SB338: (New Title) relative to the purchase of prior service credit in the retirement system, and repealing certain provisions permitting additional contributions.

CHAPTER 216

SB 338-FN – FINAL VERSION

15Apr2004… 1038h

5May2004… 1398h

05/25/04 1643cofc

2004 SESSION

04-3036

10/01

SENATE BILL 338-FN

AN ACT relative to the purchase of prior service credit in the retirement system, and repealing certain provisions permitting additional contributions.

SPONSORS: Sen. Roberge, Dist 9

COMMITTEE: Insurance

AMENDED ANALYSIS

This bill:

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

II. Repeals the provisions for making additional contributions for the benefit of a member’s retirement allowance.

III. Removes time frames for applications to purchase service credit.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15Apr2004… 1038h

5May2004… 1398h

05/25/04 1643cofc

04-3036

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to the purchase of prior service credit in the retirement system, and repealing certain provisions permitting additional contributions.

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

216:1 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.

216:2 Repeal. RSA 100-A:16, I(c), relative to additional contributions by or on behalf of a member, is repealed.

216:3 Retirement System; Group I; Credit for Out-of-State Service; Membership and Application Times. Amend RSA 100-A:4-b, I(a) and (b) to read as follows:

(a) The member has terminated employment and active membership in the out-of-state system and[, within 18 months thereafter,] has become a group I member of the New Hampshire retirement system; and

(b) The member applies for out-of-state credit, on a form designated by the board[, within 5 years after becoming a member of the New Hampshire retirement system or before July 1, 1995, whichever is later]; and

216:4 Retirement System; Group II; Credit for Out-of-State Service; Membership and Application Times. Amend RSA 100-A:4-c, I(a) and (b) to read as follows:

(a) The member has terminated regular full-time employment and active membership in the out-of-state system and[, within 18 months thereafter,] has become a member of the New Hampshire retirement system; and

(b) The member applies for out-of-state credit, on a form designated by the board[, within 5 years after becoming a member of the New Hampshire retirement system, or before July 1, 1995, whichever is later]; and

216:5 Political Subdivision Membership; Modifications; Petition for Credit. Amend RSA 100-A:22 to read as follows:

100-A:22 Modifications. Membership in the retirement system shall be optional for officers and employees of the employer who are in the service of the employer on the date when participation becomes effective, and any such officer or employee who elects to join the retirement system within one year thereafter shall be credited with prior service covering such periods of prior service rendered to such employer for which the employer is willing to make accrued liability contributions. If the employer is unable or unwilling to make such contributions, a member in service may petition the board of trustees [within 5 years from the date when the employer's participation becomes effective] for periods of prior service rendered to such employer. Upon payment by the member of the amount determined in accordance with RSA 100-A:3, VI(b) and with the approval of the board, the member shall receive credit for such prior service. Thereafter, service for such employer on account of which contributions are made by the employer and member shall also be considered as creditable service. Membership shall be compulsory for all employees entering the service of such employer after the date participation becomes effective. Municipalities may, by action of their city council or board of selectmen, exempt their chief administrative officer, as an unclassified employee, from compulsory membership provided herein. The chief fiscal officer of the employer, and the heads of its departments, shall submit to the board of trustees such information and shall cause to be performed with respect to the employees of such employer, who are members of the retirement system, such duties as shall be prescribed by the trustees in order to carry out the provisions of this chapter.

216:6 Applicability. Notwithstanding section 2 of this act, any New Hampshire retirement system member who was making additional contributions under RSA 100-A:16, I(c) prior to December 31, 2004 or who applied to make additional contributions under RSA 100-A:16, I(c) prior to December 31, 2004 may continue to make additional contributions after December 31, 2004.

216:7 Effective Date.

I. Sections 2 and 6 of this act shall take effect December 31, 2004.

II. The remainder of this act shall take effect July 1, 2004.

(Approved: June 11, 2004)

(Effective Date: I. Sections 2 and 6 shall take effect December 31, 2004.

II. Remainder shall take effect July 1, 2004.)