Relative to service credit for certain group II retirement eligibility.
Impact
The bill fosters a significant change in retirement eligibility for certain service members. By enabling them to purchase up to four years of nonqualified service credit, SB363 allows eligible members to potentially retire as early as age 45, provided they have met the required years of creditable service. This maintenance of early retirement options can promote a more adaptable workforce by enabling long-serving members to retire with reduced age or creditable service requirements. However, it also raises administrative considerations and fiscal impacts for the New Hampshire Retirement System due to the necessary calculations and resources needed to facilitate these purchases.
Summary
Senate Bill 363 (SB363) in New Hampshire aims to provide a pathway for certain active members of the retirement system who served between January 1, 2002, and June 30, 2011, to purchase nonqualified service time that can be credited to their Group II service. This ability allows members to reduce their minimum retirement age and meet the necessary service credit requirements. The bill specifically details the conditions under which members can purchase this credit, stipulating that they must cover the full actuarial cost and can only make two requests for such purchases per year.
Contention
Notable points of contention surrounding SB363 may arise from concerns about the affordability and administrative feasibility of implementing the new credit purchase program. Some stakeholders may worry about the long-term fiscal health of the retirement system as it adjusts to accommodate additional purchased service credits, posing potential risks if not managed properly. Questions about whether the actuarial assumptions for the cost of these credits will hold and how this might affect future benefit payouts are likely to be central issues among lawmakers and retirement system officials.