Bill Text: NH HB1561 | 2020 | Regular Session | Introduced

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Bill Title: Allowing a county to exempt its chief administrative officer from compulsory participation in the retirement system.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2020-06-16 - Vacated from Committee and Laid on Table, Motion Adopted, Voice Vote; 06/16/2020 Senate Journal 8 [HB1561 Detail]

Download: New_Hampshire-2020-HB1561-Introduced.html

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HB 1561-FN - AS INTRODUCED

 

 

2020 SESSION

20-2179

10/06

 

HOUSE BILL 1561-FN

 

AN ACT allowing a county to exempt its chief administrative officer from compulsory participation in the retirement system.

 

SPONSORS: Rep. Sullivan, Sull. 1; Rep. Stapleton, Sull. 5

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill allows the county commissioners to exempt the county chief administrative officer from compulsory membership in the state retirement system.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2179

10/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT allowing a county to exempt its chief administrative officer from compulsory participation in the retirement system.

 

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

 

1  Retirement System; Modifications; Counties.  Amend RSA 100-A:22 to read as follows:

100-A:22  Modifications.  

I. Membership in the retirement system shall be optional for officers and employees of the employer who are in the service of the employer on the date when participation becomes effective, and any such officer or employee who elects to join the retirement system within one year thereafter shall be credited with prior service covering such periods of prior service rendered to such employer for which the employer is willing to make accrued liability contributions.  If the employer is unable or unwilling to make such contributions, a member in service may petition the board of trustees for periods of prior service rendered to such employer.  Upon payment by the member of the amount determined in accordance with RSA 100-A:3, VI(b) and with the approval of the board, the member shall receive credit for such prior service.  Thereafter, service for such employer on account of which contributions are made by the employer and member shall also be considered as creditable service.  However, in no event shall prior service purchased as creditable service under this section be used as creditable service for the purpose of eligibility for medical benefits under RSA 100-A:52, RSA 100-A:52-a, or RSA 100-A:52-b.

II.  Membership shall be compulsory for all employees entering the service of such employer after the date participation becomes effective.  Municipalities and counties may, by action of their city council [or], board of selectmen, or board of commissioners, exempt their chief administrative officer, at the time of initial hiring or appointment, from compulsory membership provided herein.  The chief fiscal officer of the employer, and the heads of its departments, shall submit to the board of trustees such information and shall cause to be performed with respect to the employees of such employer, who are members of the retirement system, such duties as shall be prescribed by the trustees in order to carry out the provisions of this chapter.

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

 

LBAO

20-2179

10/22/19

 

HB 1561-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT allowing a county to exempt its chief administrative officer from compulsory participation in the retirement system.

 

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

	Estimated Increase / (Decrease)
COUNTY:	FY 2020	FY 2021	FY 2022	FY 2023
Appropriation	$0	$0	$0	$0
Revenue	$0	$0	$0	$0
Expenditures	$0	$0	Indeterminable Decrease	Indeterminable Decrease

 

METHODOLOGY:

This bill allows counties to exempt their chief administrative officer, at the time of initial hiring or appointment, from compulsory membership in the New Hampshire Retirement System.  The NHRS states the bill could potentially affect up to 10 members in the system.  The actuary for NHRS states the estimated impact is assumed to be less than .01% of the entire payroll from which NHRS contributions will be made.  There is no fiscal impact in FY 2020 and FY 2021 as employer rates have already been set.  These changes would have a minimal impact on the actuarial status of the system in FY 2022 and each year thereafter.  

 

AGENCIES CONTACTED:

New Hampshire Retirement System and New Hampshire Association of Counties