This bill proposes to amend the transition provisions for group II service retirement that were adopted in 2011, changing the applicable date from January 1, 2012, to January 1, 2014. The amendments will affect various sections of the RSA, specifically those dealing with the minimum age and years of service required for regular service retirement, as well as the multiplier used to calculate the retirement annuity. The bill includes deletions of the original date "January 1, 2012" and insertions of the new date "January 1, 2014," along with adjustments to the annuity multiplier percentages for different service year brackets. The effective date of this act is set to be December 1, 2024.

The fiscal note attached to the bill indicates that there will be no fiscal impact in FY 2023-2025, but starting in FY 2026, there will be an increase in expenditures for the state and political subdivisions totaling over $14 million. The New Hampshire Retirement System (NHRS) actuary projects an increase in the actuarial accrued liability by $124.3 million due to the provisions in the bill, which will be amortized over a period of no longer than 20 years. The NHRS also anticipates significant administrative costs related to system reprogramming, revisions to administrative procedures, staff training, and potential delays in system upgrades, with reprogramming costs estimated at $165,000 starting in FY 2024. Additional costs to employers for payroll system updates are expected but are indeterminable at this time.