HB1682: relative to the methodology for determining retirement system contribution rates.

HB 1682-FN – AS INTRODUCED

2010 SESSION

10-2570

10/09

HOUSE BILL 1682-FN

AN ACT relative to the methodology for determining retirement system contribution rates.

SPONSORS: Rep. Kurk, Hills 7; Rep. Hawkins, Hills 18

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill requires the retirement system actuary to utilize a 50-year period for averaging retirement system earnings and assets in preparing the biennial valuation used to determine annual contribution rates.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2570

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to the methodology for determining retirement system contribution rates.

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

1 Retirement System; Method of Financing; Valuation. Amend the introductory paragraph of RSA 100-A:16 to read as follows:

All of the assets of the retirement system shall be credited, according to the purpose for which they are held, between 2 funds, namely, the member annuity savings fund and the state annuity accumulation fund. Each of the funds shall be subdivided on account of the various member classifications. In making the determinations required under this section for financing the retirement system, the board of trustees shall use the entry age normal funding methodology. The board of trustees shall direct the system’s actuary to prepare biennial valuations of the system’s assets and liabilities commencing with the valuation prepared as of June 30, 2007. In preparing the biennial valuation, the actuary shall utilize an average of the earnings and assets of the system over a 50-year period. Such biennial valuation shall be the basis for determining the annual contribution requirements of the system until the next following biennial valuation.

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

LBAO

10-2570

12/18/09

HB 1682-FN - FISCAL NOTE

AN ACT relative to the methodology for determining retirement system contribution rates.

FISCAL IMPACT:

The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the New Hampshire Retirement System. When completed, the fiscal note will be forwarded to the House Clerk's Office.