HB117: relative to the purchase of permissive service credit in the retirement system.

HB 117-FN - AS INTRODUCED

2003 SESSION

03-0249

10/09

HOUSE BILL HB 117-FN

AN ACT relative to the purchase of permissive service credit in the retirement system.

SPONSORS: Rep. Weyler, Rock 79; Rep. R. Cooney, Rock 76

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill extends the authority for the purchase of permissive service credit in the New Hampshire retirement system to include other pension and retirement funds as permitted in federal law.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0249

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the purchase of permissive service credit in the retirement system.

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

1 New Paragraph; Retirement System; Pension Portability; Purchase of Permissive Service Credit. Amend RSA 100-A:24-a by inserting after paragraph I the following new paragraph:

I-a. A member participating under a federally tax-qualified contributory pension plan may authorize a distribution of funds held in such contributory pension plan for the purchase under the retirement system of permissive service credit, as defined in Section 415(n)(3)(A) of the United States Internal Revenue Code of 1986, as amended, or for the purchase of qualifying prior service, on behalf of such member.

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

LBAO

03-0249

12/23/02

HB 117-FN - FISCAL NOTE

AN ACT relative to the purchase of permissive service credit in the retirement system.

FISCAL IMPACT:

The New Hampshire Retirement System states this bill will increase state restricted expenditures by $5,000 in FY 2004 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

The System states this bill would allow a member to authorize a distribution of funds from a federally tax-qualified contributory pension plan to purchase permissive service credit under the New Hampshire Retirement System (NHRS). There is no cost to the System since the funds used to purchase the permissive service credit would be transferred from the member's account under the federally tax-qualified plan into the NHRS. The System estimates that the additional administrative costs for increased work to System staff would total $5,000 annually.

The Actuary's letter is on file in the bill jacket in the House Clerk's Office.