The bill HB 727-FN proposes comprehensive amendments to the New Hampshire Retirement System, particularly focusing on the retirement benefits and eligibility criteria for public employees, especially Group II members. Key changes include a new definition of "vested," requiring 10 years of service for benefits eligibility, and modifications to "earnable compensation," which now includes 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, ensuring that excess compensation is not included in retirement calculations. Additionally, it removes specific language regarding extra and special duty compensation and clarifies that earnable compensation will not include retirement incentives, severance pay, or payments for unused sick or vacation time.

Furthermore, the bill introduces new provisions for calculating average final compensation based on service commencement dates, with different criteria for members who began service before or after July 1, 2011. It also modifies the maximum retirement benefit calculations, adjusting caps based on service commencement dates and ensuring that these changes do not affect disability benefits eligibility. The bill appropriates $27,500,000 annually from the General Fund to support these benefits through 2034 and includes provisions for reprogramming the pension administration system to implement these changes. Overall, the amendments aim to refine the retirement benefits structure, ensuring equitable calculations and financial sustainability for 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