HB629: (New Title) relative to authorizing continued membership in the Manchester employees’ contributory retirement system, and relative to the Nashua public works retirement system.

CHAPTER 97

HB 629-FN – FINAL VERSION

27Mar2007… 0630h

2007 SESSION

07-0627

10/03

HOUSE BILL 629-FN

AN ACT relative to authorizing continued membership in the Manchester employees’ contributory retirement system, and relative to the Nashua public works retirement system.

SPONSORS: Rep. Baroody, Hills 13; Rep. Beaulieu, Hills 17

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill allows certain members of the Manchester employees’ contributory retirement system whose positions are reclassified to continue membership with the Manchester employees’ contributory retirement system.

The bill also authorizes the continued operation of the Nashua public works retirement system administered by its board of trustees.

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

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

27Mar2007… 0630h

07-0627

10/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to authorizing continued membership in the Manchester employees’ contributory retirement system, and relative to the Nashua public works retirement system.

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

97:1 New Section; Manchester Employees’ Contributory Retirement System; Continued Membership. Amend 1973, 218, as amended by 2002, 194, 2006, 115, and 2006, 224, by inserting after section 31 the following new section:

218:32 Continued Membership for Employees Affected by Reorganization.

I. Notwithstanding any provision of law to the contrary, any person who is a member of the Manchester employees’ contributory retirement system whose position is reclassified as a result of reorganization by the city of Manchester, and who continues employment in the position for which the reclassification would otherwise require membership in the New Hampshire retirement system under RSA 100-A, shall be granted the option upon such reclassification to either remain affiliated with the retirement system, or to accept membership in New Hampshire retirement system under RSA 100-A. Any employee subsequently hired into the reclassified position shall be required to be a member in the New Hampshire retirement system under RSA 100-A.

II. Members affected by paragraph I may elect in writing, on forms developed by the retirement system, to remain a member of the retirement system. The member shall complete and submit the election form not later than the effective date of the transfer or reclassification of the position, and shall submit them to both the retirement system and the employer. Employees so electing shall be members of the retirement system exclusively. The election of such a member shall be deemed permanent and cannot be revoked once accepted by the board.

III. Any retirement system members who, in the event of a reorganization by the city of Manchester, elect to become members of the New Hampshire retirement system under RSA 100-A may elect to file as vested deferred members of the retirement system if their accumulated service credit at the time of transfer or reclassification exceeds the 5-year requirement for vesting. Members with less than 5 years of accumulated service credit shall be entitled to a refund of contributions.

97:2 Findings.

I. The general court finds that the city of Nashua has continually operated a retirement system for employees of its board of public works since 1947. Although Nashua has had the option of merging its city-run public works retirement system with the New Hampshire retirement system, it has consistently chosen not to do so. Other than its board of public works employees, all of Nashua's other employees are in either group I or group II of the New Hampshire retirement system.

II. The New Hampshire supreme court's decision in McKenzie v. City of Berlin, as well as other retirement-related litigation, has caused concern among Nashua's public works employees and their families as to the validity of their 60-year-old plan. Accordingly, it is the intent of the legislature to reaffirm the continuing validity of the Nashua board of public works retirement system as an independent retirement system, exempt from the provisions of RSA 100-A.

97:3 Nashua Public Works Retirement System; Administration. 1943, 292:1 through 292:4 are repealed and reenacted as follows:

1. Administration. The administration of the Nashua public works retirement system is vested in a board of trustees.

2. Board of Trustees. The board of trustees shall establish rules, regulations, and policies as it deems necessary for the proper administration of the retirement plan. The board of trustees shall be selected or appointed in accordance with procedures approved by Nashua's governing body.

3. Management of Funds. The members of the board of trustees shall be the trustees of the funds created hereby and shall have full power to invest and reinvest such funds. The board of trustees shall have the powers, privileges, and immunities of a corporation. Said trustees shall have full power to hold, purchase, sell, assign, transfer, and dispose of any or all of the securities and investments in which the board has invested, as well as the proceeds of such investments. Employee contributions to the Nashua public works retirement system by employee members will be at a rate determined by its board of trustees. The Nashua public works retirement system board of trustees shall exercise the judgment and care under the circumstances then prevailing, which persons of prudence, discretion, and intelligence, acting in a like capacity and familiar with such matters, would use in the conduct of a pension plan of like character with like aims as the trust to minimize risk of loss to the trust fund.

4. Amount of Benefit. The member retirement eligibility, the amount of the retirement benefit, the type of retirement benefit, and the termination of any such benefit shall be at the discretion of the board of trustees.

97:4 Effective Date. This act shall take effect upon its passage.

Approved: June 11, 2007

Effective: June 11, 2007