Bill Text: NH HB497 | 2021 | Regular Session | Introduced
Bill Title: Allowing a school district to exempt its chief administrative officer from compulsory participation in the retirement system.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-02-24 - Inexpedient to Legislate: Motion Adopted Voice Vote 02/24/2021 House Journal 3 P. 31 [HB497 Detail]
Download: New_Hampshire-2021-HB497-Introduced.html
HB 497-FN - AS INTRODUCED
2021 SESSION
21-0466
10/08
HOUSE BILL 497-FN
SPONSORS: Rep. Long, Hills. 10
COMMITTEE: Education
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ANALYSIS
This bill allows a school district to have its superintendent not be required to be a member of the state retirement system and by contract to provide for an equivalent payment to such superintendent for contribution in private retirement accounts.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
21-0466
10/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Modifications; School District Officers. 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, or school districts, may, by action of their city council [or], board of selectmen, or school board, 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 New Section; School Superintendents; Retirement Benefits; Contract Option. Amend RSA 194 by inserting after section 4 the following new section:
194-C:4-a Superintendent Benefits; Retirement Contributions. A school district or school administrative unit exempting their chief administrative officer from compulsory retirement system contributions under RSA 100-A:22, II may by contract pay to the superintendent a sum equivalent to the employer contribution determined under RSA 100-A for contribution into a qualified retirement plan under the United States Internal Revenue Code. If a superintendent chooses this option, and the superintendent and his or her school district have made contributions to the state retirement system in RSA 100-A, then up to 3 years of past employee contributions and school district employer contributions to the state retirement system may be transferred to the superintendent's private retirement account, subject to such restrictions or qualifications as may be required by the retirement system in conformity with applicable provisions of the United States Internal Revenue Code of 1986, as amended.
3 Effective Date. This act shall take effect 60 days after its passage.
21-0466
1/8/21
HB 497-FN- FISCAL NOTE
AS INTRODUCED
AN ACT allowing a school district to exempt its chief administrative officer from compulsory participation in the retirement system.
FISCAL IMPACT: [ ] State [ ] County [ ] Local [ X ] None
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METHODOLOGY:
This bill allows a school district to exempt its chief administrative officer from being required to participate in the New Hampshire Retirement System, which does not result in a direct impact on state, county, or local revenue or expenditures.
AGENCIES CONTACTED:
None
