HB 461-FN - AS INTRODUCED
2023 SESSION
23-0473
02/10
HOUSE BILL 461-FN
AN ACT relative to elimination by political subdivision employers of a group II retirement position.
SPONSORS: Rep. S. Pearson, Rock. 13; Rep. Bordes, Belk. 5; Rep. Trottier, Belk. 8; Rep. Pratt, Rock. 4; Rep. Proulx, Hills. 15
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill requires political subdivision employers to obtain an analysis from the retirement system and continue to pay contributions when eliminating or transferring a group II position from full time to part time.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0473
02/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to elimination by political subdivision employers of a group II retirement position.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Participation by Certain Employees of Political Subdivisions; Contributions. Amend RSA 100-A:24 by inserting after paragraph IV the following new paragraph:
V. No political subdivision employer shall eliminate a group II position or transfer a group II position into a part time position without an analysis from the retirement system as to the unfunded liability for that position. The salary used for this analysis will be the greatest salary going back 5 years. The employer portion of the contributions determined under RSA 100-A:16 shall continue to be charged to the political subdivision employer, plus a 20 percent penalty. If the position is restored to a group II contributing position, the penalty shall be terminated and the normal calculation for retirement system contributions will be restored. This provision shall apply to all group II position changes made after January 1, 2020.
2 Effective Date. This act shall take effect 60 days after its passage.
23-0473
1/5/23
HB 461-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to elimination by political subdivision employers of a group II retirement position.
FISCAL IMPACT: [ ] State [ X ] County [ X ] Local [ ] None
METHODOLOGY:
This bill requires political subdivision employers to obtain an analysis from the New Hampshire Retirement System (NHRS) when eliminating or transferring a group II position from full time to part time. It also requires the employer to continue to make contributions to the NHRS based on the highest compensation paid for the position in the prior 5 years. Lastly, it imposes a penalty equal to 20% of such contribution on the employer and both the contribution and penalty are required in perpetuity unless the position is restored to full-time status.
The New Hampshire Retirement System states they are unable to estimate how many employers would be subject to the proposed assessment. The NHRS states there would be a significant indeterminable increase in administrative costs relating to reprogramming of the NHRS pension administration system to accommodate the receipt of employer contributions and penalties. Lastly, the NHRS states there could be a modest beneficial economic impact on NHRS funding. The affect of this bill is an indeterminable impact to political subdivisions with an assumption the impact will start in FY 2024 and forward.
AGENCIES CONTACTED:
New Hampshire Retirement System