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HB1519: relative to the determination of gainful occupation for a group II member receiving a disability retirement allowance from the retirement system.
Bill details
Version history, amendments, and roll-call votes were not present in the imported local bill data.
Sponsors
- Barbara Shaw House · Hills 16
Topics
Executive administration Retirement and pensions
Official links
HB 1519-FN – AS INTRODUCED
2008 SESSION
08-2595
10/04
HOUSE BILL 1519-FN
AN ACT relative to the determination of gainful occupation for a group II member receiving a disability retirement allowance from the retirement system.
ANALYSIS
This bills removes the application of the gainful occupation reductions to retirement allowances of group II disability beneficiaries who have years of service plus years of disability retirement which total at least 20.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2595
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to the determination of gainful occupation for a group II member receiving a disability retirement allowance from the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Retirement System; Disability Benefits; Gainful Occupation. Amend RSA 100-A:6, III(b) by inserting after subparagraph (2) the following new subparagraph:
(3) The provisions of subparagraph (b)(1) shall not apply to a group II disability beneficiary whose total of years of service as a member in group II plus years of disability retirement is at least 20 years, as determined by the board. Any such disability beneficiary shall receive retirement allowance benefits under this section without reduction for gainful occupation.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
08-2595
12/04/07
HB 1520-FN - FISCAL NOTE
AN ACT relative to the determination of gainful occupation for a group II member receiving a disability retirement allowance from the retirement system.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill will increase state, county, and local expenditures by an indeterminable amount in FY 2010 and each year thereafter. There is no fiscal impact on state, county, and local revenue.
METHODOLOGY:
The New Hampshire Retirement System states this bill removes the reduction in state annuity for gainful occupation for group II disability beneficiaries whose total years of group II service when combined with the number of years of disability retirement is at least 20 years. The System’s actuary used the following member data to determine the potential impact of this bill:
Police
Fire
Total
Active Members
4,263
1,588
5,851
Disability Beneficiaries
307
124
431
Total
4,570
1,712
6,282
Assuming an annual rate of return of 8.5 percent, wage inflation at 4.5 percent a year, and using the entry-age normal cost valuation method, the System’s actuary determined the following cost increases:
FY 2010
FY 2011
FY 2012
Police
$178,000
$186,000
$194,000
Fire
$23,000
$24,000
$25,000
Total
$201,000
$210,000
$219,000
The increased costs would be distributed among state, county, and local employers. Increased costs represent an increase in employer pension contribution rate of 0.05 percent for police and 0.02 percent for fire. The increased costs would be included in the biennial valuation required by RSA 100-A:16 to determine contribution rates for FY 2010 and FY 2011 and would not impact FY 2008 and FY 2009 contribution rates.