CHAPTER 253 HB 1647-FN-A - FINAL VERSION 22Feb2024...

0326h 11Apr2024...

1134h 05/22/2024 1977s SESSION 24-3143 10/06 HOUSE BILL 1647-FN-A AN ACT relative to the calculation of group II retirement benefits in the retirement system.

SPONSORS:

Rep.

Leishman, Hills.

33;

Rep.

D.

McGuire, Merr.

14;

Rep.

Grote, Rock.

24;

Rep.

Goley, Hills.

21;

Rep.

Shurtleff, Merr.

15;

Soucy, Dist 18 COMMITTEE:May 21, 2024 2024-2137s 06/02 Floor Amendment to HB 1647-FN-A Amend RSA 100-A:5, II(b)(2) as inserted by section 1 of the bill by replacing it with the following:

Executive3 Departments(2) andFor Administrationmembers ─────────────────────────────────────────────────────────────────who ANALYSISare Thisin billvested modifiesstatus before January 1, 2012, a state annuity which, together with his or her member annuity, shall be equal to 2-1/2 percent of his or her average final compensation multiplied by the number of years of his or her creditable service not in excess of 40 years, or for members who commenced service on or after July 1, 2011, a state annuity which, together with his or her member annuity, shall be equal to 2 percent of his or her average final compensation multiplied by the number of years of his or her creditable service not in excess of 42.5 years, and group II members retirementwho annuityhave multipliersnot attained vested status prior to January 1, 2012 shall be as provided in the transition provisions in RSA 100-A:5, II(d) with the maximum number of years of creditable service not in excess of [40.5 years] the limits under RSA 100-A:6-a, but only for group II members in service who have attained age 60 regardless of the Newnumber Hampshireof retirementyears system.of creditable service, or who work up to their full age and service requirements and retire under service retirement.

TheIf billa makesmember anretires appropriationprior to reaching full age and service requirements, then their annuity multiplier remains the retirementsame systemas therefor.their first 10 years of creditable service.

-Amend -RSA -100-A:5, -II(d) -as -inserted -by -section -1 -of -the -bill -by -replacing -it -with -the -following: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation:

Matter(d) addedActive group II members who commenced service prior to currentJuly law1, appears2011 inand boldwho italics.have not attained vested status prior to January 1, 2012 shall be subject to the following transition provisions for years of service required for regular service retirement, the minimum age for regular service retirement, and for the first 10 years of creditable service, the multiplier used to calculate the retirement annuity, which shall be applicable on, or after January 1, 2012 according to the following table:

MatterCreditable removedservice fromon currentMinimum lawyears appearsMinimum [inAnnuity bracketsJanuary and1, struckthrough.]2012 Matterof whichservice isage eitherattained (a)multiplier all(1) newLess than 4 years 24 age 49 2.1 % * (2) At least 4 years 23 age 48 2.2% * but less than 6 years (3) At least 6 years but22 age 47 2.3% * less than 8 years Floor Amendment to HB 1647-FN-A - Page 2 - (4) At least 8 years but21 age 46 2.4% * less than 10 years * The annuity multiplier applied to creditable service earned beyond 10 years of creditable service, shall be 2.5 percent, but only for group II members in service who have attained age 60 regardless of the number of years of creditable service, or (b)who repealedwork up to their full age and reenactedservice appearsrequirements inand regularretire type.under service retirement.

CHAPTERIf 253a HBmember 1647-FN-Aretires -prior FINALto VERSIONreaching 22Feb2024...full age and service requirements, then their annuity multiplier remains the same as their first 10 years of creditable service.

0326hAmend 11Apr2024...RSA 100-A:6, II(b) as inserted by section 2 of the bill by replacing it with the following:

1134h(b) 05/22/2024Upon 1977sordinary 24-3143disability 10/06retirement, STATEthe OFgroup NEWII HAMPSHIREmember Inshall thereceive Yearan ofordinary Ourdisability Lordretirement Twoallowance Thousandwhich Twentyshall Fourconsist ANoa ACTmember relativeannuity towhich shall be the calculationactuarial equivalent of grouphis IIor retirementher benefitsaccumulated incontributions at the retirementtime system.of his or her ordinary disability retirement;

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

253:1 Group II Service Retirement Benefits.

Amend RSA 100-A:5, II to read as follows:

II.

Group II Members.

(a) Any group II member in service, who is in vested status before January 1, 2012, who has attained age 45 and completed 20 years of creditable service, and any group II member who commenced service on or after July 1, 2011 who has attained age 50 and completed 25 years of creditable service, and group II members who have not attained vested status prior to January 1, 2012 as provided in the transition provisions in RSA 100-A:5, II(d), or any group II member in service who has attained age 60 regardless of the number of years of creditable service, may retire on a service retirement allowance upon written application to the board of trustees setting forth at what time not less than 30 days nor more than 90 days subsequent to the filing thereof the member desires to be retired, notwithstanding that during such period of notification the member may have separated from service.

Provided, however, that a group II member who commenced service on or after July 1, 2011 shall not receive a service retirement allowance until attaining the age of 52.5;

but may receive a reduced allowance after age 50 if the member has at least 25 years of creditable service where the allowance shall be reduced, for each month by which the date on which benefits commence precedes the month after which the member attains 52.5 years of age, by 1/4 of one percent.

(b) Upon service retirement, a group II member shall receive a service retirement allowance which shall consist of:

(1) A member annuity which shall be the actuarial equivalent of his or her accumulated contributions at the time of retirement;

and (2) For members who are in vested status before January 1, 2012, a state annuity which, together with his or her member annuity, shall be equal to 2-1/2 percent of his or her average final compensation multiplied by the number of years of his or her creditable service not in excess of 40 years, or for members who commenced service on or after July 1, 2011, a state annuity which, together with his or her member annuity, shall be equal to 2 percent of his or her average final compensation multiplied by the number of years of his or her creditable service not in excess of 42.5 years, and group II members who have not attained vested status prior to January 1, 2012 shall be as provided in the transition provisions in RSA 100-A:5, II(d) with the maximum number of years of creditable service not in excess of [40.5 years] the limits under RSA 100-A:6-a, but only for group II members in service who have attained age 60 regardless of the number of years of creditable service, or who work up to their full age and service requirements and retire under service retirement.