HB 823-FN-LOCAL - AS INTRODUCED
2003 SESSION
10/09
HOUSE BILL 823-FN-LOCAL
AN ACT relative to eligibility of retired teachers for payment of medical benefits.
SPONSORS: Rep. P. LaFlamme, Hills 61; Rep. Jean, Hills 65; Rep. McElroy, Hills 61; Sen. O'Hearn, Dist 12
COMMITTEE: Executive Departments and Administration
This bill allows retired teacher members of the retirement system with out-of-state service to use such service as creditable service for purposes of eligibility for payment of medical benefits. The applicable benefit is prorated according to the amount of in-state service.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0947
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to eligibility of retired teachers for payment of medical benefits.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Credit for Out-of-State Service. Amend the introductory paragraph of RSA 100-A:4-b, I to read as follows:
I. Notwithstanding any provision of RSA 100-A to the contrary, any group I employee or teacher member of the New Hampshire retirement system, in service on or after June 30, 1990, who was formerly a member of a public employees' retirement system outside of New Hampshire, shall be allowed to purchase credit for such out-of-state service as creditable service in the New Hampshire retirement system; provided, however, that except as permitted under paragraph III creditable service in the New Hampshire retirement system which is purchased under this paragraph shall not be deemed creditable service for the purpose of eligibility for medical and surgical benefits as a retired employee under RSA 21-I:30. For [such] employee [or teacher] members, only creditable service performed in the state of New Hampshire as a member of the New Hampshire retirement system shall be counted as creditable service for the purpose of eligibility for medical and surgical benefits as a retired employee under RSA 21-I:30. For the purposes of this section, "public employees' retirement system" shall include any retirement system established and maintained by the United States government, the members of which are federal government employees. For the purposes of this section, any military service not otherwise authorized pursuant to RSA 100-A:4, IV and V shall not be included as creditable service in a public employees' retirement system. The group I employee or teacher member shall meet the following conditions:
2 Eligibility for Medical Benefits. 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 shall only 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 where the teacher member completed at least 30 years of service with at least 15 years in this state.
3 New Paragraph; Payment by Retirement System; Teachers; Reduction Based on In-state Service. Amend RSA 100-A:52-a by inserting after paragraph I- a the following new paragraph:
I-b. A group I teacher member qualifying for payment by the retirement system under this section by including out-of-state service as provided in RSA 100-A:4-b, III shall have his or her amount paid by the retirement system under this section reduced by 5 percent for each year of out-of-state service included.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
03-0947
Revised 3/11/03
HB 823 FISCAL NOTE
AN ACT relative to eligibility of retired teachers for payment of medical benefits.
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 an indeterminable amount in FY 2004.
METHODOLOGY:
The New Hampshire Retirement System states this bill would allow retired teacher members of the System to use out-of-state service for the purpose of determining eligibility for the health insurance premium subsidy. Out-of-state service purchased as creditable service under the provisions of RSA 100-A:4-b would only be used for eligibility for medical benefits if the teacher member has completed at least 30 years of service with at least 15 years in New Hampshire. In addition, the amount of the subsidy would be reduced by 5% for each year of out-of-state service included. The System states the terminal funding cost for each member who anticipates purchasing 15 years of out-of-state service is $2,000, $9,000, and $13,000, assuming that their age as of June 30, 2003 is 45, 55, and 60, respectively. There would be no additional administrative expenses.
The Special Account balance for Teachers as of June 30, 2002 was $134,800,000.
The Actuary's letter is on file in the bill jacket in the House Clerk's Office.