This bill amends current law regarding the reduction of a retiree's annuity at their full retirement age under the federal Social Security system. The amendment specifies that the reduction in a service retirement allowance for teachers and other group I member employees will apply to any retired employee member or retired teacher member of group I who retired prior to July 1, 2023, and who has not attained age 65 prior to July 1, 2024. The bill will take effect on July 1, 2024.

According to the fiscal note, the bill will have a fiscal impact on the state, county, and local governments. The New Hampshire Retirement System estimates that there will be an increase in expenditures of $200,000 in FY 2026 and $210,000 in FY 2027 due to administrative costs related to reprogramming the pension administrative system. The bill will also result in an increase in employer pension rates as a percent of payroll for employees, teachers, police, and fire personnel. The estimated total impact on political subdivisions is $520,000 in FY 2026 and $520,000 in FY 2027. The actuarial accrued liability is projected to increase by $11.1 million and will be amortized over a fixed period of no longer than 20 years.