Revision: Jan. 27, 2025, 2:36 p.m.
HB 637-FN - AS INTRODUCED
2025 SESSION
25-0699
05/11
HOUSE BILL 637-FN
SPONSORS: Rep. Luneau, Merr. 9; Rep. W. MacDonald, Rock. 16
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill provides that the reduction of a retiree's annuity at the member's full retirement age under the federal Social Security system shall apply to any group I retired state employee member or retired teacher member of group I who retired prior to July 1, 2023, and who has not reached full social security retirement age by July 1, 2025.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0699
05/11
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Service Retirement Allowances for Teachers and State Group I Member Employees; Application of Benefit. RSA 100-A:5, I(b); 100-A:6, I(b)(1)(A) and (B); and 100-A:6, I(d)(1)(A) and (B), as amended by 2023, 79:459, relative to the reduction of a retiree's annuity at the member's full retirement age under the federal Social Security system, shall apply to any group I retired state employee member or retired teacher member of group I who retired prior to July 1, 2023, and who have not reached full social security retirement age by July 1, 2025.
2 Effective Date. This act shall take effect July 1, 2025.
25-0699
Revised 1/27/25
HB 637-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | $0 | $0 | In excess of $440,000 | ||
Funding Source(s) | General Fund & State Annuity Accumulation Fund (Employer Contributions) | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
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Estimated Political Subdivision Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Expenditures | $0 | $0 | $0 | $710,000 | ||
*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 bill provides that the reduction of a retiree's annuity at the member's full retirement age under the federal Social Security system shall apply to any retired Group I member (employee or teacher) who retired prior to July 1, 2023, and who has not reached full Social Security retirement age by July 1, 2025.
NHRS's actuary states since contributions rates for FY 2026-2027 have been certified they are not subject to change and there will be no fiscal impact in FY 2026-2027. The actuary states the FY 2028-2029 contribution rates will be set using the June 30, 2025 valuation. Since the rates for the 2028-2029 biennium are unknown at this time, only the net impact for FY 2028 is shown. It should be noted the fiscal impact of this bill will go well beyond FY 2028.
STATE IMPACT
Increase (Decrease) in Employer Pension Rates as a Percent of Payroll | |
| Net Impact of Proposal |
Employees | 0.05% |
Expected Employer Dollar Increase (Decrease) Due to Proposal | ||||
| FY 2026 | FY 2026 | FY 2027 | FY 2028 |
Employees | $0 | $0 | $0- | $440,000 |
TOTAL | $0 | $0 | $0 | $440,000 |
POLITICAL SUBDIVISION IMPACT
Increase (Decrease) in Employer Pension Rates as a Percent of Payroll | |
| Net Impact of Proposal |
Teachers | 0.05% |
Expected Employer Dollar Increase (Decrease) Due to Proposal | ||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 |
Teachers | $0 | $0 | $0 | $710,000 |
TOTAL | $0 | $0 | $0 | $710,000 |
The NHRS actuary projects an increase in the actuarial accrued liability by $13 million ($5.3 million (employees) + $7.7 million (teachers)) based on the provisions in the bill and will be amortized over a fixed period of no longer than 20-years.
The NHRS states the proposed changes in the bill will involve administrative costs relating to reprogramming of the pension administration system which will result in an indeterminable increase in expenditures.
AGENCIES CONTACTED:
New Hampshire Retirement System