The bill HB 727-FN proposes comprehensive amendments to the New Hampshire retirement system, particularly focusing on the eligibility and calculation of retirement benefits for public employees, especially those in group II. Key changes include redefining "vested" to require 10 years of service for benefits eligibility and modifying the definition of "earnable compensation" to include various pay types for members vested before January 1, 2012, while excluding certain compensations for those who did not achieve vested status by that date. The bill also establishes limits on earnable compensation during the final 12 months of employment and clarifies that payments made more than 120 days post-termination will not count towards earnable compensation, with exceptions for disability-related severance pay. Significant deletions from current law include the removal of the January 1, 2012, cutoff date, replacing it with September 1, 2013, which impacts the calculation of retirement benefits.

Additionally, the bill introduces new age and service requirements for retirement, allowing members who began service before July 1, 2011, to retire at age 45 with 20 years of service, while those who started after that date must be at least 52.5 years old with 25 years of service. It also modifies the calculation of average final compensation and disability retirement allowances, increasing the maximum years of creditable service for disability benefits from 40 to 42.5 for newer members. The bill appropriates $27,500,000 annually to fund these changes, with provisions taking effect between January 1, 2026, and January 1, 2034. Overall, the bill aims to create a more equitable retirement framework while addressing the evolving needs of the retirement system.

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