This bill amends the existing retirement law to stipulate that the reduction of a retiree's annuity at the member's full retirement age under the federal Social Security system will apply to any Group I retired state employee or retired teacher member who retired before July 1, 2023, and has not reached full Social Security retirement age by July 1, 2025. The specific legal language being inserted includes provisions in RSA 100-A:5, I(b); 100-A:6, I(b)(1)(A) and (B); and 100-A:6, I(d)(1)(A) and (B), which clarify the application of the annuity reduction.

The bill is set to take effect on July 1, 2025, and is projected to have a fiscal impact, particularly in FY 2028, with estimated expenditures exceeding $440,000 for the state and $710,000 for political subdivisions. The New Hampshire Retirement System anticipates an increase in the actuarial accrued liability by $13 million due to the bill's provisions, which will be amortized over a period of no longer than 20 years. Additionally, there will be administrative costs associated with reprogramming the pension administration system, leading to an indeterminable increase in expenditures.