HB 594-FN – AS AMENDED BY THE HOUSE
02Jan2008… 2616h
2007 SESSION
10/01
HOUSE BILL 594-FN
AN ACT granting group II retirement system status to certain positions in the department of corrections.
SPONSORS: Rep. Matthew Quandt, Rock 13; Rep. Marshall Quandt, Rock 13
COMMITTEE: Executive Departments and Administration
This bill grants group II status to certain positions in the department of corrections. Persons employed in those positions with service prior to the effective date shall be eligible for split benefits.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02Jan2008… 2616h
07-0908
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT granting group II retirement system status to certain positions in the department of corrections.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Department of Corrections; Authorization for Transfer to Group II.
I. Pursuant to the provision of RSA 100-A:3, IX, the following positions in the department of corrections classified as group I positions are deemed to have met the requirement of RSA 100-A:1, VII(b) and shall be transferred to group II status in the New Hampshire retirement system:
Position Title Position Number
Carpentry Supervisor I 12978
Carpentry Supervisor I 15470
Carpentry Supervisor I 41483
Electrician Supervisor II 12940
Electrician Supervisor II 41481
Electronic Technician I 16917
Electronic Technician I 18798
License Plate Shop Manager 8T424
Maintenance Mechanic II 15448
Plumber Supervisor I 41482
Warehouseman 41514
II. The provisions of RSA 100-A:3, II-b shall apply to positions transferred by this act.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
LBAO
07-0908
Amended 01/29/08
HB 594 FISCAL NOTE
AN ACT granting group II retirement system status to certain positions in the department of corrections.
FISCAL IMPACT:
The Retirement System and the Department of Corrections state this bill, as amended by the House (Amendment #2007-2616h), will increase state expenditures by an indeterminable amount in FY 2008 and each year thereafter. There is no fiscal impact on county and local expenditures or state, county, and local revenue.
METHODOLOGY:
The Retirement System states this bill, as amended, will transfer eleven identified Department of Corrections’ positions from group I retirement status to group II retirement status. The System’s actuary states the employer contribution percentages for FY 2008-2009 are set and will not be impacted by any changes contained in this bill. The System’s actuary provides an estimated fiscal impact of this bill for FY 2010 through FY 2012. The System’s actuary states the group I payroll will decrease and group II payroll will increase by $401,801. Additionally, the group I unfunded accrued liabilities will decrease by $153,062 and the group II unfunded liabilities will increase by $241,110. Assuming an annual rate of return of 8.5 percent, wage inflation at 4.5 percent a year, and using the entry-age normal cost valuation method the System’s actuary determined this bill will have the following impact:
FY 2010 |
FY 2011 |
FY 2012 | |
Police Group II |
$92,587 |
$96,753 |
$101,107 |
Employees Group I |
$(59,058) |
$(61,716) |
$(64,493) |
Increase In Employer Contribution |
$33,529 |
$35,037 |
$36,614 |
The Department of Corrections determined the move of the eleven identified positions will increase the Department’s expenditures. The Department used the following information when determining the fiscal impact of this bill: payroll increase of 2.5% each year, the employer contribution percentages in effect in FY 2008 and FY 2009 for group I (8.74%) and group II (18.21%), Social Security at 6.20%, and Medicare at 1.45%. For Group II members, the Department does not contribute the 6.20% for Social Security, only the 1.45% for Medicare. The Department estimates the following impact on its expenditures:
FY 2008* |
FY 2009 |
FY 2010 |
FY 2011 |
FY 2012 | |
Payroll |
$104,695 |
$429,249 |
$439,980 |
$450,980 |
$462,254 |
Group I benefit expenditures (retirement, FICA) |
(17,159) |
(70,354) |
(72,113) |
(73,916) |
(75,763) |
Group II benefit expenditures (retirement, Medicare only) |
20,583 |
84,390 |
86,500 |
88,663 |
90,879 |
Increase in Expenditures |
3,424 |
$14,036 |
$14,387 |
$14,747 |
$15,116 |
*FY 2008 is calculated for only 3 months in the year.