Appropriating state general fund surplus toward the retirement system unfunded accrued liability.
Impact
Should HB 555 be enacted, it would amend existing statutes governing the allocation of state revenues, particularly with regard to retirement funding. The bill outlines specific conditions under which the surplus can be appropriated, ensuring that the revenues are only redirected following careful fiscal evaluation. This approach highlights a significant commitment to public sector employees and retirees, ensuring that their retirement benefits are adequately funded. The legislation could ultimately serve to stabilize employer contribution rates in the future, although the exact fiscal impact remains indeterminable and largely dependent on future surplus levels.
Summary
House Bill 555, introduced in 2023, proposes appropriating a significant portion of the state's general fund surplus towards addressing the unfunded accrued liability of the New Hampshire retirement system. Specifically, the bill mandates that 75 percent of the biennial surplus be allocated to reduce this liability, thereby aiming to strengthen the financial standing of the retirement system. This legislative measure intends to ensure that the retirement system remains solvent and capable of meeting its obligations to its members, which is particularly relevant given the increasing costs associated with public pensions.
Sentiment
The sentiment surrounding HB 555 appears to be largely supportive among public sector advocates and legislators who prioritize fiscal responsibility in retirement funding. Supporters argue that this measure will enhance the financial health of the retirement system and alleviate concerns regarding potential liabilities looming over the state budget. However, some skepticism persists regarding the sustainability of projecting state surpluses accurately and whether this legislative measure could inadvertently lead to reduced funds for other state programs and services.
Contention
Debate surrounding HB 555 may arise from concerns about the implications of such fiscal reallocation. Critics might argue that tying funding for the retirement system directly to surplus revenues could undermine the availability of funds for essential state services during periods of economic downturn. The necessity of establishing thresholds for the revenue stabilization reserve account, as stipulated in the bill, further complicates the matter, as it places parameters on when appropriations can occur. This raises questions about the balance between fulfilling long-term pension obligations and maintaining flexibility in state financial management.
(Constitutional Amendment) Requires that a portion of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of certain state retirement systems
Provides that a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)
(Constitutional Amendment) Provides for a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)
Requires application of minimum foundation program formula funds to the unfunded accrued liability of the Teachers' Retirement System of Louisiana (OR -$756,394,593 FC LF EX)
Removing fees and charges for governmental records under the right-to-know law and reinstating potential liability for disclosure of information exempt from disclosure.