SB331: relative to the offset of workers' compensation lump sum payments against retirement system disability allowances and death benefits.

SB 331-FN - AS INTRODUCED

2004 SESSION

04-3028

10/01

SENATE BILL 331-FN

AN ACT relative to the offset of workers' compensation lump sum payments against retirement system disability allowances and death benefits.

SPONSORS: Sen. Flanders, Dist 7; Rep. Zolla, Rock 77

COMMITTEE: Insurance

ANALYSIS

This bill removes an exception for workers' compensation lump sum payments to payments which offset disability retirement benefits and accidental death benefits.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04-3028

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to the offset of workers' compensation lump sum payments against retirement system disability allowances and death benefits.

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

1 Disability Retirement Benefits; Offset of Workers' Compensation Payments. Amend RSA 100-A:6, III(c) to read as follows:

(c) Except for [payments made under RSA 281-A:37 or] compensation which is not earnable compensation under RSA 100-A:1, XVII, any amounts which may be paid or payable to or on account of any member or retired member on account of any disability to which the employer has made contributions under the provisions of any workers' compensation or similar law or plan shall, in such manner as the board of trustees shall determine, be offset against and payable in lieu of any state annuity on account of the same disability.

2 Accidental Death Benefits; Offset of Workers' Compensation Amounts. Amend RSA 100-A:8, III to read as follows:

III. Workers' Compensation. Notwithstanding the foregoing provisions of this section [and except for payments made under RSA 281-A:37], any amounts which may be paid or payable under the provisions of any workers' compensation or similar law on account of the death of any member shall, in such manner as the board of trustees shall determine, be offset against and payable in lieu of any state annuity payable under the provisions of this section on account of the same death. Any amounts offset above shall not include compensation received to pay hospital or medical bills under any private annuity or disability insurance plan.

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

LBAO

04-3028

Revised 2/2/04

SB 331 FISCAL NOTE

AN ACT relative to the offset of workers' compensation lump sum payments against retirement system disability allowances and death benefits.

FISCAL IMPACT:

The New Hampshire Retirement System states this bill will decrease state restricted expenditures by $208,000 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 New Hampshire Retirement System states this bill would offset from the State portion of a disability retirement benefit or an accidental death benefit any worker's compensation lump sum payment received by a member on or after retirement from NHRS. The System assumes that the lump sum payable would be converted into an annuity. The System estimates this change will reduce annual System Trust Fund expenditures by $30,000 for Group I and $178,000 for Group II, for a total annual savings of $208,000.

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