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). Additionally, the bill introduces a fiscal capacity disparity aid grant to better support municipalities with varying financial capabilities. It also modifies the retirement system by adjusting maximum retirement benefits for certain public employees, changing calculation dates and percentages, and redefining "earnable compensation." Notably, the bill increases the maximum total compensation for critically injured first responders from $500,000 to $1,000,000 per biennium, as reflected in the amendment to RSA 281-A:32-a, II.

Furthermore, the bill makes extensive changes to the definition of "earnable compensation," deleting previous exclusions for extra and special duty compensation for members who began service after July 1, 2011, and replacing it with a broader definition that excludes retirement incentives, severance pay, and payments for unused sick or vacation time. It establishes limits on earnable compensation during the final 12 months of service and clarifies retirement eligibility criteria for Group II members, including new age and service requirements. The bill also appropriates $14.5 million for fiscal year 2026 and $27.5 million annually thereafter to fund these benefits, with a phased implementation schedule extending to July 1, 2034. Overall, the bill aims to enhance support for education and improve the financial security of public employees and first responders.

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