2018 shall have 90 days from the effective date of this act to file application for violent accidental disability benefits under section 1 of this act and, if approved, such members' benefit shall be modified effective to the date of the application for violent accidental disability retirement benefits.
3 Maximum Benefit Limitation; Reference Added. Amend RSA 100-A:6-a to read as follows:
100-A:6-a Maximum Retirement Benefit. Notwithstanding any other provision of this chapter to the contrary, for members who commenced service before July 1, 2009, or have attained vested status prior to January 1, 2012, a member's initial calculation of the retirement benefit granted under the provisions of RSA 100-A:5 or RSA 100-A:6 shall not exceed 100 percent of the member's highest year of earnable compensation. For members who commenced service on or after July 1, 2009, and have not attained vested status prior to January 1, 2012, a member's maximum retirement benefit granted under the provisions of RSA 100-A:5 or RSA 100-A:6 shall not exceed the lesser of 85 percent of the member's average final compensation or $120,000. Nothing in this section shall affect the ability of a member to receive disability benefits pursuant to RSA 100-A:6, II(b) and (c) or RSA 100-A:6, II(e) and (f). This provision shall not limit the application of supplemental allowances.
4 Disability Retirement Benefits. Amend RSA 100-A:6, III(b)(4) to read as follows:
(4) The provisions of subparagraph (b)(1) shall not apply to a group II accidental disability beneficiary whose total of years of service as a member in group II plus years of accidental disability retirement is at least 20 years, as determined by the board, and who has attained the age of 45, or a group II violent accidental disability beneficiary, regardless of age or years of service. Any such accidental disability or violent accidental disability beneficiary shall receive retirement allowance benefits under this section without reduction for gainful occupation.
5 Benefits Upon Member's Death After Retirement - Group II Members. Amend RSA 100-A:12, II to read as follows:
II. Upon the death of a group II member who has retired on or after April 1, 1987, or upon the death of a group II member who has filed an application for retirement benefits with the board of trustees after January 1, 1991, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member's estate, in addition to the amount payable under RSA 100-A:11 a lump sum of $3,600 if the member retired before July 1, 1988, and if the member is married on the date of such member's retirement, there shall be paid to such surviving spouse an allowance to continue until the spouse's death or remarriage equal to 50 percent of the member's service, ordinary disability, [or] accidental disability, or violent accidental disability retirement allowance payments. For any person who is a group II member as of June 30, 1988, and who retires on or after July 1, 1988, the lump sum payment shall be $10,000. For any person who becomes a member of group II on or after July 1, 1988, and on or prior to July 1, 1993, the lump sum payment shall be $3,600. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be terminally funded.
6 New Subparagraph; New Hampshire Retirement System; Medical Benefits; Payment by Retirement System; Group II. Amend RSA 100-A:52, I by inserting after subparagraph (g) the following new subparagraph:
(h) Any member retired on a violent accidental disability retirement allowance pursuant to RSA 100-A:6, II(e).
7 New Hampshire Retirement System; Medical Benefits; Payment by Retirement System; Group II. Amend RSA 100-A:52, II to read as follows:
II.(a) For the fiscal year beginning July 1, 2011, the maximum amount payable by the retirement system under this subdivision on account of each person qualified under paragraph I who is not entitled to Medicare benefits, shall be $375.56 per month, and on account of each person qualified under paragraph I who is entitled to Medicare benefits, shall be $236.84 per month. The rate payable under this paragraph shall not be increased.
(b) Notwithstanding subparagraph (a), for the fiscal year beginning July 1, 2024, the maximum amount payable by the retirement system under this subdivision on account of each person qualified under subparagraph I(h) as result of a violent accidental disability who is not entitled to Medicare benefits, shall be $1,000 per month, and on account of each person qualified under subparagraph I(h) who is entitled to Medicare benefits, shall be $630.63 per month. The rate payable under this paragraph shall not be increased.
8 New Hampshire Retirement System; Medical Benefits; Application. Amend RSA 100-A:55, I to read as follows:
I. The additional benefits provided under RSA 100-A:52 shall apply to persons who are active or retired members of group II as of June 30, 2000; to persons who prior to July 1, 1988, had completed no less than 20 years of group II creditable service, but who for reasons other than retirement or death ceased to be a group II member prior to attaining the age of 45, and who, as of July 1, 1993, are eligible for vested deferred retirement benefits; [and] to persons who are group II permanent policemen or permanent firemen members on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty who become permanent policemen members of group II before July 1, 2005 or permanent firemen members of group II before July 1, 2005; and to persons who are group II permanent policemen or permanent firemen members retired under a violent accidental disability. Such additional benefits shall not apply to other persons who become members of group II after the dates stated in this paragraph, without future legislation to include them. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be terminally funded.
9 Medical Insurance Benefits; Retired Group II Employees. Amend RSA 21-I:30, VII(b) to read as follows:
(b) Dies or retires and is eligible for accidental death, [or] accidental disability, or violent accidental disability retirement benefits, regardless of the state employee's age or number of years of creditable service; or
10 Effective Date. This act shall take effect July 1, 2024.
23-0908
Amended 2/2/24
SB 134-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2023-2476s)
AN ACT relative to disability pensions for public safety employees who are victims of violence.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Revenue Fund(s) | Internal Service Fund | |||||
Expenditures | $0 | $0 | $3,920,000+ to Indeterminable | $4,030,000+ to Indeterminable | ||
Funding Source(s) | General Fund and Highway Fund Various Agency Funds | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] N/A | ||||||
| ||||||
Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Expenditures | $0 | $0 | $10,410,000 | $10,700,000 | ||
*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 bills create several new provision for violent liability/death benefits. One, it creates a new category of disability pensions relating to Group II members that are disabled due to a “violent injury” that is likely to be permanent before attaining normal retirement age. Eligible members would receive a benefit equal to 100% of “regular compensation” or an annual allowance of $75,000, which ever is greater, with an annual 2.5% cost of living adjustment. In addition, the surviving beneficiaries are eligible for a 75% survivor benefit upon the death of the member/retiree. Two, it expands the Group II accidental death benefit to members who have not attained the normal retirement age, upon the death of a violently injured police or fire member, will receive a state annuity payable equal to 75% of the members annual allowance calculated as if the member had retired under a violent act injury disability.
Lastly, this bill expands the medical insurance benefits for violently injured members to include eligibility for the retiree health benefit plan regardless of their age and number of years of creditable service with the State. A medical subsidy payment will be made by the New Hampshire Retirement System to the retiree's employer and applied toward the cost of health insurance with any excess amount requiring the retiree or another qualified person to cover the difference, either through pension deductions or personal payments. Monthly medical subsidy rates for retiree's eligible under violent act injury disability retirement benefits shall be $1,000 for one person and $2,000 for two person.
The New Hampshire Retirement System's actuary provided valuations based upon data used in the annual actuarial valuation as of June 30, 2021. The valuation assumes an annual rate of interest of 6.75 percent, wage inflation of 2.75 percent per year and uses the entry-age actuarial cost valuation method. Contribution rates for fiscal years 2024 and 2025 are certified and will remain unchanged. However, Actual FY 2026-2027 employer rates will be based on the actuarial valuation of June 30, 2023 and are currently unknown at this time, so only the net impact of the estimated allocation of this benefit is shown below.
Estimate State Impact
Increase (Decrease) in Employer Pension Rates as a Percent of Payroll | |
| Net Impact of Proposal |
Employees | 0.00% |
Police | 3.72% |
Fire | 0.23% |
Expected Employer Dollar Increase (Decrease) Due to Proposal | ||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 |
Employees | - | - | $0 | $0 |
Police | - | - | $3,910,000 | $4,020,000 |
Fire | - | - | $10,000 | $10,000 |
TOTAL | $0 | $0 | $3,920,000 | $4,030,000 |
Estimated 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 | 3.72% |
Fire | 0.23% |
Expected Employer Dollar Increase (Decrease) Due to Proposal | ||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 |
Employees | - | - | $0 | $0 |
Teachers | - | - | $0 | $0 |
Police | - | - | $10,040,000 | $10,320,000 |
Fire | - | - | $370,000 | $380,000 |
TOTAL | $0 | $0 | $10,410,000 | $10,700,000 |
The NHRS actuary projects an increase in the actuarial accrued liability of $87.6 million based on the provisions in the bill which will be amortized over a fixed period of no longer than 20-years.
The NHRS states the proposed changes in the bill will involve significant administrative costs related to reprogramming of the pension administration system, revisions to administrative procedures and staff training which will result in an indeterminable increase in FY 2025 expenditures.
Lastly, the NHRS also state the bill has significant technical issues, such as ambiguous provisions and inconsistencies with current law, which could hinder proper implementation of the bill. Below are examples of the technical issues the NHRS has identified in the bill:
The Department of Administrative Services (DAS) states the fiscal impact on the Retiree Health Benefit Plan costs due to violent act injury disability retirement is indeterminable as the bill mentions subsidies to be paid out to employers for disability retirements resulting from violent acts but does not specify the funding source or administration process for these subsidies. The lack of information regarding subsidy funding makes it challenging to assess the overall cost impact on the state.
AGENCIES CONTACTED:
New Hampshire Retirement System and Department of Administrative Services
| Date | Amendment |
|---|---|
| Dec. 6, 2023 | 2023-2476s |
| April 9, 2024 | 2024-1467s |
| Date | Body | Type |
|---|---|---|
| Feb. 8, 2023 | Senate | Hearing |
| Senate | Floor Vote | |
| Feb. 15, 2024 | Senate | Floor Vote |
| April 11, 2024 | Senate | Floor Vote |
| April 17, 2024 | House | Hearing |
| April 17, 2024 | House | Exec Session |
| April 17, 2024 | House | Floor Vote |
April 18, 2024: Committee Report: Ought to Pass 04/17/2024 (Vote 16-0; RC)
April 18, 2024: Executive Session: 04/17/2024 01:00 pm LOB 306-308
April 12, 2024: Public Hearing: 04/17/2024 01:00 pm LOB 306-308
April 12, 2024: Introduced 04/12/2024 and referred to Executive Departments and Administration HJ 11
April 11, 2024: Ought to Pass with Amendment 2024-1467s, MA, VV; OT3rdg; 04/11/2024; SJ 9
April 11, 2024: Committee Amendment # 2024-1467s, AA, VV; 04/11/2024; SJ 9
April 9, 2024: Committee Report: Ought to Pass with Amendment # 2024-1467s, 04/11/2024, Vote 7-0; SC 14A
Feb. 15, 2024: Sen. Birdsell Moved to Rerefer to Committee, MA, VV; 02/15/2024; SJ 4
Feb. 7, 2024: Committee Report: Ought to Pass, 02/15/2024, Vote 6-0; SC 7
Jan. 3, 2024: Ought to Pass with Amendment 2023-2476s, MA, VV; Refer to Finance Rule 4-5; 01/03/2024; SJ 1
Jan. 3, 2024: Committee Amendment # 2023-2476s, AA, VV; 01/03/2024; SJ 1
Dec. 12, 2023: Committee Report: Ought to Pass with Amendment # 2023-2476s, 01/03/2024, Vote 5-0; SC 49
Feb. 22, 2023: Rereferred to Committee, MA, VV; 02/22/2023; SJ 8
Feb. 9, 2023: Committee Report: Rereferred to Committee, 02/22/2023; SC 11
Feb. 8, 2023: Committee Report: Rereferred to Committee, 02/23/2023; SC 10
Feb. 2, 2023: Hearing: 02/08/2023, Room 103, SH, 09:30 am; SC 9
Jan. 19, 2023: Introduced 01/19/2023 and Referred to Executive Departments and Administration; SJ 5