Making an appropriation to the New Hampshire retirement system to pay down the unfunded accrued liability.
Impact
The financial implications of HB 436 are substantial, with estimated increases in expenditures of about $165,000 for FY 2024 and around $3.28 million for FY 2025, predominantly attributed to employer contributions for police and fire services. Moreover, the bill indicates an indeterminable fiscal impact on local governments, as adjusting benefit formulas and restoring earnable compensation can lead to higher overall costs. Stakeholders, including the New Hampshire Retirement System, emphasize that the proposed changes will necessitate administrative adjustments, potentially incurring additional expenses related to system overhauls.
Summary
House Bill 436 aims to address the unfunded accrued liability within the New Hampshire Retirement System by making significant appropriations and adjustments to retirement benefits for Group II members. Specifically, the bill proposes an annual appropriation of $25 million starting in FY 2025 to the system, which is intended to gradually pay down this liability and restore certain benefits that were amended in 2011. This involves modifying age and service requirements, as well as key calculations related to average final compensation.
Contention
Debate surrounding HB 436 highlights the tension between the urgency of addressing unfunded liabilities and the impacts of increased costs on local budgets and public services. Supporters of the bill argue that restoring retirement benefits is crucial for the welfare of public sector employees, whereas opponents raise concerns regarding the financial burden on municipalities and the potential for increased taxes. The complexity of restoring benefits also raises questions about fairness for newer employees, who may not reap the same benefits as older employees covered under the previous regulations.
Provides relative to the payment of unfunded accrued liability by employers of the Municipal Police Employees' Retirement System (OR SEE ACTUARIAL NOTE FC)
(Constitutional Amendment) Provides relative to application of nonrecurring state monies to state retirement system unfunded accrued liabilities (EN NO IMPACT APV)
Requires school systems to provide a salary increase for teachers and other school employees using savings attributable to the state's payment of certain unfunded accrued liability of the Teachers' Retirement System of Louisiana (EN INCREASE GF EX See Note)
Provides relative to payments toward the unfunded accrued liability of the Louisiana State Employees' Retirement System and the amortization of certain actuarial gains. (gov sig) (EN SEE ACTUARIAL NOTE FC)
Establishing a recruitment incentive program within the community college system for public safety communicators and dispatchers and making an appropriation therefor.
Establishing the housing champion business loan program and making appropriations to the department of business and economic affairs and the business finance authority.
(New Title) establishing a special veterans license plate and creating a fund and administrative programs from the proceeds of the sale of such plates and establishing the New Hampshire first for veterans program and authority.
Requiring students in the university and community college systems of New Hampshire to pass the United States Citizenship and Immigration Services civics naturalization test.