SB 0220

AN ACT relative to the payment of medical benefits costs for certain group II permanent firemen members injured in the performance of duty, and for disabled group II members of the retirement system.

SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Gallus, Dist 1

This bill provides for the payment of medical benefits premium costs for certain group II permanent firemen retirement system members on disability retirement, and includes the person’s spouse and dependent children. This bill also extends the year of eligibility of group II disabled members for the payment of medical benefits costs by the retirement system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to the payment of medical benefits costs for certain group II permanent firemen members injured in the performance of duty, and for disabled group II members of the retirement system.

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

1 New Subparagraph; Group II; Payment of Medical Benefits; Permanent Firemen Disability Retirees. Amend RSA 100-A:52, I by inserting after subparagraph (g) the following new subparagraph:

(h) Any person retired as a group II permanent firemen member on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty, and the spouse and dependent children of such person until each child attains 18 years of age or attains 23 years of age if attending school on a full-time basis.

2 Group II Disabled Members; Medical Benefits; Application. Amend RSA 100-A:55, I to read as follows:

I. The additional benefits provided under RSA 100-A:52 shall apply to persons who are active or retired members of group II as of June 30, 2000; to persons who prior to July 1, 1988, had completed no less than 20 years of group II creditable service, but who for reasons other than retirement or death ceased to be a group II member prior to attaining the age of 45, and who, as of July 1, 1993, are eligible for vested deferred retirement benefits; and to persons who are group II permanent policemen or permanent firemen members on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty who become permanent policemen members of group II before July 1, [~~2005~~] 2006 or permanent firemen members of group II before July 1, [~~2005~~] 2006. Such additional benefits shall not apply to other persons who become members of group II after the dates stated in this paragraph, without future legislation to include them. It is the intent of the legislature that future group II members shall be included only if the total cost of such inclusion can be funded by reimbursement from the special account established under RSA 100-A:16, II(h).

AN ACT relative to the payment of medical benefits costs for certain group II permanent firemen members injured in the performance of duty, and for disabled group II members of the retirement system.

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 $2,036,000 in FY 2006.

The New Hampshire Retirement System states this bill would provide the postretirement medical insurance subsidy to dependent children up to age 18 (or age 23 if attending school on a full-time basis) of retired Group II firemen members on accidental disability retirement who are eligible under RSA 100-A:52. The terminal funding cost as of July 1, 2005 would be $4,000 for State firemen, and $205,000 for political subdivision firemen.

This bill would also extend the medical insurance subsidy to certain Group II employees who become members during the period from July 1, 2005 through June 30, 2006 and subsequently become disabled as a natural and proximate result of injuries suffered while in the performance of duty at any time in the future. The terminal funding costs as of July 1, 2005 for the proposed bill are as follows:

Political

Policemen $ 836,000 $395,000 $1,231,000

Firemen 573,000 23,000 596,000

Group II Total $1,409,000 $418,000 $1,827,000

The Special Account balance as of June 30, 2004 was $30,100,000 for Policemen employed by political subdivisions, $13,400,000 for Policemen employed by the State, $40,800,000 for Firemen employed by political subdivisions, and $1,200,000 for Firemen employed by the State. There are no 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 and 8% annual increase on medical premiums. The actuary assumes that 50% of the members are married, and of those who are married, 20% have coverage elsewhere and will not receive the subsidy. It is also assumed that 50% of the members who are married and elect to receive the subsidy have two children, that the children are 25 years younger than the member, and that the children will be eligible for the subsidy until age 21. It is also assumed that all retirees are members of an employer sponsored health plan, and that the number of new members from July 1, 2005 through June 30, 2006 will be in the same proportion as the actual new members from July 1, 2002 through June 30, 2003.