Bill Text: NH SB129 | 2016 | Regular Session | Amended
Bill Title: Allowing retired members of the retirement system to change an optional allowance election in certain circumstances.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-06-22 - Signed by the Governor on 06/21/2016; Chapter 0292; Effective 08/20/2016 [SB129 Detail]
Download: New_Hampshire-2016-SB129-Amended.html
SB 129-FN - AS AMENDED BY THE SENATE
01/14/2016 3067s
2015 SESSION
15-0942
10/03
SENATE BILL 129-FN
SPONSORS: Sen. Cataldo, Dist 6
COMMITTEE: Executive Departments and Administration
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AMENDED ANALYSIS
This bill allows a retired member of the retirement system to terminate the designation of a single, non-spouse beneficiary to receive an optional allowance.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01/14/2016 3067s 15-0942
10/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT allowing retired members of the retirement system to change an optional allowance election in certain circumstances.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Retirement System; Optional Allowances; Termination. Amend RSA 100-A:13, II by inserting after subparagraph (b) the following new subparagraph:
(c) Any retired member who has elected option 2, 3, or 4, and has designated a single, non-spouse beneficiary, may at any time prior to the death of the beneficiary terminate such elected option without the consent of the beneficiary by signing and filing with the board a form designated by the board. Upon termination, the allowance received under the elected option shall be converted to the retirement allowance that would have been payable in the absence of such election. Any supplemental allowance, or COLAs, granted to the retiree and effective before the date of termination of the option shall continue in effect and shall not be adjusted as a result of the termination. Such termination shall become effective, and payment of the converted allowance shall commence, on the first day of the month following receipt of such form by the board. If the retiree dies after giving notice of such termination but before the effective date, the notice shall be deemed valid, the previously elected option shall terminate as of the date of the retiree's death, and no survivor annuity shall be paid pursuant to the previously elected option.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
15-0942
01/15/15
SB 129-FN - FISCAL NOTE
AN ACT allowing retired members of the retirement system to change an optional allowance election in certain circumstances.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill, as introduced, will increase state expenditures by $15,000 in FY 2016, $240,000 in FY 2018, and $250,000 in FY 2019. This bill will increase county and local expenditures by an indeterminable amount in FY 2018 and each year thereafter. There will be no fiscal impact on state, county, and local revenues.
METHODOLOGY:
The New Hampshire Retirement System states this bill allows a retired member of the retirement system to change an optional allowance after the 120 day grace period and redesignate the nonelection or election of an optional allowance where the executive director finds that circumstances require the change. The System states this bill will increase state employer contribution rates and increase the State’s unfunded actuarial accrued liability by $9.4 million. The table below shows an increase in state, county, and local expenditures as a result of increased employer contribution rates according to actuarial estimates. The System was unable to provide county and local expenditure detail separately.
Expected Employer Expenditure Increase (In Millions) | ||
Member Classification | FY 2018 | FY 2019 |
Employees: |
|
|
State | $ 0.23 | $ 0.24 |
County & Local | $ 0.27 | $ 0.28 |
|
|
|
Teachers | $ 0.48 | $ 0.50 |
|
|
|
Police: |
|
|
State | $ 0.01 | $ 0.01 |
County & Local | $ 0.02 | $ 0.02 |
|
|
|
Fire: |
|
|
State | $ 0.00 | $ 0.00 |
County & Local | $ 0.03 | $ 0.03 |
|
|
|
Total: |
|
|
State | $ 0.24 | $ 0.25 |
County & Local | $ 0.80 | $ 0.83 |
The System states this bill will require $15,000 in programming changes to its pension database in FY 2016.
