HB 525-FN - AS INTRODUCED
2003 SESSION
10/01
HOUSE BILL 525-FN
AN ACT relative to use of certain out-of-state creditable service for eligibility for payment of medical benefits cost.
COMMITTEE: Executive Departments and Administration
This bill allows for the use of up to 8 years of out-of-state service purchased as creditable service for retirement purposes to be used for eligibility for payment by the state of medical benefits group insurance costs.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0808
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to use of certain out-of-state creditable service for eligibility for payment of medical benefits cost.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Out-of-State Creditable Service; Group I. Amend RSA 100-A:4-b, III to read as follows:
III. In no case shall out-of-state service purchased as creditable service in the New Hampshire retirement system under the provisions of this section be deemed to be creditable state service for the purposes of eligibility for medical benefits after retirement under the provisions of RSA 21-I:30 [or RSA 100-A:52-a].
2 New Paragraph; Group I Credit for Out-of State Service; Medical Benefits. Amend RSA 100-A:4-b by inserting after paragraph III the following new paragraph:
IV. In no case shall more than 8 years of out-of-state service purchased as creditable service in the New Hampshire retirement system under the provisions of this section be deemed to be creditable state service for the purposes of eligibility for medical benefits after retirement under the provisions of RSA 100-A:52-a through 100-A:55.
3 Retirement System; Out-of-State Creditable Service; Group II. Amend RSA 100-A:4-c, IV to read as follows:
IV. In no case shall out-of-state service purchased as creditable service in the New Hampshire retirement system under the provisions of this section be deemed to be creditable service for the purposes of eligibility for medical benefits after retirement under the provisions of [RSA 100-A:52 through 100-A:55 or] RSA 21-I:26 through 21-I:36.
4 New Paragraph; Group II Credit for Out-of State Service; Medical Benefits. Amend RSA 100-A:4-c by inserting after paragraph IV the following new paragraph:
V. In no case shall more than 8 years of out-of-state service purchased as creditable service in the New Hampshire retirement system under the provisions of this section be deemed to be creditable service for the purposes of eligibility for medical benefits after retirement under the provisions of RSA 100-A:52 through 100-A:55.
5 Effective Date. This act shall take effect 60 days after its passage.
LBAO
03-0808
1/22/03
HB 525-FN - FISCAL NOTE
AN ACT relative to use of certain out-of-state creditable service for eligibility for payment of medical benefits cost.
FISCAL IMPACT:
The New Hampshire Retirement System states this bill will have no fiscal impact on state, county, and local revenue or expenditures.
The New Hampshire Retirement System's Special Account will decrease by $2,643,000 in FY 2004.
METHODOLOGY:
The System states this bill would allow retired Group I and II members of the System to use up to eight years of out-of-state service for the purpose of determining eligibility for the health insurance premium subsidy. Assuming a 9% interest rate and an 8% annual increase on medical premiums, the terminal funding costs as of June 30, 2003 are as follows:
Member Status Employees Teachers Policemen Firemen Active Members $ 42,000 $ 284,000 $204,000 $ 26,000 Retired Members 343,000 932,000 736,000 76,000
Total $385,000 $1,216,000 $940,000 $102,000
The Special Account balance for Employees, Teachers, Policemen, and Firemen as of June 30, 2002 was $111.3M, $134.8M, $56.2M, and $54.6M, respectively.
The Actuary's letter is on file in the bill jacket in the House Clerk's Office.