SB219: relative to a one-time allowance for certain state retirees.

SB 219-FN-A - AS INTRODUCED

2017 SESSION

17-0884

10/01

SENATE BILL 219-FN-A

AN ACT relative to a one-time allowance for certain state retirees.

SPONSORS: Sen. Carson, Dist 14; Sen. Bradley, Dist 3; Sen. Soucy, Dist 18; Rep. Danielson, Hills. 7; Rep. M. McCarthy, Hills. 29; Rep. Sterling, Ches. 14; Rep. Dowling, Rock. 6; Rep. McKinney, Rock. 5

COMMITTEE: Finance

ANALYSIS

This bill grants a one-time additional allowance to retires in the state retirement system. The bill makes an general fund appropriation for the retirement allowances.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0884

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seventeen

AN ACT relative to a one-time allowance for certain state retirees.

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

1 Retirement System; Additional Allowance; Appropriation.

I. An additional one-time allowance of $500 shall be paid during state fiscal year 2018 to retired members of the retirement system receiving an allowance who are eligible as follows:

(a) The member retired with at least 20 years of creditable service;

(b) The member retired and has been receiving an allowance for at least 5 years prior to July 1, 2017.

(c) The annual retirement allowance of the member on June 30, 2017 is not greater than $30,000.

II. The additional allowance shall not become a permanent addition to the member's base retirement allowance.

III. The sum necessary to fund the additional allowances granted under this act is hereby appropriated to the board of trustees of the retirement system. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

2 Effective Date. This act shall take effect July 1, 2017.

LBAO 17-0884

1/24/17

SB 219-FN-A- FISCAL NOTE

AS INTRODUCED

AN ACT relative to a one-time allowance for certain state retirees.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

Appropriation

$4,190,000

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

$4,190,000

$0

$0

$0

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

METHODOLOGY:

This bill appropriates funds for additional allowances to the New Hampshire Retirement System Board of Trustees for the purpose of an additional one-time $500 allowance to be paid during FY 2018 to retired members of the retirement system. Retired members of the retirement system receiving an allowance are eligible if such member is retired with at least 20 years of creditable service; the member retired and has been receiving an allowance for at least 5 years prior to July 1, 2017; and the annual retirement allowance for the member on June 30, 2017 is not greater than $30,000. The additional allowance shall not become a permanent addition to the member’s base retirement allowance. The funds shall be drawn out of any money in the Treasury not otherwise appropriated.

The Treasury Department states there is no impact on revenues or expenditures of the Department as budgeted in the general fund.

The New Hampshire Retirement System states that since the additional allowance is not a permanent addition to the member’s base retirement allowance and is funded by a separate appropriation, there is no change in the employer contribution rate. The System’s actuary determined the retired members eligible based on the retiree and beneficiary data as of June 30, 2015 and reviewed census data provided as of June 30, 2016 for reasonableness and consistency with these results and recommended no adjustment. The final tabulation of eligibility will be performed by System staff. The System’s actuary estimates a total of $4.19 million cost for FY 2018, payable by separate appropriation. The allocation of this benefit is as follows:

Expected Dollar Increase Due to Proposal-State

Employees

Teachers

Police

Fire

Total

FY 2018

$1,150,000

N/A

$70,000

$10,000

$1,230,000

Expected Dollar Increase Due to Proposal-Political Subdivisions

Employees

Teachers

Police

Fire

Total

FY 2018

$840,000

$1,820,000

$170,000

$130,000

$2,960,000

Combined Total Dollar Increase Due to Proposal

FY 2018

$4,190,000

AGENCIES CONTACTED:

New Hampshire Retirement System and Treasury Department