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 to be 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 who suffer 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 retirement benefits for Group II members, including new eligibility criteria and adjustments to the definitions of earnable compensation. Key deletions include the removal of a provision that exempted compensation for extra and special duty for members who commenced service after July 1, 2011. The bill specifies that earnable compensation will not include retirement incentives, severance pay, or pay for unused sick or vacation time, while establishing limits on earnable compensation during the final 12 months of service. Furthermore, it modifies the retirement eligibility criteria, requiring members who commenced service on or after July 1, 2011, to be at least 52.5 years old and have completed 25 years of service to qualify for retirement benefits. The bill aims to create a more equitable retirement system while ensuring compliance with federal regulations and addressing the financial sustainability of the retirement system.

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