Bill Text: NH HB461 | 2023 | Regular Session | Amended
Bill Title: Establishing a committee to study elimination by political subdivision employers of a retirement system position.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Engrossed - Dead) 2023-06-27 - Conference Committee Report; Not Signed Off; House Journal 16 [HB461 Detail]
Download: New_Hampshire-2023-HB461-Amended.html
HB 461-FN - AS AMENDED BY THE SENATE
22Mar2023... 0782h
05/11/2023 1436s
2023 SESSION
23-0473
02/10
HOUSE BILL 461-FN
SPONSORS: Rep. S. Pearson, Rock. 13; Rep. Bordes, Belk. 5; Rep. Trottier, Belk. 8; Rep. Pratt, Rock. 4; Rep. Proulx, Hills. 15
COMMITTEE: Executive Departments and Administration
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AMENDED ANALYSIS
This bill establishes a committee to study elimination by political subdivision employers of a retirement system position.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
22Mar2023... 0782h
05/11/2023 1436s 23-0473
02/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Committee Established. There is established a committee to study elimination by political subdivision employers of a retirement system position.
2 Membership and Compensation.
I. The members of the committee shall be as follows:
(a) One member of the senate, appointed by the president of the senate.
(b) Four members of the house of representatives, appointed by the speaker of the house of representatives.
II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
3 Duties. The committee shall study the elimination by political subdivision employers under RSA 100-A of a retirement system eligible employment position.
4 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the senate member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Three members of the committee shall constitute a quorum.
5 Report. The committee shall report its findings and any recommendations for proposed legislation to the president of the senate, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2023.
6 Effective Date. This act shall take effect upon its passage.
23-0473
Amended 4/17/23
HB 461-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2023-0782h)
AN ACT relative to elimination by political subdivision employers of a retirement system position.
FISCAL IMPACT: [ ] State [ X ] County [ X ] Local [ ] None
| Estimated Increase / (Decrease) | |||
POLITICAL SUBDIVISIONS: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
*The New Hampshire Retirement System states it is not able to separate the fiscal impact of this legislation between county and local government, therefore the fiscal impact is shown together as political subdivisions.
METHODOLOGY:
This bill requires political subdivision employers to obtain an analysis from the New Hampshire Retirement System (NHRS) when eliminating or transferring certain municipal position from full-time to part-time. It also requires the employer to continue to make contributions to the NHRS based on the highest compensation paid for the position in the prior 5 years. Lastly, it imposes a penalty equal to 20% of such contribution on the employer and both the contribution and penalty. The penalty shall be charged for 15 years unless the position is restored to full-time status.
The New Hampshire Retirement System states they are unable to estimate how many employers would be subject to the proposed assessment. The NHRS also states there would be a significant indeterminable increase in administrative costs relating to reprogramming of the NHRS pension administration system to accommodate the receipt of employer contributions and penalties. Lastly, the NHRS states there could be a modest beneficial economic impact on NHRS funding. The affect of this bill is an indeterminable impact to political subdivisions with an assumption the impact will start in FY 2024 and forward.
The NHRS does note the bill does not include any detail regarding the consequences to the employer for non-compliance with the requirement to obtain a cost analysis related to the change in position status. It also does not authorize the board to develop a framework for the analysis process, nor does it provide any framework. Lastly, the NHRS system states the use of the phrase "and the like" in the list of positions is unclear and could jeopardize enforcement. The NHRS notes it is not clear whether the phrase is intended to address instances where a different title is used for one of the listed positions, or whether additional positions not specifically listed could also be subject to the penalty.
AGENCIES CONTACTED:
New Hampshire Retirement System
