SB 396-FN - AS INTRODUCED

2002 SESSION

02-3108

10/09

SENATE BILL 396-FN

AN ACT relative to group II retirement status for criminalists employed by the department of safety.

SPONSORS: Sen. Hollingworth, Dist 23

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill allows criminalists employed by the department of safety, division of state police, to be group II members of the retirement system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02-3108

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Two

AN ACT relative to group II retirement status for criminalists employed by the department of safety.

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

1 New Section; Department of Safety; Criminalists; Retirement System. Amend RSA 21-P by inserting after section 15 the following new section:

21-P:15-a Criminalists; Retirement System. Criminalists employed by the commissioner in the division of state police shall be eligible for group II state employee retirement benefits authorized under RSA 100-A.

2 New Subparagraph; Retirement System; Permanent Policemen; Criminalist Added. Amend RSA 100-A:1, VII by inserting after subparagraph (f) the following new subparagraph:

(g) Criminalists employed by the department of safety, division of state police.

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

LBAO

02-3108

9/17/01

SB 396-FN - FISCAL NOTE

AN ACT relative to group II retirement status for criminalists employed by the department of safety.

FISCAL IMPACT:

The Department of Safety states this bill will decrease state highway fund expenditures by $3,214 in FY 2002, $13,044 in FY 2003, and $13,136 in FY 2004 and each year thereafter. This bill will decrease state general fund expenditures by $1,377 in FY 2002, $5,590 in FY 2003, and $5,630 in FY 2004. This bill will have no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

The Department states this bill would allow all state police criminalists to be eligible for group II retirement. The Department estimates, as a result of this bill, that the employer's portion of benefits would decrease from 11.79% (4.14% group I employer contribution + 1.45% Medicare contribution + 6.2% FICA contribution) of the criminalist's salary to 9.65% (8.2% group II employer contribution + 1.45% Medicare contribution) of salary by reclassifying said employee from Group I to Group II. This net reduction is the result of a 4% increase in employer state retirement contributions, and a 6.2% decrease in employer FICA contributions. The Department states there are 19 criminalists who would be affected by this legislation who earn between $38,113.92 and $64,371.84. Using an implementation date of April 1, 2002 (3 months in FY 2002) and a fund split of 70% highway and 30% general, the Department estimates the fiscal impact as follows:

FY 2002 FY 2003 FY 2004-06

(3 months) (Annual) (Annual)

Fiscal Impact on Highway Fund (70%) ($3,214) ($13,044) ($13,136)

Fiscal Impact on General Fund (30%) ( 1,377) ( 5,590) ( 5,630)

Total Fiscal Impact ($4,591) ($18,634) ($18,766)

The New Hampshire Retirement System estimates the additional annual employer contribution for this legislation is $37,000, assuming there are 19 criminalists earning between $35,143 and $64,371 annually. This additional contribution is included in the Department of Safety's estimates above. There is no additional administrative expense associated with this proposed legislation.

The Actuary's letter is on file in the bill jacket in the Senate Clerk's Office.