hb 1455

CHAPTER 146

HB 1455-FN-LOCAL - FINAL VERSION

AN ACT establishing portability of a person's qualifying retirement funds for the purchase of permissive service credit in the New Hampshire retirement system.

SPONSORS: Rep. Cox, Rock 24; Rep. Langley, Rock 24; Sen. Cohen, Dist 24

This bill establishes provisions for the portability of a person's qualifying retirement funds for the purchase of permissive service credit in the New Hampshire retirement system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT establishing portability of a person's qualifying retirement funds for the purchase of permissive service credit in the New Hampshire retirement system.

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

146:1 Retirement System; Political Subdivision; Modification. 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 periods of prior service rendered to such employer. Upon payment by the member of the amount determined in accordance with RSA 100-A:3, VI(b) and with the 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.

146:2 New Section; Pension Portability, Purchase of Permissive Service Credit. Amend RSA 100-A by inserting after section 24 the following new section:

I. A member participating under a retirement arrangement federally tax-qualified under Sections 403(b) or 457 of the United States Internal Revenue Code of 1986, as amended, may authorize a direct trustee-to-trustee transfer of funds credited to the member's account held under such transferor plan for purchase under the retirement system of permissive service credit, as defined in Section 415(n)(3)(A) of the United States Internal Revenue Code of 1986, as amended, or for the purchase of qualifying prior service, on behalf of such member.

II. The provisions of this section shall be subject to such restrictions or qualifications as may be required by the retirement system in conformity with applicable provisions of the United States Internal Revenue Code of 1986, as amended.

III. Service credit purchased under this section shall be creditable service for the purpose of eligibility for retirement and other benefits under RSA 100-A as may be permitted under applicable provisions of the United States Internal Revenue Code of 1986, as amended.

100-A:28 Limitation on Membership. This retirement system and the provisions hereof shall not apply to any person benefited by or entitled to participate under any other provisions of law which provides wholly or in part at the expense of the state or any other employer, for retirement benefits for employees, teachers, permanent policemen, and permanent firemen employed by the state or such other employer, their widows or other dependents, with respect to the same period of service for which they are eligible for benefits under the terms of this chapter. The provisions of this section shall not apply to any person participating in, or receiving or eligible to receive benefits under the old-age and survivors insurance provisions of Title II of the federal Social Security Act, as amended or under a retirement arrangement federally tax-qualified under sections 403(b) or 457 of the United States Internal Revenue Code of 1986, as amended.