Bill Text: NH SB228 | 2012 | Regular Session | Introduced

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Bill Title: Repealing the assessments for excess benefits paid by employers in the retirement system.

Spectrum: Partisan Bill (Republican 7-0)

Status: (Passed) 2012-05-23 - Senate Sen. Carson Moved Nonconcur with House Amendment #2216h, Motion Adopted, Voice Vote [SB228 Detail]

Download: New_Hampshire-2012-SB228-Introduced.html

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SB 228-FN-LOCAL – AS INTRODUCED

2012 SESSION

12-2875

10/09

SENATE BILL 228-FN-LOCAL

AN ACT repealing the assessments for excess benefits paid by employers in the retirement system.

SPONSORS: Sen. Stiles, Dist 24; Sen. Lambert, Dist 13; Sen. Bradley, Dist 3; Rep. F. Rice, Rock 15; Rep. Nevins, Rock 15; Rep. Waddell, Rock 15; Rep. J. Brown, Straf 1

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill repeals the provisions establishing the assessments for excess benefits to be paid by employers in the retirement system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2875

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT repealing the assessments for excess benefits paid by employers in the retirement system.

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

1 Repeal; Employer Assessments. RSA 100-A:16, III-a, as inserted by 2008, 300:33, relative to employer assessments for excess benefits paid by employers in the retirement system, is repealed.

2 Repeal; Prospective Amendment of Assessments. 2011, 230:1, 2, and 5, relative to the amendment, application, and interactive estimator of assessments for excess benefits paid by employers in the retirement system, are repealed.

3 Effective Date. This act shall take effect upon its passage.

LBAO

12-2875

11/15/11

SB 228-FN-LOCAL - FISCAL NOTE

AN ACT repealing the assessments for excess benefits paid by employers in the retirement system.

FISCAL IMPACT:

The New Hampshire Retirement System States this bill will have an indeterminable impact on state, county, and local expenditures in FY 2014 and each year thereafter. There will be no impact on state, county, and local revenues.

METHODOLOGY:

The New Hampshire Retirement System states this bill would repeal the so-called “spiking charges” (i.e., employer assessments for excess benefits paid to retirees). The System states this bill will not affect total employer contributions required over the long-term, however it will affect how employer contributions will be shared across employers. The System states without the “spiking-charge” increased costs related to retiring members whose average compensation is subject to the “spiking-charge” will be spread in future years among all participating system employers. The System states with the “spiking-charge” in effect, those employers paying the charge will contribute, over an extended period of time, a greater percentage of payroll than those employers who are not subject to the “spiking-charge”. The System is unable to determine the fiscal impact on state, county, and local expenditures as the System is unable to determine which employers, or to what extent, would have been subject to the “spiking-charge”.