HB 1115-FN - AS INTRODUCED
2000 SESSION
HOUSE BILL 1115-FN
AN ACT relative to purchasing credit for prior service for certain employees in the retirement system.
SPONSORS: Rep. Dyer, Hills 8; Rep. Thulander, Hills 6
COMMITTEE: Executive Departments and Administration
This bill removes the 5 year time limit to petition the board of trustees for purchasing prior service credit for certain employees after participation becomes effective and requires full payment and final approval of the board before receiving the credit.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2601
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT relative to purchasing credit for prior service for certain employees in the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Modifications; Purchasing Prior Service. Amend RSA 100-A:22 to read as follows:
100-A:22 Modifications. 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 [within 5 years from the date when the employer's participation becomes effective for] and upon approval may purchase the periods of prior service rendered to such employer. Upon full payment by the member of the amount determined in accordance with RSA 100-A:3, VI(b) and with the final 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. Membership shall be compulsory for all employees entering the service of such employer after the date participation becomes effective. Municipalities may, by action of their city council or board of selectmen, exempt their chief administrative officer, as an unclassified employee, from compulsory membership provided herein. Any such officer who is presently a member of the retirement system, or who previously was a member of the retirement system, shall be entitled to have any accumulated contributions and the accumulated interest thereon in such officer's account or the employer's account, paid over to such officer and the employer respectively for the express purpose of having said accumulated contributions or equal amounts of monies contributed to the International City Management Retirement Corporation. 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
99-2601
10/29/99
HB 1115-FN - FISCAL NOTE
AN ACT relative to purchasing credit for prior service for certain employees in the retirement system.
FISCAL IMPACT:
The New Hampshire Retirement System stated this bill will have no fiscal impact on state, county and local revenue or expenditures.
METHODOLOGY:
The System indicates there is no fiscal impact because this bill eliminates the 5 year limit and requires the employee to pay back the entire cost of the prior service purchase.
The Actuary's letter is on file in the bill jacket in the House Clerk's Office.