SB84: relative to eligibility for payment of medical benefits by the retirement system.

SB 84-FN - AS INTRODUCED

2003 SESSION

03-0817

10/01

SENATE BILL 84-FN

AN ACT relative to eligibility for payment of medical benefits by the retirement system.

SPONSORS: Sen. Larsen, Dist 15

COMMITTEE: Insurance

ANALYSIS

This bill expands the eligibility for payment of medical benefits costs by the retirement system to include persons retiring with split benefits.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0817

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to eligibility for payment of medical benefits by the retirement system.

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

1 Retirement System; Payment of Medical Benefits; Group II Retirees. Amend RSA 100-A:52, I(a) to read as follows:

(a)(1) Any person retired as a group II member of the New Hampshire retirement system on service or disability retirement[, provided that such person shall be] who is entitled to retirement on the basis of group II creditable service without including any credit for service as a group I member of the retirement system[, or ].

(2) Any person retired on or before July 1, 1991, as a group I member whose service retirement benefit is based upon the provisions of RSA 100-A:19-c and who has a minimum of 10 years of creditable service as a group II member.

(3) Any person retired as a group I member whose retirement benefit is based on the provisions of RSA 100-A:19-c, RSA 100-A:19-d, RSA 100-A:19-e, or RSA 100-A:19-f and who has a minimum of 20 years of group II creditable service.

2 Payment of Medical Benefits; Group I Teacher and Political Subdivision Retirees. Amend RSA 100-A:52-a, I(a) to read as follows:

(a)(1) Any person, who has at least 20 years of creditable service as a group I member if age 60 or older, or at least 30 years of creditable service as a group I member if age 55-59, retired on or before July 1, 2008 as a group I teacher member or political subdivision employee member of the New Hampshire retirement system on service or ordinary disability retirement, provided that such person shall be entitled to retirement on the basis of group I creditable service[, or].

(2) Any person retired on or before July 1, 2008, as a group [I] II member whose [service] retirement benefit is based upon the provisions of RSA 100-A:19-c, RSA 100-A:19-d, RSA 100-A:19-e, or RSA 100-A:19-f, and who has a minimum of 20 years of creditable service as a group I member.

3 Payment of Medical Benefits; Group I Retirees. Amend RSA 100-A:52-b, I(a) to read as follows:

(a)(1) Any person, who has at least 20 years of creditable service as a group I member if age 60 or older, or at least 30 years of creditable service as a group I member if age 55-59, retired on or before July 1, 2004 as a group I member of the New Hampshire retirement system on service or ordinary disability retirement, provided that such person shall be entitled to retirement on the basis of group I creditable service[, or].

(2) Any person retired on or before July 1, 2004, as a group [I] II member whose [service] retirement benefit is based upon the provisions of RSA 100-A:19-c, RSA 100-A:19-d, RSA 100-A:19-e, or RSA 100-A:19-f, and who has a minimum of 20 years of creditable service as a group I member.

4 Effective Date. This act shall take effect July 1, 2003.

LBAO

03-0817

1/29/03

SB 84-FN - FISCAL NOTE

AN ACT relative to eligibility for payment of medical benefits by the retirement system.

FISCAL IMPACT:

The New Hampshire Retirement System states this bill will have no fiscal impact on state, county, and local revenue or expenditures.

The New Hampshire Retirement System's Special Account will decrease by $576,000 in FY 2004.

METHODOLOGY:

The New Hampshire Retirement System states this bill would provide the post-retirement medical subsidy to the following members:

· Any person retired as a Group I member whose retirement is based on the provisions of RSA 100-A:19 (c) through (f) and has at least 20 years of Group II creditable service;

· Any person retired on or before July 1, 2008 as a Group II member whose retirement benefit is based on the provisions of RSA 100-A:19 (c) through (f) and has at least 20 years of Group I creditable service (applies to Group I teacher and political subdivision employees); and

· Any person retired on or before July 1, 2004 as a Group II member whose retirement benefit is based on the provisions of RSA 100-A:19 (c) through (f) and has at least 20 years of Group I creditable service (applies to Group I State employees).

Based on the valuation data as of June 30, 2001, there are 15 active members, and 2 retired members who would be impacted by this legislation. The terminal funding costs as of June 30, 2003 is as follows:

LBAO

03-0817

1/29/03

Page 2

Member Status Employees Teachers Police Fire

Active Members $457,000 $29,000 $ 0 $0

Retired Members 46,000 0 44,000 $0

Total $503,000 $29,000 $44,000 $0

The Special Account balance for Employees, Teachers, Policemen, and Firemen as of June 30, 2002 was $111.3M, $134.8M, $56.2M, and $54.6M, respectively.

The System states there are no administrative expenses associated with this legislation.

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