HB 502-FN – AS INTRODUCED
2005 SESSION
10/01
HOUSE BILL 502-FN
AN ACT allowing certain surviving spouses to receive a retirement system death benefit.
SPONSORS: Rep. Cloutier, Sull 4; Rep. Houde-Quimby, Sull 1; Rep. Naro, Graf 7; Rep. Pepino, Hills 11; Rep. Prichard, Sull 1; Sen. Burling, Dist 5; Sen. D'Allesandro, Dist 20; Sen. Green, Dist 6; Sen. Odell, Dist 8
COMMITTEE: Executive Departments and Administration
This bill allows certain surviving spouses of retirement system members to receive a retirement system optional allowance where a member was at least 59 years old with 20 years of service and was eligible for a retirement system allowance.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0496
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT allowing certain surviving spouses to receive a retirement system death benefit.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System Death Benefit; Surviving Spouses. Notwithstanding any provision of RSA 100-A to the contrary, upon the death of a group I member in active service after June 30, 2003 and prior to June 30, 2005, where the member was at least 59 years of age and had at least 20 years of service, and where the member was eligible for service retirement pursuant to RSA 100-A:5, I or RSA 100-A:19-b at the time of the member’s death, there shall be payable to the member’s surviving spouse a service retirement allowance, continuing until the spouse’s death or remarriage, equal to the survivor benefit payable under RSA 100-A:13, III, Option 2 had the member retired immediately prior to death, based on average final compensation and creditable service at the time of death.
2 Effective Date. This act shall take effect upon its passage.
LBAO
05-0496
1/26/05
HB 502-FN - FISCAL NOTE
AN ACT allowing certain surviving spouses to receive a retirement system death benefit.
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 $53,320 in FY 2006.
METHODOLOGY:
The New Hampshire Retirement System states this bill would allow the surviving spouse of a member to receive their benefit under Option 2 (a reduced retirement allowance payable during the retired member's life, with the provision that it shall continue after the member's death for the life of, and to, the member’s beneficiary). The benefit would be paid to the surviving spouse, provided the member was at least 59 years of age, had at least 20 years of service, and dies in active service after June 30, 2003 and prior to June 30, 2005. The System’s actuary states the cost to terminally fund this benefit would be $53,320 based on the data provided by the System, which included one surviving spouse of a teacher member, and assuming no other spouses are impacted. If additional surviving spouses are impacted by this bill, the estimates will need to be revised. The Special Account balances as of June 30, 2004 are $96,200,000 for employee members, $119,100,000 for teacher members, $43,500,000 for police members, and $42,000,000 for fire members. There are no additional administrative costs associated with this legislation.
The System’s actuary performed calculations based on the same data, actuarial assumptions, and methods as were used in the June 30, 2004 actuarial valuation of the System including a 9% interest rate.