Bill Text: NH HB116 | 2019 | Regular Session | Introduced
Bill Title: Relative to the job classification of positions in the retirement system.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-07-03 - Signed by Governor Sununu 07/01/2019; Chapter 147; Eff: 08/30/2019 [HB116 Detail]
Download: New_Hampshire-2019-HB116-Introduced.html
HB 116-FN - AS INTRODUCED
2019 SESSION
19-0027
10/04
HOUSE BILL 116-FN
AN ACT relative to the job classification of positions in the retirement system.
SPONSORS: Rep. McGuire, Merr. 29; Rep. Schuett, Merr. 20; Rep. P. Schmidt, Straf. 19; Rep. S. Beaudoin, Straf. 9
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill modifies the procedure for changes to the job classification and group under the state retirement system for state agency positions and for political subdivision positions.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19-0027
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to the job classification of positions in the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Job Classification. RSA 100-A:3, IX is repealed and reenacted to read as follows:
IX. If there is any doubt as to the proper classification of an existing or newly created state position in the retirement system, the trustees shall determine by a 3/4 vote whether the position should be classified as group I or group II and whether the position conforms with the definition of an employee, teacher, permanent policeman, or permanent fireman, as defined in RSA 100-A:1. In the case of a political subdivision position, the determination of the position classification and retirement system group shall be made by a majority vote of the legislative body of the political subdivision. In the case of a state agency request for such reclassification, if the director of the division of personnel confirms that the job conforms to the standards for inclusion in group II and recommends approval of the classification change, the job shall be reclassified to group II upon review and final approval by the board of trustees.
2 Effective Date. This act shall take effect 60 days after its passage.
19-0027
11/15/18
HB 116-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the job classification of positions in the retirement system.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ X ] Education [ X ] Highway [ X ] Other | |||
METHODOLOGY:
This bill changes the method for determining the proper classification of an existing or newly created state or local position in the New Hampshire Retirement System (NHRS). The bill states when there is any doubt as to the proper classification of an existing or newly created state position in the retirement system, the trustees shall determine by a 3/4 vote whether such position should be classified as Group I or Group II and whether such position conforms with the definition of an employee, teacher, permanent policeman or permanent fireman, as defined in RSA 100-A:1. For local positions, the legislative body of the local political subdivision shall determine the position classification and retirement system group by a majority vote. State agency requests for reclassification to Group II will require approval of the director of the division of personnel and the NHRS board of trustees.
Currently, the NHRS trustees make the determination of whether the position conforms with the definition of an employee, teacher, permanent policeman or permanent fireman, as defined in RSA 100-A:1, except a 2/3 vote is required to classify a job in Group II, and further provided that in the case of a newly created job held by more than one person, the job shall be classified in Group I unless it is explicitly placed in Group II by the legislation creating the job in the case of a state job, or by a majority vote of the legislative body of the political subdivision in the case of a political subdivision job. No job shall be reclassified from Group I to Group II without legislation specifically authorizing such a transfer.
The NHRS states the fiscal impact is indeterminable because the retirement system has no method to determine the number, if any, of positions that could be reclassified. Employer contributions are historically higher for Group II positions, therefore a reclassification to a Group II position would cost an employer more, and a reclassification to a Group I position would cost an employer less.
The Department of Administrative Services states this bill would give the Director of the Division of Personnel authority to classify new or reclassify existing positions for inclusion in group II in the retirement system subject to the review and final approval of the Board of Trustees of the NHRS. The Department has no way of knowing how many request to reclassify positions to Group II will be made and how many requests would be approved by the Director. In addition, the Department has no way to determine how many of the Director's determinations would be approved by the NHRS Board of Trustees.
The New Hampshire Municipal Association states the bill proposes to allow the group determination in all cases be made by majority vote of the legislative body and not just those newly created jobs held by more than one person. This change in how the decision is made has no effect on municipal revenues or expenditures.
The New Hampshire Association of Counties states this bill will have no fiscal impact.
AGENCIES CONTACTED:
New Hampshire Retirement System, Department of Administrative Services, New Hampshire Municipal Association, and New Hampshire Association of Counties
