2008-257, STATE EMPLOYEES ASSOCIATION OF NH v. NH DIVISION OF PERSONNEL

I:30 (Supp. 2008). We affirm. qualify for determining eligibility for medical benefits coverage under RSA 21-

organization and the exclusive representative for more than 10,000 state employees and the SEA, which describes itself as “a voluntary labor The facts in this case are not in dispute. The petitioners are two state

purchased pursuant to RSA 100-A:4, VII (Supp. 2006) (repealed 2007) does not appeal an order of the Superior Court (Conboy, J.) ruling that service credit Hampshire, SEIU, Local 1984 (SEA), William E. Evans and John R. Bush, HICKS, J. The petitioners, the State Employees Association of New

attorney general, on the memorandum of law and orally), for the respondent. Kelly A. Ayotte, attorney general (Michael K. Brown, senior assistant

and orally), for the petitioners. Molan, Milner & Krupski, PLLC, of Concord (Glenn R. Milner on the brief to press. Errors may be reported by E-mail at the following address:

page is: http://www.courts.state.nh.us/supreme. SEIU, LOCAL 1984 & a.

editorial errors in order that corrections may be made before the opinion goes No. 2008-257 Hampshire, One Charles Doe Drive, Concord, New Hampshire 03301, of any Merrimack Readers are requested to notify the Reporter, Supreme Court of New ___________________________

a.m. on the morning of their release. The direct address of the court's home reporter@courts.state.nh.us. Opinions are available on the Internet by 9:00

well as formal revision before publication in the New Hampshire Reports. NOTICE: This opinion is subject to motions for rehearing under Rule 22 as by the number of years of creditable service.”

p. 2 to a certain percentage of “the member’s average final compensation multiplied

time of retirement; or July 1, 2003, and who also is at least 60 years of age at the of creditable service if the employee’s service began on or after

allowance payable thereunder to group I employee or teacher members is equal means each group I state employee who: 2 For instance, RSA 100-A:5, I(b) (2001) provides that the service retirement “creditable service” to calculate various benefits or to define eligibility for them.

decision concerns only the benefits available to some group I members. plan or a self-funded alternative” for,

the employee’s service began prior to July 1, 2003 or 20 years

programs other than those related to the [NHRS].” RSA 21-I:42, VIII. with, among other things, “[o]verseeing administration of all employee benefit each group II state employee who retires. “Retired employee” also

(2000 & Supp. 2008). Both statutory schemes use some form of the term

a (Supp. 2008), VII-b (2001) and VIII (2001). For reasons explained below, this hospitalization, hospital medical care, surgical care and other medical benefits categories further defined and delineated in RSA 100-A:1, VII (Supp. 2008), VII- “permanent policemen and permanent firemen,” RSA 100-A:1, X(b) (2001),

(a) Has at least 10 years of creditable service for the state if

agency of the state. RSA 21-I:1, :42 (Supp. 2008). The division is charged II. For the purposes of this section, “retired employee” means

retirees and certain of their family members pursuant to RSA 21-I:26 to :36 uses a similar phrase to define that term. RSA 21-I:30 provides, in part: and other medical benefits,” RSA 21-I:30, I, provided to state employees, state inter alia, retired employees of the state, & Supp. 2008), and “group hospitalization, hospital medical care, surgical care RSA 21-I:30, which directs the state to pay a premium “toward group

employees referred to in this opinion is group II, whose members are

division established within the department of administrative services, an

retirement allowances payable by NHRS pursuant to RSA chapter 100-A (2001 Two types of state employee benefits are relevant to the instant action:

RSA 100-A:1, V and VI (Supp. 2008). The other classification of state “employees and teachers,” RSA 100-A:1, X(a) (2001), terms further defined in and Bush, are apparently group I members of NHRS. Group I members are

The respondent, the New Hampshire Division of Personnel (division), is a

Hampshire Retirement System (NHRS)].” The two individual petitioners, Evans employees who are eligible to receive certain retirement benefits from the [New this chapter,” RSA 100-A:1, XV (Supp. 2008). p. 3 terms of one or more of the predecessor systems, and as set forth under

age.

predecessor retirement system “for which credit was given under the

becoming a member of group II and shall be at least 45 years of such retiree shall not be eligible until 20 years from the date of reaches age 60. eligible. If the vested deferred state retiree is a member of group II, 3

retirement system,” RSA 100-A:1, XIV (2001), plus service under a A:1, XVI (2001), means “service rendered while a member of the context.” RSA 100-A:1 (2001). In general, “creditable service,” RSA 100- XIII (2001). a permanent fireman which is paid for by an employer.” RSA 100-A:1, defined as “service as an employee, a teacher, a permanent policeman or

surgical benefits under this section when the state employee of group I, such retiree shall be at least 60 years of age to be employee” for the purposes of being eligible to receive medical and service retirement allowance shall be defined as a “retired

chapter 100-A], unless a different meaning is plainly required by the

service, as provided in RSA 100-A:4”). The term “[s]ervice,” in turn, is (defining “[c]reditable service” to “mean prior service plus membership

2003. In addition, if the vested deferred state retiree is a member creditable service if the employee’s service began on or after July 1, began on or after July 1, 2003, and who elects to take a reduced the employee’s service began prior to July 1, 2003 or 20 years of

RSA 100-A:1 defines certain “words and phrases as used in [RSA

2003 or 20 years of creditable service if the employee’s service shall have at least 10 years of creditable service with the state if service for the state if the employee’s service began prior to July 1, IV. Each state employee who has at least 10 years of creditable

retiree is eligible. To be eligible, a vested deferred state retiree surgical benefits under this section if the vested deferred state III. Any vested deferred state retiree may receive medical and

. . . .

the time of retirement, regardless of the employee’s age; . . . . (b) Has at least 30 years of creditable service for the state at savings fund.

p. 4 Specifically, RSA 100-A:4, VII provided: A:4, VII] impacts eligibility for state-paid retiree health benefits pursuant to the retirement system to purchase up to five years additional credit.

member’s payment shall be credited to the member annuity

“to clarify whether the purchase of nonqualified service credit [under RSA 100- RSA 100-A:4, VII, which, until its repeal in 2007, allowed certain members of credit and upon approval of the board, subject to the following: upon payment by the member of the full actuarial cost of such

number of years of nonqualified service credit bought. The respect to the member at the time of buy-in, multiplied by the the member and employer contribution rates in effect with

otherwise purchasable under this chapter.

On October 20, 2006, the division issued Personnel Memorandum 07-01 to purchase credit for out-of–state service). In 2006, the legislature enacted state service); RSA 100-A:4-c (Supp. 2008) (allowing certain group II members RSA 100-A:4, VII. the United States Internal Revenue Code of 1986, as amended, (Supp. 2008) (allowing certain group I members to purchase credit for out-of–

such requests per member per calendar year. of compensation at the time of buy-in, multiplied by the sum of service credit pursuant to this paragraph shall be limited to 2 (c) Requests concerning the purchase of nonqualified

(b) “Nonqualified service credit” means time that is not

nonqualified service credit within the meaning of section 415(n) of following break in service to join Peace Corps or AmeriCorps); RSA 100-A:4-b

actuarial cost shall be the product of the member’s annual rate installment payments as permitted by the board. The fully paid for the nonqualified service in a lump sum or by (a) Credit shall not be granted until the active member has

receive credit for not less than one month nor more than 5 years of States armed services); :4, VIII (Supp. 2008) (allowing purchase of service credit least 5 years of creditable service in the state, shall be entitled to in active service in the retirement system who currently has at State of New Hampshire, or for certain breaks in service. VII. Notwithstanding any provision of this section, a member

A:4, VI (Supp. 2008) (allowing purchase of credit for active service in the United

to purchase credit for service rendered for public employers other than the RSA chapter 100-A also offers limited opportunities for certain members eligibility to receive medical benefits in retirement” pursuant to RSA 21-I:30. p. 5 “not persuaded that nonqualified service credit may be applied to establish

statute], to mean service actually working for the state.” Thus, the court was

intended the phrase ‘creditable service for the state,’ as it is used in [that history of RSA 21-I:30, however, the court concluded that “the legislature lawmakers’ intent in enacting it. From the intent expressed in the legislative

not a model of clarity,” and found no indication in the legislative history of the

meaning. The court “acknowledge[d] that the language of RSA 100-A:4, VII is service for the state” ambiguous and looked to legislative history to decipher its for summary judgment and granted. The court found the term “creditable

isolation, but in the context of the overall statutory scheme.”

The division filed a motion to dismiss, which the trial court treated as a motion

advanced by the entire statutory scheme.” the legislature’s intent in enacting them, and in light of the policy sought to be

we review deal with a similar subject matter, we construe them so that they do not legislative history. “The interpretation of a statute is a question of law, which Portsmouth, 151 N.H. 170, 174 (2004). “When interpreting two statutes that

N.H. 249, 251 (1995) (quotation omitted). “We interpret statutes not in ascribe the plain and ordinary meanings to words used.” Conrad v. Hazen, 140 eligibility as a retired employee pursuant to RSA 21-I:30.” (Emphasis omitted.) we first examine the language found in the statute, and where possible, we Resort, 152 N.H. 399, 401 (2005). “When construing the meaning of a statute,

principles of statutory construction. “Our goal is to apply statutes in light of 472, 479 (2006) (quotation omitted). We are guided by a number of well-settled retiree health benefit. determining the eligibility of a Group I member for the state-paid de novo.” In the Matter of Liquidation of Home Ins. Co., 154 N.H. the purchase of nonqualified service credit would not count toward interpretation of the language of the statute and in its consultation of On appeal, the petitioners argue that the trial court erred in both its

pursuant to [RSA 100-A:4, VII] can be utilized for purposes of determining

service is not “creditable service for the state” and for this reason,

declaratory judgment “that creditable service purchase[d] by a state employee memorandum states: The petitioners brought the instant action seeking, inter alia, a members to years of creditable service. With respect to group I members, the

to qualify for the health care benefit. Nonqualified, non-state have a certain number of years of “creditable service for the state” in addition to meeting a number of other specified conditions, to The language in RSA [21-I:30] requires a retiring Group I employee,

group I members because RSA 21-I:30 does not tie the eligibility of group II RSA 21-I:30.” The memorandum notes that the question is only relevant to state.” p. 6 intent in the modification of “creditable service” by such phrases as “for the

creditable service be actual work time for the state.

I:30.”); RSA 100-A:4-c (same). We find no consistent indication of legislative

service employees, under the [division’s] view, would need to have their on or after July 1, 2003 whereas the other two categories of eligible eligibility for medical and surgical benefits as a retired employee under RSA 21- ‘creditable service for the state’) is entitled to benefits if employed retirement system shall be counted as creditable service for the purpose of state employee has.” performed in the state of New Hampshire as a member of the New Hampshire

of explicit exclusions of purchased service credit from qualification as ‘ The petitioners similarly argue that the existence elsewhere in the statute

section uses the phrases “creditable service,” RSA 21-I:30, II(a), III, “creditable

is, a state employee with ‘20 years of creditable service’ (not

‘creditable service for the state’ is simply the amount of ‘creditable service’ a A:4-b, I (“For such employee or teacher members, only creditable service performance of such service in the state, it has expressly said it. See RSA 100creditable service for purposes of eligibility for health benefits by requiring the The petitioners also point out that where the legislature has intended to limit retired state employees requires not just ‘creditable service’ but a term of actual

words “for the state” in RSA 21-I:30 neither helpful nor dispositive. First, that

only two of the three categories created by RSA 21-I:30[, II]. That result. The phrase ‘creditable service for the state’ is employed in ‘creditable service’ is and has a precise meaning. Thus, the plain meaning of [T]he [division’s] position leads to an illogical and unreasonable

distinction in intended meaning. Thus, the petitioners argue: service with the state,” RSA 21-I:30, III (emphasis added), with no discernable asserts that “[p]ursuant to RSA 21-I:30, the provision of health care benefits to for the state,” RSA 21-I:30, II(a), (b) (emphasis added), and “creditable

Upon reviewing the entire statutory scheme, we find the addition of the

‘creditable service for the state’ is not defined by statute, but the term service for the state.’” The petitioners counter that “[t]he complete phrase

The parties first dispute the plain meaning of RSA 21-I:30. The division

omitted). In the Matter of Liquidation of Home Ins. Co., 154 N.H. at 4 p. 7 79 (quotation might have said or add language that the legislature did not see fit to include.” Ins. Co., 156 N.H. 429, 431 (2007). “[W]e will not consider what the legislature effectuate the legislative purpose of the statutes.” Grand China v. United Nat’l contradict each other, and so that they will lead to reasonable results and 7

act pertaining to the same subject matter will be construed in the same sense.”

explicit exclusion] specifically requires some form of actual service, In the first instance, each statutory provision . . . [containing an

noting: of-state service purchased by group II members). The petitioners argue: military and out-of-state service credit from nonqualified service credit by we “assume that the legislature intended something different.” by group I members); RSA 100-A:4-c, I, IV (similar exclusion for credit for out- 100-A:4-b, I, III and :4-c superfluous. The division attempts to distinguish for the state eligibility for medical benefits under RSA 21-I:30.,’” renders the explicit exclusions in RSA 100-A:4, VI(c) and RSA “creditable service” because the former term requires “a term of actual ‘ intent that such creditable service qualifies for purposes of service indicates otherwise, words or phrases in a provision that were used in a prior that “creditable service for the state,” RSA 21-I:30, does not include purchased several other provisions, there exists unmistakable legislative Bay Disposal Serv., 125 N.H. 540, 543 (1984). To accept the division’s position relating to the same subject matter,” presumed not to have used superfluous or redundant words.” Merrill v. Great of the words of a statute must be given effect and that the legislature is be meaningful,” We also note the “elementary principle of statutory construction that all

N.H. at 252.

Conversely, where the legislature uses different language in related statutes, 100-A:4-b, I, III (similar exclusion for credit for out-of-state service purchased Appeal of Town of Hampton Falls, 126 N.H. at 810 (quotation omitted).

N.H. 805, 809 (1985) (quotation omitted). Therefore, “[u]nless the context not adding in RSA 100-A:4, VII the exclusionary language found in

whenever the legislature enacts a provision, it has in mind previous statutes

Conrad, 140 N.H. at 251, and that we generally “assume[] that

We acknowledge that “[t]he legislature’s choice of language is deemed to

(Citation and italics omitted.)

medical and surgical benefits as a retired employee under RSA 21-I:30”); RSA

VII. intent by adding clear exclusionary language. Conversely, then, by creditable service from the ambit of RSA 21-I:30 it expressed this knowledge that when it intended to exclude certain purchased When the Legislature enacted [RSA] 100-A:4, VII it did so with

“shall not be used as creditable service . . . for the purpose of eligibility for See RSA 100-A:4, VI(c) (providing that purchased credit for military service legislature intended to include service credit purchased under RSA 100-A:4, “creditable service for the state” for purposes of RSA 21-I:30 indicates that the definition of the latter.

p. 8 statutory section entitled “creditable service,” the former is included in the

allowing purchase of “nonqualified service credit” is contained within the petitioners, on the other hand, appear to argue that because the provision rather would simply have allowed the purchase of creditable service. The

the statute as written would defeat the legislature’s intent.

language used.” 2A N.J. Singer & J.D. S. Singer,

division posits, it would not have distinguished it from creditable service, but

purpose, object, and intention of the legislature . . . [was] clear” and to apply

that legislative intent must prevail if it can be reasonably discovered in the legislature did not see fit to include”). Thus, in intended to treat “nonqualified” service the same as creditable service, the

statute to that intention.” 8

statutory section and supplied the proper statutory reference where “the

Nevertheless, “all rules of statutory construction are subservient to the one construction to the provisions at issue produces conflicting results. not consider what the legislature might have said or add language that the service” reads the term “nonqualified” out of that section. If the legislature well be a fool’s errand. Application of our standard rules of statutory “nonqualified service credit” purchased under RSA 100-A:4, VII as “creditable “with the state” superfluous. Similarly, the division argues that to interpret words may be modified, altered, or supplied so as to compel conformity of the

717, 718 (1975), we disregarded a mistaken reference in a statute to another

154 N.H. at 479 (stating standard rule of statutory construction that “we will coherent meaning into every word of RSA chapter 100-A and RSA 21-I:30 may (quotation omitted). But cf., e.g., In the Matter of Liquidation of Home Ins. Co.,

“[w]hen the intention of the Legislature can be ascertained from the statute, v. Mayer, 220 S.E.2d 221, 226 (S.C. 1975) (stating same principle). Indeed, Construction § 45.5, at 36 (7th ed. 2007); see McMillen Feed Mills, Inc. of S. C.

As the foregoing analysis suggests, any attempt to read consistent and

with] the state” as simply referring to “creditable service” as that term is

annuity. Instead, all they have to do is pay money to offset the cost of the

We also acknowledge, however, that to read “creditable service for [or

governmental or public employer would not come within the plain meaning of “the state.” RSA 21-I:30. Thus, actual service performed for another not mention actual service, but rather refers to creditable service for or with This distinction does not help the division, however, because RSA 21-I:30 does

case, there is no actual service being performed by the employee. albeit in a predecessor, military or out-of-state system. In this annuity savings fund. p. 9 under the system other than those payable from the member

volunteer firemen and from which shall be paid all benefits payable

amounts paid to the system by or on account of call, substitute, or transferred from the member annuity savings fund, and all under one or more of the predecessor systems, amounts

member from whose compensation the deduction was made.”

systems.” RSA 100-A:16, I(a);

are held.” credited to the individual account, in the member annuity savings fund, of the system at such times as may be designated by the board of trustees and I(a). “Each of such amounts, when deducted, shall be paid to the retirement payment of all state annuities payable from contributions made by “annual payments for life derived from contributions by an employer”). The RSA 100-A:16, II(a); see RSA 100-A:1, XXI (2001) (defining “[s]tate annuity” as

transferred thereto from a similar fund under one or more of the predecessor

are credited between the two funds “according to the purpose for which they

specified percentage of the member’s earnable compensation. RSA 100-A:16, the fund in which shall be accumulated all reserves for the

The state annuity accumulation fund is:

100-A:16, I(d). member annuity savings fund to the state annuity accumulation fund. RSA for the state,” as that phrase is used in RSA 21-I:30, reasonably ascertainable. member retires, his or her accumulated contributions are transferred from the for their member annuities,” are accumulated “together with any amounts

and the state annuity accumulation fund. RSA 100-A:16 (Supp. 2008). Assets

employees and employers.” payroll period from each member’s compensation in an amount calculated as a contributions of the member”). Member contributions are deducted each annuity,” as “annual payments for life derived from the accumulated

credit purchased under RSA 100-A:4, VII from the ambit of “creditable service contributions, which are deducted from the members’ compensation “to provide

Id. The member annuity savings fund is the fund in which member

(1984). NHRS’ assets are held in two funds: the member annuity savings fund

“The retirement system is financed through contributions from both

scheme for retirement allowances contained in RSA chapter 100-A. See Singer & Singer, supra § 45.5, at 36. We begin by examining the statutory

N.H. at 174, we find the legislature’s intent to exclude nonqualified service context of the overall statutory scheme,” Appeal of City of Portsmouth, 151 In this case, interpreting the provisions at issue, as we must, “in the as is necessary to keep the benefits fully funded.

p. 10 subtrust shall receive only that portion of each year’s contribution

(h) and (i). shown by actuarial valuation, except as provided in subparagraphs segment of group I retirees not relevant here]. particular members of the various member classifications as former employer, subject to the provisions of this section, for [a specified such time as the benefits are fully funded. Thereafter, the employees in accordance with RSA 100-A:16 to the subtrust until group I state employer contributions made for group I state

on the basis of the liabilities of the system with respect to the employer-sponsored plan provided for active employees of a retiree’s

401(h) subtrust shall be funded by allocating 25 percent of future

but through a separate fund. Specifically, RSA 100-A:52-b provides that

percent of such normal contribution in each instance shall be fixed care, surgical care, and other medical and surgical benefits, in the be known as the “accrued liability contribution” . . . . The rate known as the “normal contribution”, and an additional amount to 401(h) subtrust of the New Hampshire retirement system. The The benefits provided under RSA 100-A:52-b shall be provided by a pays for medical benefits under very limited circumstances not at issue here, allowance” as “the sum of the member annuity and the state annuity.” NHRS RSA 100-A:52-b, I (Supp. 2008). RSA 100-A:53-d, I, currently provides: retired members. Thus, RSA 100-A:1, XXII (2001) defines “[r]etirement

shall pay the cost for permanent group hospitalization, hospital medical 100-A:16, II(e).]” RSA 100-A:16, II(f) (Supp. 2008). percentage of the earnable compensation of its members to be

annuity accumulation funds are used solely to pay the retirement allowances of 2008), the funds accumulated in the member annuity savings and state employment other than through retirement or death, see RSA 100-A:11 (Supp. Except in the case of member contributions returned to members ceasing

behalf of [each member] classification as determined by the actuary under [RSA additional amount “necessary to liquidate the unfunded accrued liability on retirement system on account of group I members shall consist of a RSA 100-A:16, II(c). The accrued liability contribution is, essentially, an

The contributions of each employer for benefits under the

provides: amount of the employer’s contribution is specified in RSA 100-A:16, II(c), which fund.”

p. 11 nonqualified service credit was to be “credited to the member annuity savings Second, RSA 100-A:4, VII provided that the payment for the purchased member actually performed the service at the time he purchased credit for it.

annuity savings and state annuity accumulation funds, respectively, had the

to be used to fund the purchasing members’ retirement allowances and nothing

the amounts that both he and his employer would have paid into the member

clear that the money used to purchase nonqualified service credit was intended compensation “to provide for their member annuities,” RSA 100-A:16, I(a), it is VII(a). Thus, to purchase nonqualified credit, the member was required to pay savings fund accumulates contributions deducted from members’ the number of years of nonqualified service credit bought.” RSA 100-A:4, rates in effect with respect to the member at the time of buy-in, multiplied by

purpose for which they are held,” RSA 100-A:16, and that the member annuity

time of buy-in, multiplied by the sum of the member and employer contribution pursuant to the provisions of RSA 100-A:15. 11

annuity savings and state annuity accumulation funds “according to the

defined to be “the product of the member’s annual rate of compensation at the granted. RSA 100-A:4, VII. The actuarial cost of the purchased credit was providing medical benefits under RSA 100-A:52-b may be invested actuarial cost of such credit” before the purchased service credit would be

21-I:30 “within the limits of the funds appropriated at each legislative session.”

Recalling that NHRS’ assets are to be allocated between the member

Id. medical benefits under RSA 100-A:52-a. The funds, if any, noting. First, the section required “payment by the member of the full set forth in this chapter may be used or diverted to provide none of the funds accumulated to provide the retirement benefits

circumstances just described, the State itself pays the premiums under RSA

Turning to the language of RSA 100-A:4, VII, two points are worth purpose other than to provide said medical benefits. Similarly,

RSA 100-A:53-d, II (Supp. 2007) (amended 2008). Except under the limited

accumulated interest shall not be used for or diverted to any separate account, the 401(h) subtrust. All funds and medical benefits under RSA 100-A:52-b shall be maintained in a All contributions made to the retirement system to provide

retirement allowances. RSA 100-A:53-d, II provides: Funds to be used for health benefits are segregated from those to be used for RSA 100-A:53-d, I (Supp. 2008) (amended 2008); see 26 U.S.C. § 401(h) (2000). language of RSA 100-A:4, VII itself.

p. 12 upon it, as the intent to bear no fiscal burden is made clear in the plain

group I members,

need not discern that significance, which is equivocal at best, nor need we rely significance of a fiscal note attached to the bill enacting RSA 100-A:4, II, we than that allowed with respect to” certain governmental, educational or military purchased credit. We further note that while the parties dispute the for all or part of the health benefits provided under RSA 21-I:30 to retired the IRC defines “[n]onqualified service credit” as “permissive service credit other Revenue Code of 1986 [IRC], as amended.” RSA 100-A:4, VII. Section 415(n) of

part because the former statute mandates the payment of “the

a result we find contrary to the intent that the State bear no cost of the payment of retirement annuities. As previously noted, where NHRS does pay savings fund, a fund solely used to accumulate monies intended for the service credit within the meaning of section 415(n) of the United States Internal would not have allocated all of the purchase money to the member annuity

count toward eligibility for health benefits under RSA 21-I:30 in substantial not intend nonqualified service credit purchased under RSA 100-A:4, VII to RSA 21-I:30 as interpreted by the SEA.” We conclude that the legislature did service for the State under RSA 21-I:30 would have a significant fiscal impact, refers to the type of service credit purchasable thereunder as “nonqualified purchase of credit qualifying for health care coverage under RSA 21-I:30, it suggested by the division at oral argument. RSA 100-A:4, VII(b) explicitly Revenue Code (IRC) provisions referenced in the pertinent state provisions, as Ultimately, our conclusion is buttressed by a review of the Internal

separate fund used solely for the purpose of funding health benefits. annuity savings fund or the state annuity accumulation fund, but from a

see RSA 100-A:52, V, VI, it does so not from the member

would cost the State between $513 and $1,912 per retiree, per month to fund interpretation including purchased nonqualified service credit as creditable

We further conclude that had the legislature intended to allow the benefits.

“[b]ased on COBRA rates at the time this matter was before the trial court, it We note that the petitioners’ attorney conceded at oral argument that an

members’ retirement allowances and did not include the cost of health care actuarial cost as only the actuarial equivalent of contributions for the cost of such credit,” RSA 100-A:4, VII (emphasis added), yet defined that

For purposes of this appeal, we accept the division’s assertion that

the benefit of actual service, not itself incur any cost for the purchased credit. else. In addition, the intention is manifest that the State, not having received spouses and their dependents, p. 13 hospitalization, and medical expenses of retired employees, their

state statutes at issue. imposed on such benefits provide ample support for our interpretation of the funds such benefits in certain circumstances. Nevertheless, the limitations credit. amount necessary to fund the benefit attributable to such service

the provisions of section 420, a pension or annuity plan may administered by the commissioner of administrative services, benefits, (2) a separate account is established and maintained for such

provided by the plan, (1) such benefits are subordinate to the retirement benefits

retirement annuities, by a pension plan, and, as noted previously, NHRS itself but only if —

under such governmental plan, which does not exceed the

Under regulations prescribed by the Secretary, and subject to NHRS and not the medical benefits plan provided for in RSA 21-I:26 to :36 and IRC section 401(h) provides, in pertinent part: § 415(n)(3)(A)(i) is the plan providing retirement annuities administered by

however, as the IRC contemplates the payment of medical benefits, as well as of retirement annuities, not medical benefits. The distinction is not so clear, (Supp. 2008), nonqualified service credit has application only within the realm voluntary additional contribution, in an amount determined

governmental plan, and The division contends that because the plan referred to in 26 U.S.C.A.

26 U.S.C.A. § 415(n)(3)(A) (emphasis added). calculating a participant’s benefit

(iii) which such participant may receive only by making a

(ii) which such participant has not received under such

(i) recognized by the governmental plan for purposes of

service credit –

defined in relevant part to mean: service. 26 U.S.C.A. § 415(n)(3)(C) (Supp. 2008). Permissive credit, in turn, is p. 14 14

funding. Nothing in RSA 100-A:4, VII or RSA 21-I:26 to :36 provides for such separate benefits through a separate account in order to comply with 26 U.S.C. § 401(h).

administrative gloss. not address the parties’ arguments regarding legislative history or

intent”).

§ 415(n)(3)(A)(i), had the legislature done so, it would have had to fund those other than the providing of such benefits, taxable year or thereafter) used for, or diverted to, any purpose

this conclusion based upon the plain language of RSA chapter 100-A, we need

BRODERICK, C.J.