FAQ: $500 Payment to Eligible Accidental Disability Annuitants
Created: July 2024
Below are answers to some frequently asked questions concerning House Bill 1307 (HB 1307), which grants a one-time additional payment of $500 in fiscal year (FY) 2025 to eligible retired members of the New Hampshire Retirement System (NHRS, the retirement system) who retired under accidental (job-related) disability, or their beneficiaries receiving a monthly survivor benefit.
This bill affects fewer than 1,000 retirees and beneficiaries.
NHRS recognizes that there may be questions not addressed in this FAQ. Retirees with additional questions may contact the retirement system at info@nhrs.org or (603) 410-3500.
GENERAL QUESTIONS
Who gets the $500 payment?
HB 1307 grants a $500 payment to retired members – or their beneficiaries receiving a monthly survivor benefit – who meet all three criteria below:
- Receiving an accidental (job-related) disability benefit;
- Member retired on or before July 1, 2018;
- Annual retirement benefit paid to the member or beneficiary as of June 30, 2023, is not greater than $50,000.
When will I receive this one-time additional payment?
The law requires the payment be issued no later than June 30, 2025.
Will the additional payment be added to one of my monthly benefit payments?
No. The additional payment will be issued as a separate, stand-alone payment.
If the annuitant has set up electronic direct deposit for his or her monthly benefit, the additional payment will be issued electronically. If the retiree receives his or her monthly benefit by paper check, the additional payment check will be mailed.
Will I get another $500 payment next year?
This is a one-time additional payment to be paid in FY 25. Additional legislation would need to be enacted to provide future additional allowances or cost-of-living adjustments (COLAs).
What is the full text of House Bill 1307?
1 Retirement System; Accidental Disability Retirement Allowance; Supplemental Appropriation.
I. An additional one-time allowance of $500 shall be paid during state fiscal year 2025 to retired members of the retirement system receiving an allowance, or any beneficiary of such a member who is receiving a survivorship pension benefit, who are eligible as follows:
(a) The member is receiving an accidental disability retirement allowance under RSA 100-A:6;
(b) The member retired and has been receiving an allowance for at least 5 years prior to or on July 1, 2023; and
(c) The annual retirement allowance of the member on June 30, 2023 was not greater than $50,000.
II. The additional allowance shall not become a permanent addition to the member's base retirement allowance.
III. The total cost of the additional allowances, as determined by the actuary and certified by the board of trustees of the retirement system, shall be funded from the state general fund in the fiscal year ending June 30, 2025. The sum necessary is hereby appropriated to the board of trustees. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
2 New Subparagraph; Accidental Disability Retirement Benefits; Cost of Living Adjustments. Amend RSA 100-A:6, II(d) by inserting after subparagraph (3) the following new subparagraph:
(4) Any member who is receiving an accidental disability retirement allowance under subparagraph (d) shall be granted any supplemental allowance or COLA authorized by the legislature without regard to a minimum number of years of creditable service for eligibility to receive the supplemental allowance or COLA. This subparagraph shall apply to any one-time supplemental allowance or COLA authorized by the legislature on or after the effective date of this subparagraph unless the terms of such authorizing legislation specifically provide otherwise.
3 Effective Date. This act shall take effect July 1, 2024.
What does Section 2 of the bill mean?
In some prior years, the Legislature has included a minimum number of years of service as an eligibility requirement to receive a supplemental payment. Section 2 is intended to exempt accidental disability annuitants and their beneficiaries from minimum service requirements, if this criteria is included in future legislation.
ELIGIBILITY QUESTIONS
How will NHRS determine whether my annual retirement benefit on June 30, 2023, is not greater than $50,000?
NHRS will take the gross benefit amount paid in June 2023 and multiply it by 12 to determine the annual benefit for the purposes of eligibility. The gross amount is the benefit payment before any deductions are taken out.
What happens if an eligible retiree passes away before the $500 payment is issued?
If the eligible retiree chose to leave a survivorship pension benefit to a beneficiary, the payment will be issued to the beneficiary.
My gross retirement benefit was $50,000 or less when I first retired, but subsequently increased due to previous COLAs. Are these increases included when determining whether my annual retirement allowance on June 30, 2023, is $50,000 or less?
Yes. The law provides for eligibility-based on the annual retirement allowance of the member on June 30, 2023. A COLA increases the retirement benefit payable to a retiree and will be considered in determining whether the benefit is $50,000 or less. Note: Other one-time payments made to eligible retirees and beneficiaries in recent years are not counted when NHRS determines a retiree’s annual retirement benefit on June 30, 2023.
I am paying a portion of my monthly retirement benefit to an ex-spouse due to a court-ordered divorce decree. Is the portion of my pension being paid to my ex-spouse counted when determining whether my annual retirement benefit on June 30, 2023, is $50,000 or less?
Yes.
I meet all of the above criteria and am receiving a second monthly benefit from my participation in the “Additional Contributions” program. Will I receive a second payment based on my Additional Contributions benefit?
No. HB 1307 refers only to the “retirement allowance.”
Note: The amount you receive as an Additional Contributions annuity is not counted when NHRS determines a retiree’s annual retirement benefit on June 30, 2023.
I am receiving the Medical Subsidy. Does this amount count when determining whether my annual retirement benefit on June 30, 2023, is not greater than $50,000?
No.
Will eligible spouses of deceased Group II members who are receiving a Group II Automatic Spousal Allowance and a survivorship option receive two $500 payments?
No. The payment this year is specific to accidental disability benefits. If the spouse is receiving a survivorship benefit resulting from an accidental disability retirement, and all three criteria listed above are met, one $500 payment would be issued. Beneficiaries receiving only a Group II Automatic Spousal Allowance are not eligible for this payment.
I retired 5 years prior to July 1, 2023, and later returned to service as an active member before re-retiring. Will I get this additional payment?
No. The most recent retirement date will be recognized.
I retired after July 1, 2018. Do I get the $500 payment?
No.