For Immediate Release: June 28, 2022
Contact: Marty Karlon, Director of Communications & Legislative Affairs, (603) 410-3594; public_relations@nhrs.org
CONCORD, NH – Seven bills related to RSA 100-A were enacted by the New Hampshire Legislature during the 2022 session and signed into law by the Governor. RSA 100-A is the statute governing the New Hampshire Retirement System (NHRS, the retirement system).
Here is a summary of NHRS-related legislation passed in 2022:
Senate Bill 363 (Chapter 171, Laws of 2022; effective August 6, 2022) allows members who commenced Group II service between January 1, 2002, and June 30, 2011, to purchase nonqualified service time in order to reduce certain transition provision requirements for service retirement. The member is responsible for paying the full actuarial cost of the service credit purchased. Note: Implementation of SB 363 requires significant computer programming and NHRS is unable to accept requests for service purchase cost calculations until the law takes effect.
For additional information, see:
https://www.nhrs.org/news/article/2022/06/16/sb-363-nonqualified-service-purchase-for-certain-group-ii-members
and
https://www.nhrs.org/faqs/faq-sb363
House Bill 1587 (Chapter 184, Laws of 2022; effective August 14, 2022) modifies the calculation of compensation paid in excess of the full base rate of pay (COB) under the definition of Average Final Compensation (AFC) for Group II members hired prior to July 1, 2011, who had not attained vested status prior to January 1, 2012. The projected benefit increases associated with this bill will be pre-funded by the state and will not impact FY 24-25 employer contribution rates. Note: Implementation of HB 1587 requires significant computer programming and NHRS is unable to accept requests for benefit estimates under the revised formula until the law takes effect.
For additional information, see:
https://www.nhrs.org/news/article/2022/06/20/hb-1587-average-final-compensation-calculation-for-certain-group-ii-members
House Bill 1535 (Chapter 203, Laws of 2022; effective July 1, 2022) grants a one-time $500 payment to retirees and beneficiaries retired prior to or on July 1, 2017, who have an annual pension benefit of $30,000 or less. The payment will be issued by NHRS as soon as administratively practicable, but no later than November 1. The state will appropriate the funds for the additional allowances to the retirement system.
For additional information, see:
https://www.nhrs.org/news/article/2022/06/23/hb-1535-eligible-retirees-to-receive-one-time-payment-of-$500
House Bill 1497 (Chapter 76, Laws of 2022; effective July 19, 2022) allows a member of the retirement system to elect a survivorship optional allowance upon joining the retirement system. The election will not be effective until the member becomes eligible to receive a monthly pension benefit. Previously, only active members who were eligible for service retirement could designate a survivorship optional allowance.
This bill also extends the time frame of the post-retirement grace period to change a survivor benefit optional retirement allowance from 120 days after the effective date of retirement to 120 days from date of the original notice of retirement provided by the retirement system.
House Bill 1318 (Chapter 191, Laws of 2022; effective August 16, 2022) establishes an employer penalty for noncompliance with certain data reporting requirements necessary for the administration of the retirement system. Note: NHRS will update the employer penalty information page on www.nhrs.org and send a reminder to employers on the effective date of the bill.
House Bill 1221 (Chapter 189, Laws of 2022; effective July 1, 2022). This bill, which originally dealt only with business taxes, was amended to require the state to reimburse 7.5 percent of local employer pension contributions for Group I teachers and Group II police and fire members paid in fiscal year 2022. The reimbursement does not include medical subsidy contributions. NHRS will provide final FY 2022 contribution information to the state Treasurer in October. NHRS is not involved in the reimbursement process, which will be handled by the state.
This bill also repeals RSA 100-A:16, II(c-1), a dormant section of the statute relative to employer contributions for fiscal year 2012.
For additional information, see:
https://www.nhrs.org/news/article/2022/06/17/hb-1221-one-time-employer-contribution-reimbursement
House Bill 536 (Chapter 102, Laws of 2022; effective July 1, 2022) eliminates the retirement system offset for workers' compensation benefits applicable to Group I accidental death benefit annuities. Note: This bill also establishes a lump-sum death benefit, funded and administered by the state, for a state or municipal public works employee killed in the line of duty.
In 2022, 13 bills related to RSA 100-A were introduced. Three bills retained from the 2021 legislative session were also acted on this year. Pursuant to RSA 100-A:14, XII, NHRS issues a notice to participating employers at the beginning of the legislative session about legislation that may have a cost impact on political subdivision employers. Under the same statute, NHRS notifies employers if legislation with a cost impact is ultimately adopted. Because the state is providing the funding for HB 1587 and HB 1535, the only legislation with a cost impact on political subdivision employers is HB 1221.
Links to the full text and other information on 2022 NHRS-related legislation is available at: https://www.nhrs.org/about-nhrs/legislative-updates