CHAPTER 21
SB 127-FN – FINAL VERSION
2011 SESSION
10/09
SENATE BILL 127-FN
AN ACT relative to the city of Manchester’s contributory retirement system.
SPONSORS: Sen. D'Allesandro, Dist 20; Rep. D. Sullivan, Hills 8; Rep. Baroody, Hills 13; Rep. Goley, Hills 8
COMMITTEE: Public and Municipal Affairs
This bill makes housekeeping changes to provisions for accidental and ordinary death benefits of members and beneficiaries of the contributory retirement system of the city of Manchester.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0415
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to the city of Manchester’s contributory retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
21:1 Manchester Retirement System; Benefits Upon Death of a Member. 1973, 218:16, as amended by 2002, 194; 2003, 16:1; and 2007, 45:1 is repealed and reenacted to read as follows:
218:16 Benefits Upon Death of a Member.
I. Accidental Death Benefits.
(a) If, upon the receipt by the board of trustees of proper proof of the death of a member in service indicating that such death was the natural and proximate result of an accident occurring while in the performance of duty at some definite time and place, the board decides that death was the result of an accident in the performance of duty and not caused by the member’s own gross negligence, recklessness, or willful misconduct, the member’s surviving spouse shall be entitled to the larger of an annual benefit equal to 50 percent of the member’s final average earnings paid in equal monthly installments or a monthly benefit computed according to the member’s creditable service and final average earnings for the 100 percent contingent annuitant option inclusive of the early retirement reduction of 2 percent per year for each year prior to member’s normal retirement age. In lieu of either option, the member’s surviving spouse may instead elect a lump sum payment as described in paragraph I(c).
(b) If at the time of death, the member is not survived by a spouse and the member has designated their child or children under age 18 as his or her beneficiary/beneficiaries pursuant to section 19 of this act, then the annual benefit described in paragraph I(a) shall be payable to the member’s child or children under such age, divided in such manner as the board in its discretion shall determine, to continue for the benefit of such child or children under said age until every child dies or attains age 18. In lieu of this annual benefit, the child or children may instead elect a lump sum payment as described in paragraph I(c). The retirement system shall be fully protected in making any payment hereunder required to be made to a minor if such payment is made to a custodian or guardian for such minor.
(c) If the member does not have a surviving spouse or children, there shall be payable to the beneficiary designated by the member pursuant to section 19 of this act, if living, otherwise to the member’s estate, a lump sum equal to the deceased member’s annual base salary at the time of death, in addition to a refund of contributions plus regular interest until the date of payment as provided under section 11, paragraph I.
II. Ordinary Death Benefits.
(a) Upon receipt by the board of trustees of proper proof of the death of a member in service indicating that such death was not the result of an accident occurring while in the performance of duty, there shall be a death benefit payable to the member’s surviving spouse, if living, otherwise to the member’s designated beneficiary or the member’s estate.
(b) If at the time of death, the member has at least 5 years of creditable service or qualifies to retire under the retirement provisions of section 12 or section 14 of this act, and has a spouse, the member’s spouse shall be entitled to receive a monthly lifetime benefit equal to the greater of either 50 percent of the service retirement benefit straight life option without reduction that would have been payable to the member had they been eligible to retire immediately prior to death based upon final average earnings and creditable service or, a monthly benefit computed according to the member’s creditable service and final average earnings for the 100 percent contingent annuitant option inclusive of the early retirement reduction of 2 percent per year for each year prior to the member’s normal retirement age. In lieu of either option, the surviving spouse may instead elect a lump sum equal to the deceased member’s annual base salary at the time of death, in addition to a refund of the member’s contributions plus regular interest until the date of payment as provided under section 11, paragraph I.
(c) If at the time of death, the member has at least 5 years of creditable service or qualifies to retire under the retirement provisions of section 12 or section 14 of this act, but is not survived by a spouse, and has designated his or her child or children under age 18 as his or her beneficiary or beneficiaries, there shall be payable divided in such manner as the board in its discretion shall determine, to continue for the benefit of such child or children under said age until every child dies or attains age 18, the greater of either 50 percent of the service retirement benefit straight life option without reduction that would have been payable to the member had they been eligible to retire immediately prior to death based upon final average earnings and creditable service or, a monthly benefit computed according to the member’s creditable service and final average earnings for the 100 percent contingent annuitant option inclusive of the early retirement reduction of 2 percent per year for each year prior to member’s normal retirement age or, a lump sum equal to the deceased member’s annual base salary at the time of death, in addition to a refund of contributions plus regular interest until the date of payment as provided under section 11, paragraph I.
(d) If at the time of death, the member has at least 5 years of creditable service or qualifies to retire under the retirement provisions of section 12 or section 14 of this act but is not survived by a spouse, and the member’s beneficiary is a child or children over age 18 or a person other than the member’s spouse, then there shall be payable to the beneficiary if living, otherwise to the member’s estate, a lump sum equal to the deceased member’s annual base salary at the time of death, in addition to a refund of the member’s contributions plus regular interest until the date of payment as provided under section 11, paragraph I.
(e) If at the time of death, the member did not have at least 5 years of creditable service or did not qualify under the retirement provisions of section 12 or section 14 of this act, there shall be payable to the member’s spouse, if living, or the member’s designated beneficiary or beneficiaries, if other than the member’s spouse, if living, otherwise to the member’s estate, a lump sum benefit equal to the deceased member’s annual base salary at the time of death in addition to a refund of contributions plus regular interest until the date of payment as provided under section 11, paragraph I.
III. Return of Excess Accumulated Contributions Upon Death of a Member. Upon the death of a member after his or her retirement allowance payments have commenced, provided the member has not elected an optional allowance that has become effective, any excess of the member’s contributions at retirement over the sum of the retirement allowance payments received shall be paid in one sum to the person or persons nominated by the member, if living, otherwise to the member’s estate. Upon the death of the survivor of a member and the beneficiary nominated by them under the terms of an option, if an option was elected and had become effective, any excess of the retired member’s contributions at retirement over the sum of the retirement allowance payments received by the retired member and such beneficiary shall be paid to the person nominated by the member, if living, otherwise to the estate of the last to survive of the member and such beneficiary. Nomination of a person to receive the return of the member’s contributions pursuant to this section shall be made by the member in writing filed with the retirement system prior to retirement. A member may change his or her nomination by a similar writing. A designation, revocation, or change of the person nominated under an optional election may be made only at the time the member retires, and is an irrevocable election.
21:2 Effective Date. This act shall take effect upon its passage.
Approved: April 25, 2011
Effective Date: April 25, 2011