The bill, HB 282-FN, proposes significant amendments to New Hampshire's education funding and retirement benefits for public employees. Starting in fiscal year 2028, the calculation of adequacy grants will be revised based on average daily membership in residence (ADMR), and a new fiscal capacity disparity aid grant will be added to better support municipalities with varying financial capabilities. Additionally, the bill modifies the retirement system by adjusting maximum retirement benefits for certain public employees, changing calculation dates and percentages, and redefining "earnable compensation." Notably, it increases the maximum total compensation for first responders suffering critical injuries in the line of duty from $500,000 to $1,000,000 per biennium, as reflected in the amendment to RSA 281-A:32-a, II.

The bill also makes extensive changes to the definitions and limitations surrounding earnable compensation for retirement benefits. It deletes the previous exclusion of compensation for extra and special duty for members who commenced service on or after July 1, 2011, and clarifies that earnable compensation shall not include retirement incentives, severance pay, or payments made more than 120 days after termination, with certain exceptions. Furthermore, it establishes new age and service requirements for Group II members, adjusting the eligibility criteria for retirement benefits and annuity multipliers based on service commencement dates. The bill appropriates $14.5 million for the fiscal year ending June 30, 2026, and $27.5 million annually thereafter to fund these benefits, with a phased implementation schedule for various provisions.

Statutes affected:
Introduced: 281-A:32-a
As Amended by the Senate: 281-A:32-a, 198:41, 100-A:1, 100-A:5, 21-I:30, 100-A:6, 100-A:6-a, 100-A:10, 100-A:16, 100-A:19-b, 100-A:19-d
Version adopted by both bodies: 281-A:32-a, 198:41, 100-A:1, 100-A:5, 21-I:30, 100-A:6, 100-A:6-a, 100-A:10, 100-A:16, 100-A:19-b, 100-A:19-d
CHAPTERED FINAL VERSION: 281-A:32-a, 198:41, 100-A:1, 100-A:5, 21-I:30, 100-A:6, 100-A:6-a, 100-A:10, 100-A:16, 100-A:19-b, 100-A:19-d