CHAPTER 194
SB 244-FN – FINAL VERSION
03/07/12 1143s
25Apr2012… 1679h
17May2012… 2198h
2012 SESSION
10/09
SENATE BILL 244-FN
AN ACT relative to the administration of the New Hampshire retirement system.
SPONSORS: Sen. Groen, Dist 6; Sen. Bradley, Dist 3; Rep. Hawkins, Hills 18
COMMITTEE: Executive Departments and Administration
This bill clarifies recent changes to the administration of the New Hampshire retirement system.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/07/12 1143s
25Apr2012… 1679h
17May2012… 2198h
12-2917
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT relative to the administration of the New Hampshire retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
194:1 Retirement System; Average Final Compensation. Amend RSA 100-A:1, XVIII(a) to read as follows:
(a) For members who have attained vested status prior to January 1, 2012, the average annual earnable compensation 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. For purposes of this calculation, the inclusion of the average annual compensation for extra and special duty in the 3 years shall not exceed the average annual amount of compensation for extra and special duty paid to the member over the member’s last 7 years of creditable service on or after July 1, 2009, as reported by the employer in accordance with RSA 100-A:16, VI, or over all of the years in his or her creditable service on or after July 1, 2009 if less than 7 years.
194:2 Accidental Disability Retirement; Group II; Transition. Amend RSA 100-A:6, II(d)(3) to read as follows:
(3) For group II members who have not attained vested status prior to January 1, 2012, calculation of the supplemental allowance shall [be as provided] use the percentage multipliers for the corresponding years of creditable service on January 1, 2012 in the transition provisions in RSA 100-A:5, II(d) with the range for the number of excess years for the supplement adjusted proportionally.
194:3 Method of Financing; Calculation of Interest. Amend RSA 100-A:16, II(g) to read as follows:
(g) All interest and dividends earned on the funds of the retirement system shall be credited to the state annuity accumulation fund. The board of trustees shall allow interest on the individual accounts of members in the member annuity savings fund and shall annually transfer such interest amount from the state annuity accumulation fund. The rate of interest for the calendar year beginning January 1 shall be 2 percentage points less than either the most recent board of trustees approved assumed rate of return determined under RSA 100-A:16, II(h) or the actual rate of return, whichever is lower, for the immediately preceding fiscal year as reported in the comprehensive annual financial report (CAFR) as approved and accepted by the board of trustees by December 1 of each year, provided the rate shall not be less than zero. Such interest shall be compounded at an annual rate and shall be prorated and credited to the member annuity savings fund to the date of processing upon termination of active service for any reason including withdrawal, retirement, or death.
194:4 Earnable Compensation. Amend RSA 100-A:1, XVII(b)(1) to read as follows:
(b)(1) For members who have not attained vested status prior to January 1, 2012, the full base rate of compensation paid, as determined by the employer, plus compensation over base pay. Compensation over base pay shall include as applicable, subject to subparagraphs (2), (3), and (4), any overtime pay, [holiday and vacation pay, sick pay,] cost of living bonus, annual longevity pay, additional pay for extracurricular and instructional activities, compensation for extra and special duty, and any military differential pay, plus the fair market value of non-cash compensation paid to, or on behalf of, the member for meals or living quarters if subject to federal income tax, but excluding other compensation except supplemental pay paid by the employer while the member is receiving workers’ compensation and teacher development pay that is not part of the contracted annual salary.
194:5 Definition of Part-Time. RSA 100-A:1, XXXIV is repealed and reenacted to read as follows:
XXXIV. “Part-time,” for purposes of employment of a retired member of the New Hampshire retirement system but excepting per diem court security officers and court bailiffs, means employment during a calendar year by one or more employers of the retired member which shall not exceed 32 hours in each normal calendar week. Employment in some instances may exceed 32 hours in any normal calendar week provided that in such case, the part-time employment of the retired member shall not exceed 1,300 hours in a calendar year, so long as such part-time employment does not occur outside of a 5-consecutive-month period in any 12-month period.
194:6 Maximum Benefit Limitation. 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 [or] 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). This provision shall not limit the application of supplemental allowances.
194:7 Audited Financial Report. Amend RSA 100-A:15, VI(a) to read as follows:
VI.(a) The board of trustees shall complete, not later than 120 days after the close of each fiscal year, a comprehensive annual financial report concerning the preceding fiscal year in a manner consistent with generally accepted accounting principles. The system’s comprehensive annual financial report shall be audited annually in accordance with generally accepted governmental auditing standards by a qualified independent auditor selected by the audit committee. The auditor shall present the audited financial report and resulting findings to the audit committee for its approval and acceptance by December [1] 31 of each year unless the board of trustees for good cause shall extend such period.
194:8 Effective Date.
I. Section 1 of this act shall take effect January 1, 2012.
II. The remainder of this act shall take effect upon its passage.
Approved: June 11, 2012
Effective Date: I. Section 1 shall take effect January 1, 2012.
II. Remainder shall take effect June 11, 2012.