HB585: allowing teachers of private academies which provide public education to be included in the retirement system.

HB 585-FN - AS INTRODUCED

2003 SESSION

03-0992

10/01

HOUSE BILL 585-FN

AN ACT allowing teachers of private academies which provide public education to be included in the retirement system.

SPONSORS: Rep. Robert Johnson, Rock 73

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill allows school districts to include in the retirement system the teachers of private academies which are contracted to provide public education in the district.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0992

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT allowing teachers of private academies which provide public education to be included in the retirement system.

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

1 Definition of Employer. Amend RSA 100-A:1, IV to read as follows:

IV. "Employer" shall mean (a) the state or any department, commission, institution or agency of the state government by which an employee is paid through the office of the state treasurer with respect to their employees, (b) the state, the local school district or other employers of teachers eligible for membership in the system with respect to the teachers in their employ, (c) any police department or police force of the state, or of any county, city, town, village or precinct in the state with respect to the permanent policemen in their employ, and (d) any fire department of the state, or of any county, city, town, village or precinct in the state with respect to the permanent firemen in their employ; provided, however, that in no instance shall any employer contribute or participate in the retirement system unless such employer qualifies as a governmental entity, political subdivision, agency or instrumentality eligible to maintain a governmental plan within the meaning of section 414(d) of the United States Internal Revenue Code of 1986, as amended. For purposes of this chapter only, the employer of teachers participating pursuant to RSA 100-A:20, I-b shall mean the governing body of the school district.

2 New Paragraph; School District Participation; Private Academy Teachers. Amend RSA 100-A:20 by inserting after paragraph I-a the following new paragraph:

I-b. The governing body of any school district that has elected pursuant to paragraph I to have its employees participate in the retirement system may also elect to have teachers who are employees of a private academy in the district participate in the New Hampshire retirement system where the school district contracts with the private academy to provide public education for district pupils. For purposes of this chapter only, such private academy teachers shall be considered teachers employed by the school district. Teachers participating under this paragraph shall meet the minimum participation standards for full-time teachers as provided in rules adopted by the board of trustees

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

LBAO

03-0992

1/17/03

HB 585-FN - FISCAL NOTE

AN ACT allowing teachers of private academies which provide public education to be included in the retirement system.

FISCAL IMPACT:

The New Hampshire Retirement System states this bill will have an indeterminable fiscal impact on state, county, and local revenue and expenditures.

METHODOLOGY:

The New Hampshire Retirement System (NHRS) states this bill would allow teachers of private academies who provide public education to be included in the System. The fiscal impact of this bill will be immeasurable because it would result in the loss of governmental plan status for the System. The governmental plan status gives the NHRS authority to accrue tax exempt investment returns on behalf of the members of the pension funds. Allowing a non-governmental entity to join the plan as a participating employer would forfeit tax status. The System's legal counsel states eligibility for participation is based upon the status of the employer as a governmental entity (within the meaning of section 414(d) of the Internal Revenue Code), not the duties of the employees.