The bill HB 727-FN proposes comprehensive amendments to the New Hampshire Retirement System, particularly focusing on the retirement benefits for Group II members. Key changes include the introduction of a new definition of "vested," establishing eligibility for benefits after 10 years of service, and modifications to the definition of "earnable compensation." The bill specifies that earnable compensation for group I members who attained vested status before January 1, 2012, will include various forms of pay but will not exceed 1.5 times the higher of the earnable compensation from the preceding 12 months or the highest compensation year. Additionally, it removes references to "permanent firemen and permanent policemen" and clarifies that compensation for extra and special duty will not be included for members who began service after July 1, 2011.

Furthermore, the bill adjusts the retirement eligibility criteria, allowing members who commenced service before July 1, 2011, to retire at age 45 with 20 years of service, while those starting on or after that date must be at least 52.5 years old and have 25 years of service. It also establishes a minimum annual service retirement allowance of $10,000 for qualifying members and modifies the calculation of disability retirement benefits based on years of creditable service. To fund these changes, the bill appropriates $27,500,000 annually from the General Fund to the retirement system from July 1, 2025, until July 1, 2034, ensuring the financial sustainability of the retirement system while enhancing benefits for public employees.

Statutes affected:
Introduced: 100-A:1, 100-A:5, 100-A:6-a, 21-I:30, 100-A:6, 100-A:10, 100-A:16, 100-A:19-b, 100-A:19-d