CHAPTER 17
SB 228-FN - FINAL VERSION
5/13/99 1144s
13jan00.....3072h
2/17/00 3463eba
2000 SESSION
SENATE BILL 228-FN
AN ACT relative to spousal benefits upon the death of certain retired group II members of the New Hampshire retirement system.
SPONSORS: Sen. J. King, Dist 18; Rep. Dyer, Hills 8
This bill provides for a retirement allowance for the surviving spouse of a retired group II member who retired before April 1, 1987, and an additional period for such retired members to elect a survivorship option for retirement benefits.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
5/13/99 1144s
13jan00.....3072h
2/17/00 3463eba
99-1027
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT relative to spousal benefits upon the death of certain retired group II members of the New Hampshire retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
17:1 New Paragraph; Benefits Upon Member's Death After Retirement. Amend RSA 100-A:12 by inserting after paragraph I the following new paragraph:
I-a. In addition to any other provision of this section, upon the death of a retired group II member of the New Hampshire retirement system or any predecessor system, who retired pursuant to RSA 100-A:5, II with at least 20 years of creditable service or pursuant to RSA 100-A:6, II(a) prior to April 1, 1987, there shall be paid to the member's spouse at the time of retirement, if surviving, an allowance to continue until the spouse's death or remarriage equal to 50 percent of the service or ordinary disability retirement allowance payable to the retired member prior to the member's death. The total cost of terminally funding the benefits provided by this paragraph shall be funded from the special account established under RSA 100-A:16, II(h).
17:2 Right to Elect Optional Retirement Allowance; Certain Group II Retired Members. Notwithstanding any provision of RSA 100-A:13 to the contrary, any retired group II member of the New Hampshire retirement system or a predecessor system, who retired pursuant to RSA 100-A:5, II with at least 20 years of creditable service or pursuant to RSA 100-A:6, II(a) prior to April 1, 1987 and who originally elected and is receiving the 100 percent joint and survivorship option, or 100 percent joint and survivorship pop up option, will be allowed to elect a 50 percent joint and survivorship option, 50 percent joint and survivorship pop up option, or the maximum allowance otherwise payable, prospectively. Those members who elected and are receiving a 50 percent joint and survivorship option or 50 percent joint and survivorship pop up option may continue their option or elect the maximum allowance otherwise payable, prospectively. Any retired member who makes an election pursuant to this paragraph shall make the election between July 1, 2000 and December 31, 2000 on a form prescribed by the board of trustees. The optional allowance shall be of equal actuarial value to the allowance the retiree is receiving as of July 1, 2000. The total benefit payable to a survivor shall not exceed the amount payable to the member.
17:3 Effective Date. This act shall take effect July 1, 2000.
(Approved: March 1, 2000)
(Effective Date: July 1, 2000)
LBAO
99-1027
Amended 2/4/00
SB 228 FISCAL NOTE
AN ACT relative to spousal benefits upon the death of certain retired group II members of the New Hampshire retirement system.
FISCAL IMPACT:
The N.H. Retirement System indicates this bill, as amended by the House, will have no fiscal impact on state, county and local revenues or expenditures.
The N. H. Retirement System (NHRS) Special Account will decrease by $16,200,000 in FY 2001.
METHODOLOGY:
The System indicates this bill would provide the following to currently retired Group II members who retired before April 1, 1987 on service retirement allowance with at least 20 years of creditable service or an ordinary disability benefit:
· NO OPTION: Eligible members who did not elect a joint and survivorship option or "pop-up" option would receive a 50% spousal allowance upon the member's death.
· 50% OPTION: Eligible members who elected a 50% joint and survivorship option or "pop-up" option would have the opportunity to:
· Receive an additional 50% spousal allowance, bringing the total allowance to 100%. These members would continue to receive their current reduced benefit; or
· Receive the "automatic" 50% spousal allowance. These members would receive an increased benefit equivalent to what they would have received if they did not elect an option.
· 100% OPTION: Eligible members who elected a 100% joint and survivorship option or "pop-up" option would have the opportunity to:
· Continue to receive a 100% spousal allowance. These members would receive an increased benefit equivalent to what they would have received if they elected a 50% option: or
· Receive the "automatic" 50% spousal allowance. These members would receive an increased benefit equivalent to what they would have received if they did not elect an option.
This bill also provides the health insurance subsidy to surviving spouses of deceased Group II members who are not entitled to a monthly allowance under RSA 100-A:12 or RSA 100-A:13. The System has stated that spouses of deceased Group II members who did not elect a survivorship option would receive the 50% spousal allowance.
The System has determined that there would be 275 policemen and 207 firemen who would receive the spousal benefit. In addition, there would be 97 widows of deceased policemen and 73 widows of deceased firemen who would receive the spousal benefit.
Membership Policemen Firemen
Current Members to receive Spousal Benefit 275 207
Widows of deceased members to receive Benefit 97 73
Total to Receive Spousal Benefit 372 280
The System has determined that there would be 195 policemen and 128 firemen who would receive the spousal medical subsidy. In addition, there would be 93 widows of deceased policemen and 64 widows of deceased firemen who would receive the spousal medical subsidy.
Membership Policemen Firemen
Current Members to receive Medical Subsidy 195 128
Widows of deceased members to receive Subsidy 93 64
Total to Receive Medical Subsidy 288 192
The System has estimated that the cost to terminally fund the spousal benefit and medical subsidy, as of July 1, 2000, would be as follows:
Benefit Policemen Firemen
Spousal Benefit for Current Members $3.9M $3.2M
Benefit for Widows of deceased members 1.8M 1.9M
Medical Subsidy for Current Members 2.3M 1.5M
Subsidy for Widows of deceased members 1..0M . 0.6M
Total to Terminally Fund Benefits $9.0M $7.2M
The total cost to terminally fund the benefit and subsidy for both policemen and firemen would be $16.2M in FY 2001. The cost would be funded from the System's Special Account.
The Special Account balance for Policemen and Firemen as of June 30, 1999 was $69,100,000 and $58,700,000, respectively.
The Actuary's letter is on file in the bill jacket in the Senate Clerk's Office.