This bill amends RSA 100-A:4, III(b) to eliminate the previous one-year cap on creditable service towards retirement benefits for members receiving workers' compensation. The new legal language states that any member who receives a weekly award under RSA 281-A for an injury sustained in the course of employment is entitled to creditable service for the entire duration of their compensation, without the limitation of one year. To qualify for this creditable service, members must submit a memo of payment of disability compensation form to the board of trustees, verifying the start and end dates of their disability payments.

The fiscal impact of this bill is projected to be indeterminable, as it depends on various factors such as the number of affected members and the duration of their benefits. The New Hampshire Retirement System (NHRS) anticipates an increase in employer contributions and actuarial accrued liabilities due to the additional service credit granted. The NHRS estimates that if 10% of active members were to receive an additional six months of service credit, it could lead to an increase in employer pension rates and a significant rise in the actuarial accrued liability, potentially amounting to $23 million. Additionally, there may be administrative costs ranging from $50,000 to $100,000 in FY 2026 for reprogramming the pension administrative system.

Statutes affected:
Introduced: 100-A:4