HB 1318-FN-LOCAL - AS INTRODUCED

 

 

2022 SESSION

22-2263

10/08

 

HOUSE BILL 1318-FN-LOCAL

 

AN ACT relative to penalties for employer noncompliance with retirement system requirements.

 

SPONSORS: Rep. Schuett, Merr. 20

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill establishes a penalty for noncompliance with certain requirements for administration of the retirement system applicable to retirement system employers.

 

This bill is a request of the New Hampshire retirement system.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-2263

10/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Two

 

AN ACT relative to penalties for employer noncompliance with retirement system requirements.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Paragraph; Retirement System; Employers; Penalty for Noncompliance.  Amend RSA 100-A:16 by inserting after paragraph VII the following new paragraph:

VIII. Any employer who fails to provide, within 30 days of a written request, any information required for the proper administration of the retirement system, including, but not limited to, termination forms; other information necessary to process a member’s retirement application; information relating to service credit purchases; and information necessary to perform employer audits and process record corrections arising therefrom, shall be subject to a noncompliance penalty of $25 per day. Before a penalty is assessed, the board shall notify the employer in writing of the noncompliance, identifying the reasons for the finding of noncompliance, and shall request the employer to explain to the board in writing within 30 days of the notification how the noncompliance occurred. Upon expiration of the 30-day period, the board may impose all or a portion of the penalty provided for in this paragraph, unless there is a showing that the employer did not willfully, intentionally, through gross negligence, or through a pattern of negligence, fail to provide the information as requested.

2  Effective Date.  This act shall take effect 60 days after its passage.

 

LBA

22-2263

10/22/21

 

HB 1318-FN-LOCAL- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to penalties for employer noncompliance with retirement system requirements.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2022

FY 2023

FY 2024

FY 2025

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Retirement System

 

 

 

 

 

POLITICAL SUBDIVISIONS:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

*The New Hampshire Retirement System states it is not able to separate the fiscal impact of this legislation between county and local government, therfore the fiscal impact is shown together as political subdivisions.

 

METHODOLOGY:

This bill establishes a penalty for noncompliance with certain requirements for administration of the retirement system applicable to retirement system employers.  The New Hampshire Retirement System states the fiscal impact of the bill on revenue to the System and expenditures of the State and political subdivisions is indeterminable because they are unable to estimate how many employers would be subject to the proposed penalty and if such penalties would qualify for a wavier.   However, to the extent participating employers submit the required information in a timely manner there would be no fiscal impact.

 

It is assumed any fiscal impact from this bill would not occur until FY 2023.

 

AGENCIES CONTACTED:

New Hampshire Retirement System