CHAPTER 230
HB 462-FN – FINAL VERSION
05/11/11 1772s
05/11/11 1814s
06/01/11 2211s
22June2011… 2306CofC
2011 SESSION
10/04
HOUSE BILL 462-FN
AN ACT relative to the determination of employer assessments for excess benefits paid by employers in the retirement system.
SPONSORS: Rep. Hawkins, Hills 18; Rep. Reagan, Rock 1; Rep. Harding, Graf 11; Rep. Kurk, Hills 7; Sen. Bradley, Dist 3; Sen. Boutin, Dist 16; Sen. White, Dist 9
COMMITTEE: Special Committee on Public Employee Pensions Reform
This bill:
I. Modifies the method of calculation of the retirement system employer assessment under RSA 100-A:16, III-a for excess benefits paid to retirees.
II. Phases in the required payments over 4 years.
III. Extends the effective date of the implementation of employer assessments to July 1, 2012.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05/11/11 1772s
05/11/11 1814s
06/01/11 2211s
22June2011… 2306CofC
11-0365
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to the determination of employer assessments for excess benefits paid by employers in the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
230:1 Retirement System; Employer Assessment for Excess Benefits. Amend RSA 100-A:16, III-a to read as follows:
III-a. Upon the retirement of a member:
(a) The retirement system shall:
(1) Calculate average base pay of a member during his or her highest 3 years of creditable service, or during all of the years in his or her creditable service if less than 3 years;
(2) Multiply the average base pay determined in subparagraph (1) above by 125 percent;
(3) Subtract the result from subparagraph (2) from the member’s average final compensation.
(b) If the calculation in subparagraph (a)(3) is greater than zero, the employer shall be assessed the cost of the excess benefit provided by:
(1) Multiplying the present value of the member’s retirement benefit by the amount determined in subparagraph (a)(3) divided by the [amount in subparagraph (a)(2).] member’s average final compensation; and
(2) Subtracting from that amount a credit to account for the portion of the present value of the member’s retirement benefit attributable to the compensation above base pay, as determined by the retirement system, that has been funded through the normal employer contributions.
(c) The employer shall certify to the accuracy of each member’s base pay.
(d)(1) The retirement system shall certify to the cost determined in subparagraph (b) to the employer and assess upon the employer such cost for payment to the retirement system at such times and in such manner as the board of trustees may prescribe.
(2) The assessments upon employers determined in subparagraph (b) shall be phased-in over a 4-year period as follows:
(A) Until the end of state fiscal year 2013, the retirement system shall assess and collect 25 percent of the amount determined in subparagraph (b).
(B) For state fiscal year 2014, the retirement system shall assess and collect 50 percent of the amount determined in subparagraph (b).
(C) For state fiscal year 2015, the retirement system shall assess and collect 75 percent of the amount determined in subparagraph (b).
(D) For all state fiscal years thereafter, the retirement system shall assess and collect the full amount determined in subparagraph (b).
(3) Each such employer is hereby authorized to appropriate the sums necessary for payment of such assessments.
230:2 Application. The provisions of RSA 100-A:16, III-a as inserted by section 1 of this act shall not apply to a binding contract or a binding collective bargaining agreement in effect as of January 1, 2010, to the extent required by the contract or agreement, before the termination of such contract or the date on which the collective bargaining agreement terminates, or while the terms of the existing contract remain in force as a result of either the operation of law or the status quo doctrine, or a provision in the existing contract because the parties have failed to agree to a new contract or a contract extension, on or after January 1, 2010.
230:3 Retirement System; Effective Date; Employer Assessments. Amend 2008,300:35, VII as amended by 2009, 4:1 and 2010, 357:1, to read as follows:
VII. [Sections] Section 33 [and 34] of this act shall take effect July 1, [2011] 2012.
230:4 Repeal of Former Applicability Provision. 2008, 300:34, as amended by 2009, 289:3, relative to the applicability of RSA 100-A:16, III-a, is repealed.
230:5 Retirement System; Interactive Estimator. The retirement system shall develop and implement on the retirement system’s website, within 30 days after the effective date of this section, an interactive estimator for a retirement system employer to evaluate its probable costs under RSA 100-A:16, III-a, as amended by this act, for individual members.
230:6 Effective Date.
I. Section 1 of this act shall take effect July 1, 2012 at 12:01 a.m.
II. The remainder of this act shall take effect upon its passage.
Approved: June 30, 2011
Effective Date: I. Section 1 shall take effect July 1, 2012 at 12:01 a.m.
II. Remainder shall take effect June 30, 2011.