New Hampshire 2023 Regular Session

New Hampshire House Bill HB436

Introduced
1/11/23  
Refer
1/11/23  
Report Pass
2/16/23  
Report DNP
2/16/23  

Caption

Relative to group II retirement under transition provisions in the retirement system.

Impact

The legislation is expected to have significant financial implications for the state and local governments, with estimated expenditures increasing over the years due to the financial obligations imposed by the new benefits structure. Specifically, the New Hampshire Retirement System (NHRS) anticipates an increase in the actuarial accrued liability by approximately $133.6 million, which will be amortized over a 20-year period. Each fiscal year will see substantial appropriations from the state to fund these benefits, constituting a serious budget consideration for state finances.

Summary

House Bill 436, relative to group II retirement under transition provisions in the retirement system, seeks to modify the conditions and calculations for retirement benefits of public employees in New Hampshire. The bill adjusts the transition provisions for group II service retirement that were established in 2011, extending the timeline for changes until 2033. It introduces definitions regarding 'vested' status and modifies the criteria for earnable compensation and average final compensation, enabling certain types of compensation that were previously excluded to be included once again.

Contention

Debate surrounding HB 436 centers on the balance between adequate retirement benefits for public employees and the financial sustainability of the state's pension system. Proponents argue that the adjustments restore fairness to retirement benefits, particularly for employees who commence service prior to certain dates, while opponents raise concerns about escalating costs and the impacts on future budgets. The complexities introduced by the bill, such as changes in the definitions of compensation, may lead to administrative burdens for both the NHRS and the participating employers, which are expected to incur additional reprogramming and training expenses.

Companion Bills

No companion bills found.

Previously Filed As

NH HB579

Eliminating the 2011 transition provision requirements for group II retirement.

NH HB727

Relative to the New Hampshire retirement system.

NH HB1653

Relative to determination of earnable compensation for certain group II retirement system members.

NH HB282

Increasing the maximum benefits for first responders critically injured in the line of duty, relative to the determination of education adequacy grants and calculation of certain group II benefits within the retirement system.

NH HB525

Relative to group II service retirement provisions in the retirement system.

NH HB436

Making an appropriation to the New Hampshire retirement system to pay down the unfunded accrued liability.

NH HB1647

Relative to the calculation of group II retirement benefits in the retirement system.

NH HB449

Relative to the calculation of group II retirement benefits in the retirement system.

NH SB75

Modifies provisions relating to retirement systems

NH HB449

Relative to the calculation of group II retirement benefits in the retirement system.

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