HB651: (2nd New Title) relative to the purchase of prior service credit in the retirement system, and repealing certain provisions permitting additional contributions.

HB 651-FN – AS AMENDED BY THE SENATE

07Jan2004… 2375h

11Mar2004… 0401h

05/06/04 1157s

05/06/04 1534s

2003 SESSION

03-0673

10/09

HOUSE BILL 651-FN

AN ACT relative to the purchase of prior service credit by certain political subdivision employee members.

SPONSORS: Rep. Langley, Rock 88; Sen. Cohen, Dist 24

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill allows certain political subdivision employee members of the retirement system to purchase prior service credit where the member participated in a local retirement plan.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07Jan2004… 2375h

11Mar2004… 0401h

05/06/04 1157s

05/06/04 1534s

03-0673

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the purchase of prior service credit by certain political subdivision employee members.

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

1 Retirement System; Political Subdivision Employees; Purchase of Certain Prior Service Credit. Amend RSA 100-A:28 to read as follows:

100-A:28 Limitation on Membership. This retirement system and the provisions hereof shall not apply to any person benefited by or entitled to participate under any other provisions of law which provides wholly or in part at the expense of the state or any other employer, for retirement benefits for employees, teachers, permanent policemen, and permanent firemen employed by the state or such other employer, their widows or other dependents, with respect to the same period of service for which they are eligible for benefits under the terms of this chapter. The provisions of this section shall not apply to any person participating in, or receiving or eligible to receive benefits under the old-age and survivors insurance provisions of Title II of the federal Social Security Act, as amended or under a retirement arrangement federally tax-qualified under sections 403(b) or 457 of the United States Internal Revenue Code of 1986, as amended. The provisions of this section shall not apply with respect to the purchase of prior service credit under RSA 100-A:3, VI by any person who had participated in or deemed eligible to receive benefits under a retirement arrangement funded, wholly or in part, by contributions from a political subdivision of the state, or an agency or instrumentality of a political subdivision of the state; provided, that such arrangement shall first be terminated in full, but in no event later than December 31, 2005; and, further provided, that the benefits thereunder shall be distributed in their entirety to eligible participants and beneficiaries in accordance with the terms and conditions of such terminated retirement arrangement.

2 Effective Date. This act shall take effect July 1, 2004.

LBAO

04-0673

Amended 5/17/04

HB 651 FISCAL NOTE

AN ACT relative to the purchase of prior service credit by certain political subdivision employee members.

FISCAL IMPACT:

The New Hampshire Retirement System states this bill, as amended by the Senate (Amendments #2004-1157s and #2004-1534s), will increase state restricted expenditures by $3,000 in FY 2005 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

The New Hampshire Retirement System states this bill will allow the purchase of prior service credit, under the provisions of RSA 100-A:3,VI, by any person who had participated in or deemed eligible to receive benefits under a retirement arrangement other than the NHRS, funded by contributions from a political subdivision of the State, provided that such arrangement shall be terminated in full no later than December 31, 2005, and that the benefits shall be distributed in their entirety to the eligible participants. This bill will have no fiscal impact on the System since the members pay the cost of the prior service credit. However, there will be an estimated annual administrative cost of $3,000 as a result of this bill since System staff will need to calculate the cost to purchase the prior service.

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