2001 SESSION

01-0775

10/09

HOUSE BILL 682

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill changes the characterization of and terminology in the retirement system for accidental disability retirement allowances granted to group II members.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01-0775

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Disability Retirement Benefits; Change to Accidental Disability Income Benefit. Amend the introductory paragraph of RSA 100-A:6, II(c)(1) to read as follows:

(c)(1) Upon the application of a group III member in service or of the member's employer, any member shall be [retired] granted benefits upon termination of employment due to accidental disability by the board of trustees [on] and receive an accidental disability [retirement allowance] income benefit where the member has been totally and permanently incapacitated for duty as the natural and proximate result of either:

2 Group II; Accidental Disability. Amend RSA 100-A:6, II(c)(3) to read as follows:

(3) The member applying pursuant to subparagraph (c)(1) shall have the burden of proving causation before the board of trustees if the member enters into a lump sum settlement of an injury claim that was at any time denied by the employer or the employer's insurance carrier and not found compensable by final decision of the labor commissioner or the compensation appeals board after hearing pursuant to RSA 281-A:43. In the case of any lump sum settlement, the board of trustees shall require the member seeking disability [retirement] income benefits to prove by a preponderance of the evidence the existence of a work-related injury of the type described in subparagraph (c)(1)(A)-(C), and also that the work-related injury naturally and proximately resulted in the member's total and permanent incapacity from duty. If the board of trustees is unable to grant disability [retirement] income benefits after review of medical and factual information submitted by the member and by a physician designated by the board, then the member shall be entitled to a hearing before the board in order to determine whether the member qualifies for disability [retirement] income benefits.

3 Disability Retirement Benefits; Change to Accidental Disability Income Benefit. Amend RSA 100-A:6, II(d) to read as follows:

(d) Upon the granting of accidental disability [retirement] benefits, the group II member shall receive an accidental disability [retirement allowance] income benefit equal to 2/3 of [his] the member's average final compensation at the time of [his] the termination of employment due to disability [retirement]. For any group II member who has more than 26-2/3 years of service, a supplemental disability [retirement allowance] income benefit shall be paid. Such supplement shall be equal to 2-1/2 percent of [his] the member's average final compensation multiplied by the number of years of [his] creditable service in excess of 26-2/3 but not in excess of 40 years.

4 New Subparagraph; Accidental Disability Income Benefit. Amend RSA 100-A:6, II by inserting after subparagraph (d) the following new subparagraph:

(e) Any income benefit granted under subparagraph (d) to a member who, at the time the board granted the benefit, was not eligible for a service, vested deferred, ordinary disability or combined service retirement under this chapter, shall be deemed to be an income benefit in the nature of compensation and not a retirement allowance.

5 Disability Retirement Benefits; Change to Accidental Disability Income Benefit. Amend RSA 100-A:6, III(a) and RSA 100-A:6, III(b)(1) to read as follows:

(a) Once a year during the first 5 years following the retirement of either a group I or group II member on a disability retirement allowance or income benefit, and once in every 3-year period thereafter, the board of trustees may, and upon [his] the member's application shall, require any disability beneficiary who has not attained age 60 to undergo a medical examination by a physician or physicians designated by the board. If any disability beneficiary who has not attained age 60 refuses to submit to such medical examination, [his] the state annuity may be discontinued by the board of trustees until [his] the member's withdrawal of such refusal, and if [his] refusal continues for more than one year, all [his] rights in and to [his] the member's state annuity may be revoked by the board.

(b)(1) If the board of trustees finds that any disability beneficiary is engaged in or is able to engage in a gainful occupation paying more than the difference between the beneficiary's retirement allowance or income benefit and the current comparable compensation, then the beneficiary's state annuity may be reduced to an amount which, together with the member annuity and the annual amount earnable, is equal to the current comparable compensation. Such reduction shall not be made if the disabled beneficiary demonstrates to the satisfaction of the board of trustees that the annual compensation currently earnable does not exceed the difference between the beneficiary's retirement allowance or income benefit and the current comparable compensation. If the beneficiary's earning capacity is later changed, the state annuity may be further modified; provided that the new state annuity shall not exceed the amount of the state annuity originally granted nor an amount which, when added to the amount earnable, together with the member annuity, equals the current comparable compensation. It shall be the responsibility of the disability beneficiary to file with the board of trustees, annually on a date determined by the board, proof of the annual amount of compensation currently earnable and of the current comparable compensation.

6 Restoration to Service; References to Income Benefit Added. Amend RSA 100-A:7 to read as follows:

100-A:7 Restoration to Service. If a disability beneficiary or any other beneficiary is restored to service, the beneficiary's retirement allowance or income benefit shall cease, the beneficiary shall again become a member of the retirement system and the beneficiary shall contribute at the percentage payable pursuant to RSA 100-A:16, I(a). Anything herein to the contrary notwithstanding, any credit for membership service and for any prior service on the basis of which the beneficiary's creditable service was computed at the time of the beneficiary's former retirement shall be restored to full force and effect; but if the beneficiary is restored to membership after the attainment of age 50 in the case of a group I member, or age 45 in the case of a group II member, upon subsequent retirement within a period of 3 years after such restoration to membership, the beneficiary shall receive a retirement allowance or income benefit based on the beneficiary's service as a member since the beneficiary's last restoration to membership, plus a retirement allowance or income benefit equal to the retirement allowance to which the beneficiary was entitled at the time of such restoration, except that the total retirement allowance or income benefit upon such subsequent retirement shall not be a greater proportion of the beneficiary's average final compensation than the proportion to which the beneficiary would have been entitled had he remained in service during the period of the beneficiary's prior retirement.

7 Return of Contributions; Reference Changed. Amend RSA 100-A:11, II(d) to read as follows:

(d) Upon the death of the survivor of a [retired] group II member who is in receipt of an accidental disability [retirement allowance] income benefit pursuant to RSA 100-A:6 and [his widow] the member's surviving spouse in receipt of an allowance pursuant to RSA 100-A:12, any excess of the [retired] member's accumulated contributions [at retirement] over the sum of the [retirement allowance] income benefit payments received by such [retired] member and [his widow] surviving spouse shall be paid to the person nominated by the member, if living, otherwise to the estate of the last to survive of the [retired] member and such [widow] surviving spouse.

8 Death Benefits; References Changed. Amend RSA 100-A:12 to read as follows:

100-A:12 Benefits Upon Member's Death After Retirement-Group II Members.

I. Upon the death of a retired group II member who retired before April 1, 1987, after the member's retirement allowance payments have commenced, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member's estate, in addition to the amount payable under RSA 100-A:11 a lump sum of $3,600; provided, however, that if said [retired] member was, prior to the member's death, in receipt of an accidental disability [retirement allowance] income benefit there shall be paid to the person's spouse, if surviving, in lieu of such lump sum payment, an [allowance] income benefit to continue until the spouse's death or remarriage equal to 50 percent of the accidental disability [retirement allowance] income benefit payable to the [retired] member prior to the member's death.

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).

II. Upon the death of a group II member who has retired on or after April 1, 1987, or upon the death of a group II member who has filed an application for retirement benefits with the board of trustees after January 1, 1991, there shall be paid to the person nominated by the member by written designation filed with the board, if living, otherwise to the retired member's estate, in addition to the amount payable under RSA 100-A:11 a lump sum of $3,600 if the member retired before July 1, 1988, and if the member is married on the date of such member's retirement, there shall be paid to such surviving spouse an allowance to continue until the spouse's death or remarriage equal to 50 percent of the member's service, ordinary disability, or accidental disability [retirement allowance] income benefit payments. For any person who is a group II member as of June 30, 1988, and who retires on or after July 1, 1988, the lump sum payment shall be $10,000. For any person who becomes a member of group II on or after July 1, 1988, and on or prior to July 1, 1993, the lump sum payment shall be $3,600. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be funded by reimbursement from the special account established under RSA 100-A:16, II(h).

9 Call, Substitute, or Volunteer Firemen. Amend RSA 100-A:19, II-V to read as follows:

II. Upon the application of a call, substitute or volunteer fireman who is eligible for benefits under this section, and who has become totally and permanently incapacitated as the natural and proximate result of an injury received while in the actual performance of fire duty at some definite time and place, without willful negligence on his part, such fireman shall receive an annual [allowance] income benefit not to exceed $1,250; provided [he] the person is found to be mentally or physically incapacitated for employment and that such incapacity is likely to be permanent. The fact of such fireman's permanent disability shall be established in a manner similar to that employed for determining the eligibility of a member for an accidental disability [allowance] income benefit under RSA 100-A:6, and, after the commencement of such [allowance] income benefit, said fireman shall be subject to the provisions of RSA 100-A:6, III, as if the same were part of this section.

III. If, upon the receipt by the board of trustees of proper proof of the death of a call, substitute, or volunteer fireman who was eligible for benefits under this section indicating that such death was the natural and proximate result of an injury received while in the actual performance of fire duty at some definite time and place, the board decides that death was the result of an accident in the performance of fire duty and was not caused by willful negligence on the part of such fireman, an annual [allowance] income benefit equal to the allowance payable to the fireman on [his] becoming totally and permanently disabled, as set forth in paragraph II above, shall be payable to [his widow, to continue during her widowhood] the surviving spouse until remarriage; or if there is no [widow] spouse, or if the [widow] spouse dies or remarries before the youngest child of the deceased fireman has attained age 18, then to [his] a child or children under such age, divided in such manner as the board in its discretion shall determine, to continue as a joint and survivorship allowance for the benefit of such child or children under said age until every child dies or attains said age; or if there is no [widow] surviving spouse or child under age 18 living at the death of the fireman, then to [his] a dependent father or dependent mother as the board shall determine, to continue for life; provided that if none of the aforementioned beneficiaries is living at the death of the fireman no benefit shall be payable under the provisions of this paragraph.

IV. For purposes of this section, firemen shall be acknowledged as performing their fire duties when they are going to, returning from, or working at a fire or other public emergency; when performing all work within the scope of employment of the fireman under the expressed or implied authority of a superior officer; and in such other cases as the board may from time to time decide to be for the public interest.

V. In the case of a call, substitute or volunteer fireman in receipt of an [allowance] income benefit under paragraph II above as the result of a disability received in line of fire duty, who dies while in receipt of such [allowance] income benefit as the result of such injury received in the performance of fire duty, the payment of such allowance shall continue to [his widow until she] the surviving spouse until the spouse dies or remarries, or to [his] a child or children until each reaches the age of 18 years.

10 Split Benefits; References Changed. Amend RSA 100-A:19-g to read as follows:

100-A:19-g Accidental Disability [Retirement] Benefits. Upon the granting of accidental disability [retirement] income benefits as provided in RSA 100-A:6, I(c) or II(c) of any member in service who has creditable service in both group I and group II, if the member is a group I member at the time of [retirement] termination of employment and has attained age 60, the accidental disability [retirement allowance] income benefit shall be equivalent to a split-benefit service retirement allowance as provided in RSA 100-A:19-c; otherwise, the accidental disability [allowance] income benefit shall be as provided in RSA 100-A:6, I(d) or II(d) depending on the member's group classification at the time of retirement.

11 Effective Date. This act shall take effect 60 days after its passage.